What is shlensky v. wrigley?

Shlensky v. Wrigley is a prominent corporate law case that was decided by the Delaware Supreme Court in 1968. The case involved a shareholder derivative suit brought by Charles Shlensky against the directors of the Chicago Cubs baseball team, which was owned by the Wrigley family.

Shlensky alleged that the directors had breached their fiduciary duties by prioritizing the interests of the Wrigley family over the financial interests of the shareholders. Specifically, Shlensky claimed that the directors had refused to install lights at Wrigley Field, which would have allowed the team to play night games and generate additional revenue.

The Delaware Supreme Court ultimately ruled in favor of the defendants, stating that the business judgment rule protected the directors' decision-making unless there was evidence of bad faith or self-dealing. The court found that the directors had acted in good faith and with proper regard for the best interests of the corporation, and therefore were not liable for breaching their fiduciary duties.

The ruling in Shlensky v. Wrigley affirmed the principles of the business judgment rule and established that courts should defer to the decisions of corporate directors unless there is clear evidence of misconduct. The case continues to be cited as a landmark decision in the field of corporate law.