Unitrin, Inc. v. American General Corp.

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Unitrin, Inc. v. American General Corp. (1994)
the Delaware Supreme Court
Syllabus

Unitrin, Inc. v. American General Corp., Del. Supr., 651 A.2d 1361 (1995) is the leading case on a board of directors' ability to use defensive measures, such as poison pills or buybacks, to prevent a hostile takeover. The case demonstrates an approach to corporate governance that favors the primacy of the board of directors over the will of the shareholders.

783282Unitrin, Inc. v. American General Corp. — Syllabus1994the Delaware Supreme Court

SUPREME COURT OF DELAWARE

651 A.2d 1361

UNITRIN, INC., JAMES E. ANNABLE, REUBEN L. HEDLUND, JERROLD V. JEROME, GEORGE A. ROBERTS, FAYEZ S. SAROFIM, HENRY E. SINGLETON and RICHARD C. VIE, Defendants Below, Appellants,  v.  AMERICAN GENERAL CORP., Plaintiff Below, Appellee.

IN RE UNITRIN, INC. SHAREHOLDERS LITIGATION

No. 418  Argued: December 6, 1994 --- Decided: January 11, 1995 --- Released for Publication February 3, 1995.

Richard L. Sutton, Esquire (argued), Thomas R. Hunt, Jr., Esquire, Alan J. Stone, Esquire, and Michael L. Vild, Esquire, of Morris, Nichols, Arsht & Tunnell, Wilmington, Delaware; Kenneth R. Heitz, Esquire and David I. Gindler, Esquire, Irell & Manella, Los Angeles, California, for appellants.

Rodman Ward, Jr., Esquire, Marc B. Tucker, Esquire (argued), R. Michael Lindsey, Esquire, Cathy L. Reese, Esquire, Joseph M. Asher, Esquire, and Herbert W. Mondros, Esquire, of Skadden, Arps, Slate, Meagher & Flom, Wilmington, Delaware; Anna J. Rastor, Esquire, of Skadden, Arps, Slate, Meagher & Flom, New York, New York, for appellee, American General Corporation.

Joseph A. Rosenthal, Esquire, and Norman M. Monhait, Esquire, of Rosenthal, Monhait, Gross & Goddess, Wilmington, Delaware; Edward Labaton, Esquire (argued) and Ira A. Schochet, Esquire, of Goodkind, Labaton, Rudoff & Sucharow, New York, New York, for appellees, Unitrin Shareholders.

Before VEASEY, Chief Justice, HOLLAND, and BERGER, Justices.

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