Recent Chancery Decision Highlights Distinction Between Laches And Statute Of Limitations

When untimely claims are brought before the Delaware Court of Chancery, they are often met with challenges based upon laches or the applicable statute of limitations. But the application of these concepts are not entirely clear and at times inconsistent.

In the recent decision of In Kraft v. WisdomTree Investments, C.A. No. 10816-CB (Del. Ch. Aug. 3, 2016), Chancellor Bouchard shed new light on the applicability of these defenses, and provided a helpful analysis which will undoubtedly serve as a "roadmap" to analyze these defenses moving forward.

In so doing, the Court distinguished between the following claims: (i) legal claims seeking legal relief, (ii) equitable claims seeking equitable relief, and (iii) matters involving legal and equitable claims, and provided the following analysis: