Service For The Supreme Court
Two weeks after the expiration of the second term of James Pennewill, the previous Chief Justice, Governor C. Douglass Buck announced the appointment of Daniel J. Layton to replace him. Having been elected attorney general the previous November, and after having served in office for only six months, Layton resigned from that position to become chief justice. Governor Buck reappointed Josiah O. Wolcott as chancellor, as well as William Watson Harrington and Charles S. Richards as associate justices of the Supreme Court. In addition to these associate justices, Layton's colleagues in the law courts during his tenure as chief justice also included Richard S. Rodney, David J. Reinhardt, and Charles L. Terry. The resident judge of New Castle County, David J. Reinhardt, died in 1935 after two years of service and was replaced Frank L. Speakman.
During Layton's 12 years as chief justice he wrote 221 of the 511 opinions produced by Delaware's law courts, including 49 of the 106 opinions issued by the Supreme Court. One of Layton's landmark decisions was Guth v. Loft in 1939. In this case Layton defined the relationship between corporate opportunities and the duty of loyalty for Delaware corporations. It was notable in its deviation from the 200 year precedent from Keech v. Sandford that a fiduciary should leave open no possibility of conflict of interest between his private dealings and the job he is entrusted to do. Another of Layton's landmark decisions was Bovay v. H.M. Byllesby & Co. in 1944, which reversed the chancellor's previous dismissal of a suit for an accounting and finding the complaint to state a claim for fraud and unfair dealing against corporate officers and directors for breach of trust, not "mere torts."
As William Prickett, Sr. stated at the proceedings in memory of Chief Justice Layton:
"The Chief Justice wrote English, not a jargon of legalese. No "saids", "to-wits", "hereinaboves", or "aforementioneds" appear in any of his opinions. His language was striking in its clarity and in its picturesqueness."
Unquestionably, Chief Justice Layton was a brilliant judge with a genius for defining fundamental concepts in corporate law. But, unfortunately his aggressive domination of a proceeding at oral argument frequently silenced even his strong-willed colleagues. Worse still, Layton's air of apparent hostility extended to the lawyers arguing before him, whom he would repeatedly challenge in a combative manner. Judge Collins J. Seitz recalls: "It's an old story in the law heard everywhere about the judge who kept interrupting the lawyer who was arguing his case. Finally, the lawyer got irritated, and said, 'Your Honor, I don’t mind your interrupting me, but I hope you win it for me!"'
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