Delaware Business Litigation Report

Delaware Business Litigation Report

Category Archives: Attorney Fees

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Supreme Court Bars Fees For Dismissed Case

Posted in Attorney Fees
Crothall v. Zimmerman, No. 608, 2013 (June 9, 2014) In what the Court itself characterized as an unusual case, the Supreme Court denied a fee to the lawyers for a plaintiff who won a small victory for their plaintiff stockholder.  Unfortunately for the lawyers, their client sold his holdings and thereby lost any standing to … Continue Reading

Court Of Chancery Requires Advancement Absent The Word “Advancement”

Posted in Attorney Fees
Fillip v. Centerstone Linen Services LLC,  C.A. 8712-ML (February 27, 2014) Too often corporate documents refer to "indemnification" when they really mean "advancement."  Here the Court was required to interpret an agreement that really called for advancing attorney fees but did not use the word "advancement."  Hence, even if the right terminology is not used … Continue Reading

Court Of Chancery Denies Advancement

Posted in Attorney Fees
White v. Kern, C.A. 7872-VCG (transcript, January 24, 2014) This ruling illustrates an often overlooked point that the decision to advance attorneys’ fees may constitute a self-dealing transaction when the party getting advancement is the party voting to do so. Hence, absent a proper basis, advancement is improper under those circumstances.  Of course, when advancement … Continue Reading

Master in Chancery Summarizes Advancement Law

Posted in Attorney Fees
Fillip v. Centerstone Linen Services LLC, C.A. 8712-ML (December 3, 2013) This is an excellent summary of the Delaware  law on advancement and why all the arguments against improvidently granted advancement rights are wrong.  For example, it explains why the right to be "defended’ includes advancement, but the right just to be indemnified does not.  In … Continue Reading

Court Of Chancery Calculates Benefit Conferred

Posted in Attorney Fees
In re Quest Software Inc. Shareholders Litigation, C.A. 7357-VCG (November 12, 2013) This is an interesting decision because it involves calculating how much litigation contributed to an increase in merger consideration when a competing bid drove the merger price up. There is no formula to apply to reach the result. Significantly, the attorneys were aided by … Continue Reading

Court Of Chancery Explains When To Award Fees For Litigation Misconduct

Posted in Attorney Fees
ASB Allegiance Real Estate Fund v. Scion Breckenridge Managing Member LLC, C.A.5843-VCL (September 16, 2013) When does a litigant"s conduct before or after the litigation is filed justify fee shifting? This careful decision answers that question. To begin with, mere silence about a drafting error during contract negotiations is not the sort of fraud that warrants fee shifting. … Continue Reading

Court Of Chancery Limits Advancement

Posted in Attorney Fees
Emerging Europe Growth Fund L.P. v. Figlus, C.A. 7936-VCP (March 28, 2013) When may a partnership demand advancement of its litigation expenses from a limited partner who has arguably breached the partnership agreement?  Only when the partnership agreement is very clear in granting that right, according to this decision… Continue Reading