Can My Company Recover Its Attorneys’ Fees And Costs In A Lawsuit In New York State Court?

A corporate or individual litigant is usually responsible for the payment of its own attorneys' fees and costs in a lawsuit in the New York state courts. New York follows the so-called "American Rule" that a litigant is "not . . . allow[ed] . . . to recover damages for the amounts...

Williams Mullen Corporate Law Alert - North Carolina

by David F. Paulson, Jr. & Miles S. Bruder* Enforcing commercial contracts will likely become a less-costly proposition in North Carolina this fall, thanks to a new exception to the state's general ban on attorneys' fee awards to a prevailing party in litigation. Session Law 2011-341...

D&O Insurance: Non-Party Employee Witnesses' Attorneys' Fees Held Covered

When corporate officials face an SEC enforcement action, the testimony of non-party corporate employees is sometimes required. The insurance question that may arise when this happens is whether the attorneys' fees incurred in connection with these witnesses' testimony is covered under the...

Attorneys' Fees Must Be Reasonable, Despite What Contract Says

Many contracts provide that in the event of litigation arising out of a breach, the prevailing party will be entitled to recover "reasonable" attorneys' fees from the losing party. Some attorneys, however, hoping to obviate the need for a mini-trial regarding the reasonableness of...

Are Plaintiffs Fleeing Delaware?

David Marcus writing for The Deal , adds to the growing commentary suggesting that plaintiffs' lawyers who file class actions, especially those challenging mergers, will be inclined to increasingly avoid Delaware Courts if the Court continues to impose more stringent prerequisites for awarding...

Proposed Del Monte Settlement

In an example that not all transaction-related litigation is created equally, Reuters is reporting Del Monte and Barclays have agreed to a settlement in the pending challenge to the Del Monte transaction. You'll remember that Vice Chancellor Laster's earlier opinion in this case raised eyebrows...

Delaware Court of Chancery Awards Attorneys’ Fees of $660,000

Auriga Capital Corp. v. Gatz Properties, LLC , is an iconic opinion from the Delaware Court of Chancery that was issued on Jan. 27, 2012 and highlighted on these pages here. This decision is momentous because it explains why fiduciary duties will apply by default to managers and controlling members...

Chancery Rejects Motion for Attorneys’ Fees Based on Complaint Mooted by Actions of Board

Freedman v. Adams, C.A. No. 4199-VCN (Del. Ch. March 30, 2012). Issue Addressed The Court of Chancery addressed the standard for awarding attorneys' fees when there has been a stipulated dismissal of a derivative action which was largely mooted by measures taken by the defendant board of...

Francis Pileggi Discusses Recent Delaware Supreme Court Decision Upholding Award of Attorneys’ Fees for Non-Monetary Corporate Benefit

In EMAK Worldwide, Inc. v. Kurz, No. 512, 2011 (Del. April 17, 2012), the Delaware Supreme Court considered whether the Court of Chancery properly granted an interim fee award in a shareholders' suit which did not produce an immediate monetary benefit. The case involved a control dispute involving...

Overly Persistent Plaintiff Socked With Attorneys' Fees By Business Court

Persistence can be a valuable quality, but when it leads to an unjustified refusal to give up a questionable case, the party suffering from persistency can get socked with attorneys' fees. That was the result in Judge Gale's Order on Tuesday in McKinnon v. CV Industries, Inc. McKinnon was...

Court Rules on Exit of Hedge Fund Partner

Seibold v. Camulos Partners LP , C.A. No. 5176-CS (Del. Ch. Sept. 17, 2012). Issue Address : Did hedge fund breach the limited partnership agreement by not distributing to the departing partner his capital investment? Short Answer : Yes. In addition, the Court addressed many related claims and...

Not An Oscar Winner: A Case About Indemnification

It's hard for me to think of a case I'd rather not write about than GR&S Atlantic Beach, LLC v. Hull , 2012 NCBC 52 [ enhanced version available to Lexis.com subscribers ]. It's not just that it's deathly boring or that it involves the interpretation of poorly written transaction...