Corporate

Contract-Based Award of Attorneys’ Fees

 ReCor Medical, Inc. v. Warnking, C.A. No. 7387-VCN (Del. Ch. May 14, 2014) [an enhanced version of this opinion is available to lexis.com subscribers].

This letter opinion provides a helpful analysis of how the Court of Chancery awards attorneys’ fees based on a contract that provides for fees to be awarded to the prevailing party in a dispute. The issue here was the amount of fees, not the right to have them awarded. The essence of the objection to the amount of fees requested was that multiple lawyers worked on similar tasks and attended the same hearings. The court observed that, in hindsight, most legal services might benefit from greater efficiency, but the court concluded that the efforts in this matter were reasonable and consistent with professional judgment. The court applied a modest discount but granted most of the fees requested.

 Read more Delaware business litigation case summaries and commentary on Delaware Corporate and Commercial Litigation Blog, a blog hosted by Francis G.X. Pileggi, of Eckert Seamans.

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