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 the common and preferred shareholders
of EMAK Worldwide, Inc. and the largest shareholder and former longtime CEO,
Donald Kurz. The battle for control involved written consents and an attempt
to reduce the size of the board without first properly removing the existing
board members. After Chancery ruled that the attempt to reduce the size of
the board violated the DGCL and the Delaware Supreme Court affirmed, interim
attorneys' fees in the amount of $2.5 million were awarded to the attorneys for
The case is discussed in detail
in Francis' blog post on the Delaware Corporate
& Commercial Litigation Blog.