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 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 plaintiffs.

The case is discussed in detail in Francis' blog post on the Delaware Corporate & Commercial Litigation Blog