Category Archives: Delaware Court of Chancery

Delaware Superior Court Addresses Competing Arbitration Clauses

On November 9, 2018, Judge Carpenter of the Delaware Superior Court issued the Court’s opinion denying Toll Brothers, Inc.’s motion to dismiss homeowners Frederick and Connie Wang’s complaint, thus allowing all six counts of the Wang’s claims against their builder … Continue reading

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Demand Futility and the Newark Country Club

In Jennifer L. Stritzinger v. Dennis Barba et al., Stritzinger, a non-dues-paying member of nominal defendant Newark Country Club (the “Club”) brought derivative claims against the twelve members of the Club’s board of directors (the “Board”) for breach of fiduciary … Continue reading

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Calculating the Appropriate TRO Bond Amount

In Applied Energetics, Inc. v. George Farley and AnneMarieCo., LLC, CA No. 2018-0489-TMR, the Vice Chancellor addressed the appropriate bond the Plaintiff must post in connection with a preliminary injunction.  Court of Chancery Rule 65(c) requires that any applicant seeking … Continue reading

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Court of Chancery Addresses Availability of Appraisal Rights

City of North Miami Beach General Employees’ Retirement Plan Et al. v. Dr. Pepper Snapple Group, Inc. Et al. Dr. Pepper’s stockholders initiated this litigation due to their purported inability to exercise appraisal rights pursuant to Section 262 of the … Continue reading

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Deposition Transcripts and Errata Sheets

Vice Chancellor Slights recently addressed the appropriate course of action when a party challenges substantive changes to a deposition transcript made through the use of an errata sheet. In Mediacom Delaware LLC v. Sea Colony Recreational Association, Inc., Sea Colony … Continue reading

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Court of Chancery Holds Business Judgment Protections Announced in Kahn v. M&F Worldwide Corp. Extends to Conflicted One-Side Controller Transactions

Stockholders of Martha Stewart Living Omnimedia, Inc. (MSLO) brought suit in the Court of Chancery against Martha Stewart, alleging that Stewart, as controlling stockholder of MSLO breached her fiduciary duties by negotiating greater consideration for herself to the detriment of … Continue reading

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Standard of Review for Executive Compensation Awards: In Re Investors Bancorp, Inc. Stockholder Litigation

In the case of In Re Investors Bancorp, Inc. Stockholder Litigation, stockholders filed a derivative complaint on behalf of Investors Bancorp, Inc. (the “Company”) alleging directors breached their fiduciary duties in awarding themselves grossly excessive awards under the Equity Incentive … Continue reading

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Charging Liens: The Type of Fee Agreement Matters

On appeal from the Court of Chancery, the Delaware Supreme Court addressed whether and to what extent a charging lien may be imposed on a judgment to recover unpaid attorney’s fees. In the case at bar, Katten Muchin Rosenman LLP … Continue reading

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Court of Chancery Denies Stockholder Books and Records Request

In a Memorandum Opinion issued August 31, 2016, Judge LeGrow, sitting as a Vice Chancellor by designation pursuant to Del. Const. art. IV, § 13(2), denied a shareholder demand for the inspection of books and records related to $69 million … Continue reading

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Chancellor Bouchard sanctions party for “unusually deplorable behavior”

In a fifty-eight page Opinion issued today, Chancellor Bouchard analyzed and ultimately granted a motion to shift attorneys’ fees due to a party’s bad faith litigation tactics.  Given the demanding standard of establishing “clear evidence” that a party acted in … Continue reading

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