Delaware Business Litigation Report

Court Of Chancery Awards Fee Despite Confusion Over Causation

Sample v. Gumbiner C.A. No. 8873-VCN (July 31, 2014) In settling a class or derivative suit, the plaintiff's attorney will seek a fee if she has caused a corporate benefit, such additional disclosures in a merger.  But what happens when there is a dispute over why those added disclosures were made?  The Court, as here, is left with a causation dispute where the record is not clear.  This decision illustrates how a court will try to reason its way to a conclusion and, in effect, split the baby by lowering the fee when causation is not clear. Share