Court Of Chancery Clarifies Fee For "Volunteer"
Raul v. Astoria Financial Corporation, C.A. No. 9169-VCG (June 20, 2014)
Delaware has long recognized that a stockholder may earn an attorney fee for asserting a valid claim on his corporation's behalf, even if that claim does no go into litigation. But is there a limit on that law? This decision explains that a mere "volunteer" who points out how her corporation might benefit from some action does not thereby have her attorney fees paid. Only a valid "claim" merits a fee award. A "claim" must assert some actionable wrong doing, not just a way to do business better.