Delaware Business Litigation Report

Court Of Chancery Explains When To Award Fees For Litigation Misconduct

ASB Allegiance Real Estate Fund v. Scion Breckenridge Managing Member LLC, C.A.5843-VCL (September 16, 2013)

When does a litigant"s conduct before or after the litigation is filed justify fee shifting? This careful decision answers that question.

To begin with, mere silence about a drafting error during contract negotiations is not the sort of fraud that warrants fee shifting.

As to post litigation fee shifting, needlessly increasing the costs as a leverage technique does warrant fee shifting. The decision also gives a litany of other examples that is a useful guide.

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