Justia Delaware Supreme Court Opinion Summaries

The case involves a dispute over attorneys' fees following a $1 billion settlement in litigation challenging Dell Technologies' redemption of Class V stock. The plaintiff, Steamfitters Local 449 Pension Plan, alleged that Dell Technologies, controlled by Michael Dell and Silver Lake Group LLC, redeemed the Class V stock at an unfair price. The litigation was complex, involving extensive discovery and expert testimony, and was settled on the eve of trial.The Court of Chancery of the State of Delaware awarded 26.67% of the settlement, or $266.7 million, as attorneys' fees. Pentwater Capital Management LP and other class members objected, arguing that the fee was excessive and that a declining percentage method should be applied, similar to federal securities law cases. The Court of Chancery rejected this argument, holding that Delaware law, as established in Sugarland Industries, Inc. v. Thomas and Americas Mining Corp. v. Theriault, does not mandate a declining percentage approach. The court found that the $1 billion settlement was a significant achievement and that the fee award was justified based on the results achieved, the time and effort of counsel, and other relevant factors.The Supreme Court of the State of Delaware reviewed the case and affirmed the Court of Chancery's decision. The Supreme Court held that the Court of Chancery did not exceed its discretion in awarding 26.67% of the settlement as attorneys' fees. The court emphasized that the Sugarland factors, particularly the results achieved, are paramount in determining fee awards. The Supreme Court also noted that while a declining percentage approach is permissible, it is not mandatory, and the Court of Chancery adequately justified its decision not to apply it in this case. View "In re Dell Technologies Inc." on Justia Law

In the fall of 2020, the Wilmington Police Department investigated the NorthPak street gang, which was involved in a series of violent crimes in Wilmington, Delaware. Gregory Wing, identified as a leader and shooter for NorthPak, was implicated in multiple shootings, including the murders of Ol-lier Henry and Taquan Davis. The investigation revealed that NorthPak was engaged in a violent feud with the M-Block Grimy Savages (MGS) gang. Wing was tied to the crimes through ballistics evidence, cell tower data, social media posts, and witness testimony. He was arrested in September 2020 with a firearm linked to the shootings.The Superior Court of Delaware tried Wing and his co-defendant Elijah Coffield together. The trial lasted 14 days, with over 50 witnesses and 600 exhibits. The jury found Wing guilty of gang participation, two counts of first-degree murder, and four counts of attempted first-degree murder, among other charges. He was sentenced to two life terms plus additional years in prison. Wing appealed, challenging two evidentiary rulings: the admission of a witness's out-of-court statement and the limitation on cross-examination of another witness.The Supreme Court of Delaware reviewed the case. Wing argued that the Superior Court erred in admitting Kenneth Griffin's out-of-court statement under 11 Del. C. § 3507, claiming it was not voluntary and not truthful. The court found that Griffin's statement was voluntary, as he initiated contact with the police and was read his Miranda rights. The court also determined that Griffin's indication of the truthfulness of his statement met the requirements of § 3507. Wing also contended that the court improperly restricted cross-examination of Tyrie Burton, a witness who testified against Coffield. The court held that the trial judge did not abuse his discretion in limiting the cross-examination to avoid Fifth Amendment issues.The Supreme Court of Delaware affirmed Wing's convictions and sentences. View "Wing v. State" on Justia Law

Shannon Watson was convicted of Assault Second Degree after striking Damon Howard in the face multiple times, resulting in severe and permanent head injuries. The incident occurred outside the bathroom of Catherine Rooney’s Irish Pub. Watson claimed he acted in self-defense due to prior tensions with Howard, who was his friend’s ex-boyfriend. Both men testified, providing conflicting accounts of the altercation. Watson argued that Howard had a history of violence and that he felt threatened during the encounter.The Superior Court of Delaware presided over the initial trial. Watson did not object to the trial court’s use of the term “victim” when referring to Howard, nor did he request a specific jury instruction regarding character evidence. The jury found Watson guilty, and he was sentenced to eight years in custody, suspended for one year at supervision Level II.The Supreme Court of Delaware reviewed the case on appeal. Watson argued that the trial court’s reference to Howard as the “victim” and the failure to issue a “character of the defendant” jury instruction constituted plain error. The Supreme Court held that the single reference to Howard as the “victim” did not amount to plain error, as it did not suggest the trial court’s acceptance of the State’s version of the facts. Additionally, the court found that the omission of a specific character evidence instruction did not deprive the jury of its ability to perform its duty, as the jury was adequately instructed to consider all evidence and determine the appropriate weight to give it. Consequently, the Supreme Court of Delaware affirmed Watson’s conviction. View "Watson v. State" on Justia Law

In response to the COVID-19 pandemic, the Governor of Delaware issued a series of emergency orders that included restrictions on religious services. These restrictions, which were lifted by June 2020, limited in-person worship to ten people and imposed various other mandates. Over 18 months later, two religious leaders filed suit in the Court of Chancery seeking injunctive relief against these restrictions, which were no longer in effect. The Court of Chancery dismissed the case for lack of subject matter jurisdiction, concluding that the plaintiffs could not demonstrate a reasonable apprehension of future harm.The plaintiffs then transferred their action to the Superior Court, seeking declaratory judgment and damages for alleged violations of their constitutional rights. The Superior Court dismissed the claims, ruling that the requests for declaratory relief were not justiciable because the restrictions had been lifted and there was no ongoing controversy. Additionally, the court found that the Governor was immune from the damages claims under the State Tort Claims Act and the doctrine of qualified immunity.On appeal, the Delaware Supreme Court affirmed the lower courts' decisions. The Court agreed that the plaintiffs failed to show a reasonable apprehension of future harm, which is necessary for injunctive relief. The Court also held that the plaintiffs' claims for declaratory judgment were not justiciable because there was no ongoing controversy and the alleged harm could not be redressed by a declaratory judgment. Finally, the Court upheld the Superior Court's finding that the Governor was immune from damages claims, as his actions were discretionary and taken in good faith during an unprecedented public health crisis. View "In re Covid-Related Restrictions on Religious Services" on Justia Law

The case involves a dispute between two parties who entered into a partnership agreement that specified the financial conditions under which the appellant would receive a distribution upon the sale of the partnership’s principal asset. The agreement set a net-sale-price threshold above which the appellant would receive a distribution, and it directed the general partner to calculate that net sale price by deducting certain categories of costs from the gross sales price. The general partner determined that the deductions reduced the net sale price below the minimum threshold for a distribution. The appellant challenged several of these deductions, particularly the costs incurred to defease the interest payments on the mortgage.The Court of Chancery of the State of Delaware reviewed the case and held that the deduction for the costs to defease the interest payments on the mortgage was proper under the partnership agreement. The court concluded that this deduction was outcome determinative and entered judgment in favor of the partnership. The court also noted that the general partner acted in good faith in calculating the net sale price, which eliminated any breach of contract claim.The Supreme Court of the State of Delaware reviewed the case and affirmed the Court of Chancery’s judgment. The Supreme Court held that the plain language of the partnership agreement and the formula used permitted the challenged deduction for defeasance costs. The court did not reach the effect or correctness of the Court of Chancery’s alternative holding regarding the general partner’s good faith. The Supreme Court concluded that the defeasance costs were properly deducted, which reduced the net resale price below the threshold required for the appellant to receive a distribution. View "Exit Strategy, LLC v. Festival Retail Fund BH, L.P." on Justia Law

Harrison Sanders and Trinity Turner, divorced parents of two children, were involved in a legal dispute over compliance with a Family Court Order of Protection From Abuse (PFA Order) against Turner. The PFA Order required Turner to undergo evaluations by a certified treatment program and obtain a psychological evaluation. Turner failed to comply, leading to a contempt finding and a daily fine of $200 until compliance.The Family Court Commissioner found Turner in contempt twice. The first contempt order imposed a daily fine for noncompliance, and the second contempt order calculated the total fine at $51,200 for continued noncompliance. Initially, the Commissioner directed that the fine be paid to Sanders. Turner sought review by a Family Court Judge, who upheld the contempt finding and fine amount but ruled that the fine should be paid to the court, not Sanders. Sanders filed a motion for reargument, which the court denied, maintaining that the fine was to be paid to the court as it was intended to coerce compliance with the court's order.The Supreme Court of Delaware reviewed the case and affirmed the Family Court's decision. The court held that coercive contempt fines, unless compensatory in nature, should be paid to the court. The court reasoned that it is the court's authority being vindicated through such fines, not the rights of a private litigant. The court also addressed procedural arguments, concluding that the Family Court Judge had the authority to review and modify the Commissioner’s orders and that Sanders suffered no prejudice from the court’s decision to consider the payment recipient issue. The Supreme Court denied Sanders' request for attorneys' fees, affirming the Family Court's judgment. View "Sanders v. Turner" on Justia Law

A group of AIM ImmunoTech, Inc. stockholders believed the board was mismanaging the company and initiated a campaign to elect new directors. This effort included two felons convicted of financial crimes. The board rejected two nomination attempts under its bylaws, leading to a lawsuit. The Court of Chancery denied the insurgents' request for a preliminary injunction, citing factual disputes. The insurgents, led by Ted D. Kellner, made a third attempt to nominate directors. The board amended its bylaws to include new advance notice provisions and rejected Kellner's nominations for non-compliance. Kellner filed suit.The Court of Chancery invalidated four of the six main advance notice bylaws and reinstated a 2016 bylaw. The court upheld the board's rejection of Kellner's nominations for failing to comply with the remaining bylaws, including the reinstated 2016 provision. Kellner argued that the court improperly used the 2016 bylaw and that the amended bylaws were preclusive and adopted for an improper purpose. The defendants contended that the court erred in invalidating the bylaws and that they withstood enhanced scrutiny.The Delaware Supreme Court reviewed the case. It found that the AIM board identified a legitimate threat to its information-gathering function but acted inequitably by adopting unreasonable bylaws to thwart Kellner's proxy contest. The court held that the board's primary purpose was to interfere with Kellner's nominations and maintain control. Consequently, the court declared the amended bylaws unenforceable. The judgment of the Court of Chancery was affirmed in part and reversed in part, closing the case. View "Kellner v. AIM ImmunoTech Inc." on Justia Law

The case involves a challenge to two Delaware voting statutes: one allowing absentee voters to request "permanent absentee" status, and the other authorizing qualified, registered voters to vote in person at least 10 days before an election. The plaintiffs, a citizen who plans to serve as an election inspector and a Delaware State Senator, argued that these statutes conflict with the Delaware Constitution's provisions governing elections and voting.The case was initially filed in the Court of Chancery, which dismissed it on jurisdictional grounds. The plaintiffs then pursued their claims in the Superior Court. The Superior Court found that the plaintiffs had standing to bring the case and ruled in their favor, declaring the challenged statutes unconstitutional.On appeal, the Supreme Court of the State of Delaware reversed the Superior Court's decision. The Supreme Court found that neither plaintiff had standing to challenge the statutes. The court held that the State Senator, who was not up for re-election until 2026, did not face an imminent or particularized harm. The court also found that the citizen, who planned to serve as an election inspector, did not have standing because his role as an inspector did not give him the authority to turn away lawful voters based on his personal belief that the challenged statutes were invalid. Finally, the court rejected the plaintiffs' claim that they had standing as registered voters, finding that their alleged injury was a generalized grievance shared by all voters, not a particularized harm. As a result of these findings, the court did not address the merits of the plaintiffs' constitutional claims. View "Albence v. Mennella" on Justia Law

The case involves Carl Fowler, an employee at Perdue, Inc., who contracted COVID-19 and sought compensation from his employer. Fowler worked at Perdue from January 2020 until late March 2020. In March 2020, Fowler developed COVID-19 symptoms and was later diagnosed with the virus. He was hospitalized for over two months and suffered severe health complications. Fowler claimed that he contracted the virus at work, specifically in the company's cafeteria, which he described as crowded and likened to a "sardine can."The Industrial Accident Board of the State of Delaware initially denied Fowler's claim, finding that he failed to present sufficient evidence that COVID-19 was a compensable occupational disease. The Superior Court affirmed this decision. Fowler then appealed to the Supreme Court of the State of Delaware.The Supreme Court affirmed the lower court's decision. The court found that while Fowler had established that the cafeteria at Perdue presented a hazard greater than that attending employment in general, he failed to show that the cafeteria was a hazard "distinct from" that attending employment in general. The court concluded that Fowler failed to establish the necessary relationship between his work environment at Perdue and COVID-19 as a "natural incident to" that employment. Therefore, the court held that Fowler's COVID-19 infection was not an occupational disease under these circumstances. View "Fowler v. Perdue, Inc." on Justia Law

In December 2017, Antoine Terry was found dead from multiple gunshot wounds in New Castle, Delaware. The police arrested Terry’s friend, Shaheed Matthews, for the murder. In 2019, Matthews was tried for murder and possession of a firearm during the commission of a felony. The State's case relied on circumstantial evidence, including evidence from Matthews’s cellphone, witness testimony, video camera footage, and gunshot residue found on Matthews’s jacket. Matthews was convicted and sentenced to life plus three years in prison.Matthews appealed his conviction, arguing that his trial counsel was ineffective for failing to move to suppress evidence obtained from his cellphone. The Superior Court denied Matthews’s motion, concluding that Matthews had provided valid consent for the search of his cellphone and that the cellphone evidence had no bearing on the outcome of the case. Matthews appealed this decision to the Supreme Court of the State of Delaware.The Supreme Court of the State of Delaware reversed the Superior Court's decision. The court found that Matthews did not provide valid consent for the search of his cellphone and that the warrant obtained by police to search Matthews’s cellphone was an unconstitutional general warrant. The court also found that the cellphone evidence was material and significant to the State's case. Therefore, the court concluded that Matthews’s trial counsel’s failure to move to suppress the evidence obtained from his cellphone constituted deficient performance and prejudiced Matthews. The court vacated Matthews’s convictions and remanded the case to the Superior Court for a new trial. View "Matthews v. State" on Justia Law