Justia Delaware Supreme Court Opinion Summaries

The case involves a plaintiff who was bitten by a dog at a facility operated by an animal welfare organization. The plaintiff filed a lawsuit against the organization, invoking Delaware's "dog bite statute," which imposes strict liability on a dog owner for any injury caused by the dog. The Superior Court of Delaware granted summary judgment in favor of the organization, ruling that the statute does not apply to animal welfare organizations. The court reasoned that the statute was intended to target irresponsible dog owners who keep vicious dogs as pets, not organizations like the defendant.The Superior Court's decision was based on its interpretation of the legislative intent behind the dog bite statute. The court also held that the plaintiff could not establish negligence on the part of the organization without expert testimony, as the standard of care applicable to animal shelters was outside the common knowledge of laypersons.The plaintiff appealed the decision to the Supreme Court of the State of Delaware. The Supreme Court disagreed with the lower court's interpretation of the dog bite statute. It found that the statute unambiguously imposes strict liability on any person who owns, keeps, harbors, or is the custodian of a dog, without any exception for animal welfare organizations. The court also disagreed with the lower court's requirement for expert testimony to establish negligence, ruling that the standard of care in handling a domestic animal with known vicious propensities is within the common knowledge of laypersons. The Supreme Court reversed the Superior Court's decision and remanded the case for further proceedings. View "Riad v. Brandywine Valley SPCA, Inc." on Justia Law

The case involves Ferrellgas Partners L.P. and its subsidiaries (collectively "Ferrellgas") and Zurich American Insurance Company ("Zurich"). Ferrellgas had an insurance policy with Zurich, which included a provision for the advancement of defense costs for litigation. Ferrellgas was involved in a separate lawsuit with Eddystone Rail Company, LLC ("Eddystone") over a breach of contract. Ferrellgas sought to have Zurich cover the defense costs for the Eddystone litigation under their insurance policy.In the lower court, the Superior Court of the State of Delaware, Ferrellgas filed a motion for summary judgment seeking a declaratory relief obligating Zurich to advance defense costs for the Eddystone litigation. Zurich also filed a motion for summary judgment seeking a declaration that it had no obligation to advance defense costs. The Superior Court denied Ferrellgas' motion and granted Zurich's motion, finding that the Eddystone litigation was excluded from coverage under the Zurich policy.On appeal, the Supreme Court of the State of Delaware affirmed the decision of the Superior Court. The Supreme Court found that the Eddystone litigation was a claim seeking relief for a breach of contract that occurred after the commencement of the Run-Off Coverage Period in the Zurich policy. As such, Zurich had no duty to advance defense costs for this matter due to the Run-Off Exclusion in the policy. The court also found that Ferrellgas' appeal was timely filed. View "Ferrellgas Partners, L.P. v. Zurich American Insurance Company" on Justia Law

The case revolves around Deonta Carney, who was indicted for crimes stemming from three separate incidents. In one of these incidents, Carney and an accomplice allegedly robbed a man named Angelo Flores of his dirt bikes. Although Carney did not physically hold the firearm used in the robbery, he was charged with possession of a firearm by a person prohibited due to his involvement in the crime. Initially, Carney rejected a plea offer from the State, but he changed his mind and accepted a revised plea offer on the morning of the trial when he learned that the victim had appeared to testify. However, before sentencing, Carney attempted to withdraw his guilty plea, arguing that he was "legally innocent" of the firearm possession charge because he did not physically hold the gun during the robbery.The Superior Court of the State of Delaware denied Carney's motion to withdraw his guilty plea. The court found no procedural defects in the plea colloquy and determined that Carney's plea was entered knowingly, intelligently, and voluntarily. The court also concluded that Carney had effective legal counsel throughout the proceedings and that granting the motion would prejudice the State. Regarding Carney's claim of innocence, the court found that Carney's plea colloquy statements were inconsistent with his later innocence assertion. The court also determined that there was sufficient factual basis to convict Carney of the firearms charge because he had constructive possession of the firearm during the robbery.Carney appealed to the Supreme Court of the State of Delaware, arguing that the Superior Court exceeded its discretion when it denied his motion to withdraw his guilty plea. However, the Supreme Court affirmed the Superior Court's judgment, concluding that the lower court did not exceed its discretion when it found that Carney did not present a fair and just reason to withdraw his guilty plea. The Supreme Court agreed with the lower court's assessment that Carney's claim of innocence was weak and that his involvement in the robbery was sufficient to establish constructive possession of the firearm. View "Carney v. State" on Justia Law

The case involves NGL Energy Partners LP and NGL Energy Holdings LLC (collectively, "NGL") and LCT Capital, LLC ("LCT"). NGL, entities in the energy sector, engaged LCT, a financial advisory services provider, for services related to NGL's 2014 acquisition of TransMontaigne Inc. However, the parties failed to agree on payment terms, leading LCT to file a lawsuit in 2015. The Superior Court held a jury trial in July 2018, which resulted in a $36 million verdict in LCT's favor.NGL appealed the Superior Court's decision, challenging the $36 million final judgment and a set of evidentiary rulings. LCT cross-appealed, contesting the Superior Court's methodology for computing post-judgment interest. NGL argued that the Superior Court erred by admitting evidence and arguments about the value/benefit supposedly gained by NGL in the Transaction, asserting that such evidence is prejudicial and irrelevant to a quantum meruit claim. NGL also argued that the Superior Court erred by admitting evidence of benefit-of-the-bargain or expectancy damages when assessing the quantum meruit value of LCT’s services.The Supreme Court of the State of Delaware affirmed the Superior Court’s evidentiary rulings and rejected NGL's contention that the Superior Court incorrectly allowed LCT to recover benefit-of-the bargain/expectancy damages. However, the Supreme Court disagreed with the Superior Court’s post-judgment interest determination. The Supreme Court held that prejudgment interest is part of the judgment upon which post-judgment interest accrues under Section 2301(a). Therefore, the Supreme Court reversed the Superior Court as to this issue and remanded the case to the Superior Court for entry of judgment consistent with its opinion. View "NGL Energy Partners LP v. LCT Capital, LLC" on Justia Law

The case involves BitGo Holdings, Inc. and Galaxy Digital Holdings Ltd., who entered into a merger agreement. BitGo, a technology company, was required to submit audited financial statements to Galaxy, the acquirer, by a specified date. When BitGo submitted the financial statements, Galaxy claimed they were deficient because they did not apply recently published guidance from the Securities and Exchange Commission’s staff. BitGo disagreed, but submitted a second set of financial statements. Galaxy found fault with the second submission and terminated the merger agreement. BitGo then sued Galaxy for wrongful repudiation and breach of the merger agreement.The Court of Chancery sided with Galaxy and dismissed the complaint. The court found that the financial statements submitted by BitGo did not comply with the requirements of the merger agreement, providing Galaxy with a valid basis to terminate the agreement.On appeal, the Supreme Court of Delaware reversed the decision of the Court of Chancery. The Supreme Court found that the definition of the term “Company 2021 Audited Financial Statements” in the merger agreement was ambiguous. The court concluded that both parties had proffered reasonable interpretations of the merger agreement’s definition. Therefore, the court remanded the case for the consideration of extrinsic evidence to resolve this ambiguity. View "BitGo Holdings, Inc. v. Galaxy Digital Holdings Ltd., et al." on Justia Law

The case involves a group of pension funds (plaintiffs) who filed a lawsuit against Inovalon Holdings, Inc., and its board of directors (defendants), challenging an acquisition of Inovalon by a private equity consortium led by Nordic Capital. The plaintiffs claimed that the defendants breached their fiduciary duties and unjustly enriched themselves through the transaction. They also alleged that the company's charter was violated because the transaction treated Class A and Class B stockholders unequally.In the lower court, the Court of Chancery of the State of Delaware, the defendants moved to dismiss the case. They argued that the transaction satisfied the elements of a legal framework known as MFW, which would subject the board's actions to business judgment review. The Court of Chancery granted the defendants' motions to dismiss in full.On appeal, the Supreme Court of the State of Delaware reversed the decision of the Court of Chancery. The Supreme Court found that the lower court erred in holding that the vote of the minority stockholders was adequately informed. The Supreme Court determined that the proxy statement issued to stockholders failed to adequately disclose certain conflicts of interest of the Special Committee’s advisors. Therefore, the Supreme Court concluded that the transaction did not comply with the MFW framework, and the case was remanded for further proceedings. View "City of Sarasota Firefighters' Pension Fund v. Inovalon Holdings, Inc." on Justia Law

The case revolves around a claim of professional negligence against a law firm, Margolis Edelstein, by its former client, GMG Insurance Agency. Margolis had represented GMG and one of its employees, Howard Wilson, in a non-compete dispute. After GMG failed to fully prevail on a motion for summary judgment and settlement talks broke down, GMG fired Margolis. On the eve of trial, Wilson, represented by separate counsel, filed an affidavit recanting his prior testimony and providing new testimony, which was unfavorable to GMG. GMG then sued Margolis for legal malpractice, asserting that Margolis's negligent representation led to GMG's exposure to the consequences of Wilson's pre-trial change in testimony.The Superior Court granted summary judgment in favor of Margolis, finding that Wilson's affidavit was a superseding cause that broke the causal chain linking Margolis's alleged negligence and GMG's claimed damages. GMG appealed this decision.The Supreme Court of the State of Delaware found that the Superior Court erred in its decision. The Supreme Court held that there were disputes of material fact as to whether Margolis deviated from the requisite standard of care. The court also found that the Superior Court erred by failing to address GMG's contention that, but for Margolis's alleged negligence, GMG would have prevailed on all claims in the previous litigation—a circumstance that would have effectively negated Margolis's superseding cause argument. The Supreme Court reversed the judgment of the Superior Court and remanded the case for further proceedings. View "GMG Insurance Agency v. Edelstein" on Justia Law

The Supreme Court of the State of Delaware considered an appeal from a decision of the Superior Court regarding the adoption of a Medicare Advantage Plan for State retirees by the State Employee Benefits Committee (SEBC). The Superior Court had found that the SEBC's decision was subject to the requirements of Delaware’s Administrative Procedures Act (APA), granted a motion to stay the implementation of the Medicare Advantage Plan, and required the State to maintain its retirees’ Medicare Supplement Plan. The Superior Court also denied the plaintiffs' application for attorneys’ fees.The Supreme Court of the State of Delaware disagreed with the lower court's ruling. It found that the SEBC's decision to adopt a Medicare Advantage Plan was not a "regulation" as defined by the APA. The court reasoned that the decision did not meet the APA's definition of a regulation because it was not a "rule or standard," nor was it a guide for the decision of future cases. Therefore, the Superior Court did not have jurisdiction to stay the implementation of the plan. The Supreme Court reversed the decision of the Superior Court.On cross-appeal, the plaintiffs argued that the Superior Court erred by refusing to grant their application for attorneys’ fees. However, the Supreme Court found this argument moot because fee shifting is available only against a losing party in favor of a prevailing party. Since the Supreme Court reversed the decision below, fee shifting was foreclosed. View "DeMatteis v. RISE Delaware, Inc." on Justia Law

In August 2022, Corey Reyes was involved in an altercation with his girlfriend, Jennifer Deems, which resulted in Deems sustaining a broken leg. Reyes was subsequently arrested and charged with second-degree assault, resisting arrest with force or violence, and disorderly conduct. At trial, Reyes and Deems provided differing accounts of the events leading up to the assault. Reyes was found guilty on all charges.The Superior Court of the State of Delaware allowed an amendment to Reyes's indictment during the trial, changing the citation of the statute under which he was charged with resisting arrest. Reyes appealed his conviction, arguing that the amendment was substantive and thus impermissible. He also claimed that the prosecution made statements that constituted prosecutorial misconduct, affecting the integrity of the trial process and his substantive rights.The Supreme Court of the State of Delaware affirmed the lower court's decision. The court found that the amendment to Reyes's indictment was one of form rather than substance, and thus permissible. The court also found that while some of the prosecutor's statements were improper, they did not rise to the level of plain error that would warrant reversal of Reyes's conviction. The court further noted that the prosecutor's statements did not constitute repetitive errors over multiple trials that would require reversal. View "Reyes v. State" on Justia Law

The case involves a shareholder lawsuit challenging the fairness of IAC/InterActiveCorp’s separation from its controlled subsidiary, Match Group, Inc. The plaintiffs alleged that the transaction was unfair because IAC, a controlling shareholder of Match, received benefits in the transaction at the expense of the Match minority shareholders. The defendants claimed that business judgment review applied because they followed the MFW framework, which included approval by an independent and disinterested “separation committee” and a majority of uncoerced, fully informed, and unaffiliated Match shareholders. The Court of Chancery agreed and dismissed the complaint.On appeal, the Supreme Court of Delaware concluded that in a suit claiming that a controlling shareholder stood on both sides of a transaction with the controlled corporation and received a non-ratable benefit, entire fairness is the presumptive standard of review. The controlling shareholder can shift the burden of proof to the plaintiff by properly employing a special committee or an unaffiliated shareholder vote. But the use of just one of these procedural devices does not change the standard of review. If the controlling shareholder wants to secure the benefits of business judgment review, it must follow all MFW’s requirements. The court reversed the lower court's finding that the separation committee functioned as an independent negotiating body. The case was remanded for further proceedings. View "In re Match Group, Inc. Derivative Litigation" on Justia Law