Justia Delaware Supreme Court Opinion Summaries

This dispute centered on subrogation claims Victoria Insurance Company and Nationwide Insurance Company asserted against the City of Wilmington. This appeal presented a question of first impression before the Supreme Court: whether, under Delaware's motor vehicle insurance statute governing subrogation disputes among insurers and self-insurers, the losing party may appeal de novo to the Superior Court from an adverse arbitration award. In considering consolidated motions to dismiss two such appeals filed by the City against the insurers, the Superior Court determined that 21 Del. C. 2118(g)(3), which mandated arbitration for subrogation disputes arising between insurers and self-insurers, did not provide a right to appeal. Because the statute unambiguously provided for appeals from mandatory arbitration of subrogation disputes between insurers and self-insurers, the Supreme Court reversed. View "City of Wilmington v. Nationwide Insurance Co." on Justia Law

This appeal centered on a dispute over when a charging lien could be imposed on a judgment to recover unpaid attorney's fees. The Vice Chancellor supplemented the prerequisites for a charging lien to confine an attorney to her unpaid fees that are directly connected to the recovery she obtained on her client‘s behalf. But, that supplement was, in the Delaware Supreme Court's view, inequitable because it denies an attorney full compensation for the work she contracted to do on behalf of her client and thus undermines the utility of a charging lien in encouraging counsel to provide legal services to clients by ensuring them that their contractual right to a fee will be upheld by the judiciary. Accordingly, the Court reversed. View "Katten Muchin Rosenman LLP v. Sutherland" on Justia Law

The Court of Chancery held that a conflicts committee approved a conflict transaction that it did not believe was in the best interests of the limited partnership it was charged with protecting. A problem emerged for the derivative plaintiff (who won at trial), because after trial but before any judicial ruling on the merits, the limited partnership was acquired in a merger. The claims brought by the plaintiff were thus transferred to the buyer in the merger. Plaintiff’s standing was extinguished, and his only recourse was to challenge the fairness of the merger by alleging that the value of his claims was not reflected in consideration of the merger. The Court of Chancery rejected defendants’ argument that plaintiff’s claims were considered when the limited partnership merged. However, the Supreme Court reversed the Court of Chancery: plaintiff’s claims were, and remained, derivative in nature. Derivative plaintiffs do not make claims belonging to them individually. Here, the derivative plaintiff only sought monetary relief for the limited partnership. Plaintiff lost standing to continue his derivative action when the merger closed. View "El Paso Pipeline GP Company, LLC, et al. v. Brinckerhoff" on Justia Law

Andrew Lloyd appeals his convictions for racketeering and other offenses related to his role in a Delaware heroin trafficking ring. He raised four issues on appeal: (1) the Superior Court abused its discretion by giving a jury instruction that did not adequately define “enterprise” according to the Delaware RICO statute; (2) the State presented insufficient evidence to prove that Lloyd was engaged in an “association-in-fact” enterprise under the RICO statute; (3) the State improperly vouched for and bolstered certain witnesses’ testimony by asking several of the witnesses about the contents of their plea agreements; and (4) the cumulative effect of the errors violated his due process rights. After a careful review of the record on appeal, the Delaware Supreme Court found no merit to any of these claims. Accordingly, the Court affirmed the Superior Court’s judgment. View "Lloyd v. Delaware" on Justia Law

A jury found that plaintiffs-appellants Andrew and April Rash "sustained one or more injuries proximately caused by" negligence on the part of defendant-appellee Justin Moczulski following an auto accident. However, the jury returned a zero verdict. Plaintiffs moved for a new trial. The Superior Court denied the motion for a new trial but imposed an additur of $10,000. Plaintiffs appealed, arguing: (1) the trial court’s denial of their motion for a new trial was an abuse of discretion; and (2) the award of$10,000 for additur was unreasonable. Defendants, Moczulski and Diamond Materials, LLC, cross-appealed, contending that the motion for a new trial should have been denied without additur. After review, the Supreme Court found that there were significant disputed issues concerning the nature and extent of Mr. Rash’s injuries as well as alleged failure on his part to mitigate his injuries through treatment. In its order denying plaintiffs’ motion for a new trial, the trial court observed that “the exact nature and extent of Plaintiff’s injury [and] Plaintiff’s failure to mitigate his injuries through treatment made identifying and compensating the injury quite problematic,” an observation with which the Supreme Court agreed. Under the circumstances of this case, the Court found no abuse of discretion in the trial court’s decision to award an additur. View "Rash v. Moczulski" on Justia Law

Defendant Derrick Powell appealed the superior court's denial of his motion for postconviction relief. During the pendency of that appeal, Powell moved to vacated his death sentence based on the U.S. Supreme Court's decision in "Hurst v. Florida," and the Delaware Supreme Court's interpretation of that decision in "Rauf v. Delaware." The only issue addressed in this decision was Powell's motion to vacate this death sentence. The question presented by Powell's motion was whether the holding in "Rauf" applied to a death sentence was already final when "Rauf" was decided. The Delaware Supreme Court concluded that the decision of "Rauf" applied retroactively to Powell's case, and that his death sentence should have been vacated, and Powell sentenced to life imprisonment. View "Powell v. Delaware" on Justia Law

The State appealed the superior court’s order granting Catherine Culp’s second pro se motion for sentence modification, which the court reviewed as a Motion for Review of Sentence. The superior court held that Culp’s rehabilitative efforts demonstrated “beyond cavil extraordinary circumstances” justifying reduction of her sentence pursuant to Superior Court Criminal Rule 35(b). On appeal, the State argued that the superior court abused its discretion in granting the Motion, which the State contended was barred as repetitive and untimely. After review, the Delaware Supreme Court concluded that the superior court’s modification of Culp’s sentence ignored the plain language of Rule 35(b) and established precedent, thereby abusing its discretion. Accordingly, the Supreme Court reversed the superior court’s order. View "Delaware v. Culp" on Justia Law

This appeal in a derivative suit brought by a stockholder of Zynga, Inc. centered on whether the Court of Chancery correctly found that a majority of the Zynga board could impartially consider a demand and thus correctly dismissed the complaint for failure to plead demand excusal under Court of Chancery Rule 23.1. The Supreme Court reversed dismissal of plaintiff's complaint: "Fortunately for the derivative plaintiff, however, he was able to plead particularized facts regarding three directors that create a reasonable doubt that these directors can impartially consider a demand. [. . .] in our view, the combination of these facts creates a pleading stage reasonable doubt as to the ability of these directors to act independently on a demand adverse to the controller's interests. When these three directors are considered incapable of impartially considering a demand, a majority of the nine member Zynga board is compromised for Rule 23.1 purposes and demand is excused." View "Sandys v. Pincus, et al." on Justia Law

Magdalena Guardado, an undocumented worker, was employed as a machine manager for Roos Foods when she was involved in a work-related accident. She injured her left wrist and thereafter received total disability benefits. The employer petitioned the Industrial Accident Board (“the Board”) to terminate those benefits on the ground that the worker was no longer disabled and could return to work. The Board found: (1) the employer met its initial burden of showing that the worker was no longer totally disabled; (2) that the worker was a prima facie displaced worker based solely on her status as an undocumented worker; and (3) the employer had failed to meet its burden of showing regular employment opportunities within the worker’s capabilities. Accordingly, it denied the employer’s petition. The questions this case presented for the Delaware Supreme Court's review were: (1) whether an injured worker’s immigration status alone rendered her a prima facie displaced worker; and (2) whether the Board properly found that the employer failed to meet its burden of showing regular employment opportunities within the worker’s capabilities because its evidence failed to take into account the worker’s undocumented status. The Court concluded that an undocumented worker’s immigration status was not relevant to determining whether she was a prima facie displaced worker, but it was a relevant factor to be considered in determining whether she is an actually displaced worker. The Court also concluded that the Board correctly rejected the employer’s evidence of regular employment opportunities for the worker because that evidence failed to consider her undocumented status. View "Roos Foods v. Guardado" on Justia Law

Trascent Management Consulting, LLC hired a top executive, George Bouri, giving him part ownership, naming him Managing Principal, and naming him as a member of the Board of Managers of Trascent with responsibility for human resources, IT, and finance. Bouri occupied these positions for about sixteen months. When Trascent terminated Bouri and sued him, for among other things, violating his employment agreement, Bouri sought advancement to defend himself in accordance with the plain language of both his employment agreement and Trascent’s LLC agreement. Belatedly in the process of defending Bouri’s motion for summary judgment, Trascent argued that the same employment contract on which many of its claims against Bouri were premised was induced by fraud and that Bouri could not receive advancement because the employment agreement was thereby invalid (and presumably that he would not have become a member of Trascent’s board, and thus be entitled to advancement, under the LLC agreement absent that contract). The Court of Chancery rejected that defense to advancement, relying on the plain language of the agreements, which required that advancement be provided until a court made a final, nonappealable determination that indemnification was not required, and on the summary nature of the proceedings under 6 Del. C. sec. 18-108 (the LLC analogue to 8 Del. C. sec. 145). Trascent appealed, arguing the Court of Chancery erred in that ruling. Finding no reversible error after its review, the Delaware Supreme Court affirmed the Court of Chancery's judgment. View "Transcent Management Consulting, LLC v. Bouri" on Justia Law