Tandycrafts, Inc. v. Initio Partners

WALSH, Justice:

This is an appeal from a Court of Chancery decision which awarded counsel fees to a plaintiff shareholder who voluntarily dismissed an individual action against a corporation and its directors after certain corrective action was taken by the corporation during a proxy contest. The Court of Chancery determined that the litigation, although moot, conferred a significant benefit upon all shareholders and granted plaintiff’s application for fees in the amount of $180,000. The corporation asserts that the Vice Chancellor abused his discretion in awarding counsel fees for litigation…