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Court of Chancery Explains their Corporate Benefit Rule

Zimmerman v. Crothall, C.A. 6001-VCP (October 14, 2013)

When litigation confers a benefit upon a corporate entity, it is only fair that entity pay the fees incurred. Yet what constitutes a benefit may be contested, particularly by the corporation that is the subject of the suit. Here the Court held that forcing the LLC to comply with its agreements constituted such a benefit that fees should be awarded.

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blog, complex commercial litigation, corporate counseling & litigation