Crothall v. Zimmerman

CONCLUDED

Oral Argument
05/28/14 – 05/28/14

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Summary

In this oral argument before the Delaware Supreme Court, defendants Katherine Crothall and Adhezion Biomedical, LLC appealed an attorneys' fee award entered by the Chancery Court. The Williford Firm, LLC and Evan O. Williford, filed a derivative action on behalf of their former client, Robert Zimmerman. Mr. Williford lost all but a single claim. The sole issue on which Mr. Williford succeeded was his former client's claim that the defendants had committed a technical, harmless breach of Adhezion Biomedical LLC's operating agreement by approving certain financing transactions without the formal consent of Adhezion's common unitholders. The Chancery Court awarded Mr. Williford $300,000, more than $200,000 he himself attributed to the supposed corporate benefit, and nearly the entirety of his lodestar of $337,359.59.

Outcome

The judgment of the Court of Chancery awarding attorney’s fees to Robert Zimmerman’s former counsel was reversed.

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