Opinions Digested in Delaware Law Weekly for the Issue of
  December 12th, 2007

 


U.S. DISTRICT COURT OF DELAWARE

CIVIL PRACTICE

Dismissal l Patent Infringement Suits l First-filed Rule l New Jersey l Delaware

Abbott Laboratories v. Johnson & Johnson, Inc. DeFAX Case No. D63075 (D.Del. Nov. 28, 2007).

Plaintiffs were not entitled to pursue patent infringement litigation in federal district court in Delaware in light of a covenant not to sue pertaining to several patents and in light of the so-called “first-filed” rule. Motions decided.
 


DELAWARE COURT OF CHANCERY

BUSINESS LAW

Indemnification l Advancement l LLC l Corporation l Conversion

Bernstein v. TractManager, Inc. DeFAX Case No. D63069 (Del. Ch. Nov. 20, 2007).

Plaintiff was not entitled to advancement of litigation expenses pursuant to a corporation’s bylaws where the claims at issue were based on actions taken before plaintiff became a director of the corporation, and where the operating agreement of the predecessor LLC did not provide for mandatory advancement for its managers. Cross motions for summary judgment decided.
 

CIVIL PRACTICE

Attorney Fees l American Rule l Common Fund Exception l Inequitable Award

Korn v. New Castle Cty. DeFAX Case No. D63072 (Del. Ch. Oct. 3, 2007).

Although an award of attorney fees in this taxpayer lawsuit was warranted under the common fund exception to the American Rule, a fee award in the amount of 33 percent of the common benefit was inequitable under the circumstances. Motion for attorney fees granted.
 

REAL PROPERTY

Covenants l Deed l Homeowners Association Assessment l Validity

Bradley v. Old Landing Ass’n DeFAX Case No. D63071 (Del. Ch. Nov. 7, 2007).

Petitioners were entitled to summary judgment in this dispute over their failure to pay certain assessments because the restrictive covenants attached to their deed did not authorize such assessments and because the homeowners association’s certificate of incorporation did not operate as an amendment to the restrictive covenants. Master’s report issued.
 

REAL PROPERTY

Real Estate Transactions l Breach of Agreement l Interpretation l Extrinsic Evidence

West Willow-Bay Court, LLC v. Robino-Bay Court Plaza, LLC, DeFAX Case No. D63070 (Del. Ch. Nov. 2, 2007).

Because the parties’ agreement clearly and unambiguously required defendant to obtain third party consent for a proposed shopping center project, the Court of Chancery refused to consider extrinsic evidence on the issue. Declaratory judgment for plaintiff.
 


DELAWARE SUPERIOR COURT

ENVIRONMENTAL LAW

State Laws l Coastal Zone Act l Bulk Transfer Facility l Nonconforming Use

Delaware Dept. of Natural Resources & Environmental Control v. Vane Line Bunkering, Inc. DeFAX Case No. D63073 (Del. Super. Nov. 19, 2007).

The Coastal Zone Industrial Control Board erred in concluding that a company’s proposed vessel-to-vessel oil lightering facility in the coastal zone was a nonconforming use that was not prohibited under the Coastal Zone Act. Reversed.
 


INDUSTRIAL ACCIDENT BOARD

WORKERS’ COMPENSATION

Disability l Total Disability l Closed Period l Reasonable Job Search

Thompson v. United Agri Products, Inc. DeFAX Case No. D63068 (IAB Sept. 12, 2007).

Claimant was not entitled to total disability benefits for a closed period after his termination from employment because he failed to prove that he performed a reasonable job search that failed due to his work-related injury. Petition to determine additional compensation due granted only as to partial disability benefits.
 

WORKERS’ COMPENSATION

Impairment l Permanent Impairment l Cervical and Lumbar Spine l Medical Expenses

McCulley v. La Fontana Restaurant DeFAX Case No. D63074 (IAB Sept. 7, 2007).

Given the persuasive testimony offered by claimant’s medical experts, claimant was entitled to an 11 percent permanent impairment rating for her lumbar spine, a 7 percent permanent impairment rating for her cervical spine and the payment of medical expenses. Petition to determine additional compensation due granted.