Opinions Digested in Delaware Law Weekly for the Issue of
  June 4th, 2008

 


DELAWARE SUPREME COURT

BUSINESS LAW

Stock Transactions l Stock Options l Cash-out Merger l Compensation

AT&T Corp. v. Lillis DeFAX Case No. D63254 (Del. Supr. en banc May 22, 2008).

The Supreme Court remanded the instant case, which concerned compensation for stock options in a cash-out merger, for reconsideration of the evidentiary importance of the parties’ course of conduct in a prior transaction for purposes of interpreting the phrase “economic position” in a stock option plan. Remanded.
 

FAMILY LAW

Custody l Modification l Denial

Hall v. Wakley DeFAX Case No. D63256 (Del. Supr. May 23, 2008).

The Family Court did not err in denying mother’s petition for modification of the primary residential placement of the children where it considered mother’s estrangement from her own mother and mother’s decision to take the children out of state without first informing father. Affirmed.
 

FAMILY LAW

Custody l Parents’ Petitions l Statutory Factors l Process

Grayton v. Moore DeFAX Case No. D63260 (Del. Supr. May 19, 2008).

The Supreme Court refused to disturb the Family Court’s decision on custody and necessary counseling where the Family Court correctly applied the statutory factors and where its decision was the product of a logical and orderly reasoning process. Affirmed.
 

TORTS

Immunity l State Tort Claims Act l Injured Student l Teacher’s Discretionary Act

Hughes v. Christiana School Dist. DeFAX Case No. D63255 (Del. Supr. May 19, 2008).

The State Tort Claims Act afforded immunity to defendants, the school district and its employees, where a schoolteacher performed a discretionary act in good faith and without gross negligence in permitting plaintiff-student to walk to the school nurse without an escort. Affirmed.
 


DELAWARE COURT OF CHANCERY

BUSINESS LAW

Shareholder Suit l Special Litigation Committee l Investigation

Sutherland v. Sutherland DeFAX Case No. D63253 (Del. Ch. May 5, 2008).

The Court of Chancery refused to dismiss this shareholder suit on the basis of the special litigation committee’s report recommending against pursuit of litigation because the committee’s investigation was lacking in good faith and reasonableness. Motion to dismiss denied.
 

REAL PROPERTY

Condominiums l Custodian l Achievements l Relief

In re Burnbrae Maintenance Ass’n DeFAX Case No. D63257 (Del. Ch. May 5, 2008).

Petitioner was entitled to approval of significant fees and expenses incurred in his role as custodian of respondent association where petitioner’s task was not easy and where petitioner achieved significant progress with respect to financial and other issues confronting the association. Petition for relief granted.
 

TORTS

Intentional Torts l Trespass l Utility Right of Way l License Agreement

Del-Chapel Assocs. v. Conectiv, DeFAX Case No. D63258 (Del. Ch. May 5, 2008).

Defendant utility company did not retain a superior interest in the parcel of land at issue by virtue of a 1982 license agreement with Conrail, since defendant’s transmission facilities remained on the parcel without the consent of anyone who held a present possessory interest. Motion for partial summary judgment granted.
 


DELAWARE SUPERIOR COURT

INSURANCE LAW

Coverage l No-fault PIP Statute l Corporate Overhead Costs l Employee

Katz v. State Farm Mutual Automobile Ins. Co. DeFAX Case No. D63259 (Del. Super. May 22, 2008).

Although plaintiff was the sole officer, shareholder and employee of her corporation, she was an employee of that corporation and, as such, was not entitled to recover overhead costs for the corporation under her individual motor vehicle insurance policy. Motion for summary judgment granted.