This Weeks Cases

Delaware Supreme Court

Delaware v. Wright, DeFAX Case No. D67092 (Del. Jan. 11, 2016) Vaughn, J. (25 pages).

Counsel: Elizabeth McFarlan, Maria Knoll, Dep't of Justice, Wilmington, DE, attorneys for plaintiff/appellant; Eugene Maurer, Alllison Mielke, Wilmington, DE, attorneys for defendant/appellee.


Practice Areas: Constitutional Law, Criminal Law, Evidence, Admissibility

Third Circuit

In re Trump Entm't Resorts, DeFAX Case No. D67091 (3d Cir. Jan. 15, 2016, Roth, J. (30 pages).

Bankruptcy Court had statutory authority to reject employer-union collective bargaining agreement following expiration of the agreement. Court of Appeals decision affirmed Bankruptcy Court judgment.


Practice Areas: Bankruptcy

Delaware Court of Chancery

Knoll Capital Mgmt. LP v. Advaxis Inc., DeFAX Case No. D67093 (Del. Ch. Jan. 29, 2016) Noble, V.C. (8 pages).

The court denied defendant's motion to dismiss plaintiff's complaint because the complaint alleged a defective corporate act and defendant did not demonstrate that it was not reasonably conceivable that plaintiff could obtain the relief it sought under 8 Del. C. §205.


Practice Areas: Civil Procedure, Motion Practice, Contracts, Breach, Securities and Federal Corporate Law, Securities Transactions

Delaware Court of Chancery

In re EZCORP Inc. Consulting Agreement Derivative Litig., DeFAX Case No. D67090 (Del. Ch. Jan. 15, 2016) Laster, V.C. (24 pages).

Absent good cause for without-prejudice dismissal, plaintiff's voluntary dismissal in shareholder-derivative action was with prejudice as to named plaintiff but not other potential plaintiffs.


Practice Areas: Securities and Federal Corporate Law, Shareholder Derivative Suits, Civil Procedure, Class Actions

Delaware Superior Court

MacFadyen v. Total Care Physicians, DeFAX Case No. D67094 (Del. Super. Dec. 15, 2015) Rocanelli, J. (14 pages).

Employer's use of Facebook profile to impeach workers' compensation claimant's disability claim did not require compliance with advance-notice rule. Superior Court order affirming decision of Industrial Accident Board.


Practice Areas: Social Services Law, Workers

Delaware Superior Court

McLain v. Shockley, DeFAX Case No. D67095 (Del. Super. Jan. 12, 2016) Medinilla, J. (4 pages).

The court denied defendant's motion for summary judgment in plaintiff's lawsuit asserting causes of action under the doctrine of respondeat superior and a theory of negligence following an altercation between plaintiff and defendant's bouncer, as genuine issues of material fact remained.


Practice Areas: Torts, Liability, Employer Liability, Premises Liability, Civil Procedure, Motion Practice

Delaware Court of Chancery

Thermopylae Capital Partners v. Simbol Inc., DeFAX Case No. D67096 (Del. Ch. Jan. 29, 2016) Glasscock, V.C. (49 pages).

The court dismissed stockholders' dilution claim arising from corporation's board of directors' alleged breach of fiduciary duties.Plaintiffs M. Scott Conley—a founder and "substantial" common stockholder of Simbol—and Thermopylae Capital Partners—a "substantial" common stockholder that Conley controlled—alleged Simbol's board of directors, as directed by a controller of the corporation, Mohr Davidow Ventures, and aided by other defendants, breached fiduciary duties to common stockholders by issuing stock to the CEO, that the stock was ill-gotten in that Simbol acquired it from a former CEO who breached his contractual right of first refusal favoring plaintiffs by selling the stock back to Simbol. Plaintiffs alleged Simbol controllers diluted their ownership by authorizing a preferred stock share-price reduction, breached fiduciary duty against certain board members and MDV and aided and abetted breach of fiduciary duty against MDV and certain preferred stockholders of Simbol. Plaintiffs sought an accounting for damages and costs of the action. Defendants moved to dismiss.


Practice Areas: Civil Procedure, Motion Practice, Judgments, Business Entities, Valuation

Delaware Supreme Court

Clark v. State Farm Mut. Auto. Ins. Co., DeFAX Case No. D67089 (Del. Jan. 11, 2016) Strine, C.J. (17 pages).

Class-action complaint seeking declaratory judgment ordering insurance companies to cease late payment of claims was futile where statute sets interest penalties. Supreme Court judgment affirmed summary judgment favoring defendant.


Practice Areas: Insurance Law, Automotive, Civil Procedure, Class Actions