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Chancery Awards Fees for Pre-Litigation Errant Conduct
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Recent Contributors to The National Law Review
Two recent Delaware Court of Chancery decisions awarded fees for errant pre-litigation conduct which makes then noteworthy for that point alone, although there is much else to commend them.
July 23, 2026), the court awarded fees for pre-litigation conduct which the court described as an independent basis to warrant fee shifting as an element of equitable relief.
The court highlighted in a heading to the section of the opinion on this issue that the defendants’ pre-litigation conduct was “glaringly egregious and the product of unusually deplorable behavior.”
In this short letter ruling, the court relied on the bad faith exception to the American Rule to award fees for both “egregious” pre-litigation conduct, along with obstructive behavior during discovery.
The Reem court distinguished a case where the pre-litigation conduct gave rise to the claim.