Delaware, July, 2007, State Case law

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State Courts - Delaware - July 20, 2007

Adjile, Inc. v. City of Wilmington, Civil Action No. 06A-07-007 WCC, SUPERIOR COURT OF DELAWARE, NEW CASTLE, July 20, 2007, Decided
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Brandin v. Deason, C.A. No. 2123-VCL, COURT OF CHANCERY OF DELAWARE, NEW CASTLE, July 20, 2007, Decided
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Overview: Because substantial unsettled issues of Delaware law were involved in a derivative action challenging purported stock option backdating practices, and as claims by three of the former officers sued that they would be inconvenienced by proceeding in Chancery Court were both dilatory and pretextual, their request to stay the case was denied.

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Cobalt Operating, LLC v. James Crystal Enters., C.A. No. 714-VCS, COURT OF CHANCERY OF DELAWARE, NEW CASTLE, July 20, 2007, Decided
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Overview: Judgment was entered in favor of plaintiff as to fraud and breach of contract claims arising from the purchase of a radio station, as the evidence indicated that defendants sold more advertisements than the station was capable of playing in order to inflate the station's cash flow prior to the sale.

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Fairthorne Maint. Corp. v. Ramunno, C.A. No. 2124-VCS, COURT OF CHANCERY OF DELAWARE, NEW CASTLE, July 20, 2007, Decided
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Overview: Maintenance corporation was granted judgment on the pleadings as to a trespass action against defendants, as defendants admitted that they placed personal property on open space in a housing development and failed to remove the property, and arguments raised by defendants were designed solely to delay the legal consequences of their conduct.

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Gradient OC Master, Ltd. v. NBC Universal, Inc., Civil Action No. 3021-VCP, COURT OF CHANCERY OF DELAWARE, NEW CASTLE, July 20, 2007, Decided
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Overview: Senior preferred stockholders of first corporation were entitled to certification of an interlocutory appeal under Del. Sup. Ct. R. 42 as to the denial of a preliminary injunction as the substantial legal issue in the opinion, specifically, the actionably coercive nature of an exchange offer, went to a main aspect of the stockholders' claim.

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Greystone Digital Tech., Inc. v. Alvarez, Civil Action No. 2796-VCP, COURT OF CHANCERY OF DELAWARE, NEW CASTLE, July 20, 2007, Decided
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Overview: Trial court denied the corporation and individual's motion for a default judgment for the claimant's alleged failure to fully participate in litigation and comply with certain court orders; the claimant's conduct was not so egregious as to warrant entry of a Del. Ch. Ct. R. 55(b) default judgment so early in the litigation.

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In re Wilson, No. 204, 2007, SUPREME COURT OF DELAWARE, July 20, 2007, Decided
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Jolly v. Murphy, C.A. No. 07C-03-240 SCD, SUPERIOR COURT OF DELAWARE, NEW CASTLE, July 20, 2007, Decided
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Overview: Because a plaintiff's affidavit of merit was signed and accompanied by a current curriculum vitae, showing, inter alia, that the affiant believed the defendants breached the applicable standard of care and proximate caused the plaintiff's injuries, the affidavit complied with Del. Code Ann. tit. 18, ? 6853(a)(1), (c).

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Lillis v. AT&T Corp., C.A. No. 717-N, COURT OF CHANCERY OF DELAWARE, NEW CASTLE, July 20, 2007, Decided
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Overview: The terms of a stock option plan were breached by an adjustment made to options acquired by former officers and directors of a telecommunications company following a merger in which their company was acquired. They were awarded damages equal to the full economic value of the options less consideration received by them in the merger.

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NAMA Holdings, LLC v. World Mkt. Ctr. Venture, LLC, C.A. No. 2756-VCL, COURT OF CHANCERY OF DELAWARE, NEW CASTLE, July 20, 2007, Decided
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Overview: Although a managing member of a limited liability company (LLC) acted within its contractual mandate by preventing a member from obtaining documents that had the potential to damage the LLC's interests if misappropriated or misused, it erred in prohibiting the member's duly-authorized representative from doing the inspection.

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