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Bill

SCR 17

REQUESTING THE COUNCIL OF THE CORPORATION LAW SECTION OF THE DELAWARE STATE BAR ASSOCIATION PREPARE A REPORT OF RECOMMENDATIONS FOR LEGISLATIVE ACTION REGARDING AWARDS OF ATTORNEY’S FEES IN CERTAIN CORPORATE LITIGATION CASES.

153rd General Assembly (2025-2026) Introduced by Tim Dukes and 9 co-sponsors

Delaware requests its State Bar Association study and recommend how to award attorney's fees in corporate litigation to balance litigation incentives and dispute resolution costs.

Introduced and Laid on Table in Senate
0
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Bill Summary · SCR 17

Legislative bill overview

SCR 17 is a concurrent resolution requesting that Delaware's State Bar Association's Corporation Law Section prepare a formal report with recommendations on how state law should handle attorney's fee awards in specific types of corporate litigation. The bill does not enact new law itself but instead directs a professional legal organization to study the issue and propose legislative solutions.

Why is this important

Attorney's fee awards in corporate cases significantly affect litigation incentives, settlement negotiations, and access to courts for shareholders and businesses. Delaware has a prominent role in corporate law nationally, so recommendations from this study could influence not just Delaware policy but potentially corporate litigation practice across multiple states. The outcome may affect how and when companies can recover legal costs or face fee-shifting in disputes.

Potential points of contention

  • Scope ambiguity: The bill references "certain corporate litigation cases" without specifying which types, leaving unclear whether this covers shareholder derivative suits, merger disputes, M&A litigation, or all corporate matters
  • Fee-shifting debate: Recommendations may pit shareholders' access-to-justice concerns against business interests seeking to deter frivolous claims through fee awards to prevailing defendants
  • Implementation timeline: No deadline is specified for the bar association's report, potentially delaying any legislative action for months or years

Compiled from official sources — confirm details with the bill’s official record.

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