David Lackowitz was quoted extensively in the Law.com article, "Court Grants Full $2.1M Fee Shifting Request in Managerial Misconduct Case." The underlying matter concerned an action commenced on behalf of an investor to recover its investment in an LLC.   Moses Singer’s investor client had alleged that its investment was mismanaged by the Company’s Managers.  The Delaware Chancery Court agreed and, after trial, found that the LLC’s Managers had conspired to defraud the Plaintiff and had engaged in misconduct in connection with its investment.  The Court subsequently also awarded Moses Singer’s client reimbursement of all of its legal fees incurred in the action, a sum in excess of $2 million.

"The court’s ruling bodes well for others presented with similar circumstances in Chancery Court and will hopefully serve as a cautionary tale should parties choose to engage in litigation misconduct," said David Lackowitz. “Our client’s patience and faith in our representation after years’-long delays and obfuscation fully paid off.”

“We are advised by Delaware counsel that exception from the American Rule, in other words, a ruling directing one party to pay all of another party’s legal fees as a result of bad faith litigation conduct, is extraordinarily rare,” Lackowitz said. “Here, however, the offending parties’ conduct throughout the course of the litigation was itself extraordinary, and we believe justified the court’s bad faith finding.”