DE SCR17

Requests the Council of the Corporation Law Section of the Delaware State Bar Association to prepare a report with recommendations for legislative action on attorney's fee awards in corporate litigation cases by March 31, 2025

Addresses concerns about excessive attorney's fees in cases claiming corporate benefits or common funds for stockholders, while maintaining sufficient incentives for law firms to take contingent-fee stockholder representation

Directs the Council to examine the utility of capping attorney's fee awards based on a multiple of lodestar amounts (calculated by time devoted and ordinary hourly billing rates)

Requires the report to be submitted to the Senate President Pro Tempore, Speaker of the House, and the Governor for distribution to all legislators

Aims to balance protecting stockholders through appropriate litigation incentives while preventing excessive costs that could negatively impact Delaware corporations and their stockholders