Legal News

Southern Copper’s $2 bln Judgment Affirmed by Delaware Supreme Court
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Monday, the Delaware Supreme Court affirmed the $2 billion judgment awarded by a lower court to Southern Copper Corp which found the company had overpaid for an acquisition made from its controlling shareholder. The Delaware Supreme Court also affirmed a $304 million attorney fees award approved by the Court of Chancery to lawyers representing the plaintiffs.

The case sprung from the acquisition of Minera mexico from Grupo Mexico, which also controlled Southern Copper. In last October, Chancery Court Judge Leo Strine had found Southern Copper had overpaid $1.263 billion in the deal and ordered Grupo Mexico to repay the amount to Southern Copper. The Chancery Court also added interest to the damages, bringing the total to about $2 billion.

Grupo Mexico challenged the decision.

  
What
Where


The Supreme Court rejected the argument of Grupo Mexico that the Chancery Court had overstepped its limits by refusing to modify the trial and accommodate a witness from Goldman Sachs Group, who had advised Southern Copper during the disputed deal.

The matter also drew criticism as it included the largest award of attorneys’ fee ever awarded by Delaware’s Court of Chancery, and made only a few months after Strine became the court’s first new chief judge in 14 years. The defendants criticized that the fee award amounted to $35000 an hour, which is more than 30 times of the rate in similar cases.

However, in its 110-page opinion, the Supreme Court observed that in determining a fee award the greatest importance should be placed on the value of the judgment and not upon other factors. However, Justice Carolyn Berger dissented on the part of the fee award and wrote that Strine had failed to apply the court’s “Sugarland” factors which take into account other variables such as actual time spent on a case and the complexity of the litigation.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




In dissent on the attorney fees, Berger wrote, “In sum, the trial court said that the fundamental test for reasonableness is whether the fee is setting a good incentive, and that the only basis for reducing the fee would be envy … That is not a decision based on Sugarland.”





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business

USA-VA-McLean

McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Employment Attorney with 3+ years of wage and hour litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks employment attorney with 3+ years of experience in wage and h...

Apply Now

Litigation Attorney with 3-6 years of experience

USA-IL-Chicago

Chicago office of our client seeks litigation attorney with 3-6 years of experience and exposure to ...

Apply Now

RELEVANT JOBS

Experienced Civil Litigation Paralegal

USA-CA-San Diego

Civil litigation / insurance defense law firm in UTC is seeking a full time, experienced litigation ...

Apply now

Associate Attorney

USA-CA-San Diego

Busy, mid-sized San Diego based civil and complex litigation firm working throughout the state is se...

Apply now

Experienced Legal Secretary

USA-CA-San Diego

Busy mid-sized law firm in the UTC area is seeking a full time, experienced legal secretary.  A...

Apply now

Legal Secretary

USA-NJ-Morristown

A fulltime legal secretary with experience in working for a litigation firm in New Jersey. Experienc...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top