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Elizabeth Morrison v. Ray Berry
CA No. 12808-VCG
| Del. Ch. | Jul 12, 2021
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Background

  • Plaintiff Elizabeth Morrison was the lead plaintiff in a class action settlement; the Court approved the settlement and attorneys’ fees but reserved ruling on Morrison’s request for a $5,000 incentive award.
  • Delaware law presumes reluctance to award class representatives beyond out-of-pocket costs; incentive awards are permitted only in exceptional cases to compensate for extraordinary time, expertise, or burdens borne by the representative.
  • The Court considers the representative’s specific time, effort, and expertise (not the benefit to the class) when evaluating incentive requests.
  • The opinion cites prior Delaware Chancery awards where plaintiffs who spent hundreds to thousands of hours (and contributed specialized expertise or pivotal documents) received substantial bonuses.
  • Morrison’s participation consisted principally of reviewing pleadings and ordinary litigant activities; counsel conceded she did not perform extraordinary tasks beyond what is expected of typical litigants.
  • The Court concluded that awarding the requested incentive would depart from Delaware precedent and create an inappropriate incentive, and therefore denied the $5,000 award.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Morrison should receive a $5,000 incentive award from the attorneys’ fee fund Morrison sought a modest $5,000 payment for serving as lead plaintiff over several years Settlement parties/counsel and the Court noted Morrison performed only ordinary litigant tasks and did not provide exceptional time/expertise Denied — incentive awards are rare and require exceptional contribution beyond ordinary participation

Key Cases Cited

  • Brinckerhoff v. Texas Eastern Products Pipeline Co., LLC, 986 A.2d 370 (Del. Ch. 2010) (lead plaintiff who spent ~1,000 hours assisting litigation was awarded $100,000)
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Case Details

Case Name: Elizabeth Morrison v. Ray Berry
Court Name: Court of Chancery of Delaware
Date Published: Jul 12, 2021
Docket Number: CA No. 12808-VCG
Court Abbreviation: Del. Ch.