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