Opinion ID: 1887226
Heading Depth: 1
Heading Rank: 2

Heading: issues

Text: Three issues were presented at trial in the Court of Chancery. The first issue was whether Scharf proved the elements necessary to support a claim for indemnification. Scharf's efforts to recover the fees that he paid to Fried Frank are premised upon the Delaware General Corporation Law, [15] Edgcomb's bylaws, and an indemnity agreement negotiated as part of MAC's acquisition of Edgcomb. The Court of Chancery held that Scharf established his right to be indemnified for the fees and expenses that he incurred in successfully resisting the SEC investigation. No cross-appeal was filed by Edgcomb and that holding is now the law of this case. The second issue presented to the Court of Chancery was, if Scharf demonstrated that he was entitled to indemnification, were the attorneys fees and expenses he paid reasonable. This question required the Court of Chancery to resolve factual questions regarding the appropriateness of an equal division of fees between Scharf and Greenberg. The Court of Chancery held that Scharf was entitled to recover $1,116,389.38 in legal fees and was also entitled to reimbursement of expenses incurred in the amount of $192,986.49. No cross-appeal was filed by Edgcomb and that holding is also now the law of this case. The third issue to be resolved by the Court of Chancery was Edgcomb's affirmative defense that Scharf's claim for indemnification is barred by the applicable three-year statute of limitations. This required the Court of Chancery to determine when Scharf could have been confident that the SEC's investigation of him had been resolved with certainty. That legal standard was established in an earlier pretrial ruling and became the law of the case in these proceedings. [16] In its post-trial opinion, the Court of Chancery held that Scharf's claim for indemnification was barred by the three-year statute of limitations. That holding is challenged by Scharf. It is the only issue presented in this appeal.