Opinion ID: 2266268
Heading Depth: 1
Heading Rank: 5

Heading: Damages and Pre-Judgment Interest

Text: In her final claim on appeal, Zirn contends that this Court should set the measure of damages in the case at bar so as to avoid another remand to the Court of Chancery. Since the Court of Chancery did not find the Defendants liable on any of Zirn's claims, the Chancellor did not reach the issue of damages. Zirn now contends that this Court should set the measure of damages at the difference between the original merger agreement price of $7.00 per share and the tender offer price of $6.25 per share. Defendants contend that VLI's Certificate of Incorporation provision, which extends the protection of 8 Del.C. § 102(b)(7) to VLI's directors, acts as a bar to the imposition of monetary damages against the VLI director defendants. We agree with the Defendants and hold that the VLI directors are shielded from liability by 8 Del.C. § 102(b)(7) and the amendment to VLI's Certificate of Incorporation giving effect to that statutory provision. The record reveals that any misstatements or omissions that occurred were made in good faith. The VLI directors lacked any pecuniary motive to mislead the VLI stockholders intentionally and no other plausible motive for deceiving the stockholders has been advanced. A good faith erroneous judgment as to the proper scope or content of required disclosure implicates the duty of care rather than the duty of loyalty. Arnold I, 650 A.2d at 1287-88 & n. 36. Thus, the disclosure violations at issue here fall within the ambit of the protection of section 102(b)(7). [7] Had the stockholders of VLI acted at the appropriate time and demonstrated the disclosure violation found herein, they could have sought an injunctive remedy. Arnold II, 678 A.2d at 542. Unfortunately, the time for such action has passed. We recognize that our decision will leave the former stockholders of VLI without any redress. Arnold II, 678 A.2d at 541. This, however, is the result envisaged by section 102(b)(7). VLI's stockholders approved the amendment to the VLI Certificate of Incorporation with full knowledge of its import.