WILMINGTON, DE — Citizens for Judicial Fairness sharply criticized the Delaware Court of Chancery after a new academic study alleged that attorney fee awards in the influential business court have climbed far beyond any consistent measure of risk, performance or market norms.
The study, authored by three law school professors, found that fee determinations lack standardized benchmarks and frequently reward a small group of well-connected firms. Researchers highlighted cases in which judges approved hourly rates reaching nearly $18,000 and multimillion-dollar awards that far exceeded the underlying litigation risk.
In a statement responding to the report, Citizens for Judicial Fairness said the findings validate long-standing concerns about outsized payouts and limited transparency. The group pointed to awards of $345 million and $266 million as examples of what it called disproportionate compensation compared with fees in federal courts.
The organization argued that the system benefits a small circle of firms while offering little accountability to shareholders or the public. It also warned that the state’s business climate could suffer if corporations perceive Delaware’s legal environment as unpredictable or excessively costly.
The group said several companies have relocated their corporate registrations in recent years, citing frustration with inconsistent fee rulings. Those departures, it argued, represent a loss of corporate tax revenue that supports state programs and public services.
Citizens for Judicial Fairness called on state leaders to introduce reforms that would bring greater oversight and clarity to the fee-setting process. The group said confidence in the judiciary depends on ensuring that attorney awards reflect genuine risk and measurable results rather than insider advantage.
The debate arrives at a sensitive moment for Delaware, which has long promoted itself as the nation’s premier corporate jurisdiction. The Chancery Court remains a central venue for major business disputes, mergers and shareholder actions. Critics warn that without changes, concerns about fee structures could complicate the state’s efforts to preserve its competitive edge.
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