Latest News & Events

March 5, 2014

Court of Chancery Grants Summary Judgment In Favor of Berger Harris Clients

Berger Harris LLP attorneys Jack Harris and David Anthony secured partial summary judgment in the matter of Khenin v. Utilisave, LLC, C.A. No. 7796-ML in the Delaware Court of Chancery.  Berger Harris represents Utilisave, LLC, a Delaware limited liability company headquartered in New York City, and Utilisave member, MHS Ventures Management Corp.   The case centers on Utilisave’s claims against its former de facto CEO and, in particular, the former CEO’s unilateral, self-dealing acts, including the unauthorized payment to himself of member distributions, a $300,000+ annual base salary plus valuable fringe benefits.  Utilisave seeks over $1 million in damages.

Shortly before trial Berger Harris, on behalf of its clients, moved for summary judgment on several claims as to liability only.  Finding in favor of Utilisave, the Court of Chancery held that the plaintiffs are entitled to a judgment as a matter of law on three claims grounded on the defendant’s unauthorized actions as de facto CEO.   A three-day trial followed the Court’s decision and the parties await a decision and judgment as to damages.

Berger Harris attorneys have substantial experience representing clients in business disputes, particularly cases involving “business divorces”, and advising both directors and shareholders on a variety of corporate governance matters.