In L & W Insurance, Inc. v. Harrington, (Del. Ch., June 6, 2007), read opinion here, the Chancery Court addressed a request for attorneys’  fees and costs pursuant to a contractual fee shifting provision in connection with the Defendant’s successful defense against a motion for preliminary injunctive relief regarding a covenant-not-to-compete. (Read summary on this blog of prior decision of the Chancery Court on that preliminary injunction request in this case, here.) In sum, the court determined that the ultimate resolution of the merits of the parties’ dispute was subject to binding arbitration and an award of fees pursuant to a contractual provision that entitles the prevailing party to fees and costs would need to await the final decision on parties’ claims by the arbitrator.

The court also declined to award, as premature, any costs for transcription fees for non-expert depositions in light of the court’s reading of Chancery Court Rule 54(d) and Section 5106 of Title 10 of the Delaware Code.