In a recent letter opinion, Vice Chancellor Lori W. Will addressed the issue of pre-judgment interest in the long-running case of Edward Deane et al. v. Robert J. Maginn, Jr. The case, which resulted in a $25 million damages award to New Media II-B, LLC, faced additional disputes concerning the interest calculations on these damages. The court had previously ruled on the damages but had not fully addressed the interest component, leading to further submissions from the parties involved.

Vice Chancellor Will concluded that pre-judgment interest should not be applied before the issuance of the court's Opinion on November 1, 2022. She reasoned that the awarded damages were based on the appreciated value of the securities at trial, and applying pre-judgment interest from the time of the wrongdoing would result in double counting. Additionally, since the plaintiffs were not deprived of their own funds, pre-judgment interest would not serve its intended compensatory purpose.

However, the court ruled that pre-judgment interest should begin accruing from the date of the Opinion. This decision was based on the notion that Maginn retained funds that should be distributed to New Media II-B’s members, thus entitling them to interest for the period they were deprived of these funds. The legal rate of interest was set at 5% over the Federal Discount Rate, compounded quarterly.

The parties were directed to draft a final order reflecting this decision, with the expectation that the case could finally be brought to a close. Vice Chancellor Will expressed hope that this resolution would end the litigation phase and allow for the distribution of funds as intended, ensuring that the plaintiffs receive fair compensation for the delay in justice.