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1
.
MEMORANDUM OPINION
|
EXTRACTED KEY WORDS
EMS WARRANTS COURT PRICE SUPREME COURT MILLER REMAND ORDER CONTROL PLAINTIFFS CVC VALUATION CONTROL PREMIUM MINORITY PURCHASE PAID COMPARABLE COMPANIES MINORITY DISCOUNT FAIR MARKET APPRAISALUNIQUE DEFENDANTS FULLY DILUTED BASIS MARKETABILITY DISCOUNT TRANSACTIONS ADJUSTMENT VALUATION TECHNIQUES MINORITY STOCKHOLDER GOLDEN STATE WILMINGTON ATTORNEYS |
IN THE COURT OF CHANCERY OF THE S'TATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID j
CALLAWAY, III AND EMS CORP., >
Plaintiffs, i
> Civil Action No. 16795
AND )1
CITICORP VENTURE CAPITAL, LTD.
Intervenor-Plaintiff,
V.
EDWARD M. MILLER and WILLIAM A. `,
`.
DE LORENZO,
Defendants.
MEMORANDUM OPINION
Date Submitted: March 28, 2001
Date Decided: May 15,200 1
Joel E. Friedlander, Esquire of BOUCHARD, MARGULES & FRIEDLANDER,
Wilmington, Delaware; Of Counsel: Stuart L. Shapiro, Esquire, of SHAPIRO
FORMAN & ALLEN, New York, New York, Attorney for Plaintiffs.
Martin P. Tully and Jon E. Abramczyk, Esquires of MORRIS, NICHOLS, ARSHT
& TUNNELL, Wilmington, Delaware, Attorneys for Intervenor-Plaintiff.
Peter J. Walsh, Jr., and Michael A. Pittenger, Esquires, of POTTER ANDERSON &
CORROON, Wilmington, Delaware, Attorneys for Defendants.
STRINE, Vke Chancellor
This opinion addresses the remand order of the Supreme Court that
required this court to determine the price at which certain warrants held by
SNIPPETS:
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2
.
PLAINTIFFS POST-TRIAL REPLY BRIEF
|
EXTRACTED KEY WORDS
PRICE EMS PAID VALUATION CVC AIR CANADA COURT SUPREME COURT PREMIUM FACTS HYPOTHETICAL QUESTIONS MULTIPLE DETERMINATION PURCHASE ACCEPTED VALUATION KEY DIFFERENCES PLAINTIFFS MINORITY DISCOUNT REVENUE MULTIPLE PRICE YIELDS PROFIT MARGIN COMPARABLE COMPANIES ACQUISITION PREMIUMS VALUATION METHODOLOGY AVERAGE PREMIUM ADJUSTMENT PRICE/SALES MULTIPLE SUPPLEMENTAL REPORT FAIR MARKET |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID
CALLAWAY, III, and EMS CORP., >
Plaintiffs. t
and ;
CITICORP VENTURE CAPITAL, LTD. 1 C.A. No. 16795
Intervenor-Plaintiff, >
V . ;
EDWARD M. MILLER and i
WILLIAM A. D.E. LORENZO,
i
Defendants.
PLAINTIFFS' POST-TRIAL REPLY BRIEF
MORRIS, NICHOLS, ARSBT & TUNNELL
Martin P. Tully
Jon E. AbrJ,mczyk
1201 N. Market Street
P.O. Box 1347
Wilmington, DE 19801
(302) 658-9200
Attorneys for Plaintiff Citicorp Venture Capital, Ltd.
BOUCHARD, MARGULES & FRIEDLANDER, P.A.
Joel E. Friedlander
222 Delaware Avenue, Suite 1102
Wilmington, DE 19801
(302) 573-3500
Attorneys for Plaintiffs L. David Callaway, III and
EMS Corp.
March 28,200l
i.
TABLE OF CONTENTS
SNIPPETS:
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3
.
DEFENDANTS POST-TRIAL REPLY BRIEF ON REMAND
|
EXTRACTED KEY WORDS
MILLER COURT EMS WARRANT SHARES MARKET PRICE CVC DEFENDANTS CALLAWAY GOLDEN STATE EVIDENCE VALUATION REVENUES MINORITY DISCOUNT DEL PURCHASE PRICE SUPREME COURT RECORD EVIDENCE TRANSACTION EDWARD WILLIAM LORENZO MANAGEMENT ADJUSTMENT PITTENGER NORTH MARKET STREET HERCULES PLAZA WILMINGTON ATTORNEYS |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE ' " ' `..."`j
IN AND FOR NEW CASTLE COUNTY
STUART AGRANlOFF, L. DAVID
CALLAWAY, III AND EMS CORP.,
Plaintiffs,
AND
CITICORP VENTURE CAPITAL, LTD.,
Intervenor-Plaintiff,
V.
EDWARD M. MILLER and WILLIAM A.
DE LORENZO,
Defendants.
DEFENDANTS' POST-TRIAL REPLY BRIEF ON REMAND
__-
POTTER ANDERSON & CORROON LLP
Peter J. Walsh, Jr.
Michael A. Pittenger
Brian C Ralston
13 13 North Market Street
Hercules Plaza, 6" Floor
P.O. Box 951
Wilmington, DE 19899
(302) 984-6000
Attorneys for Defendants
EDWARD M. MILLER and
WILLIAM A. De LORENZO
Dated: March 28,200l
161454"3
SNIPPETS:
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4
.
PLAINTIFFS POST TRIAL BRIEF
|
EXTRACTED KEY WORDS
WARRANT SHARES EMS PUGLISI MILLER PREMIUM MULTIPLE COURT COMPARABLE COMPANIES MINORITY VALUATION PURCHASE PRICE REVENUE MULTIPLE PAID CVC VALUATION METHODS HYPOTHETICAL PURCHASE PRICE PLAINTIFFS MINORITY DISCOUNT AIR CANADA SUPREME COURT TRANSACTIONS ADJUSTMENT COMMON STOCK RESTITUTION STOCKHOLDER GOLDEN STATE GOLDEN STATE GROUP GUIDELINE COMPANIES PROFIT MARGIN |
IN THE COURT OF CHANCERY OF THE STATE OF
STUART AGRANOFF, L. DAVID
CALLAWAY, III, and EMS CORP.,
Plaintiffs,
and
CITICORP VENTURE CAPITAL, LTD. i> CA. No. 16795
Intervener-Plaintiff,
;
V.
EDWARD M. MILLER and
WILLIAM A. DE L.ORENZO,
Defendants.
PLAINTIFFS' POST-TRIAL BRIEF
MORRIS, NICHOLS, ARSHT 1% TUNNELL
Martin P. Tully
Jon E. Abramczyk
1201 N. Market Street
P.O. Box 1347
Wilmington, DE 19801
(302) 658-9200
Attorneys for Plaintiff Citicorp Venture Capital, Ltd.
BOUCHARD, MARGIJLES & FRIEDLANDER, P.A.
Joel E. Friedlander
222 Delaware Avenue, Suite 11132
Wilmington, DE 1980 I
(302) 573-3500
Attorneys for Plaintiffs L. David Callaway, III and
EMS Corp.
March 19,200l
1.
SNIPPETS:
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5
.
DEFENDANTS POST-TRIAL OPENING BRIEF ON REMAND
|
EXTRACTED KEY WORDS
EMS MILLER COURT VALUATION MARKET CALLAWAY BUSINESS PRICE OPERATING MINORITY DISCOUNT CVC DEFENDANTS REPORT LEE CONTROL GOLDEN STATE FINANCIALS COMPARABLE COMPANIES PURCHASE PRICE APPROXIMATION DAVID CALLAWAY PLAINTIFFS DCF ANALYSIS COMMON STOCK SUPREME COURT TRANSACTIONS ACQUISITION DISCOUNT RATE MULTIPLIER |
IN THE COURT OF CHANCERY OF TH:E STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID
CALLAWAY, III AND EMS CORP.,
Plaintiffs,
AND
CITICORP VENTURE CAPITAL, LTD.
Intervener-Plaintiff, >
V. ;
EDWARD M. MILLER and WILLIAM A. 1
DE LORENZO,
;
Defendants. >
DEFENDAKTS POST-TRIAL OPENING BRIEF ON REMkm
POTTER ANDERSON & CORROON LLP
Peter J. Walsh, Jr.
Michael A.. Pittenger
13 13 North Market Street
Hercules Plaza, 6'h Floor
P.O. Box 05 1
Wilmington, DE 19899
(302) 984-,600O
Attorneys for Defendants
EDWARD M. MILLER an'd
WILLIAM A. De LORENZO
Dated: March 19,200l
`ml36
TABLE OF CONTENTS
SNIPPETS:
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6
.
PLAINTIFFS PRE-TRIAL MEMORANDUM
|
EXTRACTED KEY WORDS
EMS PRICE MILLER COURT PAID CVC PURCHASE VALUATION REPORT REVENUES PLAINTIFFS COMPARABLE COMPANIES DISCOUNT DELAWARE THIRD PARTY CONTROL PREMIUM HYPOTHETICAL PURCHASE PRICE DEFENDANT SUPREME COURT AIR CANADA MINORITY DISCOUNT CASH FLOW METHOD DELAWARE APPRAISAL LAW NOL APPROXIMATES VALUATION AVERAGE CAVALIER OIL CORPORATE OPPORTUNITY MESSENGER |
n\r THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID
CALLAWAY, III, and EMS CORP., ;
Plaintiffs, i
and i
CITICORP VENTURE CAPITAL, LTD. i1 C.A. No. 16795
Intervener-Plaintiff,
1
V.
1
EDWARD M. MILLER and
WILLIAM A. DE LORENZO,
Defendants.
PLAINTIFFS' Pm-TRIAL MEMORANDUM
MORRIS, NICHOLS, ARSHT & TLJNNELL
Martin P. Tully
Jon E. Abramczyk
1201 N. Market Street
P.O. Box 1347
Wilmington, DE 19801
(302) 658-9200
Attorneys for Plaintiffs
September 7,ZOOO
1.
TABLE OF CONTENTS
m
TAl3LE OF CITATIONS
SNIPPETS:
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7
.
DEFENDANTS PRE-TRIAL BRIEF ON REMAND
|
EXTRACTED KEY WORDS
COURT EMS WARRANT SHARES MARKET PRICE DELAWARE KPMG REPORT PUGLISI AGRANOFF DEFENDANTS DAVID CALLAWAY MINORITY DISCOUNT DEL REVENUES PURCHASE PRICE SUPREME COURT CVC MILLER PAID COMPARABLE COMPANIES CORNPARABLES DCF DELAWARE LAW CASH FLOW DCF ANALYSIS WILLIAM MEMORANDUM OPINION MULTIPLIER EBITDA COMMON STOCK |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STIJART AGRANOFF, L. DAVID
CALLAWAY, III AND EMS CORP.,
Plain.tiffs. i
ANCl ;
Civil Action No. 16795
CITICORP VENTURE CAPITAL, LTD. 1
Intervenor-Plaintiff,
V.
EDWARD M. MILLER and WILLIAM A
DE LORENZO,
Defendants.
DEFENDANTS' PRE-TRIAL BRIEF ON REMAm
POTTER ANDERSON & CORROON LLP
Peter J. Walsh, Jr.
Michael A. Pittenger
13 13 North Market Street
Hercules Plaza, 61h Floor
P.O. Box 95 1
Wilmington, DE 19899
(302) 984-6000
Attorneys for Defendants
EDWARD M. MILLER and
WILLIAM A. De LORENZO
Dated: September 7,200O
124854
TABLE OF
SNIPPETS:
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8
.
DETERMINATION OF FAIR VALUE OF EMS WARRANT SHARES
|
EXTRACTED KEY WORDS
EMS VALUATION OPERATING SHARES DETERMINATION CAPITALIZATION MILLER COMPARABLES EXHIBIT PEER GROUP OPINIONS FINANCIAL PERFORMANCE LEASES MATTER WARRANT SHARES REVENUES MULTIPLE-OF-EARNINGS TRANSACTIONS EBIT CASH FLOW MULTIPLES-OF-EARNINGS EBITDA PEER GROUP MEMBERS FY98 MANAGEMENT PROFITABILITY DEFENDANT EDWARD MINORITY DISCOUNT ENTERPRISE |
DETERMINATION OF THE FAIR VALUE OF EMS CORP. WARRAXT
SHARES AS OF NOVEMBER 3,199s
Prepared by
Donald J. Puglisi
Managing Director
Puglisi & Associates
850 Library Avenue, Suite 204
Newark, Delaware 197 11
302-738-6680
June 2000
Table ofcontents
I. INTRODUCTLON .AND SUMMARY OF OPINIONS TO
BE EXPRESSED . . . . . . . . . . . . . . . . . . . . . . . . . . . .
II. Q U A L I F I C A T I O N S O F T H E E X P E R T W I T N E S S
III. MATERIALS CONSIDERED IN FORMING EXPERT OPINIONS
I\ V A L U A T I O N O F E M S C O R P . C O M M O N S T O C K
A. The Nature of EMS Corp.`s and Express's Busmess .,...,
8. Express's Financial Performance and Position _. _. _. _.
C. Approaches to Determining the Fair Value of EMS Corp.
Common Stock . _.
1. Transactions in EMS Corp. and Express Common Stock,.
2. Multiples-of-Revenue and Earnings Capitalization Models.
SNIPPETS:
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9
.
FINAL ORDER
|
EXTRACTED KEY WORDS
SHARES MILLER PURCHASE EDWARD TRUST VOTE PURPORTS STOCKHOLDERS WARRANT SHARES COURT PURPORTED CONSENT BANK TRUST NATIONAL ASSOCIATION AIR CANADA DIRECTORS MEMBER PROXIES POWER QUORUM PURPOSES CVC PRICES PAID ACCRUING LEGAL RATE DECLINE COMPETENT JURISDICTION OWNER SHAREHOLDERS AGREEMENT FBO JANET |
\,--..,i ?i .,'
7 :`d{ k !kj 3 i `:&
C&
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID )
CALLAWAY, III, and EMS CORP., ))
Plaintiffs, 1)
and 1)
CITICOIiP VENTURE CAPITAL, LTD., )1
Intervenor Plaintiff 11
V. ) Civil Action No. 16795 z td
1
EDWARD M. MILLER and WILLIAM )
A. DE LORENZO, )1
Defendants. )
FINAL ORDER
In this action brought pursuant to 8 Del. C. 8 225, for the reasons stated
in this Court's post-trial memorandum opinion dated April 9, 1999;
IT IS HEREBY ORDERED this day of April, 1999, that:
1. The purported consent of stockholders executed by Edward M.
Miller on November 6, 1999 (J.E. 24) was ineffective;
2. Defendants Edward M. Miller and William A. De Lorenzo were
not validly elected as directors of EMS Corp. ("EMS");
3. Plaintiffs Stuart Agranoff and L. David Callaway III and any
other persons then in office were not validly removed as directors of EMS;
4. The purported consent of the stockholders of Express Messenger
Systems, Inc. ("Express"), dated November 17, 1998, and executed by Edward M.
Miller in his purported capacity as Chairman of EMS (J.E. 27) was ineffective, as was
SNIPPETS:
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10
.
MEMORANDUM OPINION
|
EXTRACTED KEY WORDS
MILLER CALLAWAY DEL OVENS AGREEMENT AGRANOFF DELAWARE PLAINTIFFS DIRECTORS SHARES COURT MANAGEMENT HOLDERS FIRST REFUSAL RIGHTS DEFENDANT STOCKHOLDERS CVC AIR CANADA ATTORNEYS TESTIMONY AMENDMENT VOTING AGREEMENT SHAREHOLDERS RIGHTS OFFERING PROVISION OWNERSHIP NEGOTIATIONS CITICORP VENTURE WILMINGTON CHANCELLOR |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID >
CALLAWAY III, and EMS CORP., )
>
Plaintiffs, >>) Civil Action No. 16795
>
CITICORP VENTURE CAPITAL, LTD., )
>
Intervenor-Plaintiff, )
>
V. >
>
EDWARD M. MILLER and >
M'IlUAMA. DE LOREN.0, )
Defendants. )
MEMORANDUM OPINION
Date Submitted: March 29, 1999
Date Decided: April 9, 1999
Joel E. Friedlander, Esquire, of BOUCHARD FRIEDLANDER & MALONEYHUSS,
Wilmington, Delaware; OF COUNSEL: Stuart L. Shapiro, Esquire, of SHAPIRO
FORMAN & ALLEN, New York, New York, Attorneys for Plaintiffs.
Martin P. Tully, Esquire, Jon E. Abramczyk, Esquire, of MORRIS, NICHOLS,
ARSHT & TUNNELL, Wilmington, Delaware; Attorney for Intervenor-Plaintiff.
Robert K. Payson, Esquire, Peter J. Walsh, Jr., Esquire, Michael A. Pittenger, Esquire,
Brian C. Ralston, Esquire, of POTTER ANDERSON & CORROON, Wilmington,
Delaware, Attorneys for Defendants.
STRINE, Vice Chancellor
Plaintiffs L. David Callaway, III, Stuart Agranoff, and Citicorp Venture
Capital, Ltd. ("CVC") seek a determination pursuant to 8 Del. C. 0 225 that the
November 6, 1998 removal of Callaway and Agranoff as directors of EMS Corp.
("EMS") by defendant Edward M. Miller was ineffective. In this post-trial
SNIPPETS:
|
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11
.
POST-TRIAL BRIEF
|
EXTRACTED KEY WORDS
EMS MILLER WARRANTS SHARES COURT STOCKHOLDERS PLAINTIFFS DEL CALLAWAY STOCK PROCEEDING CVC DELAWARE SELLING STOCKHOLDERS LAW WRITTEN CONSENT AMENDING AGREEMENT TRANSFER RESTRICTIONS DEFENDANTS MANAGEMENT AIR CANADA DIRECTORS REASONABLENESS PROVISION COMMON STOCK PROPOSED FINDINGS SHAREHOLDERS DEPOSITION TESTIMONY PRELIMINARY STATEMENT |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID )
CALLAWAY, III AND EMS CORP., >>
Plaintiffs, > Civil Action No. 16795
AND >1
CITICORP VENTURE CAPITAL, LTD. >>
Intervenor-Plaintiff, )
)
V. >
>
EDWARD M. MILLER and WILLIAM A. >
DELORENZO, >>
Defendants. i
DEFENDANTS' POST-TRIAL BRIEF
POTTER ANDERSON & CORROON LLP
Robert K. Payson
Peter J. Walsh, Jr.
Michael A. Pittenger
Brian C. Ralston
13 13 North Market Street
Hercules Plaza, 6'h Floor
P.O. Box 951
Wilmington, DE 19899
March 17, 1999 (302) 984-6000
PA&C /363244Vl
Attorneys for Defendants
EDWARD M. MILLER and
WILLIAM A. DeLORENZO
TABLE OF
PAGE
NATURE AND STAGE OF PROCEEDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 1
SNIPPETS:
|
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12
.
POST TRIAL BRIEF
|
EXTRACTED KEY WORDS
AGREEMENT EMS OVENS SHARES DELAWARE PLAINTIFFS CALLAWAY COURT SIMPSON DEL RIGHTS CVC LAW SHAREHOLDERS AGREEMENT COUNSEL TRANSFER RESTRICTIONS STOCKHOLDERS AIR CANADA DIRECTORS AMENDMENT TESTIMONY APPLICABLE LAW TAKEOVER PLAN LEXIS DEPOSITION RIGHTS OFFERING DEFENDANTS MILLER ADMITS UNDERSTANDING |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID >
CALLAWAY, III, EMS CORP., and ) r .-I
CITICORP VENTURE CAPITAL, LTD., )) i
Plaintiffs, > . -
c
)
V. ) Civil Action No. 16795 _`,' `..!
> C'. ,
EDWARD M. MILLER and WILLIAM ) 1-e; ,.,
A. DE LORENZO, ))
Defendants. 1
PLAINTIFFS' POST-TRIAL BRIEF
Joel Friedlander
BOUCHARD FRIEDLANDER
& MALONEYHUSS
222 Delaware Avenue, Suite 1102
Wilmington, DE 19801
(302) 573-3500
Attorneys for Plaintiffs Stuart Agranoff,
L. David Callaway, III and EMS Corp.
OF COUNSEL:
Stuart L. Shapiro
SHAPIRO FORMAN & ALLEN LLP
380 Madison Avenue, 24th Floor
New York, N.Y. 10017
(212) 972-4900
Martin P. Tully
Jon E. Abramczyk
MORRIS, NICHOLS, ARSHT
& TUNNELL
1201 N. Market Street
Wilmington, DE 19801
(302) 658-9200
Attorneys for Plaintiff Citicorp
Venture Capital, Ltd.
SNIPPETS:
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13
.
ANSWER TO COMPLAINT FOR INTERVENTION
|
EXTRACTED KEY WORDS
AGREEMENT SHAREHOLDERS COURT COMPLAINT REFER ADMIT EMS PARAGRAPH LORENZO PLAINTIFF DEL MILLER RELIEF CVC DEFENDANTS DENY AUTHENTICITY MATTER LAW EQUITABLE DOCTRINE EDWARD WILLIAM INTERVENTION ATTORNEYS PURPORTS PROPER INFORMATION SUFFICIENT TRUTH RESIDENT PARTIES |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID CALLAWAY III, )
AND EMS CORP., >)
Plaintiffs, ) Civil Action No. 16795
V.
EDWARD M. MILLER and WILLIAM A. DE
LORENZO,
Defendants.
ANSWER TO COMPLAINT FOR INTERVENTION
Defendants Edward M. Miller ("Miller") and William A. De Lorenzo ("De
Lorenzo") (collectively the "Defendants"), by their undersigned attorneys, hereby respond to the
Complaint In Intervention (the "Complaint") as follows:
1. Denied, except admit that this action purports to be brought pursuant to
Section 225 of the DGCL for a declaration as to the proper composition of the board of directors
of EMS Corp. ("EMS") and for related relief.
2. Defendants admit the first, second and third sentences of paragraph 2, and
are without knowledge or information sufficient to form a belief as to the accuracy or truth of the
remainder of the allegations.
3. Defendants are without knowledge or information sufficient to form a
belief as to the accuracy or truth of the allegations of paragraph 3.
4. Denied, except admit that Miller is a Virginia resident.
5. Denied. By way of further answer, De Lorenzo is a resident of New York.
6. Denied, except admit that CVC and EMS are parties to the referenced
1987 Shareholders Agreement, as amended (the "Shareholders Agreement"), and refer the Court
SNIPPETS:
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14
.
2ND AMENDED ANSWER
|
EXTRACTED KEY WORDS
DEFENDANTS COURT PLAINTIFFS ADMIT COMPLAINT REFER MILLER LORENZO EMS PARAGRAPH DEFENDANTS DENY LAW DEL DELAWARE DEFENDANTS EDWARD WILLIAM ATTORNEYS PARTY AUTHENTICITY EXTEND RELIEF LACK STANDING MATTER EQUITABLE DOCTRINE HEREBY PURPORTS RESIDENT SPECIAL MEETING DELAWARE LAW PERMITS |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID CALLAWAY III, )
AND EMS CORP., )
>
Plaintiffs, > Civil Action No. 16795
V.
EDWARD M. MILLER and WILLIAM A. DE
LORENZO,
Defendants.
SECOND AMENDED ANSWER OF DEFENDANTS EDWARD
M. MILLER AND WILLIAM A. DE LORENZO
Defendants Edward M. Miller ("Miller") and William A. De Lorenzo ("De
Lorenzo") (collectively the "Defendants"), by their undersigned attorneys, hereby respond to
Plaintiffs' Verified Complaint (the "Complaint") as follows:
1. Denied, except admit that this action purports to be brought pursuant to
Section 225 of the DGCL for a declaration as to who comprises the validly elected officers and
directors of EMS Corp. ("EMS").
2. Denied.
3. Defendants admit the first, second and third sentences of paragraph 3, and
are without knowledge or information sufficient to form a belief as to the accuracy or truth of the
remainder of the allegations.
4. Denied, except admit that Miller is a Virginia resident.
5. Denied. By way of further answer, De Lorenzo is a resident of New York.
6. Denied, except admit that EMS is a party to the referenced 1987
Shareholders Agreement, as amended (the "Shareholders Agreement"), and refer the Court to the
SNIPPETS:
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15
.
COMPLAINT IN INTERVENTION
|
EXTRACTED KEY WORDS
STOCKHOLDERS MILLER STOCKHOLDERS AGREEMENT SHARES DIRECTORS PURCHASE WARRANTS CVC NON-SELLING STOCKHOLDERS CALLAWAY LAW SELLING DELAWARE STOCK CONTROL SALES COMPLAINT SHAREHOLDERS AGRANOFF LORENZO TRUST PLAINTIFF BUSINESS CHAIRMAN DEFENDANT PURPORTS VIOLATION HERBST SUBSEQUENT EMS |
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
STUART AGRANOFF, L. DAVID >
CALLAWAY III, and EMS CORP., >>
Plaintiffs,
> < `-
-AND- > L- ,
CITICORP VENTURE CAPITAL, LTD., ) -
>
Intervenor-Plaintiff, >> C.A. No. 16795
V. >
>
EDWARD M. MILLER and >
WILLIAM A. DE LORENZO, >>
Defendants. >
COMPLAINT IN INTERVENTION
Citicorp Venture Capital, Ltd. ("CVC"), for its complaint in intervention, upon
knowledge as to itself and upon information and belief as to all other matters, states as follows:
1. This action seeks relief pursuant to Section 225 of the Delaware General
Corporation Law as to the proper composition of the board of directors of plaintiff EMS Corp.
("EMS") and for related relief pursuant to the 1987 Stockholders Agreement described below.
2. Plaintiff EMS is a Delaware corporation with its principal office in Burlingame,
California. It is a holding company whose principal asset is its 62% ownership of Express
Messenger Systems, Inc. ("Express"). Express is in the business of same day and overnight
delivery service. EMS is contractually entitled to designate three of Express' five directors.
Until the actions complained of herein, plaintiffs Stuart Agranoff ("Agranoff') and L. David
Callaway III ("Callaway") were two of the three duly elected directors of EMS, and Callaway
was also the President and Chief Executive Officer of EMS. Callaway also served as EMS'
-l-
designee on the board of directors of Express and the Chairman of Express until the actions
SNIPPETS:
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16
.
LETTER
|
EXTRACTED KEY WORDS
PLAINTIFFS MOTION CVC ATTORNEYS FEES COURT INTERVENE HAND DELIVERY EMS STRINE CHANCELLOR STANDING NON-SELLING SHAREHOLDER MILLER CONTRACT ESQUIRE HONORABLE LEO AGRANOFF CALLAWAY ASSERTION DEL OBLIGATION COMPLAINT CONTROL FIDUCIARIES SEEKING FINANCING DEFICIENT |
B O U C H A R D FRIEDLANDER & MALONEYHUSS
A PROFESSIONAL CORPORATION
SUITE I IO2
222 D ELAWARE A VENUE
WILMINGTON , DEUWARE I980 I
(302) 573-3500
FAX (302) 573-350 I
ANDRE G. B OUCHARD H O W
J OEL FRIEDLANDER
M ARY M . MALONEYHUSS
C H R I S T O P H E R E . DUNNE*
February 10, 1999
BY HAND DELIVERY
The Honorable Leo E. Strine, Jr.
Vice Chancellor
Court of Chancery
1020 North King Street
Wilmington, DE 19801
Re: Agranoff et al. v. Miller et al., C.A. No. 16795
Dear Vice Chancellor Strine:
Plaintiffs Stuart Agranoff, L. David Callaway, III and EMS Corp. ("EMS")
support Citicorp Venture Capital's ("CVC") motion to intervene. Defendants asserted
in their pre-trial brief that they would be prejudiced if CVC were not bound by this
Court's decision In light of defendants' assertion of prejudice and this Court's
comments about CVC's absence, CVC moved to intervene and offered to be bound. In
these circumstances, the motion should be granted.
Plaintiffs oppose defendants' motion to award them the attorneys' fees
incurred in briefing the issue of plaintiffs' standing. Any analysis of an
attorneys' fees must begin with the awareness that "[a]s a general proposition, it is
settled law that litigants must bear their own attorneys' fees." Weinberger v. UOP,
Inc., Del. Ch., 517 A.2d 653, 654 (1986). Absent statutory authority, courts have the
power to allow attorneys' fees only in "particular situations, e.g., the willful
disobedience of a court order `. . . as part of the fine to be levied on the
when the losing party has `acted in bad faith, vexatiously, wantonly, or for
reasons. D . . "I Slawik v. State, Del. Supr., 480 A.2d 636, 639 n.5 (1984) (citations
omitted). Defendants do not attempt to satisfy that standard.
SNIPPETS:
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