Advancement: "Fees on Fees" Do Not Accrue Until Required Undertaking Submitted

In a recent opinion by the Court of Chancery's newest judicial officer, Vice Chancellor Slights, the Court considered the issue of when "fees on fees" begins to accrue in connection with an advancement proceeding.

In the decision of Wong v. USES Holding Corp., C.A. No. 11475-VCS (Del. Ch. April 5, 2016), Vice Chancellor Slights rejected a motion for reargument of a prior decision rendered by former Vice Chancellor Noble before his retirement.  (Wong v. USES Holding Corp., C.A. No. 11475-VCN (Del. Ch. Feb. 26, 2016)).  In the prior ruling, then Vice Chancellor Noble found that "fees on fees" did not accrue before such time that the plaintiff submitted an undertaking as required under Section 145 of the DGCL.