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PAIGE CAPITAL MGMT. v. LERNER MASTER FUND

Civil Action No. 5502-VCS.

22 A.3d 710 (2011)

PAIGE CAPITAL MANAGEMENT, LLC, Paige Opportunity Partners, L.P., Paige Opportunity Master Fund, LTD, Paige GP, LLC, Michele Paige and Christopher Paige, Plaintiffs, v. LERNER MASTER FUND, LLC, and Brooklyn N.Y. Holdings LLC, Defendants. Lerner Master Fund, LLC, Counterclaim/Third-Party Plaintiff, v. Paige Capital Management, LLC, Paige Opportunity Partners, L.P., Paige Opportunity Master Fund, LTD, Paige GP, LLC, Michele Paige and Christopher Paige, Counterclaim/Third-Party Defendants.

Court of Chancery of Delaware.

Decided: May 5, 2011.

Attorney(s) appearing for the Case

Steven K. Kortanek, Esquire , Michael G. Busenkell, Esquire , Womble Carlyle Sandridge & Rice, PLLC, Wilmington, Delaware; William M. Dolan III, Esquire , Katherine S. Bromberg, Esquire , Jessica Calagione, Esquire , Brown Rudnick LLP, New York, New York, Attorneys for Plaintiffs, Counterclaim Defendants and Third Party Defendants.

Joel Friedlander, Esquire , Jeffrey M. Gorris, Esquire , Bouchard Margules & Friedlander, P.A., Wilmington, Delaware; David Boies, Esquire , Boies, Schiller & Flexner LLP, Armonk, New York; Steven I. Froot, Esquire , Christopher E. Duffy, Esquire , Boies, Schiller & Flexner LLP, New York, New York, Attorneys for Defendant, Counterclaim/Third-Party Plaintiff.

STRINE, Vice Chancellor.

I. Introduction

A traditional privilege has attached to testimony in judicial proceedings that immunizes a lawyer or witness from a collateral claim alleging that the testimony amounted to defamation or a related tort based on the alleged reputational harm suffered by a third party because of what the lawyer or witness said. That privilege has been deemed absolute and is thought to...

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