Tesla Awaits Dell Attorney Fee Appeal at Delaware High Court

Recent litigation involving Dell Technologies Inc. and Tesla Inc. has raised a hotly-debated question in Delaware—how much should plaintiffs’ attorneys get paid?

The Delaware Supreme Court hears arguments Wednesday in an appeal seeking to reverse last year’s $267 million award to lawyers who negotiated a historic $1 billion settlement over a contentious stock conversion at Dell. The argument follows sky-high fee applications in the state’s Court of Chancery in two lawsuits involving Tesla CEO Elon Musk’s pay package and compensation for the electric vehicle manufacturer’s directors.

Nine-figure fee awards are rare in Delaware, so there’s little incentive for the high ...