The Delaware Supreme Court says New Castle, Kent, and Sussex counties are not on the hook for plaintiff attorney fees in the public school funding lawsuit that led to statewide property tax reassessments.
A Chancery Court judge ruled in 2020 that the state’s property tax system was unconstitutional. The settlement of that case resulted in all three counties conducting property tax reassessments for the first time in decades.
In March 2022 and March 2023, the Court of Chancery ruled the counties were also responsible for over $1.5 million in attorneys’ fees and uncontested expenses from the case.
The counties defendants ( Director of Finance of Kent County, the Chief Financial Officer of New Castle County, and the
Finance Director of Sussex County) appealed to the Delaware Supreme Court, which reversed Chancery Court’s decision to award attorneys’ fees - saying the counties did not directly benefit from the litigation.
New Castle, Kent, and Sussex counties are no longer responsible for $1,476,001.88, but must still pay $73,470.02 in uncontested expenses.
“We are proud that we just saved taxpayers $1.48 million, a substantial portion of which would have been paid to out of state New York lawyers. This decision, from Delaware’s highest court, means countless public funds will be at considerably less risk in future lawsuits against towns, cities, counties and local governments across Delaware,” said New Castle County Executive Matt Meyer in a statement.
Read the full decision:
