Delaware Court of Chancery Departs from Historical Practices and Awards Compounded Prejudgment Interest.

The Delaware Court of Chancery recently made a departure from its traditional practices by awarding compound prejudgment interest to the plaintiff in the case of Brown v. Court Square Capital Management, L.P. The plaintiff, Kevin Brown, sued his former employer after they stopped paying him his share of carried interest. The court ruled in Brown's favor and ordered the defendant to repay him all owed carried interest, ongoing carried interest, prejudgment interest, post-judgment interest, and interest on a per diem basis for each wrongfully withheld interest payment. The court justified the use of compound interest based on market realities, the sophisticated nature of the parties involved, and the compensatory and restitutionary aims of prejudgment interest. [Extracted from the article]