21-2076 Derivative proceedings; payment of expenses. - Nebraska Statutes

21-2076. Derivative proceedings; payment of expenses.On termination of the derivative proceeding the court may:(1) Order the corporation to pay the plaintiff's reasonable expenses, including attorney's fees, incurred in the proceeding if the court finds that the proceeding has resulted in a substantial benefit to the corporation;(2) Order the plaintiff to pay any defendant's reasonable expenses, including attorney's fees, incurred in defending the proceeding if the court finds that the proceeding was commenced or maintained without reasonable cause or for an improper purpose; or(3) Order a party to pay an opposing party's reasonable expenses, including attorney's fees, incurred because of the filing of a pleading, motion, or other paper, if the court finds that the pleading, motion, or other paper was not well-grounded in fact, after reasonable inquiry, or warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law and was interposed for an improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation. SourceLaws 1995, LB 109, § 76.AnnotationsSubdivision (1) of this section does not authorize a court to order payment of fees by individual defendants. Trieweiler v. Sears, 268 Neb. 952, 689 N.W.2d 807 (2004).Subdivision (3) of this section is directed at the conduct of litigation, not at the underlying wrongful conduct of the defendants. Trieweiler v. Sears, 268 Neb. 952, 689 N.W.2d 807 (2004).