Surf's Up Legacy Partners, LLC v. Virgin Fest, LLC

Superior Court of Delaware·Decided November 19, 2025·No. N19C-11-092 PRW CCLD·Published

Opinion

SUPERIOR COURT

OF THE

STATE OF DELAWARE

PAUL R. WALLACE LEONARD L. WILLIAMS JUSTICE CENTER JUDGE 500 N. KING STREET, SUITE 10400 WILMINGTON, DELAWARE 19801 (302) 255-0660

Submitted: November 17, 2025 Decided: November 19, 2025

Theodore A. Kittila, Esquire (argued) Robert J. Katzenstein, Esquire James G. McMillan, III, Esquire David A. Jenkins, Esquire HALLORAN FARKAS + KITTILA SMITH, KATZENSTEIN & JENKINS1 5722 Kennett Pike 1000 North West Street, Suite 1501 Wilmington, Delaware 19807 Wilmington, Delaware 19801 John W. Black, Esquire LASHGOLDBERG 100 SE 2nd Street, Suite 1200 Miami, Florida 33131 Samuel J. Buffone, Jr., Esquire BUFFONE LAW GROUP 4301 Connecticut Avenue, Suite 452 Washington, District of Columbia 20008

RE: Surf’s Up Legacy Partners, LLC, et al. v. Virgin Fest, LLC, et al.

C.A. No. N19C-11-092 PRW CCLD Virgin Fest, LLC’s Motion for Attorney’s Fees

Dear Counsel:

This Letter Decision and Order addresses Virgin Fest, LLC’s Motion for

Attorney’s Fees (D.I. 452). For the reasons explained now, that motion is

1 Robert K. Beste, Esquire—then with Smith, Katzenstein & Jenkins LLP—was trial counsel and argued the present post-trial application on behalf of Virgin Fest, LLC. Mr. Beste has since changed firms and withdrawn from representation in this case. See Entry of Appearance (D.I. 462).

C.A. No. N19C-11-092 PRW CCLD November 19, 2025 Page 2 of 19

GRANTED, in part, and DENIED, in part.

I. FACTUAL AND PROCEDURAL BACKGROUND2

This dispute began in 2019 over claims of breaches of contract and fraud

surrounding the dissolution of a business relationship between KB Eventpro, LLC

and its related entities (“Eventpro”) and VFLA Eventco, LLC and KSD Ownco, LLC

(collectively, “Virgin”). Eventpro altered its financials to make itself a more

attractive sale target.3 Then, Eventpro and Virgin executed the Asset Purchase

Agreement (“APA”) through which Virgin purchased substantially all of Eventpro’s

assets.4 Eventpro and Virgin also executed the Master Services Agreement (“MSA”)

to produce a music festival in Los Angeles, and the Production Services Agreement

(“PSA”) to produce future festivals in the San Diego area for a period of ten years

unless terminated earlier.5 After failing to turn a profit at a festival and Eventpro’s

subsequent staffing issues, Virgin notified Eventpro of its right to terminate the

agreements.6 Soon after, the parties terminated the contracts and litigation

2 Mindful that the parties have a complete understanding of and familiarity with the factual background and applicable agreements, the Court dispenses with a fuller recounting thereof here. 3 Surf’s Up Legacy P’rs, LLC v. Virgin Fest, LLC, 2024 WL 1596021, at *1 (Del. Super. Ct. Apr.

12, 2024) (Decision After Trial) (“Surf ’s Up V”) (D.I. 440). 4 Id. at *10.

5 Id. at *11.

6 Id. at *1.

C.A. No. N19C-11-092 PRW CCLD November 19, 2025 Page 3 of 19

commenced.7

At trial, Eventpro’s claims included breach of the APA, MSA, and PSA and

an accompanying implied covenant of good faith and fair dealing claim.8

Conversely, Virgin litigated fifteen counterclaims at trial relating to all three deals.9

Eventpro’s claims were unsuccessful.10 Virgin lost on its fraud claims against

Eventpro but won on some of its contract claims.11 After a seven-day bench trial,

and its written decision after trial, the Court entered judgment, explaining:

VFLA Eventco, LLC is entitled to an award of its reasonable attorneys’ fees and expenses against Eventpro Production Services, LLC, formerly known as KB Eventpro, LLC, for those claims on which it has prevailed under the Master Services Agreement, as defined in the Decision After Trial and pursuant to the terms of that agreement, and KSD Ownco, LLC, formerly known as San Diego Fest Ownco, LLC, is entitled to an award of its reasonable attorneys’ fees and expenses against Eventpro Production Services, LLC, formerly known as KB Eventpro, LLC, for those claims on which it has prevailed under the Production Services Agreement, as defined in the Decision After Trial 8 and pursuant to the terms of that agreement, and VFLA Eventco, LLC and KSD Ownco, LLC shall submit applications seeking such fees and affidavits itemizing the expenses incurred and services rendered within sixty days of this order.12

7 Id. at *13.

8 Id.

9 Id. at *13–14.

10 Id. at *27.

11 Id. at *15–26.

12 Order of Judgment at 2–3 (D.I. 449).

C.A. No. N19C-11-092 PRW CCLD November 19, 2025 Page 4 of 19

Virgin then filed this motion. Virgin attached lists of the fees and expenses

incurred in the form of bulk invoices from the several firms that represented Virgin

throughout the litigation.13

II. PARTIES’ CONTENTIONS

Virgin moves for attorney’s fees and costs for the entire litigation under the

PSA and MSA.14 Having been declared the prevailing party, Virgin asserts that it

deserves the fee award it requests with no need for any further reasonableness

showing. In its view, the PSA and MSA’s language obviates that need—put simply,

whatever Virgin submits as fees and expenses should be deemed reasonable.15

Eventpro opposes Virgin’s motion largely because it lacks evidentiary

support.16 According to Eventpro, the fee-shifting provisions refer to the attorneys’

hourly rates when they state that such rate or rates shall be deemed reasonable.17

Additionally, Eventpro argues that Virgin’s submissions thus far do not support the

purported reasonableness of its bulk fee demand since they do not disclose any

13 Virgin Fest, LLC’s Motion for Attorneys’ Fees (hereinafter, the “Atty’s Fees Mot.”) Ex. 1 (D.I. 452). 14 Atty’s Fees Mot. at 1.

15 Id. at 5.

16 Eventpro Production Services, LLC’s Opposition to Virgin’s Motion for Attorneys’ Fees and Expenses (“Eventpro’s Opposition”) at 1 (D.I. 455). 17 Id. at 2–3.

C.A. No. N19C-11-092 PRW CCLD November 19, 2025 Page 5 of 19

attorney hourly rates or the identities of the attorneys and legal professionals who

provided those services.18 Invoking the Rule 1.5(a) factors, Eventpro asserts that

Virgin has not carried its burden to establish that the fees, as requested, are

reasonable.19 Lastly, Eventpro claims that attorney’s fees accrued under the APA

should not be shifted since the APA does not have a fee-shifting condition.

In response, Virgin maintains that Delaware law doesn’t require it to submit

the actual billing details or hourly rates because the PSA and MSA say that the costs

“shall be deemed reasonable.”20 Virgin then attests that—though the Court does not

have to do so—the Court should find that the requested fees and expenses are

reasonable under the Rule 1.5(a) factors.21 What’s more, Virgin contends, Delaware

courts use an “all-or-nothing” approach to fee shifting, and the PSA and MSA fee-

shifting provisions do not award fees based on a partial basis.22 Thus, Virgin says,

the Court should award it fees related to all claims on which it prevailed.23

18 Id. at 3.

19 Id. at 1–13.

20 Virgin’s Reply Supporting its Motion for Attorneys’ Fees and Expenses (“Virgin’s Reply”) at 4 (D.I. 458). 21 Id. at 4–7.

22 Id. at 8–9.

23 Id. at 9.

C.A. No. N19C-11-092 PRW CCLD November 19, 2025 Page 6 of 19

III. APPLICABLE LEGAL STANDARDS

The Court has considerable discretion in determining the reasonableness of an

award of attorneys’ fees.24 The party seeking an award of attorney’s fees and

expenses shoulders the burden of establishing that the amount sought is reasonable.25

In reviewing a fee award pursuant to a prevailing-party contract provision, the Court

will “generally exclude excessive, redundant, duplicative, or otherwise unnecessary

hours[.]”26 For a court to assess reasonableness, Delaware precedent “directs a judge

to consider the factors set forth in the Delaware Lawyers’ Rules of Professional

Conduct.”27 The Rule 1.5(a) factors are:

(1) The time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;

(2) The likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;

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Surf's Up Legacy Partners, LLC v. Virgin Fest, LLC, (Del. Ct. App. 2025).

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