Massachusetts General Laws

Mass. Gen. Laws ch. 156C, § 57 (2026)

Court orders on termination of derivative suit

✓ current as of July 2026
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Section 57. On termination of the derivative suit, the court may:

(a) order the limited liability company to pay the plaintiff's reasonable expenses, including counsel fees, incurred in the proceeding if it finds that the suit has resulted in a substantial benefit to the limited liability company; or

(b) order the plaintiff to pay any defendant's reasonable expenses, including counsel fees, incurred in defending the suit if it finds that the suit was commenced or maintained without reasonable cause or for an improper purpose.

Notes of Decisions
Cited in 1 case, 2016–2016 · leading case: Beninati v. Borghi, 61 N.E.3d 476 (Mass. App. Ct. 2016).
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Beninati v. Borghi, 61 N.E.3d 476 (Mass. App. Ct. 2016). · cites it 3× “The judge also upheld corporate votes of the WOW New England companies removing the Borghis from management, and awarded attorney’s fees to *558 Elizabeth under G. L. c. 156C, § 57, but not Masotta. On Elizabeth and Masotta’s appeal from the judge’s ruling in favor of Dixon and…”
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