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DSHA Single Audit Identifies 8 Deficiencies, 6 Recurring

The Delaware Office of State Auditor published its Single Audit for the Delaware State Housing Authority (DSHA) covering fiscal year ended June 30, 2025. The audit identified eight significant deficiencies: two in internal controls over financial reporting and six regarding Uniform Guidance compliance. Six of these findings are recurring from fiscal years 2022–2024, indicating that prior corrective action plans were not effectively implemented, thereby increasing compliance risk. Findings include $168,055 in potentially fraudulent COVID-19 Emergency Rental Assistance, of which $82,709 remained uncollected as of June 30, 2025. DSHA has communicated a corrective action plan for each finding with target dates for remediation.

Delaware State Housing Authority FY25 Financial Statement Audit Unmodified Opinion Two Deficiencies

The Delaware Office of State Auditor issued an unmodified opinion on the Delaware State Housing Authority's FY25 financial statements covering the fiscal year ended June 30, 2025, with total assets of $732,459,779 (up 3.8% from FY24). The audit identified two significant deficiencies: staffing shortfalls that delayed financial statement preparation after the Section Manager resigned in July 2025 and a consultant engaged in August 2025 encountered significant difficulties; and three material misstatements requiring journal entry adjustments of $1,000,000, $688,016, and $5,864,456. One finding was a repeat issue from the prior year. Management has committed to implementing corrective actions including revised internal controls and enhanced review processes by March 31, 2026.

AG Frey Joins Coalition Condemning DOJ Coercion Against Minnesota

Maine Attorney General Aaron M. Frey joined a coalition of 22 state attorneys general in condemning the Department of Justice's use of armed federal agents to coerce Minnesota officials into turning over protected resident data including Medicaid, SNAP, and voter information. The coalition, led by New York AG Letitia James, sent a letter to U.S. Attorney General Pam Bondi and DHS Secretary Kristi Noem on January 29, 2026, asserting the demands intrude on state sovereignty and conflict with ongoing court-ordered protections. The attorneys general warned they will continue to defend state sovereignty and resident rights against unlawful federal interference.

Chertok v. OnSolve - Stockholder Merger Consideration and Release Claims

The Delaware Court of Chancery issued a post-trial memorandum opinion in Chertok v. OnSolve (C.A. No. 2020-0417-PAF), finding that OnSolve LLC breached its Certificate of Incorporation by conditioning payment of merger consideration on stockholders executing a release agreement. The court ruled that stockholder Douglas M. Chertok, having prevailed on his breach of contract claim, is entitled to prejudgment interest as a matter of right, calculated at the legal rate in effect when payment became due without compounding. SDTC Advisors LLC and Chertok sought damages exceeding the per-share merger consideration, but the court limited damages to the merger consideration amount under the agreement terms.

Calvitti Pools & Spas v. Patton – Arbitration Award Confirmed, $134,044 Motion to Transfer Denied

The Delaware Court of Chancery confirmed a $134,044 arbitration award in favor of Calvitti Pools & Spas, Inc. in a pool construction dispute with defendants Stephanie and Robert Patton. The court denied defendants' motion to transfer the case to the Court of Common Pleas, rejecting the argument that the Delaware Uniform Arbitration Act vests that court with exclusive jurisdiction over arbitration claims involving consumer credit contracts. The arbitrator had found both defendants were bound by the Pool Contract and Arbitration Agreement, that defendants breached by refusing payment and preventing completion, and that defendants' counterclaims failed.

Kiss v. Lathrop - Expert Testimony Excluded Under Daubert Standard

The Delaware Superior Court granted Paul Lathrop's Daubert motion, excluding bike expert Sam Davis's testimony in Kiss v. Lathrop. The court found Davis's opinion lacked sufficient factual foundation because neither the clamp bolt nor nut from the bicycle were recovered or inspected, and the sample Davis examined was from a random seat post. Under the rigorous gatekeeping standard clarified in Zantac, the court held that Plaintiff's arguments went to admissibility, not merely weight. The exclusion significantly weakens Plaintiff's negligence and strict product liability claims, which depended on expert opinion to establish causation.

Yourway Transport v. Vincerx Pharma — New Trial Motion Denied, $7.65M Verdict Upheld

The Delaware Superior Court denied Yourway Transport, Inc.'s Motion for a New Trial or Remittitur, upholding a March 5, 2026 jury verdict awarding Vincerx Pharma, Inc. $7,650,000.00 in damages for destroyed cell banks caused by Yourway's breach of their Master Services Agreement. The court rejected arguments that the damages were speculative or against the weight of evidence, noting the jury heard a battle of expert witnesses and that Yourway waived its objection to Dr. Lindell's testimony by failing to object during trial.

Blackstone v Nextera Energy Transmission - Motion to Dismiss Granted

The Delaware Superior Court granted Nextera Energy Transmission Investments LLC's motion to dismiss in the case brought by Blackstone Power & Natural Resources Holdco L.P. regarding earn-out payments under a 2020 purchase and sale agreement for GridLiance. The court held that Blackstone's claims for declaratory judgment and breach of contract regarding earn-out payments are subject to mandatory alternative dispute resolution through an expert determination process as specified in the parties' agreement. The court found that the PSA's remedy scheme waived the parties' ability to bring such claims in court while making expert determination the exclusive remedy. The case was dismissed without prejudice.

Delaware CGP Reauthorization and NPDES Permit Update, February 2026

DNREC Division of Watershed Stewardship announced the reauthorization of the Delaware NPDES Construction General Permit (CGP), publicly noticed on December 1, 2025, with all comments addressed in the Delaware NPDES CGP Fact Sheet. The reauthorized permit will be effective on March 11, 2026. Project owners with existing Notices of Intent (NOIs) must undertake steps to reauthorize under the new permit. Additionally, Sections 10.0, 12.0, and 13.0 of the Post-Construction Stormwater BMP Standards and Specifications were revised to clarify barrier requirements for stormwater management systems with permanent pools that are reasonably accessible to the public.

Delaware CGP Reauthorization Deadline June 15 2026

Delaware DNREC has reauthorized the Delaware NPDES Construction General Permit, effective March 11, 2026. All permittees and co-permittees with previously approved Notices of Intent must complete the reauthorization process under the 2026 CGP by June 15, 2026. Instructions were distributed via mail and email to affected parties, with additional guidance available on the Sediment and Stormwater Program website.

McGregor v. Mesa Jame Corp. - Liability Release Covers Negligence Only

Megan McGregor was injured at Sky Zone trampoline park in Delaware on January 15, 2024, after signing a Participant and Arbitration Agreement, Indemnification, General Release and Assumption (Release) on August 26, 2023. The Delaware Superior Court ruled that the Release bars negligence claims but does not insulate Defendants from claims of gross negligence or recklessness, consistent with prior rulings in Lynam v. Blue Diamond, LLC and Barth v. Blue Diamond, LLC. This holding establishes precedent regarding the enforceability and scope of liability releases in Delaware recreational business settings.

Toomey v. Family Dollar Stores - Medical Marijuana Workers' Comp Denial Affirmed

Delaware Superior Court affirmed the Industrial Accident Board's denial of Rhonda Toomey's petition seeking workers' compensation coverage for medical marijuana treatment related to a 2004 workplace injury. The court found the Board's decision was supported by substantial evidence and free from legal error. Family Dollar's three board-certified expert witnesses were credited over the claimant's single witness, Dr. Valerie Harrison, D.N.P.

Nighttime Lane Closures on I-476 in Delaware County April 27-29

PennDOT announces nighttime lane closures on I-476 in Delaware County from April 27-29, 2026, between 9:00 PM and 5:00 AM, as part of a $63.7 million resurfacing project covering nearly 17 miles of interstate from I-76 in Montgomery County to I-95 in Ridley Township, Delaware County. Lane closures will affect northbound and southbound I-476 between the Rogers Lane overpass and Papermill Road underpass, between the Marple Road overpass and Route 3 interchange, and multiple ramps including those from U.S. 1 and U.S. 30. Motorists are advised to allow extra time because backups and delays will occur, with all activities weather dependent.

Governor Meyer Establishes Delaware Election Security Task Force

Governor Meyer has established the Delaware Election Security Task Force to address election infrastructure and security concerns in the state. The task force creation was announced on April 22, 2026. The announcement did not specify task force membership, meeting schedule, or reporting requirements.

Robert Storch Nominated as Delaware's First Inspector General

Governor Matt Meyer of Delaware has nominated Robert Storch to serve as Delaware's first Inspector General, establishing a new oversight position in state government. The nomination represents an expansion of government accountability mechanisms in the First State, with the new office expected to conduct audits, investigations, and oversight of state agencies and programs.

Delaware FY25 Single Audit, $4.1B Federal, 26 Findings

The State of Delaware's FY25 Uniform Guidance Single Audit (fiscal year ended June 30, 2025) reports $4.1 billion in federal awards across 18 major programs administered by state agencies. The audit identified 26 findings total: 11 material weaknesses and 15 significant deficiencies found within 12 of the 18 programs, including 15 repeat findings from FY24. CliftonLarsonAllen, LLP issued seven qualified opinions and one disclaimer of opinion on the State of Delaware's Annual Comprehensive Financial Report.

Justice Karen L. Valihura Steps Down July

Delaware Supreme Court Justice Karen L. Valihura has announced she will not seek reappointment when her twelve-year term expires on July 25, 2026. Justice Valihura was appointed to the court by Gov. Jack Markell in 2014 and is currently its longest-serving member. She will continue serving until the end of her term, after which the Governor will need to appoint a successor to the state's highest court.

Delaware Supreme Court Temporarily Moves to Kent County Courthouse

The Delaware Supreme Court will temporarily relocate oral arguments to Courtroom 1 at the Kent County Courthouse in Dover, Delaware, beginning the week of October 20, 2025. This move is necessitated by interior renovations and exterior repair work at the Supreme Court building on the Green in Dover. Attorneys scheduled for oral arguments should contact the Court Clerk for updates, and proceedings will continue to be livestreamed through the Delaware Judiciary website.

Delaware Judges Advance Taiwan Corporate Governance Exchange

Last week, Delaware Supreme Court Chief Justice Collins J. Seitz, Jr. and Vice Chancellor J. Travis Laster traveled to Taiwan to speak to corporate directors and Taiwan's legal community about emerging issues in corporate governance, corporate law, and the role of Delaware courts in resolving business disputes. The visit continues a nearly 20-year tradition of cooperation between Taiwan's bench and bar and the Delaware Judiciary, which began with Justice Randy Holland's 2006 keynote address to the Taiwan Corporate Governance Association. This exchange involved panel discussions at the Taipei Bar Association and Taiwan Bar Association, remarks at the Judicial Yuan (Taiwan's high court), and an address to the Taiwan Corporate Governance Association.

Delaware Stormwater Fee-in-Lieu Amount Updated to $27/CF

DNREC announced updated Stormwater Management Fee-in-lieu rates under 7 DE Admin. Code 1501, subsection 13.2, adjusting the offset for full or partial compliance to $27 per cubic foot of runoff volume, effective January 1, 2026. Three Regulatory Guidance Memoranda (RGM-1v.2, RGM-4, and RGM-5) also became effective on the same date, along with revised Erosion and Sediment Control Handbook Section 3.6.1. Additionally, safety-feature revisions to Post-Construction Stormwater BMP Standards (Sections 10.0, 12.0, and 13.0) were published in the January 2026 Register of Regulations.

Coastal Electrical Construction LLC v. Jernigan et al

The U.S. District Court for the District of Delaware issued a ruling in Case 25-1295, Coastal Electrical Construction LLC v. Jernigan et al. The opinion was authored by District Judge Gregory B. Williams on April 21, 2026. The full opinion is available as a PDF on the court's website.

BondBloxx Private Credit Trust Listing Under BZX Rule 14.11(f)

Cboe BZX Exchange filed a proposed rule change with the SEC on April 6, 2026 to list and trade shares of the BondBloxx Private Credit Trust (the Trust) under BZX Rule 14.11(f), Trust Issued Receipts. The Trust, advised by BondBloxx Investment Management Corporation with HCG Fund Management LP as Sub-Advisor, seeks to provide risk-adjusted returns through distributions of current income from a diversified portfolio of consumer and small business private credit assets. The Trust intends to operate outside the Investment Company Act of 1940 definition by primarily conducting business through majority-owned subsidiaries. The registration statement on Form S-1 is not yet effective, and shares will not trade until it becomes effective.

Attorney General Davenport Sues EPA Over Mercury Emissions Standards Repeal

Attorney General Jennifer Davenport joined a coalition of 18 states in filing a lawsuit challenging the EPA's repeal of standards limiting mercury and toxic pollutants from power plants. The states argue the repeal is unlawful because the EPA failed to provide a reasoned basis and did not adequately consider developments in pollution control technologies. The coalition is asking the court to determine the rule is unlawful and must be reversed.

Felink Investments and Properties USA LLC et al v. AMCO Insurance Company - Insurance Removal

Felink Investments and Properties USA, LLC et al filed an insurance dispute against AMCO Insurance Company et al in the Northern District of California on March 20, 2026. The case was removed from San Francisco County Superior Court (Case No. CGC-25-632553) to federal court, with a filing fee of $405 receipt number ACANDC-21781854. Nationwide Mutual Insurance Company, identified as AMCO's corporate parent, also appears as a respondent.

States Challenge EPA Rollback of Mercury and Air Toxics Standards

Minnesota Attorney General Ellison co-led a coalition of 21 states and local governments in filing a federal lawsuit challenging the Trump administration's repeal of the 2024 Mercury and Air Toxics Standards (MATS) Rule, which had tightened emission limits on mercury, arsenic, lead, and other hazardous air pollutants from coal- and oil-fired power plants. The coalition argues the repeal is unlawful because EPA failed to provide a reasoned basis and did not adequately consider advances in pollution control technologies, while continuing to give lignite coal plants a free pass from emissions standards. The action seeks judicial reversal of the rollback, which the states contend will increase dangerous emissions and harm public health and the environment.

AG Rayfield, 20 States Sue Over Mercury Pollution Rule Rollback

Attorney General Dan Rayfield and 20 other states and local governments filed a lawsuit on March 31, 2026 challenging the Trump administration's rollback of the 2024 Mercury and Air Toxics Standards (MATS) Rule. The MATS Rule limits emissions of mercury, arsenic, lead, acid gases, and other toxic pollutants from coal and oil-fired power plants. The coalition argues the administration failed to provide a reasoned basis for the rollback and did not adequately consider developments in pollution control technologies. The lawsuit seeks a court determination that the rule reversal is unlawful and must be reversed. Mercury emissions from power plants contaminate waterways including the Columbia River and pose neurodevelopmental risks to pregnant women and children.