Iowa Code 490.746 – Payment of expenses
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On termination of the derivative proceeding, the court may do any of the following:
1. Order the corporation to pay the plaintiff‘s expenses incurred in the proceeding if it finds that the proceeding has resulted in a substantial benefit to the corporation.
Terms Used In Iowa Code 490.746
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Expenses: means reasonable expenses of any kind, including reasonable fees and expenses of counsel and experts, that are incurred in connection with a matter. See Iowa Code 490.140
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Plaintiff: The person who files the complaint in a civil lawsuit.
- Proceeding: includes a civil suit and criminal, administrative, and investigatory action. See Iowa Code 490.140
2. Order the plaintiff to pay any defendant‘s expenses incurred in defending the proceeding if it finds that the proceeding was commenced or maintained without reasonable cause or for an improper purpose.
3. Order a party to pay an opposing party’s expenses incurred because of the filing of a pleading, motion, or other paper, if it finds that any of the following apply:
a. 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.
b. The pleading, motion, or other paper was interposed for an improper purpose, such as to harass or cause unnecessary delay or needless increase in the cost of litigation.