A brand new authorized battle is underway to find out whether or not Elon Musk really will get his cash after Tesla satisfied shareholders to again the CEO’s $56 billion pay plan.Tesla filed courtroom paperwork final week earlier than the identical Delaware Chancery Courtroom choose who beforehand voided Musk’s compensation, arguing the June 13 shareholder vote provided a “principled decision” to finish the dispute in Musk’s favor.An lawyer for the shareholder who efficiently sued to dam the pay bundle argued in a separate courtroom submitting Friday that Tesla’s shareholder decision should not have any authorized impact on the choose’s authentic resolution, and that Tesla will not be empowered to make use of an extra-judicial vote to overrule the Delaware courtroom.This lawyer, Greg Varallo, mentioned Tesla should enchantment the choose’s resolution to the Delaware Supreme Courtroom if it needs to reverse it.For Tesla (TSLA), there’s a lot using on the unsure path that Musk’s disputed pay plan should now take via the US courtroom system.Tesla CEO Elon Musk waves as he leaves the Tesla Gigafactory close to Berlin, Germany on March 13. (AP Picture/Ebrahim Noroozi) (ASSOCIATED PRESS)If the courts give Tesla what it needs, it might maintain Musk’s plan in place together with a $2.5 billion accounting cost it took again in 2018 when shareholders first agreed to the all-stock-option, performance-based deal.If not, the electric-vehicle maker may as an alternative be compelled to carry a 3rd vote on Musk’s pay, plus ebook a cost of at the very least $25 billion that would threaten future earnings.“All the pieces right here is unprecedented,” mentioned Kevin Murphy, an govt compensation professional and finance professor for College of Southern California’s Marshall College of Enterprise who testified for Tesla in a trial over the plan.The unprecedented nature of Tesla’s dispute means its decision could also be equally uncharted.The brand new authorized battle swings the highlight again to Delaware choose Kathaleen McCormick, who dominated in January that Tesla’s board didn’t act “in the perfect pursuits” of Tesla shareholders in approving the $56 billion Musk pay pact.Delaware choose Kathaleen McCormick, proper, voided Elon Musk’s pay bundle in January. REUTERS/Kathleen Flynn (REUTERS / Reuters)McCormick should now rule on whether or not the brand new shareholder vote does in reality restore Musk’s pay, in response to Ann Lipton, a company legislation professor at Tulane College of Regulation.McCormick may select to rule on the dispute by contemplating written and oral arguments from each side, Lipton mentioned,Alternatively, the choose may ask the events to submit extra data, in addition to interact in further discovery to carry to mild different details and proof. The choose may additionally maintain hearings akin to a brand new trial, Lipton added.Tesla has requested the choose to set an expedited schedule throughout which the events will submit courtroom paperwork containing further rationale for his or her positions. Tesla mentioned every occasion ought to be allowed to make these arguments earlier than McCormick enters a ultimate judgement within the matter.Story continuesOn Friday Tesla’s attorneys described the current shareholder vote backing Musk’s pay as “one of the crucial well-informed stockholder votes in current reminiscence,” and famous that two of the world’s most refined traders, BlackRock (BLK) and Vanguard, mentioned sure to the proposal.Tesla has mentioned 72% of votes solid by shareholders, excluding Musk and his brother Kimbal, have been in favor of the compensation bundle.A listening to earlier than McCormick is about for July 8, throughout which she can also be scheduled to take up further unresolved issues within the case.One is a request from the shareholders’ lawyer for $6 billion in authorized charges, which Tesla disputes.And within the occasion McCormick validates Musk’s compensation, she may weigh in on whether or not the shareholder vote turns again the clock to reactivate the settlement as of 2018. Tesla has reported that retroactively accounting for the compensation plan would save the corporate at the very least $25 billion.”She may say [to Tesla], ‘You probably did the appropriate factor. You took it again to shareholders…I may not prefer it, however it’s not my position to become involved within the contracting between consenting adults,'” Murphy mentioned.However “I doubt she’ll do this, which suggests we’ll undergo an enchantment,” Murphy added.Lipton mentioned this choose is unlikely to have ultimate say.”Whichever aspect loses, that aspect will enchantment to the Delaware Supreme Courtroom,” Lipton added.Click on right here for in-depth evaluation of the most recent inventory market information and occasions transferring inventory pricesRead the most recent monetary and enterprise information from Yahoo Finance