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: Delaware Business Litigation ReportCourt of Chancery Grants Advancement to an Employee
By Morris James LLP
Sassano v. CIBC World Markets Corp. C.A. No. 3066-VCL ( January 17, 2008).
It is not widely recognized that Delaware law permits a corporation to grant advancement of attorney fees to employees who are not directors and may even be fairly minor employees. Here, the bylaws provided advancement of fees for an officer with "management supervisory functions". The court carefully went over whether the plaintiff had those duties and found that he did and thus, should be advanced his fees for the defense of an SEC investigation.
Full post as published by Delaware Business Litigation Report on January 17, 2008 (boomark / email).
Chancery Addresses Advancement Claim in Context of Compulsory v. Permissive Counterclaim
In Reinhard & Kreinberg v. The Dow Chemical Co., 2008 WL 868108 (Del. Ch., Mar. 28, 2008), read opinion here, the Chancery Court addressed the issue of advancement in the context of a counterclaim...
Delaware Court Upholds Bylaw Amendment that Cuts Off Advancement Rights to Former Directors
On March 28, the Delaware Court of Chancery issued a decision in Schoon v. Troy Corporation, upholding a board-approved bylaw amendment that cut-off advancement rights to a former director...
Bankruptcy Court in Delaware Rejects Claim for Advancement Under Delaware Law After Claim Removed to Federal Court
Street v. The End of The Road Trust, et al., (D. Del., Bankr., Sept. 17, 2008), read opinion here. Thanks to Delaware lawyer David Finger for bringing this decision to my attention...
Chancery Orders Advancement Based on Bylaws' Description of "Officer"
In Sassano v. CIBC World Markets Corp., 2008 WL 152582 (Del. Ch., Jan. 17, 2008), read opinion here, the Chancery Court interpreted the bylaws of a corporation as a matter of law, and applied the facts after a one-day trial to determine if the particular position of the plaintiff complied with the position of "officer" in order for the advancement rights to apply, as allowed by DGCL 145...
Chancery Court Reviews Corporate Issues Involving Sultan of Brunei
In Zaman v. Amedeo Holdings, Inc., 2008 WL 2168397 (Del. Ch., May 23, 2008), read opinion here, the Delaware Chancery Court reviews corporate issues involving the ultra-rich Sultan of Brunei, and the London barristers of his brother, but more importantly for the readers of this blog, the court analyzes the barristers' claims for advancement and indemnification as well as "fees on fees"...
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Here is an Administrative Directive from the Chancery Court that relates to eFiling procedures. It is not a new order but it bears reference for those who file anything in the Court of Chancery (which now requires eFiling for virtually everything submitted to the court...
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