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: Delaware Business Litigation ReportCourt of Chancey Holds Only Compulsory Counterclaims Warrant Advancement
By Morris James LLP
Reinhard & Kreinberg v. The Dow Chemical Co., C.A. 3003-CC (Del. Ch. March 28, 2008)
Corporate bylaws sometimes provide advancement rights in litigation filed by a director, but that is rare. However, when a director is sued, the question remains if he has advancement rights in that circumstance, and whether he may get those rights to cover a counterclaim in the absence of a bylaw right to do so when bringing litigation. This decision holds that if the counterclaim is compulsory under the rules of procedure, advancement is possible.
Full post as published by Delaware Business Litigation Report on December 31, 1969 (boomark / email).
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