The Delaware Court of Chancery, in International Rail Partners, LLC, et al. v. American Rail Partners, LLC, C.A. No. 2020-0177-PAF, memo. op. (Del. Ch. Nov. 24, 2020), found LLC managers entitled to advancement, recognizing that standard indemnification provisions in commercial contracts are generally presumed to apply to third-party claims, not claims between contracting parties, but declines to apply that proposition to an LLC Agreement.
NEW: Morris James discusses the decision in Chancery Finds Company Responsible for Advancing Costs of Defense to Its CEO in a Claim Brought by the Company.
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Frank Reynolds discusses the decision in Chancery rules Delaware’s LLC Act requires advancement for firm’s suit against member, CEO.