Pontone v. Milso Indus. Corp.

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A former officer and director of two Delaware companies filed an action for mandatory advancement from those companies of the legal fees and expenses he incurred in underlying litigation between the parties in a Pennsylvania federal court, seeking indemnification from January 2013. Defendants filed a motion to dismiss, contending that Plaintiff lacked standing to pursue advancement and indemnification from them because he was entitled to and had been receiving mandatory advancement from his new employer or client through at least the end of 2012. Defendants contended that because Plaintiff had incurred no out-of-pocket expenses, he had no standing to seek advancement from them. The Court of Chancery (1) granted the motion to dismiss as to any legal fees and expenses incurred since January 2013 that had been paid by Plaintiff’s current employer or client on the ground that Plaintiff lacked standing to pursue those claims; and (2) denied the motion to dismiss with respect to any fees and expenses incurred since January 2013 that had not been paid by the co-indemnitor, holding that Plaintiff was entitled to advancement from at least one defendant that clearly owed a mandatory advancement and indemnification obligation to Plaintiff. View "Pontone v. Milso Indus. Corp." on Justia Law