Andrikopoulos v. Silicon Valley Innovation Co., LLC

In a related case, a receiver was appointed for Silicon Valley Innovation Company, LLC (SVIC), whose only assets were contingent claims against SVIC’s former officer and directors. The receiver filed two cases involving two defendants who were the plaintiffs in this case. Plaintiffs requested from SVIC advancement for their legal expenses by virtue of their previous employment agreements with SVIC. After the request was denied Plaintiffs commenced this advancement action. The parties ultimately stipulated to Plaintiffs’ entitlement to advancement and the validity of the employment agreements. At issue in this case was to what extent Plaintiffs’ advancement claims were entitled to priority as against the other claims asserted against SVIC in the receivership. The Court of Chancery held that SVIC was entitled to entry of an order declaring that Plaintiffs’ advancement claims were not entitled to administrative priority but, rather, should be treated on par with the claims of other unsecured creditors and paid pro rata. View "Andrikopoulos v. Silicon Valley Innovation Co., LLC" on Justia Law