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Indemnification/Advancement Rights

Transcript Ruling by Delaware Court Provides Reminder on Advancement and Indemnification Rights

January 11, 2011 | Posted by farrar.barker@alston.com | Topic(s): Delaware Corporate Law, Corporate Governance, Indemnification/Advancement Rights

Advancement and indemnification are concepts that so frequently appear together that there is a tendency to think of them as intertwined. However, the Delaware Chancery Court recently issued a transcript ruling in Katzman v. Comprehensive Care Corp., C.A. No. 5892-VCL (Del. Ch. Dec. 28, 2010) reminding practitioners to distinguish the two concepts and clarifying the nonexclusive nature of the right of advancement. The succinct discussion in the ruling includes citations to relevant Delaware case law, which should be helpful to practitioners in this area.

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