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Former LLC officers and entity affiliates—Delaware Chancery Court advancement case win

International Rail Partners LLC et al. v. American Rail Partners LLC. Represented former LLC officers and their entity affiliates in an advancement action, demanding coverage for defense costs for a parallel breach of contract case in which adverse party American Rail alleged that the officers and entities breached their contract duties to properly manage American Rail pursuant to a certain management agreement. We won dismissal of the underlying contract action in August 2020 and In November 2020, the Court ruled that American Rail must advance the attorney fees incurred by our client. The advancement case is notable as it litigated a novel theory of exclusion of indemnification for first-party litigation under the Delaware LLC Act.

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