In Katzman v. Comprehensive Care Corp., C.A. No. 5892-VCL (Del. Ch. Dec. 28, 2010), read transcript here, the Delaware Court of Chancery issued a transcript ruling that provides many helpful citations that serve as a primer not only on the important distinction between the rights of indemnification and advancement, but also on many salient aspects of the important right to advancement such as the nonexclusive nature of advancement. There are many citations to prior Delaware decisions in this relatively short oral decision memorialized in a transcript.
For example, the Court referred to prior Delaware opinions that clarify the right in some situations to advancement of fees for separate and independent counsel for a director. Transcript at 12. The Court also provided guidance to practitioners by reminding the parties that the nonexclusive source of advancement rights may be separately contained in a charter, bylaws and/or a separate agreement. In this case, the separate sources included the bylaws and an employment agreement. Id. at 18. In addition, as a summary proceeding, advancement may be pursued in Delaware at the same time an underlying action is being litigated in another state in the underlying matter for which advancement is sought.
This relatively short transcript provides citations to many seminal Delaware cases on advancement, and is a useful tool that corporate litigators might include in their toolbox as a handy reference to Delaware authority on basic advancement authorities and concepts.