Court Of Chancery Resolves Allocation Issues In Advancement Case
This decision clearly sets out how to allocate fees for claims subject to advancement of attorney fees from those that are not covered by an advancement obligation. In particular it details how allocation questions should be answered and how disputes over the amounts to be paid should be resolved.
It also points out that the right to advancement of fees set out in an LLC or LP agreement cannot be unilaterally altered by the entity after the right to advancement occurs. For example, it is not possible to require a discount on fees when that is not provided in the agreement.Share