Delaware Business Litigation Report

Court of Chancery Upholds Advancement Right in Employment Contract

Martinez v. Regions Financial Corporation, C.A. 4128-VCP (August 8, 2009).

This decision deals with an unusual right to have attorney fees advanced to an employee who is suing to enforce her interpretation of  her employment agreement. The Court upheld the right to advancement based on the broad language used that made it clear that even if the employee lost her suit, she was entitled to attorney fees.

As the Court again points out in its opinion, companies need be carefully if they want to limit attorney fee claims, and, if they do not, they will lose the argument under Delaware's broad public policy of enforcing such agreements.

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