Chancery Finds Advancement Decision Not Immediately Appealable When Reasonableness Disputes Remain

Morris James LLP
Contact

Sider v. Hertz Global Holdings Inc., C.A. No. 2019-0237-KJSM (Del. Ch. Jun 17, 2019).

Prior to this ruling, no Delaware opinion had addressed the question of whether decisions granting entitlement to advancement rights are immediately appealable even though disputes remain as to the reasonableness of the fees. This ruling finds the answer normally should be “no.”

After a bench ruling and an implementing order holding the several plaintiffs were entitled to advancement, Defendant Hertz filed a motion for entry of final judgment pursuant to Court of Chancery Rule 54(b) or for certification of an interlocutory appeal under Supreme Court Rule 42. The Court of Chancery denied Hertz’s motion under both theories, recognizing advancement actions are not infrequent and that Hertz’s situation presented no novel issue and thus the matter did not present a rare instance entitled to Court of Chancery Rule 54(b) relief nor the exceptional case meriting interlocutory review under Supreme Court Rule 42.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morris James LLP | Attorney Advertising

Written by:

Morris James LLP
Contact
more
less

Morris James LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide