Tulum Management USA LLC v. Casten, C.A. No. 11321-VCN (November 20, 2015)
The Delaware Court of Chancery weighed the policy of resolving all claims related to a dispute in the court in which an action is first filed against Delaware’s policy of summarily resolving advancement claims. The Court denied a request for a stay because it found no “particularly compelling explanation as to why” the advancement claim, which derived from advancement rights set forth in a limited liability company agreement, should be delayed.
Bottom Line: Delaware’s strong policy favoring the prompt resolution of advancement proceedings applies to rights provided in alternative entity organizational documents as well as rights available under corporate statute.