This Weeks Cases

Delaware Supreme Court

Trascent Mgmt. Consulting, LLC v. Bouri, DEFAX Case No. D67442 (Del. Nov. 28, 2016) Strine, J. (10 pages).

LLC could not, in a summary proceeding on the issue of indemnification of a manager under employment and operating agreements, seek to avoid its obligation to provide advancement by claiming that the underlying agreement providing for the right of advancement was invalid, because such a claim undermined the purpose of the summary nature of advancement proceedings and often overlapped with the underlying claim triggering the right of advancement. Order of the chancery court affirmed.


Delaware Superior Court

Delaware Veterans Home v. Dixon, DEFAX Case No. D67436 (Del. Super. Nov. 4, 2016), Witham, R.J. (20 pages).

Industrial Accident Board erred in awarding additional compensation over a dispute regarding billing codes for medical treatment when it failed to make a factual finding as to whether the provider submitted unbundled procedures or improper codes for reimbursement. Order of the IAB reversed, case remanded.


Delaware Court of Chancery

GAMCO Asset Mgmt. Inc. c. iHeartMedia Inc., DEFAX Case No. D67438 (Del. Ch. Nov. 23, 2016) Slights, V.C. (54 pages).

Derivative suit alleging breach of fiduciary duties arising from company's intercompany agreements with its former parents were barred under doctrine of res judicata and by a settlement agreement. Motion to dismiss granted.


Delaware Superior Court

Deere & Co. v. Exelon Generation Acquisitions, LLC, DEFAX Case No. D67435 (Del. Super. Nov. 22, 2016), Johnston, J. (8 pages).

A prevailing party was not entitled to its attorneys' fees where the parties' agreement only had a standard indemnification clause that, without more specific language, could not serve to indemnify a party for its costs in a first-party action. Application granted in part and denied in part.


U.S. District Court of Delaware

Martinez v. Delaware State Police, DEFAX Case No. D67439 (D. Del. Nov. 23, 2016) Andrews, J. (15 pages).

Plaintiff stated a plausible claim for employment discrimination where he alleged that employer meted out more severe punishment to plaintiff than was given to white employees who had committed similar misconduct. Defendants' motion to dismiss denied in part and granted in part.


Third Circuit

In re Energy Future Holdings Corp., DEFAX Case No. D67437 (3d Cir. Nov. 17, 2016), Ambro, J. (28 pages).

Debtor's refinancing following the filing of a bankruptcy petition constituted a redemption of that debt that triggered the applicability of a redemption premium. Order of the district court reversed.


Delaware Supreme Court

Smith v. Mahoney, DEFAX Case No. D67441 (Del. Nov. 17, 2016), Seitz, J. (16 pages).

The collateral source rule was inapplicable to an injured party's medical expenses paid by Medicare, because the difference between the reduced charges paid by Medicaid and the standard cost of care was paid by no one and thus unnecessary to make the injured party whole. Judgment affirmed.


Third Circuit

In re: Nortel Networks, Inc., DEFAX Case No. D67440 (3d Cir. Nov. 17, 2016), Per Curiam (6 pages).

Creditor of disability benefits was not entitled to have his stipulated claim amended on the basis that he would have been better off joining the larger disability benefits settlement, where his settlement for "too little" did not constitute an extraordinary circumstance warranting amendment. Order of the district court affirmed.