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The Stockman Decision: An Expansion of Indemnification and Advancement Rights in Limited Partnerships |
August 13, 2009
Previously published on August 3, 2009
As the economic collapse spawns a wave of complex white collar prosecutions, and as the volume of documents in such cases grows exponentially, an executive's ability to defend himself or herself adequately requires substantial financial resources. In most cases, the right of officers and directors to indemnification and advancement of attorney's fees is critical to their ability to avoid financial ruin while mounting a sufficient defense. In a key decision rendered on July 14, 2009, the Delaware Chancery Court expanded and clarified indemnification rights for principals involved in limited partnerships. The case centers on David Stockman ("Stockman"), the Reagan-era White House budget director, and his colleague, J. Michael Stepp ("Stepp"), both of whom served as officers in Heartland Industrial Partners L.P. ("Heartland").
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The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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