Topic: Agency Law

MANDATORY INDEMNIFICATION PROVIDED UNDER BYLAWS TO AGENT DUE TO ACTIONS TAKEN ON COMPANY’S BEHALF

By: Annette BeckerRich Minice

In Fred L. Pasternack v. Northeastern Aviation Corp., C.A. No. 12082-VCMR (Del. Ch. Nov. 9, 2018), the Delaware Court of Chancery awarded mandatory indemnification for legal expenses and fees-on-fees to Fred Pasternack (“Pasternack”), a former pilot for Northeastern Aviation Corp. (“Northeastern”) under Northeastern’s Bylaws (the “Bylaws”) because he was determined to be an agent of Northeastern when attending a random drug test to maintain his pilot certification.

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