Citadel Holding Corporation v. Roven
Delaware Supreme Court
603 A.2d 818 (Del. 1992)
Alfred Roven (plaintiff) was a director of Citadel Holding Corporation (Citadel) (defendant). Roven and Citadel entered into an Indemnity Agreement that had a specific indemnity provision. The Indemnity Agreement also contained a provision granting Roven a right to advance payment from Citadel of costs and expenses Roven incurred as a result of defending himself against claims arising from his business with Citadel. Citadel brought suit against Roven for violating Section 16(b) of the Securities Exchange Act of 1934. To defend himself in that suit, Roven asked for an advance payment for legal fees from Citadel pursuant to his Indemnification Agreement. When Citadel refused to pay, Roven brought suit for breach of contract. The lower court ruled in favor of Roven, holding that he was entitled to the advances. Citadel appealed on the grounds that if Roven was not going to be entitled to indemnification in the suit against him, he should not be awarded advance payment for his defense either.
Rule of Law
Holding and Reasoning (Walsh, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 724,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 724,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.