International Rail Partners LLC et al. v. American Rail Partners LLC (case number 2020-0177), Delaware Vice Chancellor Paul A. Fioravanti Jr. ruled that American Rail Partners LLC (ARP) must cover legal expenses incurred by International Rail Partners LLC (IRP). ARP had sued IRP “over unjust enrichment claims.” Fioravanti ruled that a limited liability agreement “unambiguously” provides that expenses be covered.
Fioravanti said “fee advancement provisions of ARP’s limited liability agreement are ‘quite broad’ and unambiguous,” according to
Law360. “‘For purposes of this action, there is no dispute that the plaintiffs are covered persons under the broad advancement and indemnification provisions of the company’s limited liability company agreement,’ the opinion said. IRP, its manager, Gary O. Marino (pictured), and Boca Equity Partners LP sued ARP for the advancement of fees earlier this year, asserting that their LLC agreement entitles them to ‘mandator