In the recent decision of Tulum Management USA LLC v. Casten, C.A. No 11321-VCN (Del. Ch. Nov. 9, 2015), Vice Chancellor Noble declined a party's request to stay a pending advancement case before the Delaware Court of Chancery.
In so doing, the Court provided that "in all but the most exceptional circumstances, claims under Section 145(k) for advancement of expenses should not be stayed or dismissed in favor of the prior pending foreign litigation that give[s] rise to them."
To satisfy its burden in obtaining a stay of an advancement case, defendants "must present to the Court a particularly compelling explanation as to why [their] advancement case ought to be stayed" in favor of related pending litigation. Having failed to do so here, the Court denied the motion to stay the advancement portion of the action.
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