The recent decision by Delaware Vice Chancellor Nathan Cook in Centrella v. Avantor continues a notable trend in Delaware jurisprudence, emphasizing the broad application of advancement rights. Advancement rights provide litigants the ability to be reimbursed for incurred legal costs in real time by other parties during ongoing legal disputes. This case, involving a dispute between Avantor Inc. and Marc J. Centrella, a former executive at Avantor’s subsidiary VWR Management Services, LLC (VM), sheds light on the evolving interpretation of advancement provisions and the implications for corporate litigation concerning restrictive covenants and other employment issues. The decision further underscores the importance of precise contractual language and cautions companies concerning the financial consequences of initiating litigation against former employees.

Case Background and Allegations

The controversy originated when Centrella tended his resignation to Avantor and informed them he had received an offer of employment from another company. In response, Avantor alleged that company was a competitor, and that Centrella’s acceptance of employment there would breach noncompete and nonsolicitation provisions in his employment agreement.