A plaintiff, a former member of the defendant cooperative corporation’s (co-op) board of directors (Board), commenced an action seeking “indemnification for attorneys’ fees based on” a prior litigation with the co-op, in which the plaintiff says “she prevailed.” The plaintiff demanded at least $500,000 in legal fees.

The co-op asserted that indemnification was only available for officers and directors “who are carrying out their official duties and not for individuals engaged in conduct for a personal benefit.” The co-op also contended that indemnification was unavailable where the officer or director “has been found liable to the corporation.”

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