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Flood v. ClearOne Communications, Inc., No. 09-4017

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By FindLaw Staff on August 30, 2010 8:23 PM

Flood v. ClearOne Communications, Inc., No. 09-4017, involved defendant's appeal from a preliminary injunction requiring defendant-corporation to advance attorney fees and costs to its former CEO, who was then facing a criminal trial.  The court vacated the order on the ground that the district court misread the parties' contract as a matter of law, disregarding express conditions to advancement specified in their agreement.

As the court wrote:  "Acting on its own motion, the district court issued a preliminary injunction requiring ClearOne to advance attorney fees and costs to its former CEO, who was then facing a criminal trial. ClearOne now appeals the district court's injunction, arguing that it was predicated on an error of law, and with this we are obliged to agree."

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