Sletten

MEMORANDUM *

Kenneth Sletten served as a trustee for the Navellier Series Fund (the “Fund”). The Fund, joined by several other defendants, appeals the district court’s decision awarding indemnification to Sletten for fees and costs he incurred defending a lawsuit the Fund brought against him. Sletten’s homeowners’ insurance company reimbursed him for most of these expenses. The Fund argues that this reimbursement means that Sletten suffered no indemnifiable loss within the meaning of the applicable indemnification agreements. The agreements, however, do not address the issue of whether Sletten can collect indemnity for expenses covered by a collateral source. Contrary to the Fund’s claim, Delaware law allows him to do so under the circumstances in this case. See State Farm Mutual Auto. Ins. Co. v. Nalbone, 569 A.2d 71, 75 (Del.1989). None of the Fund’s other arguments requires a different result.

Some of Sletten’s expenses were reimbursed by insurance provided by the Fund’s one-time investment advisor. The district court refused to award Sletten indemnification for these expenses, and he appeals. We agree with the district court that, because this insurance ultimately came from…