Delaware Jurisdiction to Issue Charging Order

Delaware Jurisdiction to Issue Charging Order

      In a recent decision from Delaware, the primary question was whether it is the Chancery Court, the Superior Court, or both that has the capacity to issue a charging order. Bridev One, LLC v. Regency Centers, L.P., 2018 WL 824976 (S. Ct. Del. Feb. 9, 2018).

      Essentially, the defendant who was subject to the sought charging order asserted that only the Chancery Court could issue a charging order. After parsing the statute and various changes made in the jurisdictional authority of the various courts, it was held that the Superior Court, coincident with the Chancery Court, has the authority to issue a charging order.

      In addition, the defendant asserted that the information relied upon to determine that he was at least likely a member of the LLC was “stale.” The court found the relied upon information was sufficient. The court went on to observe that “Either way, discovery in aid of execution would be appropriate.”