"conspiracy theory of jurisdiction"

An Eckert Seamans associate prepared this overview.

In IMO Dissolution of Arctic Ease, C.A. No. 8932-VCMR (Dec. 9, 2016), the Chancery Court rejected personal jurisdiction under Delaware’s Limited Liability Company Act and the conspiracy theory of jurisdiction.  The Court provides helpful guidance on when someone can be considered an LLC manager for purposes of

Lake Treasure Holdings, LLC v. Foundry Hill GP, LLC, C.A. No. 6546-VCL (Del. Ch. Nov. 21, 2013)

This Chancery decision determined that the filing of a UCC statement may serve to satisfy two elements of the 5-part test to establish personal jurisdiction in Delaware based on the well-settled “conspiracy basis of personal jurisdiction”, and in

In Matthew v. Flakt Woods Group SA, Del. Supr., No. 150, 2012 (Nov. 20, 2012), the Delaware Supreme Court ruled that Delaware courts could impose jurisdiction on a foreign party involved in this case, based on the “conspiracy theory of jurisdiction”.Photo of the Supreme Court Courthouse in Dover

Quick Background: This well-recognized basis for subjecting non-Delaware parties to the jurisdiction of

By: Francis G.X. Pileggi, Esquire and Leslie B. Spoltore, Esquire.

Delaware legislation makes it clear that officers, as well as directors, of Delaware corporations can be subject to the personal jurisdiction of Delaware courts for claims made against those individuals in their capacity as officers and directors of Delaware entities. Similar consent statutes apply to managers of Delaware limited liability companies. See 10 Del. C. Section 3114 and 6 Del. C. Section 18-109. See also Assist Stock Management LLC v. Rosheim, 753 A.2d 974 (Del. Ch. 2000).
However, when jurisdiction over relevant individuals is not clearly within the consent statutes, in appropriate circumstances the “civil conspiracy theory of jurisdiction” may apply to secure jurisdiction over a non-resident party.Continue Reading Jurisdiction over Non-residents in Delaware based on Civil Conspiracy with a Delaware Entity