(a) On application by a judgment creditor of a member or of a member’s assignee, a court having jurisdiction may charge the limited liability company interest of the judgment debtor to satisfy the judgment. To the extent so charged, the judgment creditor has only the right to receive any distribution or distributions to which the judgment debtor would otherwise have been entitled in respect of such limited liability company interest.
(b) A charging order constitutes a lien on the judgment debtor’s limited liability company interest.
(c) This chapter does not deprive a member or member’s assignee of a right under exemption laws with respect to the judgment debtor’s limited liability company interest.
(d) The entry of a charging order is the exclusive remedy by which a judgment creditor of a member or a member’s assignee may satisfy a judgment out of the judgment debtor’s limited liability company interest and attachment, garnishment, foreclosure or other legal or equitable remedies are not available to the judgment creditor, whether the limited liability company has 1 member or more than 1 member.
(e) No creditor of a member or of a member’s assignee shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the limited liability company.
(f) The Court of Chancery shall have jurisdiction to hear and determine any matter relating to any such charging order.
68 Del. Laws, c. 434,
§
1;
70 Del. Laws, c. 186,
§
1;
72 Del. Laws, c. 389,
§
24;
75 Del. Laws, c. 51,
§§
9-15;
79 Del. Laws, c. 74,
§
6;
Notes of Decisions
Manichaean Capital, LLC v. Exela Tech., Inc. (Del. Ch. 2021).
· cites it 9× “43 6 Del. C. § 18-703(a); Manichaean Appraisal Action Final Order, 2020 WL 1511189 , at *1 (“This Final Order and Judgment may be enforced in Delaware by the issuance of writs of execution substantially in the form and with the same effect as those used in Delaware Superior…”
Bridev One, L.L.C. v. Regency Centers, L.P. (Del. Super. Ct. 2018).
· cites it 5× “4 On January l 1, 2018, Regency subsequently filed five Motions for Charging Orders (the “Motions”), pursuant to 6 Del. C. § 18-703, against any limited liability 2 The complaint and cross-complaint were consolidated.”
Hanna v. Baier (Del. Super. Ct. 2017).
· cites it 4× “l Plaintiffs contends that 6 Del. C. §18-703 does not bar post-judgment discovery because it “is not ‘a legal remedy,’ but only a supplement to execution per the language of the Rule.”
Hanna v. Baier (Del. Super. Ct. 2018).
· cites it 2× “Defendant responded by filing a Motion for Protective Order, arguing that the Superior Court did not have jurisdiction over the Charging Order due to the amendment of 6 Del. C. § 18-703(f). The statute states in pertinent part, “The Court of Chancery shall have jurisdiction to…”
Hanna v. Baier (Del. Super. Ct. 2020).
· cites it 2× ““The Court of Chancery is a court of limited jurisdiction and only may acquire jurisdiction if: “(1) one or more of the plaintiff's claims ... is equitable in character, (2) the plaintiff requests relief that is equitable in nature, or (3) subject matter jurisdiction is…”
Hanna v. Baier (Del. Super. Ct. 2018).
“In Defendant’s vieW, by ruling that the Court of Chancery and the Superior Court have concurrent jurisdiction, this Court improperly interpreted 6 Del. C. § 18-703 and rendered the statute meaningless.”
XRI Inv. Holdings LLC v. Holifield (Del. Ch. 2022).
“11 See 6 Del. C. § 18-703(d) (“The entry of a charging order is the exclusive remedy by which a judgment creditor of a member or a member’s assignee may satisfy a judgment out of the judgment debtor’s limited liability company interest .”
XRI Inv. Holdings LLC v. Holifield (Del. Ch. 2022).
“11 See 6 Del. C. § 18-703(d) (“The entry of a charging order is the exclusive remedy by which a judgment creditor of a member or a member’s assignee may satisfy a judgment out of the judgment debtor’s limited liability company interest .”
RHN Inc. v. CNA Nat'l Warranty Corp. (D. Ariz. 2020).
“Nissani asserts 24 that Delaware’s charging statute, 6 Del. C. § 18-703, is the “exclusive remedy” by which 25 a judgment creditor may reach an LLC member’s assets, he falls short.”
— 6 Del. C. § 18-703(1) — 1 case
Bridev One, L.L.C. v. Regency Centers, L.P. (Del. Super. Ct. 2018).
“4 On January l 1, 2018, Regency subsequently filed five Motions for Charging Orders (the “Motions”), pursuant to 6 Del. C. § 18-703, against any limited liability 2 The complaint and cross-complaint were consolidated.”
— 6 Del. C. § 18-703(a) — 3 cases
Manichaean Capital, LLC v. Exela Tech., Inc. (Del. Ch. 2021).
“43 6 Del. C. § 18-703(a); Manichaean Appraisal Action Final Order, 2020 WL 1511189 , at *1 (“This Final Order and Judgment may be enforced in Delaware by the issuance of writs of execution substantially in the form and with the same effect as those used in Delaware Superior…”
Bridev One, L.L.C. v. Regency Centers, L.P. (Del. Super. Ct. 2018).
“4 On January l 1, 2018, Regency subsequently filed five Motions for Charging Orders (the “Motions”), pursuant to 6 Del. C. § 18-703, against any limited liability 2 The complaint and cross-complaint were consolidated.”
— 6 Del. C. § 18-703(b) — 1 case
Manichaean Capital, LLC v. Exela Tech., Inc. (Del. Ch. 2021).
“43 6 Del. C. § 18-703(a); Manichaean Appraisal Action Final Order, 2020 WL 1511189 , at *1 (“This Final Order and Judgment may be enforced in Delaware by the issuance of writs of execution substantially in the form and with the same effect as those used in Delaware Superior…”
— 6 Del. C. § 18-703(d) — 6 cases
Manichaean Capital, LLC v. Exela Tech., Inc. (Del. Ch. 2021).
“43 6 Del. C. § 18-703(a); Manichaean Appraisal Action Final Order, 2020 WL 1511189 , at *1 (“This Final Order and Judgment may be enforced in Delaware by the issuance of writs of execution substantially in the form and with the same effect as those used in Delaware Superior…”
Hanna v. Baier (Del. Super. Ct. 2017).
“l Plaintiffs contends that 6 Del. C. §18-703 does not bar post-judgment discovery because it “is not ‘a legal remedy,’ but only a supplement to execution per the language of the Rule.”
XRI Inv. Holdings LLC v. Holifield (Del. Ch. 2022).
“11 See 6 Del. C. § 18-703(d) (“The entry of a charging order is the exclusive remedy by which a judgment creditor of a member or a member’s assignee may satisfy a judgment out of the judgment debtor’s limited liability company interest .”
XRI Inv. Holdings LLC v. Holifield (Del. Ch. 2022).
“11 See 6 Del. C. § 18-703(d) (“The entry of a charging order is the exclusive remedy by which a judgment creditor of a member or a member’s assignee may satisfy a judgment out of the judgment debtor’s limited liability company interest .”
— 6 Del. C. § 18-703(e) — 3 cases
Manichaean Capital, LLC v. Exela Tech., Inc. (Del. Ch. 2021).
“43 6 Del. C. § 18-703(a); Manichaean Appraisal Action Final Order, 2020 WL 1511189 , at *1 (“This Final Order and Judgment may be enforced in Delaware by the issuance of writs of execution substantially in the form and with the same effect as those used in Delaware Superior…”
— 6 Del. C. § 18-703(f) — 1 case
Hanna v. Baier (Del. Super. Ct. 2018).
“Defendant responded by filing a Motion for Protective Order, arguing that the Superior Court did not have jurisdiction over the Charging Order due to the amendment of 6 Del. C. § 18-703(f). The statute states in pertinent part, “The Court of Chancery shall have jurisdiction to…”
— 6 Del. C. § 18-703(t) — 1 case
Hanna v. Baier (Del. Super. Ct. 2017).
“l Plaintiffs contends that 6 Del. C. §18-703 does not bar post-judgment discovery because it “is not ‘a legal remedy,’ but only a supplement to execution per the language of the Rule.”
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