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Litigation: No personal jurisdiction in Delaware over managers of state LLPs for breach of fiduciary duty claims

Delaware Supreme Court decision may result in an amendment to the LLP Act

On Nov. 14, in New Media Holding Co., LLC v. Brown, Chancellor Leo E. Strine Jr., held that Delaware law provides no statutory basis for exercising jurisdiction over the manager of a Delaware limited liability partnership for breaches of fiduciary duty in the course of his work for the partnership, absent acts taken in Delaware in furtherance of the alleged wrongdoing.

New Media Holding Co. LLC alleged that Grant Brown and Capita Fiduciary Group abused their management position and helped dilute Plaintiff’s stake in a television network. Capita Fiduciary sought to dismiss the action for lack of personal jurisdiction and for improper venue. In the alternative, Capita Fiduciary sought to stay the action until a related action in New York became final and unappealable. The Court of Chancery granted defendants’ motion to dismiss, holding that the court does not have personal jurisdiction over the defendants, and therefore ruled Capita Fiduciary’s other arguments were moot. This case offers insight into the limits of Delaware’s long-arm statute.


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John Reed

John Reed is a partner the Delaware office of DLA Piper, where he concentrates his practice on corporate litigation and counseling. He can be contacted...

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