In Hanna v. Baier, C.A. No. S12J-03-058-RFS (Del. Super. Jan. 22, 2020), Delaware Superior Court Judge Richard F. Stokes considered whether the Superior Court was the appropriate forum for enforcement of a charging order requiring the court to consider the validity of conveyances between a limited liability company and its members. In granting a motion to transfer venue to the Delaware Court of Chancery, Stokes held that the Court of Chancery is the appropriate forum where the disputes between the parties involve the business decisions of an LLC encompassed within the LLC Act.
In 2011, the plaintiffs, Wagih and Bothina Hanna, obtained a judgment from a Massachusetts court against the defendant, Dieter Baier. Subsequently, the Hannas obtained a charging order against Baier from a Maryland court, creating a lien against his interest in Cabinetry Unlimited LLC, a Delaware limited liability company. The charging order was then domesticated in the Delaware Superior Court. Cabinetry did not make any payments to the Hannas, but it did make payments to Baier, the managing member of the LLC. The Hannas sought enforcement of the charging order, arguing that the payments from the LLC to Baier were in violation of the charging order.
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