Court of Chancery Defers Ruling in Section 18-110 Action Due to Failure to Give Notice of Suit to a Claimant to Office

HREF Senior Worthington LLCv. Conroe WM LLC, C.A. No. 2024-1148-MTZ (Del. Ch. Oct. 2, 2025)

While “very close” to issuing its opinion in this action brought under 6 Del. C. § 18-110, the Court became aware that the plaintiff never had served or given notice of the Complaint to an entity who had a potential claim to be a manager of the company. Because 18-110 proceedings are in rem, service of process does not create personal jurisdiction; instead, service gives non-parties who might lose their property notice and the opportunity to be heard. When a non-party with a potential claim to the res is not given adequate notice, that non-party is not bound by the results of the litigation. As such, the Court deferred issuing a final opinion until all non-parties with a claim to office receive notice.