Delaware Business Litigation Report

Court Of Chancery Addresses The Need For Legally-Distinct Co-Conspirators Under A Conspiracy Theory Of Jurisdiction

LVI Group Investments LLC v. NCM Group Holdings LLC, C.A. No. 12067-VCG (Sept. 7, 2017)

The general rule is that personal jurisdiction based on a conspiracy theory cannot rely on allegations of an individual officer conspiring with his corporate employer. There is a possible exception, however, when the officer acted not in his official capacity but for a “personal benefit” other than his corporate compensation. This decision explains that exception and when it does not apply. It also deals with when the filing of a certificate with the Secretary of State’s office is sufficient to confer personal jurisdiction under Delaware’s long-arm statute, 10 Del. C. § 3104. In short, the filing itself has to be part of the alleged wrongdoing.

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