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Chancery Court Transfers Declaratory Judgment Complaint to Superior Court Due to Lack of Equity Jurisdiction

By Francis G. X. Pileggi, Esq.

Tunnell Companies, LP v. Delaware Division of Revenue, No. 2450-VCL (July 13, 2009), read letter decision here.

This short two-page letter decision transferred a complaint to the Delaware Superior Court based on a lack of equity (i.e., subject matter) jurisdiction in Chancery Court. The complaint sought a declaratory judgment pursuant to § 6501 of Title 10 of the Delaware Code regarding a dispute over the proper construction of the provision in the State Tax Code that was allegedly being interpreted incorrectly by the Attorney General of Delaware. The court explained that the Delaware Declaratory Judgment Act had no impact on the equitable jurisdiction of the Court of Chancery and requires that there be a separate independent basis for exercising Chancery Court jurisdiction which was not present in the complaint filed in the instant case.

 

Full post as published by Delaware Corporate and Commercial Litigation Blog on July 16, 2009 (boomark / email).