Sam Glasscock III
SAM GLASSCOCK III
VICE CHANCELLOR
Barry M. Klayman
COZEN O'CONNOR
Perry F. Goldlust
PERRY F. GOLDLUST, P.A.
Dear Counsel:
This matter is before me on the Motion of the Defendants, Anthony J. Quartarone and Q Media, Inc., to dismiss this action for lack of equitable jurisdiction, under Court of Chancery Rule 12(b)(1). Chancery is a court of limited jurisdiction. Claimants are entitled to maintain an action in Chancery where the action is equitable in nature, where equitable relief is sought, or as otherwise provided by statute.
E.g. Heartland Delaware, Inc. v. Rehoboth Mall Ltd. P'ship, 57 A.3d 917, 919 (Del. Ch. 2012).
The Complaint here alleges that Quartarone misused his position as a director and officer of the Plaintiff corporation to divert assets of the Plaintiff corporation, QC Communications, to himself and the Defendant corporation, Q Media, which he controls. This states a claim for breach of fiduciary duty, an equitable claim—perhaps the quintessential equitable claim. Accordingly, equitable jurisdiction exists, and the Motion of the Defendants is denied. To the extent the forgoing requires an order to take effect, IT IS SO ORDERED.
Compl. ¶¶ 12, 21-27.
E.g. McMahon v. New Castle Assoc., 532 A.2d 601, 604 (Del. Ch. 1987) ("Chancery takes jurisdiction over 'fiduciary' relationships because equity, not law, is the source of the right asserted.").
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Sincerely,
Sam Glasscock III