Exclusivity Of Charging Order Remedy
Topic Exclusive_Remedy TopicsExclusivity
The phrase "exclusive remedy" as found in § 503(h) has caused considerable confusion. This is largely because the term "remedy" is a statutory term-of-art that normally refers to a list of enumerated remedies in a particular state's judgment enforcement laws, but is misinterpreted to mean something like "exclusive outcome" — which isn't the same thing.
A problem is that what constitutes a "remedy" varies from state to state, and there are other avenues of a creditor to obtain relief (such as reverse veil piercing or fraudulent transfer actions) that may or may not considered to be a "remedy". Thus, there may avenues of relief that are desired for creditors to access, but which may be off-limits because of the phrase, and there may be avenues of relief that are undesirable for creditors to access that are available to creditors because they are not technically "remedies".
Thus, it is suggested that consideration be given to using some other phrase than "exclusive remedy" in the text of § 503(h).
EXCLUSIVE REMEDY ARTICLES
- 2022.02.24 ... Tenth Circuit Nukes Charging Order Exclusivity In EarthGrains
- 2021.06.17 ... Delaware Chancery Court Navigates Around Charging Order Exclusivity And Recognizes Reverse Veil-Piercing
- 2021.01.19 ... Equitable Remedy To Circumvent Charging Order Exclusivity Denied In Ramos
- 2020.11.26 ... Contempt Not Precluded By Charging Order Exclusivity In Grengs
- 2019.02.18 ... Florida Order Awarding LLC Interest To Creditor Reversed In Pansky
- 2018.09.16 ... Debtor's Access To LLC Assets For His Personal Purposes Leads To Turnover Order In Golfwood Square
- 2017.11.23 ... FDCPA Overrides State Law Limitations Period And Charging Order Exclusivity In Wilhite
- 2017.11.23 ... Charging Order Not Exclusive Remedy For SMLLC Interest In Heckert
- 2016.09.03 … Charging Order Exclusivity Proves To Be Not So Exclusive In DeVoll
EXCLUSIVE REMEDY OPINIONS
- Chandler Medical Building Partners v. Chandler Dental Group, 855 P.2d 787, 175 Ariz. 273 (Ariz.App.Div.1, 1993).
- Christensen v. Oedekoven, 95 Wy. 3 (Wyo.App., 1995).
- Devoll v. Demonbreun, 2016 WL 4538805 (Tex.App., Aug. 31, 2016).
- Earthgrains Baking Co., v. Sycamore, 2022 WL 433486 (10th Cir., Feb. 14, 2022).
- Golfwood Square LLC v. O'Malley, 2018 IL App (1st) 172220-U, 2018 WL 4370875 (Ill.App., Unpublished, Sept. 11, 2018).
- Grengs v. Grengs, 2020 ND 242, 2020 WL 6793355 (N.D., Nov. 19, 2020).
- Heckert v. Heckert, 2017 WL 5184840 (Tex.App., Nov. 9, 2017).
- Jiao v. Xu, 2022 WL 764997 (5th Cir., March 11, 2022).
- Leonard v. Leonard, (N.J.Super.A.D., 2012).
- Manichaean Capital, LLC v. Exela Technologies, Inc., 2021 WL 2104857 (Del.Chanc., May 25, 2021).
- McLeod v. Bruce, 2022 WL 731517 (M.D.Ga., March 10, 2022).
- Pansky v. Barry S. Franklin & Assoc., 2019 WL 581620 (Fla.App., Feb. 13, 2019).
- Ramos v. Mississippi Real Estate Dispositions, LLC, 2021 WL 112763 (Fla.App., Jan. 13. 2021).
- Red Lion Hotels Franchising, Inc. v. First Capital Real Estate Investments LLC, 2022 WL 298118 (E.D.Cal., Feb. 1, 2022).
- U.S. v. Wilhite, 2017 WL 5517410 (D.Colo., Nov. 17, 2017).