Charging Order Information Rights And Discovery
Topic Information_Rights TopicsInformationRightsDiscovery
The courts have struggled to determine what information that a creditor holding a charging order is entitled to, though usually end up with the correct decision.
This can be fixed by an expanded Comment noting that a creditor as a mere lienholder (or even as a involuntary assignee after foreclosure) has no rights in that capacity against the entity.
However, a creditor normally in judgment enforcement proceedings is entitled to whatever information the debtor receives about the debtor's investment, which would mean information that the debtor receives from the entity, i.e., if the debtor can obtain information from the entity, the debtor must do so and then turn that information over to the creditor pursuant to the creditor's appropriate discovery request or at a debtor's examination. If this information requires particular confidentiality for the entity — say, the D/M is the CFO of the company — then protective orders or the appointment of a receiver would be appropriate.
INFORMATION RIGHTS AND DISCOVERY OPINIONS
- Dream Games v. PC Onsite LLC, 2016 WL 1554978 (April 18, 2016).
- GenX Processors Mauritius Ltd. v. Jackson, 2018 WL 5777485 (D.Nev., Nov. 2, 2018).
- In re Boone County Utilities, LLC, Adv.Proc. No. 12-50128 (Bk.S.D.In., Sept. 17, 2014).
- Mack Film Development, LLC v. Benevolent Partners, L.P., 2014 WL 929702 (Conn.Super., Unpublished, 2014).
- Rock Bay, LLC v. Eighth Judicial District Court, 129 Nev. Adv. Op. 21, 2013 WL 1349284 (Nev., April 4, 2013).
- Sanders v. Ohmite Holding, LLC, 2011 WL 598436 (Del.Ch., Unpublished, 2011).
- Succession of McCalmont, 2018 WL 6521176 (La.App., Cir. 3, Dec. 12, 2018).
- Timberland Bank v. Mesaros, 2018 WL 2215463 (Wa.App., May 15, 2018).
- Wells Fargo Bank, N.A. v. Continuous Control Solutions, Inc., 2012 WL 3195759 (Table) (Iowa App., Slip Copy, Table, Aug. 2012).
- Wong v. Yoo, No. 04-CV-4569 (E.D.N.Y., July 20, 2012).