The Court of Chancery entered default judgment in a books and records action. The defendant limited liability company then appeared through Delaware counsel and sought to set aside the default judgment. The defendant argued that service had been invalid because defendant had been cancelled by operation of law for failure to designate a registered agent. The Court declined to find the judgment invalid, as service was made via the Delaware Secretary of State, in compliance with the Delaware Limited Liability Company Act. The Court did, however, reopen the default judgment to address an issue relating to confidentiality of the member list at issue.
Following supplemental briefing, the Court rejected defendant’s belated arguments of improper purpose and of statutory prohibition on the use of the member list. The Court did enter a confidentiality order in the form proposed by plaintiff, which restricted plaintiff from disclosing member information without the member’s permission unless the information was publicly available, previously known, or independently acquired by plaintiff.
