Delaware's long-arm statute provides jurisdiction over defendants who are not residents of the State of Delaware. Rather, the statute provides the courts of this State with jurisdiction over a defendant who "in person or through an agent . . . [t]ransacts any business or performs any character of work or service in the State . . . [or c]auses tortious injury in the State by an act or omission in this State." 10 Del. C. § 3104(c). Jurisdiction of this nature may also include co-conspirators, who are treated as agents of a conspirator. The agency and co-conspirator theory of jurisdiction may even apply to conspiracy with an entity.
As artfully stated in the recent decision of Reid v. Siniscalchi, a "conspiracy theory is . . . not an independent jurisdictional basis, but a way to impute a conspirator's conduct to a co-conspirator not otherwise subject to the Court's jurisdiction." To determine whether jurisdiction over a co-conspirator exists, the Court utilizes a five part test. To succeed, a plaintiff must present proof of each of the following five elements:
(1) a conspiracy to defraud existed; (2) the defendant was a member of that conspiracy; (3) a substantial act or substantial effect in furtherance of the conspiracy occurred in the forum state; (4) the defendant knew or had reason to know of the act in the forum state or that acts outside the forum state would have an effect in the forum state; and (5) the act in, or effect on, the forum state was a direct and foreseeable result of the conduct in furtherance of the conspiracy. Id. at 13.
The Reid decision may be read in its entirety here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
