Delaware Chancery Court Recognizes Reverse Veil Piercing In A Judgment Enforcement Action

First Tuesday Update is our monthly take on current issues in judgment enforcement. A Delaware Chancery Court—for the first time by a Delaware Court—recognized that reverse veil piercing is an available remedy under Delaware Law in Manichaean Capital, LLC v. Exela Technologies, Inc. Vice-Chancellor Slights, in a 50-page opinion memorandum denying a motion to dismiss, summed up his analysis as follows: "After carefully reviewing the justifications for and against the adoption of reverse veil-piercing, I find that this equitable remedy (or right) is an appropriate means, in limited circumstances, to remedy fraud and injustice." The authors of this note are counsel in this action on behalf of judgment-creditors.