Delaware Trust Company v. 2084 Grand Ave Holdings LLC

Background

Delaware Trust Company brought this action against 2084 Grand Ave Holdings LLC, 2155 Grand Ave Holdings LLC, and Dovid Kleiner. The court had previously entered an order appointing a receiver on July 7, 2025. The opinion text consists primarily of defense counsel’s letter application and ends with the court’s brief order.

Defendants’ Application

The defendants asked the court to order discovery concerning subject-matter jurisdiction, or alternatively dismiss the action if the plaintiff could not establish jurisdiction based on diversity of citizenship. They also argued that the plaintiff had not properly served the order to show cause or the summons. Their filing asserted that the service affidavits were deficient, that no valid summons had been issued, and that the court therefore lacked personal jurisdiction over the defendants.

Based on those arguments, the defendants asked the court to vacate the receiver order and dismiss the action. Alternatively, they asked the court to stay or modify the receiver order and allow them to oppose the receiver’s appointment. They also challenged aspects of the receiver order, including the proposed $5,000 bond and provisions concerning property-related accounts, loan-sale proceeds, and an accounting.

Ruling

Judge Valerie Caproni ordered that the application was DENIED without prejudice. The order further states: “If Defendants want to move to vacate the receiver order, they must make [a] noticed motion for that relief.” The text does not provide a substantive ruling on the defendants’ jurisdiction, service, or receiver-order arguments, and it does not state that the receiver order was vacated, stayed, or modified.

Classification

This is a procedural order because it addressed an application concerning jurisdictional discovery, dismissal, service, and ancillary receiver relief without deciding the underlying dispute on the merits.