PUBLIC SERVICE COMMISSION OF STATE OF DELAWARE v. UTILITY SYSTEMS, INC.

C.A. No. 2036-VCN.

Public Service Commission of the State of Delaware, v. Utility Systems, Inc., et al.

Court of Chancery of Delaware.

Decided: January 21, 2010.


Attorney(s) appearing for the Case

Francis J. Murphy, Jr., Esquire, Murphy & Landon, Wilmington, DE.

Richard P. Beck, Esquire, Morris James LLP, Wilmington, DE.


JOHN W. NOBLE, Vice Chancellor.

Dear Counsel:

On December 21, 2004, Defendant Utility Systems, Inc. ("USI") sold three lots in a residential subdivision, known as The Woods at Herring Creek ("Herring Creek"), in Sussex County, Delaware to Defendant Carbaugh Property Management, LLC ("CPM"). CPM is owned by H. Clark Carbaugh, then-president and principal stockholder of USI, and his wife. At that time USI was a failing public utility company that had provided...

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