In Re Adelphia Communications Corp.
The case concerns Debtor Adelphia Communications Corp.'s objection to a $44.7 million claim by Lucent Technologies, Inc. Lucent sought to hold Adelphia liable for debts of Devon Mobile Communications, L.P. under Delaware's Revised Uniform Limited Partnership Act, specifically Section 17-303, alleging de facto general partnership liability. Adelphia argued Lucent's actual knowledge of its limited partner status should defeat the claim. The Court ruled that Section 17-303(a) prioritizes the limited partner's conduct in determining a third party's reasonable belief, making the third party's actual knowledge of limited partner status irrelevant. Citing material factual disputes regarding Adelphia's conduct, the Court denied Adelphia's motion for summary judgment on Lucent's Section 17-303, alter ego, and other equitable claims, scheduling the Section 17-303 claim for the first stage of trial.