31 Del. C. ch. 44 § 4403
Stay of judgment by defendant
Operative Text
(a) Upon filing with the Court of Chancery, the matter shall be expedited pursuant to the process established by the Chancery Court Rules of Civil Procedure. If, after the hearing, the Court determines that the petition should be granted, the Court shall immediately enter an order thereon and appoint a custodian as authorized herein; provided however, prior to the entry of an order and appointment of a custodian, the owner or any mortgagee or the lien or of record or other person having an interest in the property may apply to the Court to be permitted to remove or remedy the conditions specified in the petition. If such person demonstrates the ability to perform promptly the necessary work and posts security for the performance thereof within the time, and in the amount and manner, deemed necessary by the Court, then the Court may stay judgment and issue an order permitting such person to perform the work within a time fixed by the Court and requiring such person to report to the Court periodically on the progress of the work. The Court shall retain jurisdiction over the matter until the work is completed. (b) If, after the issuance of an order under subsection (a) of this section, but before the time fixed in such order for the completion of the work prescribed therein, there is reason to believe that the work will not be completed pursuant to the Court’s order or that the person permitted to do the same is not proceeding with due diligence, the Court or the petitioner, upon notice to all parties to the proceeding, may move that a hearing be held to determine whether judgment should be rendered immediately as provided in subsection (c) of this section. (c) (1) If, upon a hearing authorized in subsection (b) of this section, the Court shall determine that such party is not proceeding with due diligence, or upon the actual failure of such person to complete the work in accordance with the provisions of the order, the Court shall appoint a custodian as authorized herein. (2) Such order shall direct the custodian to apply the security posted to executing the powers and duties as described herein. (3) In the event that the amount of such security should be insufficient to accomplish the above objectives, such order shall direct the custodian to collect the rents, profits and issues to the extent of the deficiency. In the event that the security should exceed the amount necessary to accomplish the above objectives, such order shall direct the custodian to return the excess to the person posting the security.
Section 4403 of Title 31 of the Delaware Code establishes a process by which property owners, mortgagees, lienholders, or other interested parties can avoid the appointment of a court-ordered custodian by demonstrating their ability to fix the conditions identified in a petition and posting financial security with the Court of Chancery. If the court grants a stay of judgment, it sets a deadline for completing the work and requires periodic progress reports. Should the responsible party fail to proceed diligently or complete the work on time, the court may hold a hearing and, if warranted, appoint a custodian anyway, directing that the posted security be applied toward the remediation costs.
Plain English — not legal advice.
Under 31 Del. C. ch. 44 § 4403, a property owner facing a custodianship petition has an opportunity to intervene before a custodian is appointed by applying to the Court of Chancery, demonstrating a concrete ability to remedy the cited conditions, and posting court-approved security. Compliant operators generally document their remediation plan clearly, post the required security promptly, and provide the court with regular progress updates as ordered. Owners who are permitted to perform the work but fail to proceed with due diligence risk losing the stay and having a custodian appointed, with their posted security applied to cover remediation costs.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 4403 of 31 Del. C. ch. 44 provides tenants with the assurance that even if a property owner is granted a stay of custodianship, the Court of Chancery retains jurisdiction and can reinstate custodianship proceedings if the owner does not complete repairs diligently or on time. Tenants or their representatives, as parties to the proceeding, are entitled to notice if a motion is filed to determine whether judgment should be rendered immediately. Tenants who believe an owner is not complying with a court-ordered remediation timeline may wish to consult a tenant-rights organization or legal aid provider familiar with Delaware housing law to understand the options available within the ongoing court proceeding.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 22, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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