After Applying Tennessee Law, Master Recommends That Delaware Courts Hear Certain Trust Claims But Dismiss A Claim To Require Immediate Distribution Of Trust Property

Delaware Fiduciary Litigation Blog

Posted December 18, 2019

Michael D. Chase v. Martha L. Chase and Clare L. Chase, C.A. No. 2019-0402-PWG (December 13, 2019)

        In this case, counter-defendants argued that trust property could not be distributed until trust obligations were paid and the administration of the trust is complete, and also that the Delaware Court of Chancery should not involve itself in claims regarding a “Tennessee trust.” Counter-plaintiffs responded that the Delaware Court of Chancery could resolve those claims and that the trust requires immediate distribution of trust property to the beneficiaries. Master Griffin recommended a finding that Delaware courts can hear the trust claims but she recommended granting the motion to dismiss because “it [was] not reasonably conceivable that the trust could be interpreted to require immediate distribution of the trust’s property under the circumstances.”

        The Master noted that it is not uncommon for Delaware courts to apply other states’ law in deciding Delaware cases.  After applying the forum non conveniens factors, the Master decided the claims could be properly litigated in Delaware. The Master also applied Tennessee law in her opinion when appropriate.

        Regarding the contention that the trust instrument mandated immediate asset distribution, the Master applied Tennessee law and concluded that “it [was] not reasonably conceivable that the Trust could be interpreted to require immediate distribution of the Trust’s assets without first addressing Trust obligations.”

Author(s)

William M. Kelleher, Director
Director
Gordon, Fournaris & Mammarella, P.A.