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Mennen v. Wilmington Trust Company, George Jeffrey Mennen and Owen J. Roberts as Trustees

Mennen v. Wilmington Trust Company, George Jeffrey Mennen and Owen J. Roberts as Trustees
C.A. No. 8432
Master LeGrow (Del. Ch. January 17, 2014) (Master’s Draft Report)
 (PDF 318 KB)

Master LeGrow of the Delaware Court of Chancery (the “Court”) issued a draft report (the “Draft Report”) granting a defendant’s motion for summary judgment upholding the enforceability of a spendthrift clause under Delaware’s spendthrift statute, Section 3536 of Title 12 of the Delaware Code (“Section 3536”). The Draft Report is notable because it is a strong confirmation of the protections available to beneficiaries of third-party spendthrift trusts under Section 3536 and the Court refused to create a public policy exception to Section 3536 for a tort claimant who was a family member of the plaintiffs and who allegedly persistently engaged in a course of conduct that breached his fiduciary duties resulting in millions of dollars of damages for plaintiffs.

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