Amy Knapp Rumford v. Leslie Gay Knapp Marini

CourtCourt of Chancery of Delaware
DecidedApril 5, 2021
Docket2018-0563-PWG
StatusPublished

This text of Amy Knapp Rumford v. Leslie Gay Knapp Marini (Amy Knapp Rumford v. Leslie Gay Knapp Marini) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amy Knapp Rumford v. Leslie Gay Knapp Marini, (Del. Ct. App. 2021).

Opinion

COURT OF CHANCERY OF THE STATE OF DELAWARE PATRICIA W. GRIFFIN CHANCERY COURTHOUSE MASTER IN CHANCERY 34 The Circle GEORGETOWN, DELAWARE 19947

Final Report: April 5, 2021 Date Submitted: February 19, 2021

Thomas A. Uebler, Esquire Hayley M. Lenahan, Esquire Kerry M. Porter, Esquire McCollom D’Emilio Smith Uebler, LLC Little Falls Centre Two 2751 Centerville Road, Suite 401 Wilmington, Delaware 19808

David J. Ferry, Jr., Esquire Thomas R. Riggs, Esquire Ferry Joseph, P.A. 824 N. Market Street, Suite 1000 P.O. Box 1351 Wilmington, Delaware 19899

RE: Amy Knapp Rumford v. Leslie Gay Knapp Marini, et al. C.A. No. 2018-0563-PWG

Dear Counsel:

Pending before me is a motion in limine in which defendants seek to

preclude plaintiff’s challenge to the validity of a joint trust established by two co-

grantors, and a deed, at trial. They argue those claims are time-barred by 12 Del.

C. §3546 and laches. First, I find that the motion in limine is dispositive of a

substantive legal issue, and in the interest of judicial economy, treat it as a motion

for partial summary judgment. I also find that defendants did not waive their Amy Knapp Rumford v. Leslie Gay Knapp Marini, et al. C.A. No. 2018-0563-PWG April 5, 2021

defenses. Next, I recommend the Court deny defendants’ motion because plaintiff

brought her claim contesting the validity of the joint trust within §3546’s time

limitation, or within two years of the death of the surviving co-grantor, and laches

has not been shown at this juncture. This is a final report.

I. Background

Defendants Leslie Gay Knapp Marini (“Marini”), individual and as

executrix of the Estate of Halsey G. Knapp and as trustee of Halsey G. and Joan D.

Knapp Revocable Trust (“Joint Trust”) and G K & G Knapp Family Limited

Partnership (together “Defendants”) filed a motion in limine (“Motion”) on

February 10, 2020. 1 Defendants seek to preclude Plaintiff Amy Knapp Rumford

(“Rumford”), acting individually and derivatively on behalf of Knapp Investments

Limited Partnership (“Knapp Partnership”), from challenging Joan D. Knapp

(“Joan”)’s execution of the Joint Trust and the Last Will and Testament of Joan D.

Knapp (“2014 Will”) at trial.2 They argue that Rumford’s claim contesting the

validity of Joan’s execution of the Joint Trust is time-barred by 12 Del. C. §3546

(“§3546”) and laches, and any challenge to the 2014 Will, and to the deed (“2014

Deed”) transferring property located in Nassau, Delaware (“New Road Tract”) to

1 Docket Item (“D.I.”) 97. 2 Id., at 6. I use first names in pursuit of clarity and intend no familiarity or disrespect.

2 Amy Knapp Rumford v. Leslie Gay Knapp Marini, et al. C.A. No. 2018-0563-PWG April 5, 2021

the Joint Trust, is also barred by laches. 3 Rumford opposes the Motion, asserting

that the Motion is an improper case-dispositive motion; Defendants waived their

time-bar defense; the challenge of the Joint Trust is not time-barred under §3546 or

laches; laches does not bar the challenge to the 2014 Deed; Halsey G. Knapp

(“Halsey”)’s unclean hands bars Defendants’ equitable defenses; and any decision

on the 2014 Will is an advisory opinion.4

On April 21, 2014, Joan and Halsey executed the Joint Trust and deeded the

New Road Tract previously held by their individual revocable trusts to the Joint

Trust. 5 The Joint Trust provided that, after the death of both grantors, 60% of the

New Road Tract would be distributed to Marini, and 40% to Rumford. 6 Also on

April 21, 2014, Joan executed the 2014 Will. 7 Joan died on March 3, 2015.8 On

December 3, 2015, Halsey executed the First Amendment to the Joint Trust, which

divested Rumford of her interest in the Joint Trust by distributing all of the Joint

Trust property, including the New Road Tract, to Marini, after the co-grantors’

deaths.9 Halsey died on December 20, 2017. 10

3 Id., 6-13; D.I. 106, 6-7. 4 D.I. 104. 5 D.I. 81, Exs. F, G. 6 Id., Ex. F, Art. III (B). 7 Id., Ex. I. 8 Id., ¶ 21. 9 Id., Ex. H.

3 Amy Knapp Rumford v. Leslie Gay Knapp Marini, et al. C.A. No. 2018-0563-PWG April 5, 2021

Rumford filed a complaint on July 30, 2018, and a first amended complaint

(“Amended Complaint”) on October 31, 2019, in which she claims that Joan

lacked capacity to execute the Joint Trust or to transfer the New Road Tract and

that Halsey signed Joan’s name to the Joint Trust and the 2014 Deed without her

authority, so the Joint Trust and the transfer of the New Road Tract to the Joint

Trust should be invalidated.11 In addition, she argues that Joan was unduly

influenced by Halsey to execute the Joint Trust.12

II. Analysis

A. Appropriateness of motion in limine

The first issue is whether the Motion was improperly filed as a motion in

limine. A “motion in limine typically concerns the admissibility of evidence and is

a preliminary motion directed at establishing the ‘ground rules applicable at trial.’

In contrast, a ‘summary judgment motion is a determination by the court

concerning a case or aspect of a case made prior to trial that obviates the need for

trial of the matter.’” 13 Rumford argues that the Motion should be denied as

10 D.I. 104, at 5. 11 D.I. 1,¶¶ 76-85; D.I. 81, ¶¶ 77-86. Although not at issue in the Motion, Rumford also seeks to invalidate the assignment of property located at 1102 Bay Avenue, Lewes, Delaware, from the Knapp Partnership to the Joint Trust, and claims that Halsey breached his fiduciary duties to Rumford and to the Knapp Partnership. See D.I. 81. 12 D.I. 81, ¶¶ 84-86. 13 Hercules, Inc. v. AIU Ins. Co. [hereinafter “Hercules”], 784 A.2d 481, 500 (Del. 2001) (original emphasis included and citations omitted).

4 Amy Knapp Rumford v. Leslie Gay Knapp Marini, et al. C.A. No. 2018-0563-PWG April 5, 2021

improperly filed as a motion in limine because it is dispositive of a substantive

legal issue. 14 Defendants respond that the Motion seeks to preclude certain

evidence and, even if the Motion is analyzed as a motion for partial summary

judgment, it should be granted since there are no material factual disputes and they

are entitled to judgment as a matter of law regarding the issue of whether the Joint

Trust or the 2014 Will are time-barred. 15

If it is determined that the challenges to the validity of Joan’s execution of

the Joint Trust and the 2014 Deed are time-barred as a matter of law, then

Rumford’s claims concerning Joan’s lack of capacity and undue influence in

executing the Joint Trust or the 2014 Deed would not survive. The Motion, if

granted, would be dispositive of substantive legal issues concerning Rumford’s

claims. However, in the interest of judicial economy, I treat it as a motion for

partial summary judgment.16 Under that basis, I deny the Motion because

Defendants are not entitled to judgment as a matter of law and genuine issues of

material facts are in dispute. My reasoning is discussed below.

14 D.I. 104, at 3-4. 15 D.I. 106, at 2-3. 16 In Hercules, the motion filed as a motion in limine was determined to be a motion for summary judgment and denied as untimely under the pre-trial order, consistent with Superior Court Civil Rule 16(e). Hercules, 784 A.2d at 499-500.

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