Lisa M. Sweeney v. Mark Sweeney
2022-0021-KSJM
Del. Ch.Jun 18, 2024Background
- Lisa and Mark Sweeney, siblings, were appointed co-trustees of the Josephine S. Sweeney Living Trust after their mother’s death in 2018.
- The Trust contained a significant amount of tangible property including real estate, coins, guns, and precious metals inherited from their uncle Richard.
- Estrangement escalated after their aunt Theresa’s estate planning disinherited Lisa and her sister, leading Lisa to accuse Mark of undue influence.
- Lisa engaged in hostile conduct, including refusing reimbursements, delaying administrative cooperation, and breaking into trust property in search of alleged hidden assets.
- Lisa sued Mark alleging he breached his fiduciary duties by hiding or converting trust assets; Mark counterclaimed, both seeking the other’s removal as co-trustee.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of fiduciary duty (disclosure, asset handling) | Mark withheld and concealed trust assets | All actions and disclosures were proper | No breach by Mark; disclosure and inventory adequate |
| Misappropriation/conversion of trust assets | Mark converted or hid valuables | All assets accounted for per inventory | No conversion by Mark; allegations unproven |
| Breach of fiduciary duty by co-trustee (Lisa’s acts) | (Not advanced by Lisa) | Lisa’s hostility and refusals harmed Trust | Lisa breached fiduciary duty; motivated by animus |
| Removal as trustee | Mark should be removed for breach | Lisa should be removed for lack of fidelity | Lisa removed as co-trustee; Mark remains |
| Surcharge/Damages | Damages for Mark’s alleged breaches | Lisa should reimburse Trust for her breaches | Lisa liable for $3,011.88 to Trust |
Key Cases Cited
- McNeil v. McNeil, 798 A.2d 503 (Del. 2002) (Trustees required to keep co-trustees and beneficiaries reasonably informed; outlines essential fiduciary duties)
- Beard Research, Inc. v. Kates, 8 A.3d 573 (Del. Ch. 2010) (Two elements for breach of fiduciary duty: existence and breach of duty)
- In re Nat’l Collegiate Student Loan Trusts Litig., 251 A.3d 116 (Del. Ch. 2020) (Describes common law fiduciary duties of loyalty, good faith, and care for trustees)
- Summa Corp. v. Trans World Airlines, Inc., 540 A.2d 403 (Del. 1988) (Establishes entitlement to interest on money damages from date liability accrues)