Maria Ortiz v. Justo Ortiz and Ivelisse Ortiz
2024-0692-CDW
Del. Ch.Mar 21, 2025Background
- Maria Ortiz and Justo Ortiz were married for 47 years; Maria filed for divorce in November 2019.
- In January 2024, Maria received a Texas Divorce Decree granting her 75% of certain retirement accounts and property traceable to those funds.
- Two months before the divorce, Justo and his daughter Ivelisse received property in Delaware for nominal consideration, as joint tenants; during the divorce proceedings, they transferred it solely to Ivelisse.
- Maria alleges this transfer was intended to hinder her collection of court-awarded assets under the Divorce Decree.
- Maria filed a Delaware Chancery Court complaint for fraudulent transfer and aiding/abetting; Defendants moved to dismiss both counts under Rule 12(b)(6).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Sufficiency of Fraudulent Transfer Pleading | Complaint pleads sufficient facts, meets Rule 9(b) | Chronology impossible; lacks statutory specificity | Motion to dismiss denied for this count |
| Identification of Legal Basis | Delaware is notice pleading; sufficient as pled | Must specify statute or section violated | Precise citation not required |
| Subject Matter Jurisdiction | Chancery court is proper for voiding deeds/equitable relief | Court should not hear the matter; remedy lies elsewhere | Chancery has jurisdiction |
| Aiding & Abetting Fraudulent Transfer | Notice pleading suffices; claim should proceed | No supporting facts; claim not cognizable | No cause of action exists—dismissed |
Key Cases Cited
- Klein v. Sunbeam Corp., 94 A.2d 385 (Del. 1952) (explains purpose of notice pleading is to give fair notice of claims)
- Wal-Mart Stores, Inc. v. AIG Life Ins. Co., 860 A.2d 312 (Del. 2004) (court may rely on complaint and integral documents on a motion to dismiss)
- Desert Equities, Inc. v. Morgan Stanley Leveraged Equity Fund, II, L.P., 624 A.2d 1199 (Del. 1993) (heightened pleading required for fraud)
- Trenwick Am. Litig. Tr. v. Ernst & Young, L.L.P., 906 A.2d 168 (Del. Ch. 2006) (Delaware law does not recognize aiding and abetting fraudulent transfer claim)