Court of Chancery Rejects Contention that Caregiving Equates to Fiduciary Duty

IMO: The Estate of Lawrence E. Mergenthaler, et al., C.A. No. 2020-0804-MTZ (September 4, 2024)   

            This opinion relates to the administration of the Lawrence E. Mergenthaler Estate. Our January blog post discussed a prior decision in the same matter.

            The Petitioner claims that multiple Respondents exerted undue influence over Mr. Mergenthaler while he was alive and misappropriated assets belonging to his estate. In December of 2023, Cheryl, one of the Respondents, moved to dismiss the Petitioner’s Third Amended Petition (the “Petition”) for failure to state a claim against her.

            One aspect of the Petition challenged by the motion to dismiss is particularly interesting. In Count IV, the Petition alleged that Cheryl’s caregiving to Lawrence rendered her a fiduciary. But in deciding the motion to dismiss, the Court concluded that caregiving does not make the provider a fiduciary. The Court also dismissed Petitioner’s claim for tortious interference with prospective inheritance because, among other reasons, Delaware courts have not recognized that cause of action.