Scottrade v. Davenport et al
Filing
412
ORDER GRANTING 404 Motion for Disbursement of Funds. READ ORDER FOR COMPLETE DETAILS. Signed by Judge Susan P. Watters on 8/1/2017. (Clerk forwarded a copy of the order to Finance) (AMC) Modified on 8/1/2017 Copy of order mailed to Davenport, Gibbons and Chabot (AMC).
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MONTANA
BILLINGS DIVISION
SCOTTRADE, INC., an Arizona
corporation,
CV 11-03-BLG-SPW
Plaintiff,
ORDER
vs.
KRISTINE DAVENPORT,
individually, SHANE M. LEFEBER,
individually, CHRISTOPHER
GIBBONS, individually, KIMBERLY
CHABOT, individually, PATRICIA
FALLER, individually,
Defendants.
PATRICIA FALLER, individually,
CHRISTOPHER GIBBONS,
individually, KIMBERLY CHABOT,
individually, SHAME M. LEFEBER,
individually,
Cross-Claimants,
vs.
KRISTINE DAVENPORT,
individually,
Cross-Defendant.
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Before this Court is Shane M. LeFeber's ("Shane") Motion for Distribution
of Funds Held in CRIS to Beneficiaries other than Davenport. (Doc. 404 ). Shane
contacted his co-defendants Christopher Gibbons and Patricia Faller and they do
not object to his motion. (Id.). He was unable to contact co-defendant Kimberly
Chabot. (Id.) Davenport objects to the motion to the extent that it requests
distributions from her share to the other parties and to the extent that it requests the
court retain her share until all appeals have concluded. (See Doc. 406). For the
reasons set forth below, the Court grants Shane's motion.
I. Background
As this history is well-known to the parties, this Court adopts the Ninth
Circuit's description of the background facts and procedural history. A short
summary of relevant events is laid out below.
On September 15, 2010, James Lefeber ("Lefeber") died, leaving the
contents of his Scottrade brokerage account to five of his friends: Shane, Patricia
Faller ("Faller"), Kristine Davenport ("Davenport"), Christopher Gibbons
("Gibbons") and Kimberly Chabot ("Chabot"). Lefeber executed a Transfer on
Death Beneficiary Plan directing that his Scottrade account should be distributed as
follows:
56% to Shane Lefeber;
4% to Patricia Faller;
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16% to Christopher Gibbons;
8% to Kimberly Chabot; and
16% to Kristine Davenport.
Davenport contested these distributions and sought to claim all ofLeFeber's estate
and brokerage account, based on an oral contract she allegedly made with Lefeber
in 2007. She sued in Montana State Court.
Faced with competing claims over LeFeber's account, Plaintiff Scottrade,
Inc. ("Scottrade") filed an interpleader action in this Court. Numerous claims,
cross-claims and counter-claims followed. Seeking the entire account, Davenport
alleged a conspiracy of the other beneficiaries to interfere with the purported 2007
oral contract. Although he was not named as a beneficiary, Patricia Faller's
husband, Arnold Faller, was implicated in Davenport's conspiracy allegations and
dragged into the lawsuit. Davenport's causes of action and various motions were
characterized by this Court as "patently frivolous" and so "one-sided" that they
would result in a "mockery of justice" to require the other beneficiaries to refute
her allegations at trial. (Doc. 268, 5, 25, 33-34, 60). This Court denied all of
Davenport's motions, dismissed both Scottrade and Arnold Faller with prejudice,
and eventually granted summary judgment against Davenport and awarded the
other parties attorney fees and costs.
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As part of its final judgment, this Court awarded attorney fees to Shane and
Arnold Faller in the amount of $148,143.21 and $183,548.89. This Court also
noted the attorney fees of$6,142.53 previously paid to Scottrade and $11,189.10
previously paid to Faller and determined that all the attorney's fees were to be
taxed against Davenport's 16% share of the Scottrade fund. Davenport appealed
the Judgment and all other orders issued by this Court.
On appeal, the Ninth Circuit affirmed this Court's judgment but ordered
remand so that Davenport could "file objections as to the [attorney fee] award
amounts [to Arnold Faller, Patricia Faller, and Shane] only." (Doc. 290). This
Court determined the amount of attorney's fees payable to Shane and the Fallers
for fees incurred prior to and during the appeal process (Doc. 290). That
determination was recently upheld on appeal. (Doc. 402).
While the appeal was pending, the Clerk distributed $2,359,823.54 (84% of
the original principal balance) to the beneficiaries other than Davenport. The other
16%, Davenport's share, and all accrued interest continued to be held in the Court
Registry Investment System (CRIS), pending further order from the Court. (Doc.
315).
II.
Discussion
Shane argues that since this Court's order regarding attorneys' fees has been
affirmed, Shane and Patricia and Arnold Faller's attorney's fees and costs should
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be deducted from Davenport's share and the Court should distribute the
beneficiaries' funds held in CRIS except Davenport's. (Doc. 405). Davenport
does not object to the interest distribution. (Doc. 406 at 5). She argues that Shane
and the Fallers' attorneys' fees and costs are not deductible from her share and that
her funds should not be retained by the Court pending final resolution of this
matter. (Id. at 6). The Court has already addressed these same arguments from
Davenport throughout the pendency of this case. (See Docs. 268, 275, 315, 330,
366, 367, 368, 369). Her arguments are rejected.
III.
Conclusion
For reasons state above, this Court ORDERS that Shane's Motion for
Distribution of Funds Held in CRIS to Beneficiaries other than Davenport
(Doc.404) is GRANTED. This Court ORDERS the Clerk of Court to distribute
$455,275.08, allocating the sum as follows:
a.
$160,632.32 to the attorneys of Shane (attorneys' fees in the amount
of $139,953.00 plus costs in the amount of$8,190.21, plus CRIS interest in the
amount of $12,498.11);
b.
$181,923.25 to the attorneys of Faller (attorneys' fees and costs in the
amount of$181,031.21 plus CRIS interest in the amount of$892.04);
c.
$2,517.68 to the attorneys of Arnold Faller (the balance of his
attorneys' fees and costs);
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d.
$3,568.22 to Gibbons (his share of the CRIS interest);
e.
$1,784.16 to Chabot (her share of the CRIS interest); and
f.
$104,849.45 to Davenport to be held in the CRIS pending final
resolution. This amount represents her share of the original principal, less various
deductions against her share as ordered by this Court, plus her share of the CRIS
interest.
IT IS ORDERED that the Clerk shall distribute all accrued interest (being
any amount in excess of $455,275.08) in the CRIS account from November 18,
2016, through the date of distribution in the following percentages:
a.
2.74% to Shane;
b.
0.20% to Patricia Faller;
c.
0. 78% to Gibbons;
d.
0.39% to Chabot; and
e.
95.89% to Davenport.
IT IS FURTHER ORDERED that the parties shall deliver all necessary
information required by the Finance Department of the Clerk of the U.S. District
Court for the District of Montana to the Clerk, on or before September 1, 201 7, in
order to issue the checks as set forth above.
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DATED this _L_ day of August~2017
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US AN P. WATTERS
United States District Judge
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