Kulp v. Timmons, 944 A.2d 1023 (Del. Ch. 2002)
Jul 30, 2002OUTCOME: Trust busted; Verdict for Plaintiff, plus award of attorneys' fees and costs; ultimate recovery of about $500,000
A plaintiff had an old workers' compensation award that other lawyers declined as uncollectable, because the employers, a family partnership, put all of their assets into trust six months before the pl ... aintiff's injury. Mr. Boswell persuaded the Court of Chancery to bust the trust as a fraud on creditors, and as a violation of the spendthrift trust statute, among other grounds. Mr. Boswell obtained an equitable bill of execution on the trust real property. When the last surviving employer filed bankruptcy, Mr. Boswell secured an order from the bankruptcy court to auction off the employer's land. The plaintiff ultimately collected about a half million dollars, 100% of the Board's awards plus interest and attorneys' fees.