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Scottrade Inc. v. Davenport

United States District Court, District of Montana, Billings Division

January 12, 2015

SCOTTRADE, INC., an Arizona corporation, Plaintiff,
v.
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,
v.
KRISTINE DAVENPORT, individually, Cross-Defendant.

OPINION AND ORDER ON PENDING MOTIONS

SUSAN P. WATTERS, UNITED STATES DISTRICT JUDGE

This matter comes before the Court upon: (1) Shane M. LeFeber's ("Shane") Renewed Motion for Distribution of Scottrade Funds to Beneficiaries other than Davenport (Docs. 310); (2) Kristine Davenport's Motion Re Richard Cebull (Doc. 298); (3) Kristine Davenport's Motion for Summary Judgment Re Jurisdiction over Davenport's $449, 490.18 (Doc. 299); (4) Arnold and Patricia Faller's Motion to Strike and Request for Scheduling Order and Status Conference (Doc. 304); and Shane's Motion to Strike Davenport's Pleadings (Doc. 306). The Court has decided these motions after reviewing the submissions of the parties and without oral argument, pursuant to Fed.R.Civ.P. 78. For the following reasons, Shane's motion for distribution is granted, Davenport's motions are stricken, and the Faller's motions are granted. Any remaining motions are denied as moot.

I. Background

As this history is well-known to the parties, this Court adopts the Ninth Circuit's October 23, 2014, Memorandum and its description of the background facts and procedural history of this case. This Court adds to it in relevant part 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;
16% to Christopher Gibbons;
8% to Kimberly Chabot; and
16% to Kristine Davenport.

Davenport contested these distributions and sought to claim all of LeFeber's estate and brokerage account, based on 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 that the other beneficiaries conspired 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.

As part of its final judgment, this Court awarded attorney fees to Shane and Patricia and Arnold Faller in the amount of $148, 143.21 and $183, 548.89, respectively. This Court also noted the attorney fees of $6, 142.53 previously paid to Scottrade and $11, 189.10 previously paid to Arnold 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 vacated its grant of attorney fees to Arnold Faller, Patricia Faller, and Shane and remanded to give Davenport the opportunity to object to the amount of fees requested by the parties. (Doc. 290 at 7). Davenport petitioned for rehearing and requested that the Ninth Circuit reverse all of this Court's rulings because of Judge Cebull's alleged bias. (Doc. 292). Davenport's Petition for Rehearing was denied on December 2, 2014. (Id.) The Ninth Circuit issued its formal mandate on December 11, 2014. (Doc. 295). Pursuant to ...


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