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Scottrade, Inc. v. Davenport
United States District Court, D. Montana, Billings Division
August 1, 2017
SCOTTRADE, INC., an Arizona corporation, Plaintiff,
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,
KRISTINE DAVENPORT, individually, Cross-Defendant.
P. WAITERS United States District Judge.
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
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.
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.
contested these distributions and sought to claim all of
LeFeber's estate and brokerage account, based on an oral
contract she allegedly made with LeFeber in 2007. She sued in
Montana State Court.
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
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.
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