WELLS FARGO BANK, N.A. v. ESTATE OF MALKIN

No. 172, 2021.

278 A.3d 53 (2022)

WELLS FARGO BANK, N.A., as Securities Intermediary, and Berkshire Hathaway Life Insurance Company of Nebraska, Defendants/Appellants/Cross-Appellees, v. ESTATE OF Phyllis M. MALKIN, Plaintiff/Appellee/Cross-Appellant.

Supreme Court of Delaware.

Decided: May 26, 2022.


Attorney(s) appearing for the Case

A. Thompson Bayliss, Esquire , Stephen C. Childs, Esquire , ABRAMS & BAYLISS LLP, Wilmington, Delaware; Ginger D. Anders, Esquire (argued), Donald B. Verilli, Jr., Esquire , Brendan B. Gants, Esquire , MUNGER, TOLLES & OLSON LLP, Washington, DC, for Defendant/Appellant/Cross-Appellee Berkshire Hathaway Life Insurance Company of Nebraska.

Stephen L. Caponi, Esquire , Matthew B. Goeller, Esquire , K&L GATES LLP, Wilmington, Delaware; Samuel O. Patmore, Esquire (argued), Jenea M. Reed, Esquire , STEARNS WEAVER MILLER WEISSLER ALHADEFF & SITTERSON, P.A., for Defendant/Appellant/Cross-Appellee Wells Fargo Bank, N.A.

Donald L. Gouge, Jr., Esquire , DONALD L. GOUGE, JR., LLC, Wilmington, Delaware; Gregory J. Star, Esquire (argued), Michael L. Miller, Esquire , Joseph M. Kelleher, Esquire , COZEN O'CONNOR P.C., Philadelphia, Pennsylvania, for Plaintiff/Appellee/Cross-Appellant Estate of Phyllis M. Malkin.

David J. Baldwin, Esquire , Peter C. McGivney, Esquire , BERGER HARRIS LLP, Wilmington, Delaware; John E. Failla , Mark D. Harris , Nathan R. Lander , Elisa A. Yablonski , PROSKAUER ROSE LLP, New York, New York; Steven O. Weise, Esquire , PROSKAUER ROSE LLP, Los Angeles, California, for the Delaware Bankers Association as amicus curiae in support of Appellants.

Stephen B. Brauerman, Esquire , BAYARD P.A., Wilmington, Delaware; Andrew C. Smith, Esquire , Adam Marcu, Esquire , PILLSBURY WINTHROP SHAW PITTMAN LLP, New York, New York, for the Institutional Longevity Markets Association as amicus curiae in support of Appellants.

Brian E. Farnan, Esquire , FARNAN LLP, Wilmington, Delaware; Steven Sklaver, Esquire , SUSMAN GODFREY LLP, Los Angeles, California; Ari Ruben, Esquire , SUSMAN GODFREY LLP, New York, New York, for Hua Nan Commercial Bank, Ltd., Hua Nan Investment Trust Co., Bank Sinopac, Taichung Commercial Bank, Ltd., Entie Commercial Bank, Ltd., KGI Bank Co., Ltd, and Mediatek USA Inc. as amici curiae in support of Appellants.

Before SEITZ, Chief Justice; VALIHURA, VAUGHN, TRAYNOR, and MONTGOMERY-REEVES, Justices, constituting the Court en Banc.


In a stranger-originated life insurance ("STOLI") scheme, a speculator contrives to purchase a policy on the life of a stranger. If the stranger dies before the value of the premiums paid by the speculator exceeds the death benefit of the policy, the speculator's bet pays off. STOLI policies violate Article II, § 17 of the...

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