Protech Minerals, Inc. v. Dugout Team, LLC
Annotate this CaseAt issue in this case was whether distributions from a Delaware statutory trust to beneficial owners were subject to garnishment by a creditor. The beneficial owners argued Delaware law prohibited garnishment of the distributions because they were trust property. They also argued that Delaware law prohibited garnishment of the distributions because the trust was a spendthrift trust. The creditor contended the appeal was moot because the trust converted to a partnership. As to the merits, the creditor contended the distributions were personal property subject to garnishment, not trust property. They further argued the beneficial owners failed to argue below that the trust was a spendthrift trust; thus, they were barred from raising that argument on appeal.Having reviewed the parties’ briefs and the record on appeal, the Delaware Supreme Court held: (1) the appeal was not moot; (2) the trust distributions were personal property subject to garnishment; and (3) the appellants waived the argument that the trust at issue was a spendthrift trust. Thus, the judgment of the Superior Court was affirmed.
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