In re Daniel Kloiber Dynasty Trust

During divorce proceedings between Daniel Kloiber (Dan) and Beth Ann Kloiber the Kentucky Family Court issued status quo orders that restricted Dan in his capacity as a human being over whom the Kentucky Family Court had personal jurisdiction, thereby restricting Dan’s actions as special trustee of the Daniel Kloiber Dynasty Trust and sole manager of three LLCs. Dan subsequently resigned from his positions and appointed Nick Kloiber as special trustee. Nick proceeded to take action contrary to the status quo orders, and the Kentucky Family Court issued a rule to show cause why Nick should not be held in contempt. PNC Delaware Trust Company (PNC), the trustee of the Dynasty Trust, and Nick filed petitions seeking instructions and declarations from the Court of Chancery, arguing that the Kentucky Family Court improperly asserted jurisdiction over the trustee, special trustee and trust and was requiring them to take actions contrary to their fiduciary duties. The Court of Chancery denied Nick’s application for a temporary restraining order (TRO) to prevent Beth from seeking to enforce the status quo orders, including the pending rule to show cause, holding that, because the Kentucky Family Court was not interfering with the Court’s jurisdiction, Nick lacked a colorable claim on which to base a TRO. View "In re Daniel Kloiber Dynasty Trust " on Justia Law