W. Henry Dupont v. Delaware Trust Company

WALSH, Judge: This is an appeal from a Court of Chancery determination that the Delaware Trust Company (Delaware Trust) did not breach
its fiduciary duty as trustee under that Last Will and Testament of William DuPont, Senior. The appellant, and plaintiff below,
is one of the five grandchildren of the testator. His brothers and sisters intervened in the Court of Chancery to support
the position of Delaware Trust and the other original defendant, Hopeton Holding Company, a Delaware corporation. At the time
of his death on January 20, 1928, William DuPont, Sr. owned 58.35 percent of the 10,000 shares outstanding of Delaware Trust,
as part of a total estate of approximately $40,000,000. His Will, executed 17 days earlier, provided for immediate distribution
of certain assets to his son, William DuPont, Jr. (William) and his daughter, Marion DuPont Scott (Marion) but left the bulk
of his estate, including the Delaware Trust shares, in a residuary trust with Delaware Trust as sole trustee as well as Executor.
After payment of certain annuities to other relatives, the trustee was directed to distribute the net income of the trust
to testator's son and daughter during their lives - sixty percent to William and forty percent to Marion. Upon the death of
each life tenant the respective portion of the trust principal was to be distributed "in equal shares, to and among all my
grandchildren who may then be living and the issue then living of any deceased grandchildren of mine . . . " ITEM NINE of
the Will, a provision which looms large in this litigation, provides: "My said Trustee in making investments hereunder shall
be limited to securities deemed to be legal investments for trust funds". Additional provisions gave the Trustee broad discretion
to sell and reinvest trust principal, with the direction to keep the principal "closely invested", "to consult my children
respecting investments", and to retain investments held by the testator during his lifetime.