K. Kay Shearin v. E. F. Hutton Group

ALLEN, Chancellor Pending is a motion to dismiss the complaint and a cross motion to amend the complaint to add new matters.
The litigation arises out of a course of action leading to the March 1986 firing of plaintiff from her position as Legal Counsel
and Vice President of E.F. Hutton Trust Company ("Hutton Trust"), a Delaware limited purpose trust company chartered under
Title 5 of the Delaware Code. This suit was filed in April 1988. It purports to allege four causes of action, each of which is explained below. The gist
of the complaint is that Hutton Trust was used inappropriately (i.e., beyond its statutory powers and deceptively) by its
parent E.F. Hutton Group, Inc. and its affiliate, E.F. Hutton, Inc., and that plaintiff sought to disclose this fact to the
Hutton Trust board of directors. It is alleged that this stance made her very unpopular with senior management of Hutton Trust
and legal officers of its affiliate. They tried, it is claimed, to force her to be silent, and when she would not be quiet
these individuals defamed her by making false statements among themselves and to the Hutton Trust board, and by submitting
an allegedly false document to regulators under her signature. As a result she was fired by Hutton Trust. She claims damages
for defamation; for breach of her employment contract; and for interference with her contract of employment.