Wells Fargo Bank v. Estate of Phyllis M. Malkin

Summary

The Court answered two certified questions concerning downstream recipients of proceeds from a stranger-originated life insurance policy. It held that Delaware's UCC defenses for bona fide purchasers and securities intermediaries do not apply in an estate's statutory action to recover proceeds from a void STOLI policy, because the estate's claim is not an adverse claim under the UCC. It also held that a defendant may recover premiums it paid if it proves entitlement under a viable legal theory, such as unjust enrichment.