Reid v. Spazio

Summary

The Delaware Supreme Court held that the Delaware Savings Statute applies to discretionary appeals, including a petition for certiorari to the United States Supreme Court. Because the plaintiff filed his Delaware action within one year after the denial of certiorari, the action was timely. The court also held that laches did not clearly appear on the face of the complaint and reversed and remanded the Court of Chancery’s dismissal.

Holdings

1. The Delaware Savings Statute applies with equal force to discretionary appeals, including a petition for writ of certiorari to the United States Supreme Court; therefore, the one-year grace period did not begin until the certiorari petition was denied, and Reid's Delaware complaint was timely.
2. The Court of Chancery erred in dismissing the complaint for laches because the affirmative defense did not clearly appear on the face of the complaint, and the complaint did not establish unusual conditions or extraordinary circumstances making it inequitable to permit the action within the period allowed by the Savings Statute.

Questions Presented

1. Whether Delaware's Savings Statute, 10 Del. C. § 8118(a), applies to discretionary appeals, including a petition for writ of certiorari to the United States Supreme Court, so that the one-year savings period does not begin until those appeals are resolved.
2. Whether the Court of Chancery properly dismissed the complaint on a Rule 12(b)(6) motion based on the affirmative defense of laches.

Disposition

reversed_and_remanded