Merrill Lynch F.S.B. v. Campbell, 2007 WL 2069867 (Del. Ch., July 2007), read opinion here.  This case involved a trustee who brought a declaratory judgment action seeking judicial confirmation of its conduct in connection with its administration of a trust. The beneficiary – settlor counterclaimed alleging that the trustee used fraud and misrepresentation to induce her to enter into the Trust Agreement and that the investment strategy failed to meet the prevailing standard of care, and that the trustee improperly withdrew funds from the trust to pay the trustee’s legal fees. The court found that notwithstanding what appeared to be egregious conduct, the two year statute of limitations made the misrepresentation and fraud claims against the trustee time-barred. However the court denied the Motion to Dismiss and allowed to proceed the counterclaims against the trustee that it failed to meet the prevailing standard of care and that it improperly incurred legal fees to be paid by the trust, as these were not claims that could be dismissed pursuant to Chancery Court Rule 12(b)(6).