Estate of Zappos Leader Tony Hsieh Faces Some Sticky (Note) Challenges
As the Wall Street Journal (subscription required) reports (h/t Juliet Moringiello), the family of Tony Hsieh (pictured) is struggling to sort through thousands of color-coded sticky notes that apparently represent informal contracts that the tech entrepreneur and long-timer leader of Zappos entered into shortly before his death last month. Mr. Hsieh recently made about $70 million in real estate purchases near his home in Park City, Utah, and he also established a $30 million fund to support tech start-up companies.
The facts are sad. Mr. Hsieh appears to have died without an estate plan. He was staying in Connecticut while preparing to check himself into a rehab facility when he was fatally injured in a house fire. His cousin and business partner, Connie Yeh, was granted power of attorney after his death, but a separate judge named Mr. Hsieh’s father and brother as special administrators and legal representatives of the estate.
Matters are complicated by allegations that Mr. Hsieh engaged in heavy drug use in his last months, raising capacity issues with respect to at least some of the contractual commitments he made at the end of his life. The sad fact pattern can inspire exam questions in both trusts and estates law and contracts. Mr. Hsieh’s business commitments, memorialized on sticky notes, raise issues of intent to enter legal relations, incompleteness, and capacity to contract. This will be an interesting case to follow as more facts come to light.
Thanks to my colleague Lee Peoples. I had not yet activated my Lexis password at my new institution, but Lee made time for me on the weekend got me access to the WSJ article.