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HomeMy WebLinkAbout98-06297 cJ U ~ ~ ~ "Q .~ ~ ~ ~ .. .I ~ 't ~ \l ~ ~ .J,. '0 ~ ~ .. '> ~ c:S '" -S: V) ~ ~ \~ ....... . .5 - '-.J t--. ~ ~ ~ u.:" ~ ~~. LOIS SIIEAR. Plaintiff IN IIIH'OUIU OF COMMON PLEAS OF CI IMBH{LANI> COUNTY. PENNSYLVANIA v. CIVIl. ACTION - LA W TAM DOT IIOMECARE 01' IIARRISBURG.INC.. De/endant NO. 9X-6297 CIVIL TI:RM ORDI:R OF COURI AND NOW. this \2.tLday of Novemher. 199X. upon consideration of Plaintiffs Petition to Compel Inspection of Corporate Records and/or Documents. a Rule is hereby issued upon Detcndantto show cause why the relief requested should not be granted. RULE RETURNABLE within 20 days of service. BY TilE COURT. J. w: , , i~ r I I LeRoy Smigel. Esq, 2917 North Front Street Harrisburg, P A 17110-1223 Attorney for Plainti ff Tamdot Homecare of Harrisburg, Inc. lOll Market Street Lemoyne, PA 17043 Defendant, Pro Se t.ttl~.... /J\t.(.."t-L.( IIIll/CiS, .\ -~~. . :rc I' f l !.OU; ';II/o:^II, PETITlOlml< IN TilE COllin' 'ljo' ('''''''',('1-1 "!.!:'AS OF CUr~I3EH!',I\!m COUUT'{, PENNS'lLVANI^ NO. rjj (r ) l' '/ 1/ I IC~ C v. T^MDOT 1I0MECARE OF H^RRISI3URG, INC,. RESPONDENT CIVI L ^CTlOCl - 1..1\\'1 ORDER AND NOW, this day of , 1998, IT IS HEREBY ORDERED and DECREED that the petition to Compel Inspection of Corporate Records is hereby GRANTED. Responaent, Tamdot Homecare of Harrisburg, Inc,. is directed, within ten (10) days of this Order, to , 1"\ provide petitioner and/or her duly authorized representatives or I , agents, during normal business hours of 9:00 a.m, to 5:00 p,m., to inspect any and all records and/or documents of the respective , - corporations and to make copies of extracts therefrom, if requested, or suffer appropriate sanctions. It is further ordered that Respondent pay to Petitioner the sum of Two Thousand Five Hundred Dollars ($2,500.00) for counsel fees, ~ ~ . costs and expenses. BY THE COURT: , .' ~ ! .~ \ J. , .' II;';: " ,,;,: .,' LOIS SiIEl\H, i 'ET I T IOrJj.:F itJ 'I'll!'; (';';',Jj~T 1)1: ('(;~.~:<(;:~ ~)LE:\~; UF i '!1:'~!'!-:!.'! J\:;t) ('\'): :;;';'1', I,!.:~!~:~;'{LV!\:J l!\ 'J, ~,~ , . ~'..' . , I 1;-' ,I" TAr~DOT 1l0r.1ECARE OF HARRISBURG, INC.. RESPONDENT CIVIL N_"i'lO" - !.MI PETITION TO COMPEL INSPECTION OF CORPORATE RECORDS AND/OR DOCUMENTS 1. Petitioner, Lois G. Shear, i:J a citizen a!. t.ill: SLdl0 of Florida, residing at One North Breaker's Ro','. P.:dm Be.:lch. Florida, 33480. 2. Respondent, Tamdot Homecare of H.:lrrisburg, Inc., is a corporation organized and existing under the l.:lvlS of the Commonwealth of Pennsylvania. with its principal place of business at 1011 Market Street, Lemoyne, pennsylvania, 17043, 3. Petitioner believes she is the owner of fifty percent (50i) of the common stock of Respondent, Tamdot Homecare of Harrisburg, Inc., but Respondent. by and through its President, Joseph Hunter, claims that Petitioner owns less than fifty percent (50%) of Respondent. 4. Petitioner, by and through Petitioner's attorneys, Smigel, Anderson & Sacks, in accordance with and pursuant to 51508 of the Business Corporation Law of 1988, made a written request upon Respondent to produce for inspection and examination its corporate books and records, as more specifically set out in a letter dated Junt. :~Sl, IS/SiB, d trw' ,lnd (~(JI p'ct CrJPt of v/hl('l; it, 1,,11:1':- wIlh tll,' vcrifir'd Fow(~r of ^tt(il :11',' ~;l(Jw'd l)y P/.t itiull"! I' lilll,.d by ~Jlt)Oh) I i~l alLdchc'd hc'rl'to au 1,:;-:111111 t 1I^1I ,.1111.1 I ,'II.' l.i'nCt~ . 11l('Ul!)UI ,It 1.',1 I" I 5. By letter e1ateel July 20, )99<3. a copy ul 'o'IlllCh if) attached hereto as Exhibi t "BII and incorpot'uted by re[t':"c'nc'...:, H<::npondent, by and through its President, Joseph Hunter, fail ed to ass imililte ilnd/ol' produce for inspect ion and eXilminClt ion all oE thl.: n.quested corporClte books and records specificillly set out in the Junl.: 29, 1998 letter from Petitioner to Respondent. 6. On or about August 5, 1998, Petitioner, by and through Petitioner's attorneys had access to, and inspected, only a portion of the requested records, as more specifically set out in a letter dated August 6, 1998, a true and correct copy of which is attached hereto as Exhibit "C" and incorporated by reference. 7. By letter dated August 11, 1998, a copy of which is attached hereto as Exhibit "0" and incorporated by reference, Petitioner, by and through Petitioner's attorneys, again requested access to Respondent's corporate books, corporate records, share register and/or share certificates, 8. Respondent, by letter dated August 24, 1998, a copy of which is attached hereto as Exhibit "E" and incorporated by reference, failed to assimilate and/or provide access to the requested corporate books, corporate records, share register and/or share certificates. 9. Petitioner's request to inspect and examine the corporate books, records, and/or documents of Respondent is proper within the - 2 - mu.HllWJ of till. hlol::11If':>:1 C\>lP()!,d.IUll 1.<1'''; d:j ~luch l'j.qW'::t. 1:; n_'d~_;onably rcl..1t(!d to !'t.t 1t lUI~f.l":: InC'..lf'Ut d:l d :dldrC'holdc'r. 10. 'I'll" IJtltl!tI::~':i of ['f.llt lOlll'I.I~j l'(:CjuC'nl to 11l;:lH.('t dlF.! l'xdllline the COrpOl'dll' lc'cunln of. Hf':;pliIHk'nt include, but arc' I1UL limited to, the following: A. Determining the number and value of Petitioner's shcJ res; B. Ascertaining whether the business of the corporation haA been and is being properly managed since tbe death of Todd Shear, a former sharehclder. C. Determining whether the expenditures of the Respondent since 1993 have been authorized, appropriate and in the best interest of the corporation; and D. Determining the propriety of instituting a lawsuit on behalf of the Respondent against Joseph Hunter in his capacity as President of the corporation. 11. When a shareholder seeking inspection of the share register or list of shareholders of the corporation has complied with the provisions of s1508 of the Business Corporation Law of 1988 regarding the form and manner of making demand for inspection, that section provides that it is the burden of the corporation to show that the inspection is sought for an improper purpose. 12. Petitioner has complied with all requirements of s1508 of the Business Corporation Law of 1988 respecting the form and manner of making demand for inspection and examination of not only the share register, but any and all books, corporate records and documents of - 3 - ~ .. , ) t . .l ,~ j f, i , , , . \ \ ~ /, I II I' ! I.' , i I , , Respondf...!l1t, and thl' lll::!"".t )(;11 !iOUql1t i,'r' j','1 111"1;": 1:1 tur d propl'r pu rpou(' . 13. R(~!3I)OJHh'lj\ Il..:: !d1lcd tu :l!ll,'.... dl1(1 1!; q!)iIJl,' t() :dlU'd LlldL Petitioner's requeHt lOl- il1~;peCLion <tlld (';-:dltlin,lt i()l1 of llH! nh.J.rc register or list ot Hildreholdp.rn, an \,,,,,11 <1:; d11 booku, corporate records Q.nd document:D 1~3 for an improper" purpo:3c', 14. Petitioner 11<:1:; incurred the' :lUlll of Five Thouuand Dollars ($5,000.00) as caunDol fees, costs and expense:) in connection with her efforts to obtain thc rcquested infornlcltion to ','Ihich she is legally entitled. WHEREFORE, Petitioner, Lois G. Sheilr, respcctfully requests that the Court enter an Ordcr permitting her to inspect, examine, and copy, if necessary, the books, corporate records and documents of Respondent, Tamdot HomeCilre of Harrisburg, Inc., within ten (10) days of the date of the Order. And further, that Respondent pay the sum of Two Thousand Five Hundred Dollars ($2,500.00) for counsel fees, costs and expenses. Date: October ,']L, 1998 By: LeRoy Sm el, Esquire ID #09617 2917 North Front Street Harrisburg, PA 17110-1223 (717) 234-2401 Attorneys for Petitioner - 4 - , , , " " 0( - :c :E Jj FILE COpy SMlO":/., ANJ>EJ<HO=" & SAf'HH ATTORNEYS AT LAW LCROY .~'OH C LtC ANOt"'ON aTUAI''' 5 lACK' .I0UN W ,.,.OMMen Joat"tl. DAMICO ANN Y LL VI., HCATH[R D RonA [RIC'" MORRISON ?O'., Honf., 'HON' !jf"tr1 ,... 11." "3"3~'1 HARRISBURG. PENNSYLVANIA 17110.1223 t7'712'34.2401 'Ill ~o 517H.1.2 Junc 29, 1998 Tamdot Homecare of Harrisburg, Inc, Alln: Joseph Hunter lOll Market Street Lemoyne, PA 17043 Re: Demand for Inspection Dear Mr, Hunter: On behalf of Lois Shear, a shareholder in Tamdot Homecare of Harrisburg, Inc, (the "Corporation") the undersigned, pursuant to Section 1508(b) of the Business Corporation Law of 1988, as amended, (the "Business Corporation Law") hereby makcs demand upon the Corporation to produce for examination and inspection the share register, books and records of account, and records of the proceedings of the incorporators, shareholders and directors in order that they may be copied or extracts taken therefrom. Enclosed with this demand is a power of attorney verified by the shareholder authorizing both the undersigned counsel to act on the shareholder's behalf in this matter. Specifically, the shareholder demands that the Corporation immediately allow her or her designees full access to the following documents in the possession or under control of the Corporation, its directors, officers, employees and professional advisors, including its attomey(s) and accountant(s): I. I I, Records of any kind including contracts, bills of sale, receipts, accounts receivable or payable, invoices or purchase orders relating to the sale or purchase of corporate assets in any form, and occurring at any time from 1993 to the present; 2, Records of any kind evidencing corporate ownership in any real estate from 1993 to the present; 3, Records of real estate appraisals on corporate land, buildings and plant facilities from 1993 to the present; EXHIRIT A 1\ , Page 2 Junc 29, \998 4. Rccords showing dividcll(J, dcclarcd or paid from 1')')) tn thc prco.cnl; 5. Rccords showing loans, or advances by thc Corporation to any sharcholdcr, officcr, dircctor or affiliated company and any rcpaymcnl schcdulcs; 6. Records showing salaries of all officcrs, dircctors, crnployccs and consultants from 1993 to thc prcscnl; 7, Records showing bonuses paid to all officers, dircctors, employees and consultants from 1993 to the present; 8, Records showing pension contributions made by or on bcha!f of all officcrs, directors, employees and consultants from 1993 to thc prcscnt; 9, Records showing any other remuncration paid to all officcrs, directors, employees and consultants, from 1993 to the prescnt; including reimbursement for expenses of any kind; 10. Records showing matter, activities and decisions of the Corporation from 1993 to the date of review; 11. Corporate income tax returns for tax years 1993 to thc present. The shareholder's requests are proper within the meaning of the Business Corporation Law where she requires such records for the following purposes, all of which are reasonably related to her interests as a shareholder in the Corporation: a. To determine the value of her shares in the Corporation; b. To ascertain whether the business of the Corporation has and is being properly managed; c. To determine whether the expenditures of the Corporation since 1993 have been in the best interests of the Corporation; and d. To determine the propriety of instituting a lawsuit on behalf of the Corporation . or the shareholder against Joseph Hunter in his capacity as President of the Corporation. Pagc 3 Junc 29, 1998 Dc adviscd thaI pursuant 10 Scclion 1508(c) of thc Business Corporalion Law, should the Corporation rcfusc to pcnnit thc inspcclion sought on bchalf of thc sharcholdcr, or if thc Corporation fails to respond to this dcmand madc on her bchalf within five (5) busincss days following reccipt of this Icltcr, thc sharcholdcr will have no rccoursc but to apply to thc Court of Common Pleas of Cumberland County for an order compclling thc requcstcd cxamination and inspection, W:Z'd;ht LeRoy Smigel LRS:EMM:tkc Enclosure I ~ !, <HI ~ i I ! r \ !":~>\.. L1I\IITF.D POWER OF ATTOI~NF.Y Fon INSPF.CTlON I, Lois Shcar, of ~ /?,.",- County, Florida, a sharcholder owning fifty pcrccnt (50%) of the stock in Tamdot Homccare of Harrisburg, Inc, (the "Corporation"), appoint LcRoy Smigel, Esquirc, Harrisburg, Pennsylvania, wilh full powcr to act individually and separatcly as my agent ("my agcnt"), each with full powcr of substitution, for mc and in my name, to examinc thc books and records of the Corporation as more fully dcscribcd in a demand letter addressed to the Corporation dated June .21., 1998 8.&,d Siga1Cd by LcRc.y Smlci~:, Esq'Jirc, U cCPi" of which is attach~d h~r~~o and incorporated herein by reference, as I might do if personally present. This Powcr of Attorney shall becomc effective immcdiately and shall not be affectcd by rny subsequent disability or incapacity. All acts done by my agent pursuant to this powcr during any period of my disability or incapacity shall have the same effect and inure to rny benefit and bind me and my successors in interest as if I were competent and no disabled. Questions pertaining to the validity, construction and powers created under this instrument shall be determined in accordance with the laws of the Commonwealth of Pennsylvania. I have signed this Limited Powcr of Attorney this I day of ~? 1998. or~~ Lois Shear VERI FICA nON I, d - ~ ~ ,aver that the allegations contained in the foregoing Limited Power of Attorney are true and correct to the best of my knowledge, information and belief; and that the statements in said Limited Power of Attorney are subject to the penalties of 18 Pa, Cons. Stat. Ann. ~4904 relating to unsworn falsification to authoritics, Verified this I day of ~..t {I IJ ~ ( , 1998, ct'~ 01~ , Lois Shcar m ~ ~ (,,) :t: D :E Jj S~lInEI.. ANJJJo:USON' & SACHS ATTORNEYS AT LAW Fll E COpy r , l ,. 2917 UO"'H rIlON' !)'ncl:.' rAI/. 17171l'.14.3011 LeROY GMIOtL C L[C "No[nSO'4 &fU"RT 5 r.AC~'" ,JOUN W f'RO"''''[H .JOSCPH 0 OA"'ICO ANN V l[VI,.. HCATHCR 0 ROYCfl CRIC M. MORRISON HARRISBURG. PENN SYLVANIA 17110-1223 l'7I71 ;>:14.2401 rll[ ,.0 5170-1-2 August 6, 1998 Tamdot Homccare of Harrisburg, Inc. Alln: Joseph Hunter 1011 Market Street Lemoyne, PA 17043 Re: Corporate Records Dear Mr, Hunter: Thank you for taking the time out of your day to meet with Eric Morrison and mc on August 5, 1998. I appreciate your cooperation in providing me with Tamdot Homecare, Inc. payroll summaries from 1996 to the present, 1993 corporate tax returns, financial statements from 1993 to 1995, an accounts receivable summary sheet as of May 31, 1998, along with a 1995 business valuation report prepared by Ross, Wendler & Steen, Inc., which is enclosed with this letter. However, pursuant to my June 29, 1998 Demand for Inspection letter, you rnust, under Pennsylvania law, provide me access to financial statements for 1996 to the present, a detailed current aged accounts receivable report which shows the name of each account and the amount that remains uncollected, as well as other corporate records that Stat Medical Billing Scrvice and/or your accountant maintains on thcir rcspectivc prcmiscs. ) You made representations at the August 5, 1998 mecting that Stat Medical Billing Servicc was sending such records to you by the end of this week. Please contact me or Eric Morrison immediately once you receive such documents. Time is of the essence as my client would like to resolve this matter in a most expeditious manner. As previously discussed, we are contacting a business broker to begin evaluating Tamdot Homecare, Inc. for a sale. We will contact you when we can arrange a time for such an individual to survey the premises. lW Ii EXHIRII C- I I' i' , , . I I , I , , , t', I-. c - :c :E ~ w - :c :E ill \ -'", " ~. Jj.J:.)~~f/ ;:~ \':;- . . ."" ~.,>.: ,~;h~i: .. ' . ','," ,~.' "." ~dl,., ~~~~ij.~L:<':,:/ ' ", .', : ;);.~.~'!!.{.r~.:.;.:.i.l.;,..~,;..'.f,'.;.::'.:,~.~::.::.~.'.';c~c;.:, ~;;~~:~0:?~::':: .', .:~ "]i;).(' I ~ '.9~ NOV -5 PI! 2: ~ l " ..,: '.':I;,{; i~~~~;~~; i C~M8E~ '~'D 'G"OU\~y.~;/X?m '4,$ -., \-~.:J' ".:..-~ .' PENnNIJ"",I1'I"".A '" ..:/..');.~}4~l: ~&t{~'\" .~ ~~'~'<':',~ ~' ~u..Vr.l,'l'" , " ':"_~:f<.\~~'~~rq1l; ;,.<"~T;.t.~..',.,,...,.' / \' ",_ ,', ,./J,.....I~J:.tdt 'i{} .~ ~ " ,,r'll-,.f,,,_. "'iJ;-l'~;'" J"/:-'" ,- ~,'J - N. ~~~_~,j;."L;_:.:. ~ j~ ". :" ':/J:~:~:;j :.;J..__~ _ ~.~v-..."...""...~....... ~n';;-~,( ,,' "-~ ,~ '-"--,:-;:~;,,\.;t.' ",>~h',i',",!"'"' ','j "',", "'f, '~'~(4\i~,'~.r/'tJ;\:'m . '" " ' ,~ , . ~'l '" ........; '" , _ - " ' . . ;'.1'\' i' ~ I~ J.,;", ,'.l,.-J;:lJ,' I .rr ~ H6ct.:" ,',;>1. r~'l/" :'"1, ~,~ :J", ":.." ..,~: ,~,' '~:-"":;;.,Ji'I' :/~/~-:"( ,r~~~1'!\}I~$"'" I- "'" ' '1m: ".. ,>j~1 'J' "~ "JI.~!" \ \~"",r',)li " "','}l,Y -'-;'1\;.\. '\,' ~~~. ,I_ " '" ,"~' /',1." ') ,t II:., \;" ,>c,*~- . .;m"''''~'{J ,," ',"'''',j r,' ..,.~.< ~"t 'I'~' ~""'" j 't" "A'",," ,.(.... ,,\.. ,'''' li'~ , ". J; ,,,' \"'11' \ ,''ir':. ,fic" .? #l'1;' ';i,1\.;",:!~<,I, '~J,}"'''-:" . ~I, .!..:;:' ~:"':'l ~~.;.J'"': .~".,;;.....' ;Ii,:;. ~'J~f~r.,il,r'J{r,~.;;"" (, J ',' <'"7,.~, l.'I''l~~;'t' <)' >>:iif "" "C' ," ,:,: .~ ;!p').., 'i' ,:., -M , '.) ':"i(~'..l ,~,;~~~.I'; , '::~ "f:::~:;:/L::~,~{:~t~:i~~i~ii~\~i~l~l~~ ',' ' '1"'\"\ ,', ..T".""", ,.r." ".' ,.~,' .f,.r.. ~~.t...,...~,~~>:i~:~,. M ", ",.. .',' "., ,.c" .'__.,'..'",-': _,J.,.-'J...."'!. \r,j: 6!;/~:,i';.~:kti:%':;.~.:.:.~-:Ji,,.7~:fG.V;~i,Yj~.~'-~ "..,;1.;') f, '.~ .. '__'~':"'" -"'';'''~,;'r..,,1r.n'H..;__,. .~ ,...............".~I.~..'.;. ."'.>.I.........._,.;j.1q.........I, ... ',:'1" ",. I' . ~; ,',. iI .....~.' I , LO I S SIIE/\l\, PETITIONEr: r tJ TilE COlJla OF cot"r~orJ PLEAS OF CUj.~BEHjJAHD r:OUi>JT'i I PErJl~S,{Lvr\Nlt'\ v. NO, 98-6297 Civil TAMDOT 1I0MECARE OF HARRISBURG, INC" RESPONDENT CIVIL ACTrON - LAW CERTIFICATE OF SERVICE I, Eric M, Morrison, Esquire, hereby certify that a true and correct copy of the foregoing Petition to Compel Inspection of Corporate Records and/or Documents, along wi th Order of Court dated November 12, 1998 for Rule Returnable within twenty (20) days was served upon the Mr. Joseph Hunter, Tamdot Homecare of Harrisburg, Inc. by Certified Mail, Return Receipt Requested, on November 21, 1998 as evidenced by the Return Receipt Card attached hereto as Exhibit "A". SMIGEL, ANDERSON & SACKS By: :/IJ /~ ! , .M. Morsquire ID# 80235 2917 North Front Street Harrisburg, PA 17110-1223 (717) 234-2401 ATTORNEYS FOR PETITIONER of Service if] attached hereto as Exhibit 4 and incorporated herein by reference. 5, Twenty (20) days l1elve "xpired sine" 111,. j,"j,.. 11"" been uervc'd upon Respondent. 6. To date, Respondent has not filed a re"ponse to the Rule. 7, Furthermore, Respondent's repeated disregard of Petitioner's numerous requests to exercise her lawful right, as a shareholder of the Corporation, to inspect the Corporation'S records and/or documents, represents dilatory, obdurate and vexatious conduct, WHEREFORE, Petitioner, Lois Shear, by and through her attorneys, SMIGEL, ANDERSON & SACKS, respectfully request that this Honorable Court's Rule dated November 12, 1998 become absolute and this Honorable Court issue an Order compelling Respondent to produce the corporate records and/or documents of Tamdot Homecare of Harrisburg, Inc., allow Petitioner to inspect the Corporation's records and/or documents and pay Petitioner the sum of Two Thousand Five Hundred ($2,500) Dollars for counsel fees, costs and expenses. SMIGEL, ANDERSON & SACKS By: ~t~.y /Jh,-(t4? LeRoy Smi<fl=l, Esquire ID #09617 2917 North Front Street Harrisburg, PA 17110-1223 (717) 234-2401 : :i :h ,\ '\ , , Attorneys for Petitioner .. i ., .'. i! I i - 2 - LOIS SHEM" PET I T lONEr< IN THE COURT OF CO:-::'.otJ PLEAS OF CUMBEE!.AND COUNTY, I'I.:rJN~;YLVANIA v, NO, 98-6297 CIVIL TAMDOT HOME CARE OF HARRI SBURG, INC" RESPONDENT CIVIL ACTION - LAW . . CERTIFICATE OF SERVICE I, LeRoy Smigel, Esquire, hereby certify that a true and correct copy of the foregoing Petition to Make Rule Absolute was served upon the Mr. Joseph Hunter, Tamdot Homecare of Harrisburg, Inc" 1011 SMIGEL, Al~ERSON & SACKS r " ,..l ~'.. ; '\ f' ~: 1 , r I j \ , Market Street, Lemoyne, Pennsylvania 17043, by V,S. Mail, on \ . =\(1.: ., ..._~_ ,_~, l \ \> , 1999, By: L i~ 1) j!.- y:.ztce~( /(jJ1''''1f() LeRoy Smigel, Esquire ID# 09617 2917 North Front Street Harrisburg, PA 17110-1223 (717) 234-2401 Attorneys for petitioner ,.ll ~, ..:1 , \ - 3 - t':.., ..' , ? \ . 'j, \. . i' .11 ~ . ,. ~ I; ~, I' t ~ ~ ~ '; , ; \ (.-.. 2::' / , . \ ~ . , ;.1 .~ I June 29, 1998, a true and correct copy of which (together with the verified Power of At torney aigned by Petitioner required oy 51508) , is attached hereto as Exhibit IIA" and incorporated by reference. 5. By letter dated July 20, 1998, a copy of which is attached hereto as Exhibit "B" and incorporated by reference, Respondent, by and through its President, Joseph Hunter, failed to assimilate and/or produce for inspection and examination all of the requested corporate books and records specifically set out in the June 29, 1998 letter from petitioner to Respondent, 6. On or about August 5, 1998, Petitioner, by and through Petitioner's attorneys had access to, and inspected, only a portion of the requested records, as more specifically set out in a letter dated August 6, 1998, a true and correct copy of which is attached hereto as Exhibit "C" and incorporated by reference, 7. By letter dated August 11, 1998, a copy of which is attached hereto as Exhibit "Dn and incorporated by reference, Petitioner, by and through Petitioner's attorneys, again requested access to Respondent's corporate books, corporate records, share register and/or share certificates, 8. Respondent, by letter dated August 24, 1998, a copy of which is attached hereto as Exhibit "E" and incorporated by reference, failed to assimilate and/or provide access to the requested corporate books, corporate records, share register and/or share certificates. 9. Petitioner's request to inspect and examine the corporate books, records, and/or documents of Respondent is proper within the - 2 - meaning of the Business Corporation Law as such request is reasonably related to Petitioner's interest as a shareholder, 10. The purposes of Petitioner's request to inspect and examine the corporate records of Respondent include, but are not limited to, the fo11o';,/ing: A. Determining the number and value of Petitioner's shares; B. Ascertaining whether the business of the corporation has been and is being properly managed since the death of Todd Shear, a former shareholder. c. Determining whether the expenditures of the Respondent since 1993 have been authorized, appropriate and in the best interest of the corporation; and D. Determining the propriety of instituting a lawsuit on behalf of the Respondent against Joseph Hunter in his capacity as President of the corporation. 11. When a shareholder seeking inspection of the share register or list of shareholders of the corporation has complied with the provisions of ~1508 of the Business Corporation Law of 1988 regarding the form and manner of making demand for inspection, that section provides that it is the burden of the corporation to show that the inspection is sought for an improper purpose. 12. petitioner has complied with all requirements of ~1508 of the Business Corporation Law of 1988 respecting the form and manner of making demand for inspection and examination of not only the share register, but any and all books, corporate records and documents of - 3 - \ i I , , l. . . , . ~j ~. , . ,. , ., i' .,. .1 J "\ 1 j , i , , \ . ,. ~! ;.1 :1 ' .., , FilE COpy RMlfn:L. ANl>J~U~;O:-': ,~ SACHS ATTORNEYS AT LAW L....Oy lJ04I0[L C UC .4.NOC"ION IlVA.'" I. IACKI ..IOMp.( W. '''OMM[III ...oa[~H I O"AMICO ANN V LeVIN ~t"'THC" D, ROTCR ["Ie M. MO""I'Oti lOll NO,.t.. r"O~' 5'"[I:T HARRI~DURO. PENNSYLVANIA 17110.1223 0171234'2'401 '.....'7.'.')4.'811 'IL[ NO 5178-1-2 June 29, 1998 Tamdot Homccarc of Harrisburg, Inc. Attn: Joseph Hunter 1011 Markct Strcet Lemoync, PA 17043 Re: Demand for Inspection Dear Mr. Hunter: On behalf of Lois Shear, a shareholder in Tamdot Homecare of Harrisburg, Inc, (the "Corporation") the undersigned, pursuant to Scction 1508(b) of the Business Corporation Law of 1988, as amended, (the "Business Corporation Law") hereby makes demand upon the Corporation to produce for examination and inspection the share register, books and records of account, and records of the proceedings of the incorporators, shareholders and directors in order that they may be copied or extracts taken therefrom, Enclosed with this demand is a power of attorney verified by the shareholder authorizing both the undersigned counsel to act on the shareholder's behalf in this matter, ) h ; , I l ; \ I Specifically, the shareholder demands that the Corporation immediately allow her or her designees full access to the following documents in the possession or under control of the Corporation, its directors, officers, employees and professional advisors, including its attorney(s) and accountant(s): 1. Records of any kind including contracts, bills of sale, receipts, accounts receivable or payable, invoices or purchase orders relating to the sale or purchase of corporate assets in any fonn, and occurring at any time from 1993 to the present; \ , 2, Records of any kind evidencing corporate ownership in any real estat~ from 1993 to the prcsent; I. ~ '.1 ~ ' 3, Records of real estate appraisals on corporate land, buildings and plant facilities from 1993 to the present; EXHIRIT A ~ LIMITED POWER OF A'n'ORl'\EY FonJNSPECTION J, Lois Shear, of ~ Il,,/~ County, Florida; a shareholder owning fifty percent (50%) of the stock in Tamdot Homecare of Harrisburg, Inc. (the "Corporation"), appoint LeRoy Smigel, Esquire, Harrisburg, Pennsylvania, with full power to act individually and separalely as my agent ("my agent"), each with full power of substitutior., for me and in rny namc, to examine thc books and records of the Corporation as more fully described in a demand letter address cd to the Corporation .a"d J"-c "'i 1998 --d -1'---. ")' LeR-y '"mi.'." "'sq.J:-- .. -.-.. -f ""'J'ch 1'. ana-h" ~-_.,. "nd \.I ~\.o ....1 L.!.-' Co.al,;) &I....U U J. \,. ,.)1 I 0'....1, L ""'t (.l \,......PJ v . U .;) \,. 1,..\.1 .11.........U I.u incorporated herein by reference, as I might do if personally present. .. This Power of Attorney shall becomc cffective immcdiately and shall not be affected by my subsequent disability or incapacity. All acts done by my agent pursuant to this power during any period of rny disability or incapacity shall have thc same effect and inure to my bencfit and bind me and my successors in interest as if I wcre competent and no disabled. Questions pertaining to the validity, construction and powers created under this instrument shall be determined in accordance with the laws of the Commonwealth of Pennsylvania. I have signed this Lirnited Power of Attorney this I day of ~ 1998, ot'~ ~ Lois Shear I I VERIFICATION I, d.......:. ~ , aver that the allegations contained in the foregoing Limited Power of Attorney are true and correct to the best of my knowledge, information and belief; and that the statements in said Limited Power of Attorney are subject to the penalties of 18 Pa, COliS, Stat. Ann. ~4904 relating to unsworn falsification to authorities, Verified this / day of Q.I {J IJ.J f ,1998. /~ od--L-,~ . Lois Shear .... . 'rAM~ )o'r I-IOMI~C,-\.RE +1 l+i "-""."-' ....-......-.... ............ '. . -...... ............. '011 MAnKET STm:r: T, Lf.MOYNE, PA Hon 1 ELEPtlONE (7171 737,5581 July 20, 1998 Mr. T.eroy Sl11igel, Dear Mr. Smigel, I am in receipt of your letter dated June 29, 1998, received July 16, 1998 Re Mrs. hois Shear. Rocords of Tamdot Homccare will certainly be made available to you to review ,for Mrs. Shear. I will be in contact with you as soon as the requested documents arc cOl11plete an~ ~ssimilatcd. Tamdots general ledger is kept by Stat Medical Billing Service and our accounting firm is Kurt" Mcnaney & Co. both of Readirig. Mr~Pa~ Sarvas is the contact person at Stat (1-800-682-8481) and Mr. Don Pot tiger is the CPA with whom we work at Kurtz Mcnaney~ phone 1-610-374-4806. Contacting either or both of these individualswill verify that we arc collecting the reQuested dat~. Sincerely,,,, \ "d ,,_ ?}6-~ \-.}-~Vl.,:A;: :--- J6seph H. lluntor EXHIBit o r, I . l ; I l ~ , ... ;1 , \ I I. I ~ , ~ 'l TAMDOT HOMECARE 1011 MARKET STREET. LEMOYNE, PA 17043 TELEPHONE (717) 737.5584 . Mr. Leroy Smigel Smigel, Anderson & Sacks 2917 North Front St. Harrisburg, Pa. 17110-1223 August 24, 1998 Dear Mr. Smigel, Just a small progress report. Honestly I am not stalling or ignoring your requests. Believe me I want to get this behind us as much as you do. We have identified problems I did not know I had with the bookeeping. Kurtz McNaney ( Don Pottigerl is working on Tamdots financials as quickly as possible. Please feel free to contact Don to add credibality to what I am telling you and possibly a better time line than I am able to provide. \ . , <' Respectfully Submitted, 7t:~ i( EXHIRlT E" ~iUV (I G IrJ%tI LOIS SHEAR, PETITIONER III TilE COURT OF COl1110H PLEAS OF CU1111EHl.!,HlJ COU1JTY, PENNSYLVANIA HO, 7~ c..)'(, (~~ " v. TAMDOT HOMECARE OF HARRISBURG, INC., RESPONDENT CIVIL ACTION - LAW ORDER AND NOW, this day of , 1998, IT IS HEREBY ORDERED and DECREED that the Petition to Compel Inspection of Corporate Records is hereby GRANTED. Respondent, Tamdot Homecare of Harrisburg, Inc" is directed, within ten (10) days of this Order, to provide Petitioner and/or her duly authorized representatives Qr agents, during normal business hours of 9:00 a,m, to 5:00 p,m" to r , Ii , I I inspect any and all records and/or documents of the respective corporations and to make copies of extracts therefrom, if requested, or suffer appropriate sanctions, It is further ordered that Respondent pay to Petitioner the sum of Two Thousand Five Hundred Dollars ($2,500.00) for counsel fees, costs and expenses, BY THE COURT: ,. I J. r ~,... , , I I rc(c~';ffd L L L .. __-1 . I } I. I .:.,' LOIS SIIEAR, Plaintiff IN TilE COURT OF COMMON I'I.I~AS OF CUMBERLAND COlJNTY,I'FNNSYLVANIA v, CIVIL ACTION - LA W T AMDOT IIOMECARE OF HARRISBURG, INC" Dcfcndant NO, lJ!!.(,21J7 CIVIL TERM UlillER OF (OURT AND NOW, this \ i\ l day Ill' NlI\'clllbcr, II)I)!!, IIpllll clInsideration of Plaintiffs Pctition to Compcllnspedion or ('orpllrillC Ih'l'onls and/or Documcnts, a Rulc is hcrcby issucd upon Dcfendallt \0 show callsc why thc rclil'l'rc'luc~;ted should not bc grantcd. RULE RETURNAIILE wilhin 20 days or scrvice, II Y TIII~ ('()[ Jln, & ' / / __~..v(...? / J, 'if :Iey Oler, Jr" ~CRO Smigel, Esq, 2 North Front Strcct Harrisburg, I' A 17110.1223 Attorney for I'lainti ff Tamdot Homecarc of Harrisburg, Inc. 1011 Market Street Lcmoync, PA 17043 Dcfcndant, Pro Sc TRUE COPY FROM RECORD In T~slil11~I1Y w~nrof, I here unto set my hand and Ihe seal of said Court at Carlisle, Pa, Thls..I..~,:!'.':day of.::n!':~"::-",, 19,~~.. ...._....'m~::~;,:'~~~;r~.~ 'I i , f. r", f :rc , : ,\ 3 'r,; 1; , j.\ : ,itf '. ,. .~ t ~ \ ; , ) j , \ , @ I . , \ ~ i . , , I. ~ j I 0 { " \ ., I:. , , t I "... , I -\ 'Z SENDER: I also .....lstllO tUCClve lhe tJ .C,f!lllh""'"""" .."'I"','!"'It.I-"!,,,,,,"I,,,""'" _jjl er .JflIl'Q'" ,""",\ ~" .1'''1 ..~, tollowlng services (lor..1'1 ~ .1'.'''' .",,1 "II'''' 1I",j" 1,1"'~' "r, II,., 't,,,"',M Il' I!"~ "111" \1, th",,,,,, t.,n ""uPll 111,\ cdrJ leo) .. {dltl 10 ~nu ~ . "",ld' 11',\ "'Ill"(J ""t 'PI,,,, 0111.. "',IOIP'Ulll or (Jto tI,,, /"Ie. It 'fl"Ul .,"'" '1')' 1 0 Addressee's Address W.. . f:r";~"'fl"'v'" 11,.( Il'llt 1l"'I"('~r.,,,' f,n 11'1' I"""l'<l'!" 1,1'ln"" 1I,l! ll'l't!o IlIJI"f\llllr 2. 0 Restricted Delivery ~ . TI,t! fl"lurn "'1 1"p....,(I \hu... 't) ....IH.mli,.. ..rl,ellI ...." ()lIl'~Uloll Rfll1 'Ill' c:l;lle C I f 'Itd,....""1 onsult postmaslcr or ee. "3 Arllc!ll All\JlfI'i!,mlln . 4iJ_ ArtlClo Number ~ 1-\0' :To.:>:<I'''' "\,-,,,\.:,- r L'- J lJ.s- ~~.",....(..\c/\ \\v~",\......-...:....,.' t...-:.: \- 4b. Sorvlce Type o ,- 0 Roglslcrcd u y..,.~ 1~I.l"')'.;:)....!I-" \ _~,'L 0 .1 ExprossMilll \t...~,\ ~-\v..-v...:.\- ....S\l-~ ",,_.\- 0 ~elurnAecCIDltorMerr.hJndlse ~L~ \1;:"\3 7 Dal'~'hV~:V7,f' B. Ad'jressee s Address (Only " reque~ted and fee is paid) ~ u .~ ~ :1 ~ 'I.-v.: ;; J.!!;" Cenllled c: o Insured ~ o COD .~ so ~ , o >- '" c ~ .c ,... Lc",o--\,...,. \ oJ ~ g. " .I!! PS Form 3611, Decombor 1913.1 """ ".B."" Oomeslic Relurn Receipt EXHIBIT "A" I , I @ I 0 i , u I I 8 ! ,. I " . I I l~ "" I -\ 5178.1. 2/Certl r lcllIte/t/".M/(.;(' ~ U. './ 'Ie LOIS SHEAR, PETITIONER IN THE COURT OF COMMON PLEAS OF CU:~BERLAND COUNTY, PENNSYLVANIA v, NO, 98-6297 Civil - , ~ TAMDOT HOMECARE OF HARRISBURG, INC., RESPONDENT CIVIL ACTION - LAW CERTIFICATE OF SERVICE : 1 (:-. :. I, Eric M. Morrison, Esquire, hereby certify that a true and correct copy of the foregoing petition to Compel Inspection of Corporate Records and/or Documents, along with Order of Court dated November 12, 1998 for Rule Returnable within twenty (20) days was served upon the Mr. Joseph Hunter, Tamdot Homecare of Harrisburg, Inc. by Certified Mail, Return Receipt Requested, on November 21, 1998 as evidenced by the Return Receipt Card attached hereto as Exhibit "A", SMIGEL, ANDERSON & SACKS .' By: /'-- /- / squire M. Mor ID# 80235 2917 North Front Street Harrisburg, PA 17110-1223 (717) 234-2401 ATTORNEYS FOR PETITIONER , ' , - . .... - . - , .', . 'i v" .' ..._1 S 1 :~ i'.. ':{~i.<!!;:'-:~:!r ~~,i;::<;:,.;,:<.,~:',;.:'>;' ,. ",~..!' ...-':.;.';:,~I::~:/~",:~~~;r '.:tt~',:l'!:',~ >[.::f.::~'.}r",')'\.' ,_. , , A ,~":'I,. .!-;~'""." f'" '.., t " ~ .'. '~I' , . ; . -, ,....;1': '''/7 \J-;1.ftY'~{.'~~"":;,iCf~h>' __.,- . ',; ',;; ,_'~ ,,",';i ,<,:;~" ,~;t.~ "'J<A.:>.:;;~jl......,.~, ~':"':~"'}' " , c~....'" ""''''""''' J. "',:..',,\ ,.;:..'':::,~ ~\"J.:j C-ki!\Ji...-i1:W ,":.','it~:"I("~', "'1: "'~ 1 ~<....., ',' . ~ . -, -- r-"" "" -. 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'. , response thereto. it is hcrcby ordered this _ day or . 1999 that said objections l.OIS SIIEAR PClitioncr IN Till, COIIIU OF COMfo.HlN PJ.h\S ('II~ll1"'(J,ANI> COIINTY,PA v. NO. 'lX.6297 TAMDOT IIOMECARE OF HARRISBURG. INC.. Rcspondcnt CIVil ACTION. l.A \\' .~---~-~--_..._~~------- -----.-------- -.. -_.._-------- ORDER Having considcrcd the objections madc by Tamdotllol11ccarc or llarrisburg. Inc, and arc sustaincd and that the subpocnas which Pctitioncr proposcs arc hcrcby quashcd. BY THE COURT: J. i~ I' ., i .- , il Ii '. I" f: . appear and leslify on April "X, 11'1)') and ,\pril "1, Il)I)I}, respeetivcly, \ I I .. 1 l ' i'~ I . ,1' i' .t! 5, ()ralteslilllony is nl'lperrnillcd pursuilnt II' I' I'.S,^, ~ 150X, 6. Subpoenas issued pursuilnt 10I'a,IU',I'. -IIJIlI),"I arc only li,r produelion of doculllcnts and things, and nollor oralteslimony. Therell.r<:. the allaehed subpoenas arc not proper f(lr the purpose of producing dOClllllenls and things under l'iI, R.CI'. -IO(J9,2I, ,. " OB,JECTION #2. INSUFFICIENT TIME FOR COMPLIANCE 6, Alternatively, the subpoenas attached hereto do not provide a reasonable time for compliance, 7. Thc subpoenas attached hereto may be served as early as April 22. 1999. 8. April 28. 1999 for Mr, I Iuntcr and April 23, !999 arc the respective times for compliancc listed by Petitioner on the attached subpoenas. 9. Pursuant to Pa, R.C.p. 4009,23, the person to be scrvcd with the subpoena shall ~ I , , i I , . ~ , have twenty days to rcspond aftcr service of the subpocna, 10. Petitioncr has grantcd Mr. Pottingcr and Mr. Huntcr one day and six days, respectively, to comply with the rcquircments of each subpoena. 11. This is an inadcquate time for compliance under Pa. R.C.p. 4009.23. /., ~ ) .~.! OBJECTION #3 - DUPLICATIVE, BUnDENSOME nEQUEST ii if .' 'i 12, Pctitioncr has initiated a scparatc action in this court under docket number 99- 2 ii .~ r '. : '. I .'; 'I :, . ! i""" I" t ~ .' ". . .' .., I... The !;ndl"(, c~'.'r~.1::",lt"f; 1:':!all.:.:d ~,() tL,. :':"n',':.aldf.:'nJ; i~. Th.' ('()~'i;'..T.ltl'--:;';; ::;,::C':i'.'~' 'l'ct>: IU~lun::l fXZ):i; 1'-jr.J7 to ~he pn':;..nt C. TIl',' C ):p.,;Lil :_::j':; ;:L,l:'i' l-(.~tlnt('r ~;hc).....:nJ .....he) the uh.:n:L'hcJ: de 1'D ot t h,..:' CoqJCJ!'d t. : 011 a re: and th',: i r l:L'~;pL.ct 1 ve inte1'cuts in the Co1'poratlOtl; D. The corporation's records showing fnatter, activities and decisions of the Corporation from 1993 to the date of review; E. The Corporation's records showing dividends declared or paid from ]993 to the present; F. The Corporation's records showing loans or advances by the Corporation to any shareholder, officer, director or any affiliated company and any repayment schedules; G. The Corporation's records showing remuneration, of any kind, paid to officers, directors, employees anj/or consultants; H. The Corporation's financial statements, in final form, from 1996 to the present; I, A detailed current aged accounts receivable report of the Corporation showing the names of each account and the amount that remains uncollected; J. The Corporation's invoices and/or purchase orders relating to the sale and purchase of corporate assets from 1993 to the present; and K. The Corporation's books and records generally, L. The March 7, 1991 Stock Redemption and Purchase Agreement, M. The fully executed Note for $40,892.00, LOIS SIIEAR, :N TilE COURT OF COr~t~DN "LEN; CUr~BERI.l\ND COUNTY, PENNSYLVAJII1, i'l d J I j t 11 ~ v. No, 99-1899 CIVIL JOSEPH HUNTER 'lI~d TAMDOT HOMECARE OF HARRISBURG, INC, DefendantB CIVIL ACTION - LAvl NOTICE OF INTENT TO SERVE SUBPOENA TO PRODUCE DOCUMENTS AND THINGS FOR DISCOVERY PURSUANT TO RULE 4009.21 Lois Shear intends to serve a Subpoena identical to the one that is attached to this Notice. You have twenty (20) days from the date listed below in which to file of record and serve upon the undersigned an objection to the Subpoena. If no objection is made the Subpoena may be served. SMIGEL, ANDERSON & SACKS Date: 4 f d q~ I l u)~ S~lE ' LeRoy m1ge, squ1re 1. D, No. 09617 2917 North Front Street Harrisburg, PA 17110-1223 (717) 234-2401 By: ATTORNEYS FOR PLAINTIFF r, COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND LOIS SHEAR petitioner vs. ~~!jl !meRR'f10F HARRISBURG, INC. Respondent File No, Wl_l Rnn ri vi 1 SUBPOENA TO ATTEND AND TESTIFY TO: Donald pottinqer, CPA KUR'rl, McNALLEY & COMPANY ."n "'O"~"'9 1\"nr"10 Reading, PA 19601 1. You are ordered by the court to come to the law offices of Smiqel , Anderson & Sacks , 2917 North Front Street at Harrisburq at 10:00 (Specify courtroom or other place) Dauphin County, Pennsylvania, on April 23, 1999 o'clock, A M., to testify on behalf of in the above case, and to remain until excused. 2, And bring with you the following: C:;pp ~tt-~...hprl 1 i ,,~ If you fail to attend or to produce the documents or things required by this subpoena, you may be subject to the sanctions authorized by Rule 234,5 of the Pennsylvania Rules of Civil Procedure, including but not limited to costs, attorney fees and imprisonment. REQUESTED BY A PARTY/ATTORNEY IN COMPLIANCE WITH Pa. R. C. P. No, 234.2(a): Name: LeRoY Smigel, Esquire Address: 2917 North Front Street Harrisburq, PA 17110 Telephone: (717) 7.34-2401 Supreme CourtlD # 09617 BY THE COURT: Prothonotary/Clerk, Civil Division Date: Seal ollhe Court Deputy Official Note: This form of subpoena shall be used whenever a subpoena is issuable, including hearings in connection with depositions and before arbitrators, masters, commissioners, etc, in compliance with Pa, R. C, p, No, 234,1. If a subpoena for a production of docum3nts, records or things is desired, complete paragraph 2, (Eft,7/97) t. 1 111 i !: "'1." :. I II' 11 "l" I ~ , ~'. ..; .. ., ..' A. Th(: nh<tl(' n..:~ ;!l~-'.:.tt"'f) lS~,U(.::d ~O th(! ohare:holdersi B. T:K' COq)C)l.,\t :C,Zl'!: Income Tax HeturnLl from 1997 to the present: c. Th(' COrpOl"dt led)'!l ohClre regist(.:r nhowing who the shareholders of the Co:.pora: ion are ilnd thei r respective interests in the Corpor3tion; D, The Corporation's records showing matter, activities and decisions of the Corporation from 1993 to the date of review; E, The Corporation's records showing dividends declared or paid from 1993 to the present; F. The Corporation's records showing loans or advances by the Corporation to any shareholder, officer, director or any affiliated company and any repayment schedules; G, The Corporation's records showing remuneration, of any k~nd, paid to officers, directors, employees and/or consultants; H, The Corporation's financial statements, in final form, from 1996 to the present; I. A detailed current aged accounts receivable report of the Corporation showing the names of each account and the amount that remains uncollected; J. The Corporation's invoices and/or purchase orders relating to the sale and purchase of corporate assets from 1993 to the present; and K. The Corporation's books and records generally, L, The March 7, 1991 Stock Redemption and Purchase Agreement, M. The fully executed Note for $40,892,00. .' , " (., , (. ,', I , , " , ~ fO: I; I' , !i " ,. I f i I I , , . , ' . . ~ . . . . . - ..: \ I i , \ , 'r~ , \, d I' " !'d ." , j.:", '. ~J'-' " : , , I ; , ',. '. . .' .,;,~,'.?;\'(~~~;ff~~ii'iJi,\ ~,! ,"" \ , t~(iS~.,;:~,)ti~~.:~,~:;:r.{,'k~,::,j.~.,,:;.,'-:.~,.::<'_:>j.;'~::';;' :_, ',',':" ,:' -:;' ,,' ,'" , :;i'1l~")'~:)-:;::'?+' ".;","~'.,' J '-,' '".,': './ 1-_" '-,,~;, '-"." , ,'-', " " -- , . :,>",,;..::.1' loJli.L..AND:lliiaIJON.~,8ACKl!I ~z'~"";"'rl" "~ .','-,'" -",'H "".":<:,:', ""',,- , " ;'," ", ' B!;j~~fli!i~;~i;.!':;:;,;2:';!~~~~J~=o:~ ;:~T"..,. '., '.'1'5:':;::.~.-"'!Y"~', HARRISBURG,. PENNSyLVANIA..17110 -1223. ".r:;.;~~lW{~:1~;?i;/;';'-;" ,'.: ..,:: , p ~~i '~'~Ol ..:. . .. .., ( . ''''.- ,'<'-- :i'~ 'I . 1 , I I ~ .....,. \ , ~ " I \ " . J'i'. '" j., r;\, ; -.,~)~}: I 1 ','. ;J"." :I";i~',,'- ", ." '.:'" . , :, J ~:" ':.0- , .~ ,. '''' :.'. : ".' . '.' . ' "", ," . - . '. .' '. ',', . ~'~:',,", " ' , .', ", .' ,-- - - ~. 7. ()U oralwlIl :\pnl ~S. JilIN, l'I".'!llltllh.T 11..'l..'I".'I\I..:d ;!III1H..'lllllpkh.' ;"1.:lllfdtll't1ll1l"llls pursuallt lu tilt: slIhpOl'llas. f{L'SPtllllklll Lllh:d 1111'1\1\llh.'tll\.' 11)I)S and I')i)t) illnllllL' 1;1\ statcmcnts Illr Tallldol IloIllC ('arc "I' I 1;111 ishrll,~, Illc.. as II ell as alllinand;d stakmcnts ",r thc al()I\.'Jlh.'llliollL:d years. H, By ktlcr dakd \Ia; 1.1. I 'J'J'J. al."I'; or \\ hich is allachcd hcrclo as "xhihit "10" and incorpor;rlcd hy rcll:rcllcc, RcslHnllkll1 ,Iak'd to ,\tlOnlcy LcRoy Smigclth;rtthc missing ,Iocumcnts \\'ould he prodllccd \\'ithill a IIl'l'k '). By ktlcr dated (ktohcr 25, 1'1')'1. a wpy or which is atlached hcrcto as Exhihil "F" and incorporated by n:I~I"t..'Ilc.:L'. ..\ttOl"l\l..:Y (iruhh. I\.'sponding to Pl.'titiollcr's lel":r of Octohcr 12. I')')'). statcllthat Petitioncr \\'"uld hil\c thc linallcials shortly. 10, By lettcr daled Nll\.cmhlT I. ! ')t),). a copy or which is atlachcd hcrclo as Exhihil "G" and incOll1oratcd by rcrcrcncc, t\tlonley Morrison again reqlleslcd incomc lax rcturns and updatcd corporate linancial rcports rrom Atlonlcy Grubb. II. PClitioncr's rcqucst to inspcct and cxaminc thc COrpllralC books. records, and/or documents or Respondent is propcr \\'ithinlhe meaning or the Business Corporal ion Law as such rcqucst is reasonably relatcd to Pctitioner's inlerest as a shareholder, 12. The purposes or Petitioncr's requcstlo inspect and examine the corporate records of Respondem include. but arc notlimitcd to, the lallowing: a. Detcrmining the numbcr and value or Pctitioner's sharcs, b. Asccrtainiug \\'hethcr the business or the corporation has bccn and is being properly managed since thc death or Todd Shear. a former shareholder, " II Ii ,I 'I I, ;1 " " ii ,I II 'I Ii I' II II I II I LOIS SIIEAR Peliliuner 1:\ TilE ('(l!:ln OF (,O:\I:\IO:" PLEAS ('l',\IIlEIH..\:\1> ('ou:\n', PEi":"SYI.\'Ai"L\ Y. :\O,'J!l.h!lJ7 TAMIlOT 1I0:\IE ('ARE OF IIARRlSBURG, Ji"C'. Respuudenl ('1\'11. TEIOI CERTI FICATE OF SERVICE I. LeRoy Smigel. Esquire, hereby eertily thai a lrue and eorrecl copy of the IlJregoing Petition to Compel Production or Documenls and Thiugs was served upon thc following as addrcsscd below by depositing the sanle in the Unilcd States :\Iail. lirst class. postage prepaid. al ; I "...--.. r I Harrisburg, Pcnnsylvania on this_Ls,:_:__ day or!':::.'i~-'-: '''-_.2001: Steven E, Grubb. Esq. (joldberg. Katzman & Shipman. I'.c. 320 ivlarket Strect 1'.0. Box 12(,S lIarrisburg.I'A 1710S-12(,S Smigel. A~l(lers()n & f~s( , By: ~~ LcRoy Smigel. Esquire 1.0.# Ol)(,17 2917 North Front Strccl Harrisburg, P A 1110 (717) 234-2401 Attorneys l'or Petitioner 0( - :c :E >< w ., Sl1l.1.urnlTlCN '0 C".;:Mrn. lUSl'f.(;'"t'Ltl/lMH/tkc; 10n6/'JI 11 0?41'/1 LOIS SHEAR, PETITIONER IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA 1,.') (") (i '.J) "I' C __ .-1 _.~" ~;~ ~i7J '.','.1' ..,'1 " I,':? c..."1 '.l.) -~ "r. .'~ "I'''', ,If A ':'.~ '/! ~ "'J (? ';"';' v, NO'Qg-_b'l-C(7 TAMDOT HOMECARE OF HARRISBURG, INC., RESPONDENT "'~l CIVIL ACTION - LAW :~ ." PETITION TO COMPEL INSPECTION OF CORPORATE RECORDS AND/OR DOCUMENTS 1. Petitioner, Lois G, Shear, is a citizen of the State of Florida, residing at One North Breakers Row, Palm Beach, Florida, 33480. 2. Respondent, Tamdot Homecare of Harrisburg, Inc., is a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, with its principal place of business at 1011 Market Street, Lemoyne, Pennsylvania, 17043. 3. Petitioner believes she is the owner of fifty percent (50%) of the common stock of Respondent, Tamdot Homecare of Harrisburg, Inc., but Respondent, by and through its President, Joseph Hunter, claims that petitioner owns less than fifty percent (50%) of Respondent. 4. Petitioner, by and through Petitioner's attorneys, Smigel, Anderson & Sacks, in accordance with and pursuant to ~1508 of the Business Corporation Law of 1988, made a written request upon Respondent to produce for inspection and examination its corporate books and records, as more specifically set out in a letter dated EXHIBIT f\ .' ."'." ~. .. . June 29, 1998, a true and correct copy of which (together with the verified Power of Attorney signed by Petitioner required by 51508), is attached hereto as Exhibit "A" and incorporated by reference. 5. By letter dated July 20, 1998, a copy of which i~ dttached hereto as Exhibit "B" and incorporated by reference, Respondent, by and through its President, Joseph Hunter, failed to assimilate and/or produce for inspection and examination all of the requested corporate books and records specifically set out in the June 29, 1998 letter from petitioner to Respondent, 6. On or about August 5, 1998, Petitioner, by and through Petitioner's attorneys had access to, and inspected, only a portion of the requested records, as more specifically set out in a letter dated August 6, 1998, a true and correct copy of which is attached hereto as Exhibit "C" and incorporated by reference. 7. By letter dated August 11, 1998, a copy of which is attached hereto as Exhibit "D" and incorporated by reference, Petitioner, by and through Petitioner's attorneys, again requested access to Respondent's corporate books, corporate records, share register and/or share certificates, 8. Respondent, by letter dated August 24, 1998, a copy of which is attached hereto as Exhibit "E" and incorporated by reference, failed to assimilate and/or provide access to the requested corporate books, corporate records, share register and/or share certificates. 9. Petitioner's request to inspect and examine the corporate books, records, and/or documents of Respondent is proper within the - 2 - \ meaning of the Business Corporation Law as such request is reasonably related to Petitioner's interest as a shareholder. 10. The purposes of Petitioner's request to inspect and examine the corporate records of Respondent include, but are not limited to, the following: A. Determining the number and value of Petitioner's shares; B. Ascertaining whether the business of the corporation has been and is being properly managed since the death of Todd Shear, a former shareholder. C. Determining whether the expenditures of the Respondent since 1993 have been authorized, appropriate and in the best interest of the corporation; and D. Determining the propriety of instituting a lawsuit on behalf of the Respondent against Joseph Hunter in his capacity as President of the corporation, 11. When a shareholder seeking inspection of the share register or list of shareholders of the corporation has complied with the provisions of ~1508 of the Business Corporation Law of 1988 regarding the form and manner of making demand for inspection, that section provides that it is the burden of the corporation to show that the inspection is sought for an improper purpose. 12. Petitioner has complied with all requirements of ~1508 of the Business Corporation Law of 1988 respecting the form and manner of making demand for inspection and examination of not only the share register, but any and all books, corporate records and documents of - 3 - Respondent, and the inspection sought by Petitioner is for a proper purpose. 13. Respondent has failed to show and is unable to show that Petitioner's request for inspection and examination of the share register or list of shareholders, as well as all books, corporate records and documents is for an improper purpose. 14. petitioner has incurred the sum of Five Thousand Dollars ($5,000.00) as counsel fees, costs and expenses in connection with her efforts to obtain the requested information to which she is legally entitled. WHEREFORE, Petitioner, Lois G. Shear, respectfully requests that the Court enter an Order permitting her to inspect, examine, and copy, if necessary, the books, corporate records and documents of Respondent, Tamdot Homecare of Harrisburg, Inc" within ten (10) days of the date of the Order. And further, that Respondent pay the sum of Two Thousand Five Hundred Dollars ($2,500.00) for counsel fees, costs and expenses, SMIGEL, ANDERSON & SACKS Date: October~, 1998 By: LeRoy Sm el, Esquire ID #09617 2917 North Front Street Harrisburg, PA 17110-1223 (717) 234-2401 Attorneys for Petitioner - 4 - VERIFICATION I, Lois G, Shc.:lr, verify that the ut.:ltemcnts contained in the foregoing Petition to Compel Inspection of Corporate Records and/or Documents are true and correct to the best of my knowledge, information and belief, I understand that false statements therein are made subjpct: to the pen'llti",,,, of 18 Pa,C.~. ~';:;G.J, Lela~ing to unsworn falsification to authorities. Date: I()I/f/r? I I o(~ ./( ~ LOIS ~SHEAR, Petitioner r ' . .., , FILE COpy SMIGF.r.. ANDERSON & SACJ{S ATTORNEYS AT LAW LeROY .MIOCt. C, Lec ANDeRSON 5TUART 5. SACKS JOHN W. 'ROMMeR ,JosePH 8, D'AMICO ANN V LeVIN HeATHeR D. ROYCR CRIC M. MORRISON 2017 NO"'H r'-O"4T STAceT HARRISBURG, PENNSYLVANIA 17110.1223 11171 234-2401 'AX m71 2)4.3<<511 rn.c NO. 5178.1.2 ;1 June 29, 1998 Tamdot Homecare of Harrisburg, Inc, Attn: Joseph Hunter 10 II Market Street Lemoyne, PA 17043 r I Re: Demand for Inspection Dear Mr. Hunter: On behalf of Lois Shear, a shareholdcr in Tamdot Homecare of Harrisburg, Inc, (the "Corporation") the undersigned, pursuant to Section 1508(b) of the Business Corporation Law of 1988, as amended, (the "Business Corporation Law") hereby rnakes demand upon the Corporation to produce for examination and inspection the share register, books and records of account, and records of the proceedings of the incorporators, shareholders and directors in order that they may be copied or extracts taken therefrom. Enclosed with this dernand is a power of attorney verified by the shareholder authorizing both the undersigned counsel to act on the shareholder's behalf in this matter, '\ 1'. I: I , , ! ~ i i i i Specifically, the shareholder demands that the Corporation immediately allow her or her designees full access to the following documents in the possession or under control of the Corporation, its directors, officers, employees and professional advisors, including its attorney(s) and accountant(s): , i ~ I, Records of any kind including contracts, bills of sale, receipts, accounts receivable or payable, invoices or purchase orders relating to the sale or purchase of corporate assets in any form, and occurring at any time from 1993 to the present; .;.' n I ! 2,. Records of any kind evidencing corporate ownership in any real estate from 1993 to the present; 3. Records of real estate appraisals on corporate land, buildings and plant facilities from 1993 to the present; EXHIRIT A Page 2 June 29, 1998 4, Records showing dividends declared or paid from 1993 to the present; 5, Records showing loans, or advances by the Corporation to MY shareholder, officer, director or affilialed company and any repayment schedules; 6, Records showing salaries of all officers, directors, employees and consultants from 1993 to the prescnt; 7. Records showing bonuses paid to all officers, directors, employees and consultants from 1993 to the present; 8, Records showing pension contributions made by or on behalf of all officers, directors, employees and consultants from 1993 to the present; 9, Records showing any other remuneration paid to all officers, directors, employees and consultants, from 1993 to the present; including reimbursement for expenses of an) kind; 10, Records showing maller, activitics and decisions of the Corporation from 1993 to the date of review; 11. Corporate income tax rcturns for tax years 1993 to the present. The shareholder's requests are proper within the meaning of the Business Corporation Law where she requires such records for the following purposes, all of which are reasonably related to her interests as a shareholder in the Corporation: a, To determine the value of her shares in the Corporation; b, To ascertain whether the busincss of the Corporation has and is being properly rnanaged; c, To determine whether the expenditures of the Corporation since 1993 have been in the best interests of the Corporation; and d, To determine the propriety of instituting a lawsuit on behalf of the Corporation ,or the shareholder against Joscph Hunter in his capacity as President of the Corporation, .hJ .~.~. .11'11 . . . . i . , . I ".. . " . LIMITED POWER OF ATTORNEY FOR INSPECTION I, Lois Shear, of ~ &"1_ County, Florida; a shareholder ov.ning fifty pcrcent (50%) of the stock in Tarndot Homecare of Harrisburg, Inc, (the "Corporation"), appoint LeRoy Smigel, Esquire, Harrisburg, Pennsylvania, with full power to act individually and separately as my agent ("my agent"), each with full power of substitution, for me and in my name, to examine the books and records of the Corporation as more fully described in a demand letter addressed to the Corporation datcd Junc 2:L, 1998 a.,d signcd by LcR"l Smi3~l, Esq'Jirc, a copy of ',\'hich is attach~d h~rc:o a.,d incorporated herein by reference, as I might do if personally present. . This Power of Attorney shall become effective immediately and shall not be affected by my subsequent disability or incapacity, All acts done by my agent pursuant to this power during any period of my disability or incapacity shall have the same effect and inure to my bcnefit and bind rne and my successors in interest as if I wcre cornpetent and no disabled, Questions pertaining to the validity, construction and powers created under this instrument shall be determined in accordance with the laws of the Commonwealth of Pennsylvania. I have signed this Limited Power of Attorney this I day of C\..~ 1998. ~ or~~ Lois Shear VERIFICATION I, c:(.. -:. ~ , aver that the allegations contained in the foregoing Limited Power of Attorney are true and correct to the best of my knowledge, information and belief; and that the statements in said Limited Power of Attorney are subject to the penalties of 18 Pa. Cons, Stat. Ann, 94904 relating to unsworn falsification to authorities, Verified this ~~ (/ ( ,1998, day of I c/~ od~ . ' LOIS Shear , \; ~: I - .1 I !"- ~ , ' ( +..i' [,. l'l f' J ~ 'fAM'-.'JOrr I-IOMl:~C~ \.RE +1 .........,_" .. ..,>.f- ..... ',NO ....... '. . ..... . ... . ~. .,' . to-" . 1011 MARKur STflH.r,lf.MOYNE, PA 170~3 , hl:PIIONI: (7'71737'556~ July 20, 1996 Hr. l,eroy Smigel, Dear Hr. Smigol, I am in receipt of your letter dated June 29, '998, received July '6, 1998 Re Mrs. ~oi5 Shear. ROC01'ds of 'l'amclot Homecal'e will certainly be made availahle to you to review for Mrs. Shear. I will be 1n contact with you as soon 'a~ the requested documents arc complete and ~ssimilatcd. '!'amdots yeneral ledger is kept by Stat Medical Billing Sc'Cvice and our l\ccounting firm is Kurtz Mcnaney & Co. both of Readiilg. Hr&Pa~ Sarvas is the contact person at Stat (1_800_682_84811 and Mr. Don Pot tiger is the CPA with whom we work at Kurtz Mcnaney. phone 1-6'0-374-4806. Contacting either or both of these indi~idualswill verify that we arc collecting the reQuested dat~. sincerely,...... \ ~.._ ~}~_~ V ,,-A :~""""J6Seph H. tluntor EXHlarr o ....-. i1 .--.\ SMIOEL, ANrn:USON & SACJ(S ATTORNE:Y!l AT LAW FilE COpy LC"OY IJolIOt.. C,LUAt>lOCAIoON 5TU""T '0 ,"'CI(. JOHN W. "'0"''''['' JOlt'" I. O''''frolICO ANN V. LtV'N Ht"THC't D. "OyeR CRtC M. ,",0""'10'" 2017 No"'.. rIlllO"-,, 5Th((,. ,,,.,,,,,, "4-)011 HARRISBURO, PENNSYLVANIA 17110.1223 17171 l)4,Z401 ,,~[ "'0 S 178.1.2 August 6, 1998 Tamdot Homecare of Harrisburg, Inc, Attn: Joseph Hunter 1011 Market Street Lemoyne, PA 17043 Re: Corporale Rccords Dear Mr, Huntcr: Thank you for taking the time out of your day to meet with Eric Morrison and me on August 5, 1998, I appreciate your cooperation in providing rne with Tamdot Homecare, Inc, payroll summaries from 1996 to the present, 1993 corporate tax returns, financial statements from 1993 to 1995, an accounts receivable sununary sheet as of May 31,1998, along with a 1995 business valuation report prepared by Ross, Wendler & Steen, Inc., which is enclosed with this letter, However, pursuant to my June 29, 1998 Dernand for Inspection letter, you must, under Pennsylvania law, provide me access to financial stalerncnts for 1996 to the present, a detailed current aged accounts receivable report which shows the name of each account and the amount that remains uncollected, as well as other corporate records that Stat Medical Billing Service and/or your accountant maintains on their respective premises, You made representations at the August 5, 1998 meeting that Stat Medical Billing Service was sending such records to you by the end of this week. Please contact rne or Eric Morrison immediately once you receive such documents, Tirne is of the essence as my client would like to resolve this rnatter in a most expeditious manner, As previously discussed, we are contacting a business broker to begin evaluating Tamdot Homecare, Inc, for a sale, We will contact you when we can arrange a time for such an individual to survey the premises, ~ " ;) I: EXHIBIT c.- ~ -. FilE COpy S~lIOI".. ANP"llfiON & SACHS ATTORNCY' AT LAW 'All 17171 Z'''.)811 2011 NONh4 rno"" STRttT u"oy ....'otl. C \,cC ANOt"'O'~ UU..."T .. IA.CKS JO"'" W. '''O~MC'' J05C..H .. D'AMICO ",...N V. LeVIN MtATlo4CfIl o. "o.,e.. C"le .... MORfIlllON HARRISBURG, PtNNSYLVANIA 17110.1223 17171 Z34.Z401 '11..[ NO. 5178.1.2 August II, 1998 Tamdot Homecare of Harrisburg, Inc, Attn: Joseph Hunter 1011 Market Street Lemoyne, PA 17043 ., Re: Access to Corporate Books and Sharc Certi ficatcs Dear Mr, Hunter: In addition to the documcnts and records previously requested from you, in my June 29, 1998 letter, I am requesting that you providc me access to the corporate books of Tamdot Homecare of Harrisburg, Inc. and, specifically, the corporate share certificates, In order to avoid judicial recourse, you have until August 14, 1998, to cornply with this and all previous requests. Thank you for your attention to this matter, v." 'roly yo",~ LeRoy Smi I LRS:EMM:tkc Q.<:..'. (')\.)u:" L:~ ~00.A.... EXHlarr ':J:> II) ~ ~ o is ~ \ :l,-: '.:. .:. '.:. .:.'~ ::'..:':" 1 II TilE COURT OF COtl,I1,ON PLEAS C'::':!JErtUJm COUNTY. PENNSYl,VANIl, I I 1, ,. - .:1 ....... " >: ::....~:.., 'J. No, 98 - 62 97 CIVIL ':-;"':':20T HC:.;EC,"\EE OF :::......::::\I,5aUR.G, IHC. i ~ CIVIL ACTION - LAW f I :('2Spon,::0:1: NOTICE OF INTENT TO SERVE SUBPOENA TO PRODUCE DOCill1ENTS AND THINGS FOR DISCOYERY PURSUANT TO RULE 4009.21 :.:...:"::t:.-::'0::,::1 ':::11 , . u~ 3':;: ~.':0::". ~8is S!:e3r l~:e~is :0 serve a Subpoena identical to the one ..'. :3 ~t:~c~ed :0 :~:3 ~crice, You have twenty (20) days from :~~ i~=e :,steJ belcw :~ w~ich to file of record and serve upon the c:".cc:.,,:::,:-..:-.: ,~ ~bJ0Ct:C~ t':> tlce: Subpoena. If no objection is made :"...~ . ~_. -.-. ., . -r, ' -.' ~~, ; i 3v: ~. ~ , j~ I i , , ;; i' SMIGEL, ANDERSON & SACKS LeRoy Smigel. Esquire I. D. No. 09617 2917 North Front Street Harrisburg, PA 17110-1223 (717) 234-2401 ATTORNEYS FOR PETITIONER Ii " EXHIRIT L COMMONWEALTH OF PENNSYLVANIA " COUNTY OF CUMBERLAND ) 1.0 I S SJiE,'IR Petitioner vs. File No. 9R-1i7'l7 t"TVTT, TAMDOT HD.'lEC,'lRE OF HARRISBURG, INC. Respondent SUBPOENA TO AlTEND AND TESTIFY TO: Joseph Hunter c/o Ronald M. Katzman, Esquire 3'O-~ ~~r~"~ ~~r~~ Harrisburq, PA 17101 1, You are ordered by lhe court to come to 2917 North Front Street. the law offices of Smiqel, Anderson & Sacks. at Hardsbu/."cr at 2:00 (SpCClty courtroom or other place) n""phi n County, Pennsylvania. on Aod 1 2R. 1999 o'clock, P. M" to testify on behalf of in the above case, and 10 remain until excused, 2, And brmg with you the following: c;"" "H",.h."l 1 i ~~ If you fail 10 allend or to produce the documents or things required by this subpoena, you may be subject to Ihe sanctions authorized by Rule 234.5 of the Pennsylvania Rules of Civil Procedure, including but not limited to costs, allorney fees and imprisonment. REOUESTED BY A PARTY/ATIORNEY IN COMPLIANCE WITH Pa. R. C. p, No. 234,2(a): . I , Name: ! ! ~ fJ LeRov Smiael. ES~lirp 2917 North Front Street Harrisburg, PA 17110 Telephone: (717) 234-2401 Supreme CourllD # 09617 Address: BY TIiE COURT: ! , ; , Prothonotary/Clerk, Civil Division . Date: .... Se 31 of the Court Dep'lly Official Note: This form of subpoena shall be used whenever a subpoena is issuable, including hearings in connection with depositions and before arbitrators, masters, commissioners. ete, in compliance with Pa. R. C. P. No, 234,1,11 a subpoena for a production of documents, records or things is desired. complete paragraph 2, (EH.7/97) sP'.I.ur!"~h) l.ut/l~hl. NI ,n ~~ ;...'" II, The ohare certific,lte:; looued to the :Jlhll,:holdel'l; o. rhe Corporiltlon':J Income Tax Return:; fr'~m 1~~'1 to tile present; C, The Corporation':1 ohilre regioter ohowing who tile shareholders of the Corporation are and their re8~e~tlve interests in the Corporation; D. The Corporation's records showing matter, activities and decisions of the Corporation from 1993 to the date of review; E. The Corporation's records. showing dividends declared or paid from 1993 to the present; F, The Corporation's records showing loans or advances by the Corporation to any shareholder, officer, director or any affiliated company and any repayment schedules; G, The Corporation's records showing remuneration, of any kind, paid to officers, directors, employees and/or consultants; H, The Corporation's financial statements, in final form, from 1996 to the present; I, A detailed current aged accounts receivable report of the Corporation showing the names of each account and the amount that remains uncollected; J. The Corporation's invoices and/or purchase orders relating to the sale and purchase of corporate assets from 1993 to the present; and K, The Corporation's books and records generally. L, The March 7, 1991 Stock Redemption and Purchase Agreement, M, The fully executed Note for $40,892,00, c - :c :E >< UJ GOLDBERG, KATlMMI & SIIll'~IAS, P.c, Ronald M. Kltlman, EsquIre. 1 D. 071 (;8 StC\'en E. Grubb, [squhC' .11> '7~Bn ^nomc)'1 ror OcfendAnlJ J20 MllIl..c:1 Sllccl p, O. Do. 1261 HllTisbur~ PA 17101.1261 (717) 234-4161 LOIS SHEAR IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA i I. I:~ ti f p -.' r) r. - , , , (::> ~ :7' -.;-:-t 1;''= ...,n, -'.)'::J . , -lG' ."\ ::..:' ~(.) '::Jr'n :.:~ :iJ -< , ~ ' ( I \ Pctitioncr v, NO, 98.6297 /1 " , , - , ~, , . ., I; I" ~: I , , T AMDOT HOMECARE OF HARRISBURG,INC" Respondcnt CIVIL ACTION - LA W OBJECTION TO SUBPOENA PURSUANT TO RULE 4009.21 Tarndot Homecare of Harrisburg, Inc" (Tarn dot) objects to the proposed subpoenas that are attached to these objections for the following reasons: OBJECTION #1-UNA V AILABILITY OF ORAL TESTIMONY () '..'" I, The above.captioned mailer is an actiC'n whereby the petitioner soughtcouif, sF:": ~3 intervention to inspect the corporate records of Tarndot. (: ':, : N ,... - 2, ~. ~ ~.. ..,., Said request was made pursuant to 91508 of the Business Corporati,O?~;La'&Df _',-. r:- :2 1988 (15 P,S,A,), -. 3, 91508 only permits a shareholder to request inspection of the records ofa corporation, 91508 does not permit depositions or oral testimony in addition to the inspection of the corporation's records, 4, The attached subpoenas, while styled "Subpoena to Produce Documents and Things for Discovery" request that shareholder Joe Hunter and accountant Donald Pottinger EXHIAlT .:J) !~ appcar and testify on April 28, 1999 and April 23, 1999, rcspcclively. 5, (I ,. ,. f Oral testimony is not pcmlittcd pursuant to 15 P,S,A, 91508, 6, Subpoenas issued pursuant to Pa, R.C,P. 4009,21 arc only for production of documents and things, and not for oral tcstimony. Therefore, thc attachcd subpoenas arc not l~ " t I proper for the purposc of producing documents and things under Pa, R,C,P, 4009,21. OBJECTION #2 - INSUFFICIENT TIME FOR COMPLIAl""CE 6, Alternatively, the subpoenas attached hercto do not provide a reasonable time for compliance, 7. l'-' ~ k , ' i'l I' I TIle subpoenas attachcd hcreto may be served as early as April 22, 1999. 8, April 28, 1999 for Mr, Hunter and April 23, 1999 are the respective tirnes for compliance listed by Petitioner on the attached subpoenas, 9, Pursuant to Pa, R,C.P, 4009.23, the person to be served with the subpoena shall I, . \' I r have twenty days to respond after service of the subpoena. 10. Petitioner has granted Mr, Pottinger and Mr, Hunter one day and six days, respectively, to comply with the requirements of each subpoena. 11. This is an inadequate time for compliance under Pa, R,C.P. 4009,23, OBJECTION #3 - DUPLICATIVE, BURDENSOME REQUEST 12, Petitioner has initiated a separate action in this court under docket number 99- 2 '~ .. /' } ,/7/ , ~;:L: ~~ .'- /" Steven E, Grubb '\ I': I' , ' I i, l' CERTlFICA TE OF NON-CONCURRENCE I ccrtify that on this 21" day of April, 1999,1 confcrrcd with counsel for Pctitioncr and we were unablc to reach concurrence as to whether the attachcd subpoenas and section 1508 of the Business Corporations Law of 1988 pcrmittcd oraltcstimony to by rendered in addition to the production of corporate documcnts, ~ ~ /, i...' '[ , I " COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND LOIS SHEAR Petitioner vs. File No. oA-1i2Q7 r'TVTT. TAMDOT Ha-lECARE OF HARRISBURG, INC. Respondent: SUBPOENA TO ATTEND AND TESTIFY TO: Joseoh Hunter c/o Ronald M. Katzman, Esquire 320-1' "'~rk,,~ C:~r""~ Harrisburq, PA 17101 1. You are ordered by the court to come to 2917 North Front Street, the law offices of Smiqel, Anderson & Sacks, at HardsburQ' at 2:00 (Specify courtroom or other place) n~lIpn;n County, Pennsylvania, on April 28, 1999 o'clock, p: M., to testify on behalf of in the above case, and to remain until excused. 2. And bring with you the following: C:"p .H'....hpn 1 ; c:~ If you fail to attend or to produce the documents or things required by this subpoena, you may be subject to the sanctions authorized by Rule 234.5 of the Pennsylvania Rules of Civil Procedure, including but not limited 10 costs, attorney fees and imprisonment. REQUESTED BY A PARTY/ATTORNEY IN COMPLIANCE WITH Pa. R. C. P. No. 234.2(a): LeRov smiqel, F.5~l;rp 2917 North Front Street Harrisburg, PA 17110 Teiephone: (717) 234-2401 Supreme Court ID II 09617 Name: Address: BY THE COURT: Prothonotary/Clerk, Civil Division Date: Seal of the Court Dep lty Official Note: This form of subpoena shall be used whenever a subpoena is issuable, including hearings in connection with depositions and before arbitrators. masters, commissioners, etc. in compliance with Pa. R. C. P. No. 234.1. If a subpoena for a production of documents, records or things is desired, complete paragraph 2. (Elf. 7/97) 517'.1-2!O&PO Li.t/EKH/cr. 04/~}199 10;28am A. The share certificates issued to the shareholders; B. The Corporation'S Income Tax Returns from 1997 to the present; C. The Corporation's share register showing who the shareholders of the Corporation are and their respective interests in the Corporation; D. The Corporation'S records showing matter, activities and decisions of the Corporation from 1993 to the date of review; E. The Corporation's records..showing dividends declared or paid from 1993 to the present; F. The Corporation'S records showing loans or advances by the Corporation to any shareholder, officer, director or any affiliated company and any repayment schedules; G. The Corporation'S records showing remuneration, of any kind, paid to officers, directors, employees and/or consultants; H. The corporation'S financial statements, in final form, from 1996 to the present; I. A detailed current aged accounts receivable report of the corporation showing the names of each account and the amount that remains uncollected; J. The Corporation'S invoices and/or purchase orders relating to the sale and purchase of corporate assets from 1993 to the present; and K. The Corporation'S books and records generally. L. The March 7, 1991 Stock Redemption and Purchase Agreement. M. The fully executed Note for $40,892.00. -, ,or- LOIS SHEAR, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. No. 99-l899 CIVIL JOSEPH HUNTER and TAMDOT HOMECARE OF HARRI SBURG, INC. Defendants CIVIL ACTION - LAW NOTICE OF INTENT TO SERVE SUBPOENA TO PRODUCE DOCUMENTS AND THINGS FOR DISCOVERY PURSUANT TO RULE 4009. 21 Lois Shear intends to serve a Subpoena identical to the one that is attached to this Notice. You have twenty (20) days from the date listed below in which to file of record and serve upon the undersigned an objection to the Subpoena. If no objection is made the Subpoena may be served. Date: 4(llql l By: SMIGEL, ANDERSON & SACKS LeR'f:1:t & I. D. No. 09617 2917 North Front Street Harrisburg, PA 17110-1223 (717) 234-2401 ATTORNEYS FOR PLAINTIFF 517'.1.~/08po Lilt/tMH/crl C./~l/~~ 10 ;8~m ~ A. The share certificates issued to the shareholders; B. The Corporation's Income Tax Returns from 1997 to the present; C. The Corporation's share register showing who the shareholders of the Corporation are and their respective interests in the Corporation; D. The Corporation's records showing matter, activities and decisions of the Corporation from 1993 to the date of review; E. The Corporation's records. showing dividends declared or paid from 1993 to the present; F. The Corporation's records showing loans or advances by the Corporation to any shareholder, officer, director or any affiliated company and any repayment schedules; G. The Corporation's records showing remuneration, of any kind, paid to officers, directors, employees and/or consultants; H. The Corporation's financial statements, in final form, from 1996 to the present; I. A detailed current aged accounts receivable report of the Corporation showing the names of each account and the amount that remains uncollected; ! . J. The Corporation's invoices and/or purchase orders relating to the sale and purchase of corporate assets from 1993 to the present; and ~ i ' I f( K. The Corporation'S books and records generally. L. The March 7, 1991 Stock Redemption and Purchase Agreement. M. The fully executed Note for $40,892.00. \ w - :is ~ . I.AWU"j,u e!Y.l~._ . 11 1'1 SI'lC"6' \.<.. COWU.:IlG, K'\TZ~I'\S & SIIII'''^" I'.C. "ONALO III l(AflMAH , LUIHIPWAH PAUl. J UPOSlTO Nfl.. H[HOflllHQr J JAY COOPU lHOM.\S! M[~N[lIl JOHN A IU.lU" A,PAILL ar.II.AHQ.I(\J'....,. QlJ'tH BROOfl.I J["I:A~J IHlrMAH JEIlR'!' J RUSSO MlCmL J C~!'W THOW.Ar.SJWUEA ARHOLO I KOClArH ~AH J KLINf.1ll JOHN OEl~r:NlO ITMN [. ORUea 0WlA WOOllS>Ol! JOHN" NINQ5j(y J~OMAIl.);ln ~UkHr STRAWll!lUIY 5(jlJAIl.H PO 110)( I:,., lIARRISBUR(1, rmmSYl\.'A1:I.... 1'1 ("_1 U.. 01 COUP-lSn ARTHUR L OOl.06tRQ .IOSHUAO lOCI( HI.U'Il('NI! PI') :.\4-.4ltd t'AX (1111:\4"..<,. liAR"" II OOl..08HIO 11~1.'Q03, liT II' IIWWW o"'~d>^W C\'M It[RSttCY OFFICE. {'17I~4041l1 CARllSlE OfFICE 111712'~' YQRICOFFICE. 17111&4~7i12 May 13,1999 LeRoy Smigel, Esquire Smigel, Anderson & Sacks 2917 North Front Street Harrisburg, PA 17110-1223 Re: Shear v. Hunter, et at Dear Mr. Smigel: As we discussed at the deposition on Wednesday, May 12, Joseph Hunter agreed to produce for you the following items by next Wednesday: 1. Life insurance policy; 2. Beneficiary designation for the life insurance policy; 3. 1998 trial balances, accounts receivables, accounts payables and financial statement; 4. Originals of what was found in the minute book; and 5. Credit card receipts for January 8 and IS, 1999. ; , , i: I j I I am enclosing the life insurance policy with beneficiary designation, as well as the originals which were found in the minute book which I neglected to bring to the deposition on Wednesday. As I told you in my previous letter, everything that was not found in the minute book and which was not duplicated in previous productions has already been sent to you via photocopy. Please photocopy the originals and send the originals back to us with the original minute book and stock ledger you are now holding. I ~ ~ . As for the "credit card receipts", I understand from Eric Morrison that the checks to which you were referring were actually payroll checks and not checks written from the business checking account, as you represented. Mr. Hunter informed me that the $6,000.00 in payroll on January 15, 1999 and $2,400.00 in payroll on January 8, 1999 were wage payments to compensate for payroll missed in December 1998 due to cash flow problems, plus January 1999 payroll. Therefore, since these checks were not reimbursement checks, but rather payroll checks, Mr. Hunter, obviously, has no credit card receipts to support these payments. ~ f ( ~ ': EXH!AIT r u. - :c :E )( w ..'rt- ...- .- , lAW".."""" L-0;',:?,t-'!} -,"::.~r" , l (;OI.I)JtI~UO, I<ATZMAN K SIIIPMAN, P.C. lIIIO""'~OW liC.,t,fl"'''''-l , ur ~!PM"'''' ~",lJ~ oJ [!.po~to Ntll,",CNOU4SHOt oJ JAY COOp[R tHOM"'S [ IHf[NN[U .J0iJt.f" St"'Hr" "~flIL L. 5tl4"NO liC.Uf,l, QU1l-4 aROOliC.S .J["r.R!\ON.J $HIP,....." .JtAA., .J RUSSO ,..,CH"'[L .J CAOC[Nll tHOM'" 5 oJ W[8[A ARNOL.O B KOG"'N [.......N oJ KL.If.l[, III ~ [)(L.OA[NlO ,t[V[N [ c.Auee 01"'''''' wooaslO( .JOHN A NINO!',K" ~I;.'O M'AUK~I" ""IU'~' NI UAWU~UUY ""Jl1Alt~ 1'0 !lOX I ""1 Of COllfol-..tL "khluk L CoOLr>OtJila, JO.....u"' 0 lO<'" , J , ti JIA II IfI"'ill IIIffJ. I'~NN~YI.VANJA 11Irlll 1.'1111 'rr:I.I~I'1I0Nr: (111) L':H.'l'll ,.AX (111l ~':I'lll1l '" u",Ulf' I'l (',Olelllrk" 1111'101 1...HHIl . I' II"fT,'/fW'WW flf("I,I'\W,"IH ..[JlSHl' orrlC[ .'111 '}ll 4040 ~ OClllbcr 25, 1'1')<) C"'''ll!ll[ OHIC[ .'I'll4,}.0'}01 'OR" orncr 11111 e4J. 'Oil I ~ i. S(ND[R S [~"IL .-.DOR[S5 III!'\lC.,lI..I.'N com Eric M. Morrison, Esq Smigcl, Andcrson & Sacks 2917 North Front Strcct Harrisburg, P A 17110-1260 Rc: Shcar Y. Joscph Hunter. et al. Dcar Eric: I have your correspondence of October 12, 1999. I expect to have the linancials to you shortly. There are some mailers which we have been cxpecting from you for some time, as well. Namely, the bylaws and any comments you and Mr. Smigel have on the bylaws. At the corporate meeting, apparently, you forgot to give Mr. Smigel a copy of the bylaws so he was not prepared to discuss them. I explained to Mr. Smigel in subscqucnt correspondence that even if this mailer is eventually settlcd or goes to court, in the meantime thc corporation does need to proceed under its bylaws. We would appreciate Mrs. Shear's input and/or consent to passing these bylaws by unanimous consent. i I, , I I f Mr. Smigel also promised to provide a transcript of the corporate meeting which his secretary was typing. Since you have'also not returned the Corporate Minute Book to the place of business, I am assuming that you put the corporate meeting minutes in the minute book. I would also request that you return the minute book to us so that it can be held at the corporate office. SEG:des cc: Joe Hunter 32001.1 EXHIRIL F= .. -,- , . -. ,..~ -. --,--,,,".:-...,,;,,~-~-........,~.............~ . ~..- I: " . ". ,..... .... ~ '.' . .... - ~ ,. . '.... :. ~':.~ " <!l - :is :E )( w ) SMIGEl.. ANDItHSON & HACI{H ATTORNEYS AT LAW LI'IOY IM1Q[l,. C. Lei: ANDtRIO,", STUART. '....CKI .JOHN W, '''01041ro4''' .JOICP'H e. D'AJr04ICO ANN \I LeVIN HeATHeR D. RoyeR CAlC .... MO"R'ION 2'117 NORTH rAONT 5"'1:1:' HARRISBURG, PENNSYLVANIA 17110.1260 11111234.2401 'AX 17171134.3811 5l7~~1.2 Novcmbcr I, 1999 Stevcn Grubb, Esquirc GOLDBERG, KATZMAN & SHIPMAN, P.c. P.O. Box 1268 Harrisburg, P A 17108-1268 Rc: Lois G. Shcar v. Tamdot Homccarc of Harrisburg, Inc. and Joseph Hunter Dear Stcvc: Encloscd pleasc tind an original and a copy of the Minutes of Shareholders of Tamdot Homecare of Harrisburg, Inc., August 31, 1999. Please havc Joe Hunter review the same and execute the document as Chainnan of the meeting. Oncc exccuted, plcasemail the original back to our officc in the enclosed self-addressed stamped envelope so that we may file the same. As you may recall, both pursuant to requests made at the August 31, 1999 meeting and in my correspondence of October 12, 1999, Joe Hunter promiscd to providc us with the corporation's income tax returns by September 15th and thc updatcd corporate financial reports one wcek thereaftcr. As of this date, we arc still not in rcceipt of those financials. Please address this mattcr with your client promptly and forward the above financial documents to our office. If the accounting finn of Kurtz, McNaney & Company is at fault then, as discussed at the August 31,1999 meeting, perhaps an outside accountant should be hired to compile such infonnation and audit the financial records of the corporation. Other issues addressed at the August 31, 1999 mecting which require attention include the following: 1. There was a motion made by Joe Hunter to approve the new by-laws. Our client will not ratify the "new" by-laws because, as a valid Pennsylvania corporation, there should be by-laws already in place. Your client has failed to provide us with those by-laws and thus, it is our position that the corporation has been operating illegally and should be dissolved; 2. I would also ask that you provide us with proof of the election of the corporation's directors. If you can't provide us with proof that Pat Sarvis and Joe Hunter were i:XrIIMIT c; , t' , ~j j-' p h I; , , I i ~ I ,.t .~ , p , ( IJl'lllllllll'1 IN TilE COlIRT OF CO.\l.\1<):--; 1'1 I',\S Cl IMIlI':RI.ANI> COlINTY. I'ENNSYI.V ANIA \ f, , L. LOIS SIII'AR NO 98-6297 ,. I' ' /,,\ 1>1 v TAM DOT 110.\11' CARE OF HARRISBURG. INC. CIVIL TERM Rcspondcnt . , . ]I, OIWER Having considcrcd Pctitioncr's tiling. and rcsponsc thcrcto,lT IS HEREBY ORDERED this _ day of ___' 200 I. that said pctition is dcnied IT IS FURTHER ordcred that thc allegations containcd in the petition arc t"lsc and not ~ . ~ retlective of the t;1cts as thcy have occurrcd As an appropriatc sanction. Pctitioncr is ordcrcd to pay Tamdot's attorneys' fees and all costs associated therewith in having to defcnd itself against this motion within ten (10) days ofreccipt ofTamdot's invoices for such costs and expcnscs BY THE COURT: ~ ( I J \ . 'l"' n I, I' \ dOClJllll'1l1S, as indll'atc..'d in l'Olll....;lOlIdl.lIl."l. dah.'d h.llI\I;JIV ~. I()')l), tlnd ;.111;1dll'd IIl'll'IO as I:\hihit "II" ) Adnntted ( 1,\ 11 (, Adnutted Nol disclmed hI' ,'ounsd t(1I Sheal is Ihal onlhe sanK' dOlI' as the NOlicc of Intcnt to Scrve Subpocna was scrved. Tamdot was also scrl'cd with a Complaint and Noticc of Additionally. nol discloscd by counsel I(lr Shcar is thai. by agrccmcnt of the parties. Oral Dcposilion dockctcd to number ')'J.I 8'J') The NOlice of Oral Deposition rcqucsled lhc cxact samc catcgories ofdocumenls as thc NOlicc oflntcntto Scrvc Subpoena Thc Notice of Dc position is attachcd hcrclO as Exhibit "C" produclion of Ihc rcquestcd documcnts was accomplishcd on April 28. I'J'JI). thus rcndcring the 7. Dcnicd. First. as of April 28. 1999. ohviously. lhere would be no 1999 income tax I. [ I,. objections tiled by Tamdolmool. Sce Icttcr datcd ,\priI27. 11)1)1). attached hcreto as Exhibit "D". , . , I, , statements or Iinancial statcments sincc Ihe year was not complcted. Additionally. as of April 28. 1999, Tamdot provided, to the best of its ability. all documents in its possession. Attachcd hereto ! . as Exhibit "E", but not discloscd by counsel for Shear. is the response which accompanied Tamdot's document production. As stated in the letter of April 20. 1999. all records responsive to Shear's request, to the extent they existed, were produced. The request was even supplemented by counsel ~ , on April 3D, 1999. as rellectcd in correspondence dated April 30. 1999, and attached herelo as Exhibit "F". On May 10, 1999, financial records wcrc provided for 11)97, as requested by Shear in ;.. ~ ) 11 her subpoena. (See Ictter attached hercto as Exhibit "G".) 2 R Denied.' he' I:olll'sIHlIHknl:e illlilI:hed ;j> 1:.\11I11I1 I'. lolhe 1"'I,I;on h,ld nolhin!( to do with the produI:lion add",,,,'d in Ihe <:01l<:>pol1(lel'''' d,'sI:llhed III paril!:!aphs 1 - 7 of the ;nslant Pelit;on and Answer ('ounselli" Shear's illlelll"ls allll"'lll[( il ""p"u as sUl:h, arc' clear Illdical;ons of bad fililh The leller dated MilY I J, 1999. allached ilS Exhihil E to the Petition. c1eilrly notes the documenls Tamdol ilgreed 10 provide. wilhout the necessity ofa formal requesl. aller Mr Hunter's deposition of May 12. 1<)<)<) As is nOled in the lelter,live cale!(ories of do cum en Is were identilied. all of which were produced hems 1 ilnd 2 (Ihe life insurilnl:e policy and Ihe beneliciary designation for the life insurance policy) were provided hem J was provided 10 ~lr Smigel under cover of May 25, 1999, which is allilched hereto as Exhibil "II". As explained in Ihe leller of May 1 J. 1999. there would be no credit card receipts lor January 8 and 15. 19<)<). ilS explained in the Ihird lilll paragraph ofthelelter Counsel for Shear, in allempting to portray Tamdot as delinquent in its production of court- ordered documents. has made outright misrepresentations about the course of events. These allegations have been made in bad faith without any consideration of the actual course of events and, therefore, violate Pa. RC.P. No. 1023 which requires that pleadings be signed in good faith with good grounds to support the allegations in Ihe filing. 9. Denied. First, to the extent counsel for Shear attempts to show a course of non- responsiveness, the answer 10 paragraph 8 above is incorporated by reference. All documents identified in the May \3, 1999 letter. altached as Exhibit E to the Petition, were produced, as explained above. 3 I\dditionall~'. the October 25, I'}')'} leller (1','lilion,'r's Exhibit F) responds to counsclle>r Shear's leller ofOCl"ber X. Illl)l). "hich is altach,'d hercl" as Exhibit "I". As the leller stales. counsel le>r Shear requested an unspecified year's incollle tax return Therefore. any reference to the "financials" should be read as rclerring to the income tax return referred to in counsel for Shear's October 8. 1999 leller 10. Admilled. except that the leller speaks lar itself Again, counsel for Shear ignores the proper contcxt of this leller As thc lcller slates. at a corporale mceting on August J I. 1999, Mr Huntcr promised production of Tamdot's lax relurns and financial statemcnts upon completion. Petitioner's Exhibit F was a follow-up to that request. not the previous requests as the Petition, in bad faith, implies. Furthermorc, not disclosed by counsel for Shear. is that preliminary financials for 1998 were provided to Shear's counsel by leller of December 23, 1999. attached hereto as Exhibit "1". II. The allegation of paragraph II is a legal conclusion to which no response is necessary. It is admilled, and Tamdot has always agreed. that Petitioner has a right to inspect the corporate books and records. particularly the tax returns. Prior to the instant petition, no such written request to review the financials for 1998 and 1999 had been made. In fact, the 1999 tax returns and financial statements are still being completed and are not available. 12. Afier reasonable investigation, Tamdot is without knowledge as to the "purposes" of Petitioner's request to inspect and examine Tamdot's corporate records. Therefore, said allegations are denied. 4 I , 1 , ,", , ,-:'.. \ 1.1 Dc'nicd as a Icgal conclusion to which no rcsponsc is nccc"ary It is tillthcr dcnicd Ihat any rcqueslulllkr Sc'clion I 50S has bccnmade olhc'r than thc liling of this motion Scction 150S rcads in pCriincnt pari (h) Right of inspcction nEverv sharcholdcr shall. upon writtcn vcrilicd dcmand slating Ihc purposc tllt.'reot: have a right to examine. in person or by agent or attorncy. during Ihc usual hours 111l businc" fill.IIlY propcr purposc. thc share regislcr. books and rccords of accounl. and rccords of thc proceeding, of the incorporators. shareholders and direclors and to make copics or extraclS therclrom. A proper purpose shall mean a purpose reasonably related to the interest of the person as a shareholder. In every instance where an attorney or other agent is Ihe person who seeks the righl of inspection. the demand shall be accompanied by a veri tied power of attorney or other writing that authorizes the attorney or olhcr agcnt to so act on behalf of thc shareholder. Thc demand shall be directed to the corporation at ils rcgistcred oflice in this commonwcalth or at is principal place of business wherever situatcd. Contrary to Section 1508, no written demand has bccn made for rcview ofthc documents, as required by i 508(b) Additionally. thc Corporation is nol rcquircd to "producc" documcnts. As stated in Seclion 1508(b). the Corporalionmust only make thc documents availablc lor examination during the normal hours of operation at Ihe Corporation's place of business. Shear has failed to make written demand for the documents which is necessary prior to proceedings such as this under Section 1508(c). In any event, the records Shear seeks, to the extent they exist, arc available for inspection, and have always becn available for inspection. 5 14 I>~ni~d as a I~gal conclusion to II hicllno r~spnnsc is rl<'c~ssar y II is d~nil'd that Sh~ar has compli~d with S~ction 150H No rcasouahl~ wrill~n d~maud II<IS h~~nmad~ ol'Tamdotllll r~vi~w of the docum~nts Tamdot has never rctils~d 10 p~rmit examination of do~uml'nts hv Shear 15 I>~nied Ilad counselll)r Sh~ar made a demand und~r Seclion 15oH. he would have been apprized that a The I <)C)C) lax returns and linancial ',tat~ments haw nnt vet h~en liIed 01 completed; b The I C)c)H tax returns and tinancial statem~nts haw h~~n a\.ailable Illr review al Tamdol's place of business. per S~ction 150S lh~ I')')!! lax relurn was provided to Shear by Icller daled April 13. 200 I. c Counsel for Shear may review the documents she seeks at Tamdot during normal business hours. What Shear and her counsel fail to understand is that under Section 1508. Tamdot is only required to make documents available for review. Shear and her counsel have shown no interest in examining documents and no renewed request, outside of this motion. has been made to review the documents. As described above. all requests for documents made hy Shear have been addressed to the best ofTamdot's ability. 16. Denied. It is denied that the motion to which this answer responds took $5,000 in legal fees to create. Strict proof that $5.000 has been expended on Ihe tiling of this motion is demanded with sanctions demanded to the extent Shear has made a tblse statement contrary to PaKC.P. 1023. Shear's counsel has not accurately stated the tbcts of this proceeding and has filed 6 this doculI1l.utprior tOll1akiug wrillcn dell1'lIl1ll," in'pel'lion.pcr Sedi,,,, I <;ox Ifanvthing. Shear and her eOlllbel have wasted this ('oull', Ill"" 11Ith a I"belcss. pll'lI1atule Iiliug and should be sanctioned accordingly NEW :\lATTEI~ 17 Tamdot has not yet Iiled or 1\1II11ulated any tax returns or Iiuancial statements for calendar year 19<)9 18 Shear was notilied of Ihese evenls in a leller daled February 11.2001. which is attached hereto as Exhibit "K" 19. Rule 1508 only requires thai Tamdot make its records available to Shear's counsel. There has been no attempt by counsel tilr Shear 10 notily Tamdol of its desire to review the records of 'I' am dot at Tamdol's place of business, as required in the Business Corporation Law. 20. Counsel for Shear did not make any written demand to review documents, per Section 1508, throughout the entire year of 2000. 21. Shear's instant action is barred since no written demand has been made of 'I' am dol. 22. As a sanction for the bad tbith conduct of counsel for Shear. in instituting a procedurally inaccurate action and making Iblse Hlctual statements, attorneys' fees should be awarded to Tamdot for having to answer this trivolous petition and defend itself against the allegations made therein. 7 APR-21-01 SAT 12:30 f'f'R.16.m31 11:571"lM ~;':('~Tf':;-' l"~I;"1(lI" PO. ~Il r.f.,:~T..'~~loo,' .".123 P.? Y.Emn(;!\:no~ ~l J ~' , 1 hrreby Bclmowlcdp,e Ih,,: I !I:\\': red the forcl'loine New Mallrr and that the fActs slated h~'fl!in ere 1I11c and correct t.) tlu' neSt of n1V lJlowledge, inforlllation and belieE: , . The \mrlcr<igl1cu ~n'Jel~tJnd~ th3: thr \~.1'CI'lcnls therein ,re made Rubjoct to Iho pcnallitJ of :S 1'a. C S. ~1901 relaling!f) \!r1~worn fal,ificHliolls to lIutnCllilies. jj.~~'~'Ik. S'E1' llUN'l'J<:R Date: .n!'-'-:L~ ..~_?/ i , , 1 , , . , ~ , n , . . , , , I i I , I ~\ ~.~ Exhibit A . ~) . . . . . . . . ~ . ' . I.... ..', . '. ' . ,., Exhibit 8 Exhibit C r i ! > > ~, Exhibit D I..",\()III"I' (;Ol.lllll:lll;, ",\lZ~I,\N... S"II'.\I,I.~, ...(', RQtlAlOM .v.r....MMj F LE[5HiPMAlj PAUL J [[;PO"nO tjnLIW"{)[f~!,I!Or J JAY COQf'Ut Tt-tO"M5 (" CRumw JOIiNA ~fAlllft APRIL l SlRAtlQ I(U1 A'" GUV.l DROCKS JEFFCRSON J S.UPMMI JERH'!' J RUSSO MICHAEL J CROC(Nlt THOMAS J WEnCR AR~KIlO 0 I(OQAN EVAN J, KliNE. lit JOHN O€lORENZO STEVEN E GRUBO DIANA WOODSIDE JOHN R. NlNOSKY 1:, ~,l ".U, I:; IIUf I :, j H,\HJ!IJ<li Y :;,.'1:,\1<1 I' rl Iii 1:\ ] :',~ ] 1.\ Ii Ii !:oIl! 1<" 1'1 :; ~;:; Yl V I\:~r.\ I Jl"~ 1.'<.\ r;I((,lj/j',LL MllHHl (;rjl;)[lIf/'j J(;~,HIJ", D L(jI~1< 111I',I'Jl"~.1. 011;11-1-.11'01 I.A,< (117) ~ 14tJHOK t1M:f-Il' II OOtUIll.JHi (1\iIIl.1iJ01!) III II' ,,'W\VW fa;~;I.^W <'()~1 t~[R~H[Y OFnCE (117)!iJJ.4049 CARUSt!:: orncr: (717):245.(l.i91 April 27, 1999 f' I , VIii FilC\'IMII.E (7/7) 23./-3('} I YORK OFFICE (71T,1l4J.71H;> Eric M. Morrison, Esquire 29]7 North Front Street Harrisburg, PA 17110-1223 Re: Shear v. Hunter, et al. ~ If\ ->.'",''' ri":;~.~~., le.\ I ".. , ..-\ '''''. .u.. ) I I!---.---.' I ' 1(1/.( / -'/'; l~.::::j Dear Eric: I wanted to confirm some of our discussions of the last few days. On Friday, April 23, 1999, we received via overnight delivery a subpoena for Joe Hunter's deposition. As you know, we filed objections to the subpoena on April 21, 1999 and mailed them to your offices on that same date. I understand that the two documents crossed in the mail. Because oflhe objections, we agreed that the subpoena was not properly selVed and there will be no deposition on April 28'" until the objections are resolved. I; t , . , ! I: We also agreed that instead of engaging in protracted litigation, the better action to take, at this point, would be to hold a corporate meeting where Joe Hunter and Lois Shear, along with the corporate accountant, Mr. Pottinger, would attend with the attorneys who represent each of them to discuss the affairs of the corporation. This should give all parties a better idea as to whether Ms. Shear and Mr. Hunter can settle the outstanding matters. Prior to that meeting, I agreed that by April 28, 1999, Joe Hunter would provide to you the documents he has which you requested in your attachment to the subpoena which we received and to which we objected. The meeting will be held on May 12, ] 999 at 2:00 p.m. at your offices. I will prepare the appropriate notices. ~ I hope this accurately summarizes what we discussed. If it does not, please contact me immediately. .i t! Sincerely, ,. SEGlkdm cc: Joe Hunter (via facsimile) 21988,1 Sleven E. Grubb r, Exhibit E .\ . Exhibit F \ : \ I , ~ , ~ ' i ,.; 1, i" It! : ! I . I. I,' i; j '\ ii i\ ;/ il " it, :\ 1\ , , I ; ,-, i! I I ~ . i' .; -'..' .." I ....10.,....-, Exhibit G I ,\ ~~ I I j I :. I , (;Ol.lIlillll" 1":.1 I/.'LI.~.\ SIII!"'.I", 1'.('. \ 1(()r~"lO '" I(). r:/J..&'. r lH !>I~II'J.4.11j l'AUlJ (::'1""):.110 "lIl..Hl"'C411~~)1 J JA."CO')l'{H THOMA5f flll(l.MH JQt~'-4A 5TAnr~ APHlll 5T1lAI~. ...UTA'!' CoIIY'~ OHO:)lo'5 JHr[R~r4J~.ll'I""'.I.Il JUUl'l'J t(U~',l) MlCllAnJ CflCX;J,,:1 nGMA')J wUlr" ARfolOlO 0 t(OOAt4 c.V AN J M:llt~E. PI JOHN OClORWIO SlEVEN E CiRUnO DIANA WOODSlOC JOHN R NtNO~'f '.t'\I<U I : ;'11 ~ ;) \.~)I i ~ 1/ \ .,1':. i : I' " 11' ,\ I ;,~ If.\" I, : I.. II '; ~,; r:. ',' ^1.:\ I .' I. . I:'. ',I)'.'", "II ',.. 'I ~ il :..1.' h'. J~," .'''' ;1 II..... , .. I \ . : I: j 1:1 '.I .11':;14 ~"': f,\': '.'11):1.1',__ 10" j. i, f f I '~.)l r "!l l~"~ 11 ",' 1 :~'''': 11:11' ',~',~',~,,~,,:,\',~'.11 " l'iil',Hf (('II,U 1!','l~H.'...:J \. It'' tf I\lay 10, 1'1')1) CoIIlI(I:,lt OffICE {11Tj;o4,}G-!.\il VOIIKO/liCC ,'IT)a,,,~,~ LeRoy Smigel, Esquire Smigel, Anderson & Sacks 2917 North Front Street Harrisburg, P A 17110-1223 , ,. Re: Shear v. Hunter, et aJ. Dear Mr. Smigel: Enclosed arc Accountant's Compilation Report for Tallldot for year ending December 31, 1997, as well as the 1997 Tax Return and Application for Tentative Refund. If you have any questions, please do not hesitate to contact me. SEG/ps Enclosures cc: Mr. Joseph Hunter Sincerely/ / )i " ,Steven E. Grubb j , I , , . , i. . , , ; ! ., I, I: " Exhibit H r '".'_. ~,.... :_~"." ,'"" ~_.;'''' ..~"',' -.: ,'_ . .. :d",_, - \\1. ' . . " " . 1.........'1'1'1, I'. t(Q){PV (;OJ.I)H':ltf; I\AI/"'L'~ ."' .~~JJII'~f.\S, 1'.(' ",~, '. .,,. .. .........'. r III ',,,,,'~." 1'.1" ",,' ',1 "I',t.f',',"' '4, ,'(,I I" ....'.1 III,t','j' '.'" 'iAlltil'! '0110'1 I "1/1"""111111/\' ','..1 AliI' I'" ".. ~ I.',"" (I' (CI.'I':r~ .1,r''',I/, r.':;lr,O(R(; "'-i'",,,,,, :llOC. II.-\I/ltl'"'' 1/" /'/"""\1\',-\'.1" 1.'1"11 fC"1I1 1'1".. .,.....1" ......1 l .,''',"-'.'.. 1 I' / /'," II' ". I 'I 1 ~ ~ I "l '.. /.....:.: .'......""" ....'I". /I r.()l.OOOU, 1)')1; I 'Ir~'Jt]J (..UT .. H'<<;\'O\'~ .,il"llt',("fJ :,..,,,,,,../ "!lllll' J IlU'i<,O ""(fU(~ .,i ';ItC';CI..'1 h.C....S J ""[fl(ll .","()l[) 0 "'OGAI. ["'''''-j,J'''l''-'[ ;11 _'OH'~ ()(lOll[,<:O ~T("'[N [ c,UUllO 01-'/1. WOOO':>IO[ JO'-\'I U 'jlP~C5I(Y llrt.' 'IWW....' '111..I.AWl'l'~f ,'(1l5Hr.y or'ICC 17171 ~,JJ.40olg ~la\' "5. /999 C,M-lliS:"C o~ncc 1;'171245.05\;,] 'fORI( ornce 17111043.1912 emJ.iJ .:uJJte-..s: se~fEgk.slaw,com LeRoy Smigcl, Esquire Smigcl. Andcrson & Sacks 29 17 North Front Strcct Harrisburg, P A 171 10- I 223 Re: Dear Mr. Smigel: Encloscd arc thc trial balances for 1998 for Tamdot Homecarc of Harrisburg, Ine. SEG:des Enclosure 23502.1 ,', .J ,., '" " '. ~ i .". " .~ "I J. - , J e, 'J ,. ., "' f- .. , '. " " " '0 -' .. ~ '.,;1 '- 0 .' (/1 , c: Y' CJ t. .'1 C, T ,.:- '.j c...J :> ~ " . r- '" C, Q r!, " ,. or 'oJ 'j 1,1 '" ':l M " d " ". II) ~ ':1 .:~ 'JI <.' ~ " + ~ ,.. ,q " " C, ~ ,-, r- '" ., C w " " r '" ,. ~ C, ;- e, ,. .. " " " u " " N f'l (I.l ct , til .., C, "' (;. " " !J.l ... e, 1", ., " ,. u) ~ <' w i" ~;:! :;: ~2 (;) ;;0 UJ -' ". . .-.~ ~ ,. ':>' ." ~1 OJ U " ~l- (1.1 r... u. Q ~ CD ,:'j 0" ". :z - -:) j)' " ".' !J! f'l '.-. ::;. '.' .. ':1 0 ;. c: U -..5J .~ "< ,r:;0 '" <; t; ("j - 0- ,. ,..J C;-- Ul (0 ;;, U, e' ':.~ '-' W ..J <J.? ~ c:: .~ Iii ,0 , rJ & Y, ~ '. ,. " u" iJ) oJ v' CO cr, F:l ..-- c:;- ;-' .j ;p " ':-1 V\ ~ ,:.j ('. :r - ~ ~ d "' ~ - '" :J 'r, " l.n ", ,n lfi :s-- '" -' .J -' .J -' -' ,to ,~ :~ ,', ., .J: ., ... H f- ~ >= f- ,- ,. "" '" 0 C CJ C' '" " w lP; l f- f- f- f- l- f- -!. !.1.J '" w w w !': !'- ?: f':: f'- :fi 5 ~. . ;:.. ;:.. . ~\ c. ,.. o. J I: w I:; ~ " '. , <l. ;~ "' lJ ld - l(i -::; G " .J .:::: .:r ., :; w .:;; ,L LJ.I i h CJ ,.. ,. '" , j ,;, f- H ~ :,L i.JJ r \( ,~ ;: U L: .J t.;.1 .;; H '" H "- I ,0 ::c ," f: c, oc , , ~ f- '0 ~ ")- \'- ~ - '" - , Exhibit I Exhibit J .. " Exhibit K y ... t-t ,,- ~. ....... ;.;. H . .., .. ...t~ p.a::s .. TAM1)OT HOMECARE 1011 MARKEr STREET. LEMOYNF., PA 17043 TELEPHONE 17171 737-5584 fif ..""._.._...... ......., _..__..ft,........... Feb. 11, 2001 Mrs. 1.015 Shear one North Rreakor~ Row Palm Daach, Fl. 33460 (leal- Mrs. Shear, A~ a stockholdut' you arc cnti tled to co"rporate reports, YOUL- paticnco is rcqucztod.. My goal was to havo 1999 completed not lator than sept. 15, 2000. Things fell ap"rt with our delillery dr;.vor. 1 ~ame b"ck from 3 days off August 18, 2000 and the full timo driver called off. After sOller"l days it became apparent Ilt'yan was not going to report to work "gnin. Th1s of cour.so made me tho delillary boy again. Slnce then we are on tha third driller finally R good Dne I hopD. However since AugU'lt 18th I have covered ,,11 "on call" Lwenty four SOllen. some things Simply didn't get dono. ';orporatc Rapo"!' for 1999 wiii be forwarded to you as ~OOIl ati possible. Hespe.ctfully, Joseph H. Hunter I ; . i. I I.OIS SHEAR, Pled nt i ff IN Tiil.: COUHT Ol.' COr~MON I'LEM; (;1' CUr~Hi.:HLANIJ COUNTY, I'ENNSYLVAN IA V. CIVI:, M:TION - LAVI TAM DOT HOMECAHE OF HARRISBUIW, INC., Derend..Jllt NO. jd r,~:i"/ CIVIL Ti.:HM ORlJEH OF COIJWr AND NO\-I , this 6th day or June, 2001, upon consideration or Plaintiff's Pet,tion To Compel Inspection or corporate Records Lind/or Docum!:'nts I and following a discovery conference held in the chambers or the undersigned judge in which plaintiff was represented by LeRoy Smigel, Esquire, and Pete M. Monismith, Esquire, and Defendant was represented by Steven E. Grubb, Esquire, it is ordered and directed as follows: 1. Within 45 days of today's date, Defendant shall supply to Plaintiff's counsel copies of tax returns and supporting documents (including schedules and work papers) from 1998 to the present, to the extent that such returns and documents are available. To the extent that such items are not available, Defendant shall, within the 45-day period provided for, supply in verified form an explanation as to why the material is unavailable and if and when it will become available. 2. Within 45 days of today's date, Defendant shall supply to Plaintiff's counsel accountant reports (audits, compilations and reviews) from 1998 to the present. 3. Within 45 days of today's date, Defendant shall compile and make available for inspection at Defendant's business premises by Plaintiff's counsel and/or other representatives all accounts receivable, accounts payable, inventory lists, asset lists, schedules of liabilities, payroll records and records of loans to officers from 1998 to the present. By the Court, LeRoy Smi"el, E'-'Ljllil" Pete M. Monismith, Esquire 2917 North Front Street Harrisburg, PA 17110-1260 For the Plaintiff , , :) ,. / L1! - ,(/,' 2fj \;)eslcy 01021', I , I j ) / : '1/ . \ ~r.I,I__y. A\ly-l-, C)~: ~~ tc~ .,\ 'DIJ L P Steven E. Grubb, Esquire 320 Market Street Strawberry Square Harrisburg, PA 17108-1268 For the Defendant pcb