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Home My WebLink About01-5995 MARIA P. COGNETTI & ASSOCIATES MARIA P. COGNETTI, ESQUIRE Attorney I.D. No. 27914 210 Grandview A venue, Suite 102 Camp Hill, PAl 70 II Telephone No. (717) 909-4060 Attorneys for Plaintiff CALENE M. CLOUSE, Plaintiff v. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYL VANIA ~ NO. 01- 699':i' (l;.,;J IL<..o- J. EDWARD CLOUSE, Defendant : CIVIL ACTION - LAW : IN DIVORCE NOTICE TO DEFEND AND CLAIM RIGHTS You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take prompt action. You are warned that if you fail to do so, the case may proceed without you and a Decree of Divorce or annulment may be entered against you by the Court. A judgment may also be entered against you for any other claim or relief requested in these papers by the Plaintiff. You may lose money or property or other rights important to you. When the ground for divorce is indignities or irretrievable breakdown of the marriage, you may request marriage counseling. A list of marriage counselors is available in the office of the Prothonotary at the Cumberland County Courthouse, Carlisle, Pennsylvania 17013. IF YOU DO NOT FILE A CLAIM FOR ALIMONY, DIVISION OF PROPERTY, LAWYER'S FEES OR EXPENSES BEFORE A DIVORCE OR ANNULMENT IS GRANTED, YOU MAY LOSE THE RIGHT TO CLAIM ANY OF THEM. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 MARIA P. COGNETTI & ASSOCIATES MARIA P. COGNETTI, ESQUIRE Attorney LD. No. 27914 210 Grandview Avenue, Suite 102 Camp Hill, PA 17011 Telephone No. (717) 909-4060 Attorneys for Plaintiff CALENE M. CLOUSE, Plaintiff v. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYL VANIA ; NO. 01- !J9Cf:; ~ 11.<.-<- J. EDWARD CLOUSE, Defendant : CIVIL ACTION - LAW : IN DIVORCE COMPLAINT IN DIVORCE I. Plaintiff is Calene M. Clouse, who has resided at 2075 Ritner Highway, Carlisle, Cumberland County, Pennsylvania, for the last thirty six years. 2. Defendant is J. Edward Clouse, who has resided at 2075 Ritner Highway, Carlisle, Cumberland County, Pennsylvania, for the last thirty six years. 3. Plaintiff and Defendant have been bona fide residenls in the Commonwealth for at least six (6) months immediately previous to the filing of this Complaint. 4. Plaintiff and Defendant were married on December 6, 1960, in Newville, Pennsylvania. 5. There have been no prior actions of divorce or for annulment between the parties. 6. Neither of the parties in this action is presently a member of the Armed Forces. 7. The Plaintiff and Defendant are both citizens of the United States. 8. Plaintiff has been advised of the availability of marriage counseling and that she may have the right to request the Court to require the parties to participate in such counseling. Being so advised, Plaintiff does not request that the Court require the parties to participate in counseling prior to a divorce decree being handed down by the Court. COUNT I - DIVORCE 9. Plaintiff avers that the grounds on which the action is based are as follows: (a) That Defendant has offered such indignities to Plaintiff, the injured and innocent spouse, so as to make Plaintiff's condition burdensome and life intolerable; and (b) The marriage is irretrievably broken. COUNT II - EOUlTABLE DISTRIBUTION. INSURANCE POLICIES AND EXCLUSIVE POSSESSION OF MARITAL PROPERTY 10. During the marriage, Plaintiff and Defendant have acquired various items of marital property, both real and personal, which are subject to equitable distribution under Chapter 35 of the Divorce Code. II. There exists certain contracts or policies insuring the life of Defendant. 12. The said contracts or policies are vital to Plaintiff to insure her support, maintenance, and/or alimony, and other rights, and the support and maintenance of Plaintiff should the Defendant die. 13. The marital residence of the parties is located at 2075 Ritner Highway, Carlisle, Cumberland County, Pennsylvania. 14. It is appropriate that Plaintiff and the parties' disabled daughter, Tiffany Clouse, be permitted to have exclusive possession of the marital residence. COUNT III - ALIMONY. ALIMONY PENDENTE LITE. ATTORNEY'S FEES AND COSTS 15. Plaintiff lacks sufficient property to provide for her reasonable needs. 16. Plaintiff is unable to sufficiently support herself through appropriate employment. 17. Defendant has sufficient income and assets to provide continuing support for Plaintiff. 18. By reason of this aClion, PlaintiffwiIl be pul to considerable expense in the preparation of her case in the employment of counsel and the payment of costs. 19. Plaintiff is without sufficient funds to support herself and to meet the costs and expenses of this litigation and is unable to appropriately maintain herself during the pendency of this action. 20. Plaintiff's income is nol sufficient to provide for her reasonable needs and pay her attorney's fees and the costs of this litigation. 2 I. Defendant has adequate earnings to provide for Plaintiff's support and to pay her counsel fees, costs and expenses. WHEREFORE, Plaintiff requests this Honorable Court: a. Enter a decree of divorce; b. Equitably distribute all property, both personal and real, owned by the parties; c. Compel Defendant to pay alimony pendente lite to Plaintiff; d. Grant Plaintiff attorney's fees and costs; e. Compel Defendant to pay alimony to Plainliff; f. Compel Defendant to maintain unencumbered insurance contracts or policies for the benefit of Plaintiff, during the pendency of this action, and to order Defendant to permanently so maintain such policies thereafter; g. Pursuant to Section 3502(c) of the Divorce Code, award Plaintiff and the parties' daughter, Tiffany Clouse, the right to live in the family home for a reasonable period of time; and h. Grant such further relief as the Court may deem equitable and just. Respectfully Submitted: MARIA P. COGNETTI & ASSOCIATES Date: October 12,2001 By: 210 Grandview Avenue, Suite 102 Camp HilI, PA I70Il Telephone No. (717) 909-4060 Attorney for Plaintiff VERIFICATION I, CALENE M. CLOUSE, hereby verify and state that the facts set forth in the foregoing document are true and correct to the best of my informalion, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. ~4904 relating to unsworn verification to authorities. JL)r ~ CALENE M. CLOUS'E DATE: fO/fa/Of ('") 0 0 c: -n ::e- O :-;j uffi .-, ,.'"~ fTlrT'I ..... ':r-: Z:l.1 ----!fI"Il :z~.. -'J'-::) CI>. '. co ',)2.:> -<.c. r::G -0 :r:'~ '< ~8 ::x 2c) ~c ~ orrl C -l ~ ?D en -< J U') ~ 1 N ::) "" 8~ ;c e, g ~ Q.. 03 co :~U) d vi '.ri <:':12 c... ':J-- - L:t::Z -- "I ~ I- U)\5: .. ~ 0., U (0 cr- c::> ;;i "'- C) a ~ -S I' I: I I, I I Ii I I 1',1 II ! t ! 'i. Ii H I' ~ " :1 ;1 IJ 11 i I ,.1: ;," . !'i' I. ;i i: . ,I " II III if I ~, I ~. " :' II II Ii; ,:1 ,1 "j : ~ I ',i \ ~J I " I I j I 1.11 , I,. 1111 , 'I II i I I! , II i I, I . i II i I' III. . II.' I , I I! I I! I ' :. I' ,: : II,' , ill: I 'Ii.' I '. 'II Ii i " !' I II! . I' iI II,. I !Ii ; Iii I 'I' II' . Ii! II" il! ' 'I' 111I , 'I' I: II i I " . I' II! I ! 1.11.1 I ,. I : I I II'! Ii! I .1.' 'I' I I: , 1',' I ' ] i! II i I I' ,I : i I ',1 , II I Ii i 1 " .~ ,j ,I '1 'I : d r . j 'J I I 1 f ,I 'I, '! ,ji I 1 ,:1 , I' I f ~, ji ,i. .1 I j .j, f .1 i i I ',j I \\NTSB\FamiJy Law\Client DirectoryIClouse-C\Pleadinp\PetitiOll for Special Relief.wpd <Xtober 12,2001 MARIA P. COGNETTI & ASSOCIATES MARIA P. COGNETTI, ESQUIRE Attorney LD. No. 27914 210 Grandview Avenue, Suite 102 Camp Hill, PA 17011 Telephone No. (717) 909-4060 Attorneys for PlaintifflPetitioner CALENE M. CLOUSE, Plaintiff/Petitioner v. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYL VANIA ; NO. OJ. 5C}9':) ~ T........ 1. EDWARD CLOUSE, DefendantJRespondent CIVIL ACTION - LAW IN DIVORCE PETITION FOR SPECIAL RELIEF TO PREVENT DISSIPATION OF MARITAL ASSETS AND NOW, comes Plaintiff, Calene M. Clouse, by and through her attorney, Maria P. Cognetti, Esquire, and brings the following Petition for Special Relief 10 Prevent Dissipation of Marital Assets, and in support thereof, respectfully represents the following: I. Petitioner is the Plaintiff in the above-captioned divorce action and currently resides at 2075 Ritner Highway, Carlisle, Cumberland County, Pennsylvania. 2. Respondent is the Defendant in the above-captioned divorce action and currently resides at 2075 Ritner Highway, Carlisle, Cumberland County, Pennsylvania. 3. The parties are husband and wife, having been married on December 6, 1960. 4. A Complaint in Divorce is being filed simultaneously herewith. Said Complaint includes claims for inter alia, a divorce on the grounds set forth at 3301 (a)(6) and 3301(c) of the Divorce Code, equitable distribution of marital property, alimony, alimony pendente lite, and attorney's fees and costs. \\NTSB\Family Law\Client DirectoryIClouse-C\PJeadings\Petition for Special Relief.wpd October 12, 2001 5. During the course of the parties' marriage, the parties acquired assets, including real and personal property, which constitute marital property within the meaning and intent of the Pennsylvania Divorce Code and which are subject to equitable distribution. 6. At the time of separation, the parties' approximate net worth was twenty million Dollars. Of that amount Respondent holds approximately ten to fifteen million in his individual name. 7. On or about October 11,2001, a temporary Protection from Abuse Order was entered against the Respondent. 8. Respondent has always had a volatile temper and Petitioner believes and therefore avers that Respondent may, in an attempt to be vindictive, sell, remove or dissipate some of their marital assets. 9. Based upon statements made to Pelitioner by various individuals, Respondent is about 10 enter into a multi-million dollar deal to sell one of their properties. 10. Petitioner believes and therefore avers that should Respondent be allowed to enter into this deal without her consent or involvement, Respondent may conceal or dissipate the proceeds from the sale. 11. Petitioner believes and therefore avers that without her consent to any transaction Respondent may make, Respondent will conceal or dissipate assets. 12. Petitioner believes and therefore avers that Respondent should be required to obtain her written consent to all transactions and that all monies received from said transactions shall be placed in a joint escrow account which can only be accessed with the consent of both parties. 12. Pursuant to Section 3323(f) of the Divorce Code, the Court has". . . full equity power IINTSBlFamily LawlClienl Directory\Clou$e-ClPleadingslPetition for Special ReJief.wpd October 12,2001 and jurisdiction and may issue injunctions or otheT orders which are necessary to pTotect the interests of the parties or to effectuate the purposes of this part, and may grant such otheT Telief or remedy as equity and justice require. . .. " If Respondent is allowed to dissipate assets, PetitioneT believes she will suffeT irreparable harm and lose fOTever heT Tights to equitable distribution of marital property unless Respondent is enjoined from dissipating marital assets in his control. I3. The relief sought by Petitioner is necessary to protect her inteTests in the marital pToperty, effectuate the purpose of the Divorce Code, and is required by equity and justice. 14. Petitioner has no adequate Temedy at law. 15. Pursuant to Section 3505(a) of the Divorce Code "[w]here il appears to the court that a party . . . is about to remove property of that party from the jurisdiction of the court OT is about to dispose of, alienate or encumber property in order to defeat equitable distribution, alimony pendente lite, alimony, child and spousal support or similar award, an injunction may be [sic] issued [sic] to prevent the removal or disposition and the pToperty may be attached as prescribed by general rules. The court may also issue a writ of ne exeat to pTeclude the removal." WHEREFORE, PetitionerrespectfuIly requests this Honorable Court, based on the foregoing Petition for Special Relief to Prevent Dissipation of Marital Assets, enteT an OTdeT enjoining and \\NTSBlFamily Law\Clienl Dircctory\CJou5e-C\PlcadingslPetition for Special ReJief.wpd OcIoberl2,lOOI restraining Respondent from encumbering, dissipating, selling or otherwise alienating any and all marital assets of the parties. Respectfully Submitted: MARIA P. COGNETTI & ASSOCIATES Date: October 12,2001 By: 210 Grandview Avenue, Suite 102 Camp Hill, PA 17011 Telephone No. (717) 909-4060 Attorney for Plaintiff/Petitioner \\NTSB\Family Law\Client DirectorylCloll!e-c\Pleadings\petition for Special Relief,wpd 10112101 CERTIFICATE OF SERVICE I, Maria P. Cognetti, Esquire, Attorney for Petitioner herein, do hereby certify that on this date I served the foregoing Petition for Special Relief to Prevent Dissipation of Marital Assets by depositing a true and exact copy thereof in the United States mail, first class, postage prepaid, addressed as follows: 1. Edward Clouse c/o Clouse Trucking 2075 Ritner Highway Carlilse, PA 17013 Respectfully Submitted: MARIA P. COGNETTI & ASSOCIATES Date: October 12, 2001 By: 210 Grandview Avenue, Suite 102 Camp Hill, PA 17011 Telephone No. (717) 909-4060 Attorney for Plaintiff/Petitioner VERIFICATION I, CALENE M. CLOUSE, hereby verifY and state that the facts set forth in the foregoing document are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. 94904 relating to unsworn verification to authorities. c~?70us~ DATE: la/la/at ~ Q.. (0 rl .. nr ~ ~d- II .~ l~ ""'" ~" MARIA P. COGNETTI & ASSOCIATES MARIA P. COGNETTI, ESQUIRE Attorney I.D. No. 27914 210 Grandview Avenue, Suite 102 CampHill,PA 17011 Telepholte No. (717) 909-4060 Attorneys for Plaintiff CALENE M. CLOUSE, Plaintiff v. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 01- 5'195' ~ I..v-- J. EDWARD CLOUSE, Defendant CIVIL ACTION - LAW IN DIVORCE MOTION FOR HEARING AND NOW, comes the Plaintiff, Calene M. Clouse, by her attorney, Maria P. Cognetti, Esquire, and moves the Court to enter an Order setting the case for hearing and respectfully represents that: I. Plaintiff is Calene M. Clouse, who currently resides at 2075 Ritner Highway, Carlisle, Cumberland County, Pennsylvania. 2. Defendant is J. Edward Clouse, who currently resides at 2075 Ritner Highway, Carlisle, Cumberland County, Pennsylvania. 3. Contemporaneously with the filing of this motion, Plaintiffs attorney is filing a Complaint in Divorce. Said Complaint contains a Count for alimony pendente lite. 4. Based on Plaintiffs Complaint, she is requesling this Court schedule a conference on the issue of alimony pendente lite. WHEREFORE, Plaintiff prays this Honorable Court enter an Order setting this matter for conference. Respectfully Submitted: MARIA P. COGNETTI & ASSOCIATES Date: October 12,2001 By: 210 Grandview Avenue, Suite 102 Camp Hill, PA 17011 Telephone No. (717) 909-4060 Attorney for Plaintiff 2 VERIFICA T~ill! ! I i I, CALENE M. CLOUSE, hereby verifY and state thai the facts set forth in the foregoing I document are true and correct to the best of my inforJation, knowledge and belief. I understand , that false statemenls herein are made subject to the pellalties of 18 Pa. C.S.A. 94904 relating to I unsworn verification to authorities. ~ . >r~ CALEN M. CLOUSIr DATE: ! o/,a!O! CERTIFICATE OF SERVICE I, Maria P. Cognetti, Esquire, Attorney for Plaintiff herein, do hereby certify that on this date I served the foregoing Molion for Hearing by deposiling a true and exact copy thereof in the Uniled States mail, first class, postage prepaid, addressed as follows: J. Edward Clouse c/o Clouse Trucking 2075 Ritner Highway Carlisle, P A 17013 Respectfully Submitted: MARIA P. COGNETTI & ASSOCIATES Date: October 12,2001 By: " 210 Grandview Avenue, Suite 102 Camp Hill, P A 17011 Telephone No. (717) 909-4060 Attorney for Plaintiff I;/INV'/\1ASNN3d AlNnOJ O'V/7H:Ji]Wno rZ:Cl-ld 8/1JU /0 H.I\J,r"'OlLr'., .' i::; -10 l\ovJ......'/'l~ , \.,.'(,.J .~" '''' <wi 3Jljjo-O,fJi:l' CALENE M. CLOUSE, Plaintiffi'Petitioner IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA VS. CIVIL ACTION - DIVORCE J. EDWARD CLOUSE, DefendantIRespondent NO. 2001-5995 CIVIL TERM IN DIVORCE DR# 31140 Pacses# 617103944 ORDER OF COURT AND NOW, this 23,d day of October, 2001, upon consideration of the attached Petition for Alimony Pendente Lite and/or counsel fees, it is hereby directed that the parties and their respective counsel appear before R.J. Shaddav on November 29. 2001 at 9:00 A.M. for a conference, at 13 N. Hanover St., Carlisle, PA 17013, after which the conference officer may recommend that an Order for Alimony Pendente Lite be entered. NOTE: The support conference scheduled before Frank Goshorn on this date will now be heard by RJ Shadday. YOU are further ordered to bring to the conference: (I) a true copy of your most recent Federal Income Tax Return. including W-2's as filed (2) your pay stubs for the preceding six (6) months (3) the Income and Expense Statement attached to this order, completed as required by Rule 1910.11@ (4) verification of child care expenses (5) proof of medical coverage which you may have, or may have available to you IF you fail to appear for the conference or bring the required documents, the Court may issue a warrant for your arrest. BY THE COURT, George E. Hoffer, President Judge Mail copies on 10-24-01 to: Petitioner < Respondent Maria Cogoetti, Esquire L .I....t~ Date of Order: October 23, 200 I / ,.:,.", ,~_: 0"= YOU HAVE THE RIGHT TO A LAWYER, WHO MAY ATTEND THE CONFERENCE AND REPRESENT YOU. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU MAY GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIA nON 2 LIBERTY AVE. CARLISLE, PENNSYLVANIA 17013 (717)249-3166 .....' " .'., ~\ ' ' VINVA1ASNN3d AlNnoo ON'vll:J=J8VVn8 01 :'7 lid 12130/0 Al:f'tl.Ol'JD':i.,C;i,: !i it :10 ;:;~~'!:HCl-a.~jll::1 CALENE M. CLOUSE, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA v. CIVIL ACTION - LAW J. EDWARD CLOUSE, Defendant NO. 01-5995 CIVIL TERM ORDER OF COURT AND NOW, this 31't day of Oclober, 2001, upon consideration of Plainliffs Petition for Special Relief To Prevent Dissipation of Marital Assets, and following a telephone conference in which Plaintiff was represented by Maria P. Cognetti, Esq., and Defendant was represented by P. Richard Wagner, Esq., a hearing is scheduled for Thursday, January 3, 2002, at 1:30 p.m., in Courtroom No.1, Cumberland County Courthouse, Carlisle, Pennsylvania. PENDING the hearing or further order of court, (1) neilher party shall transfer or encumber marital assets without receiving full value therefor (Le., neither party shall give away any marital property) and (2) if marital property in the form of a capital asset is transferred or encumbered for value, the proceeds of such transfer or encumbrance shall be placed in an escrow account. BY THE COURT, f t VlNV^lASNN3d ALNnm Oh'\{1;~38i^in:J 'P~ . \' o .... ZS:IIWV l-r\ONIO J..I:1V lOi\Cic i1 '. ..: oJ 0 j:].-j~i{}-r.J:: Maria P. Cognetti, Esq. 210 Grandview Avenue Suite 102 Camp Hill, PA 17011 Attorney for Plaintiff P. Richard Wagner, Esq. 2233 North Front Street Harrisburg, P A 17110 Attorney for Defendant :rc CALENE M. CLOUSE, : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff, v. : NO: 01-5995 : CIVIL ACTION - LAW 1. EDWARD CLOUSE, : IN DIVORCE Defendant. PRAECIPE TO THE PROTHONOTARY: Please enter the appearance of the undersigned as counsel for the Defendant, J. Edward Clouse, in the above-captioned matter. Respectfully submitted, Mancke, Wagner, Hershey & Tully By:/ !! agner, Esquire J.D. #23103 2233 North Front Street Harrisburg, P A 17110 (717) 234-7051 Attorneys for Defendant Date: /()/,i/,/tJ/ , I 0 0 0 c: ;! ~ 0 ""0'-" n Ti nlrr: -l ;.- Z-,' W " Z~. l'::; ~''; ___.C) ej -V ':':_1 ~~~ 0<: J>c Zc5 '!? em >c: ~ ~ 5:J (,.) -< I I I i , I . CALENE M. CLOUSE, Plainliff v. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. ()/ - ..5996 CIVIL ACTION - LAW IN DIVORCE J. EDWARD CLOUSE Defendanl ANSWER TO PLAINTIFF'S COMPLAINT IN DIVORCE AND NOW comes the Defendanl, J. EDWARD CLOUSE, who files the following Answer 10 Plainliff's Complainl in Divorce as follows: 1-8. Admitted. 9. Denied. II is denied lhallhe Defendanl has offered such indignilies 10 Plainliff so as 10 render her life burdensome and inlolerable. II is further denied lhal Plainliff is an injured and innocenl spouse. Defendanl also denies lhat the marriage is irrelrievably broken. WHEREFORE, Defendanl requesls the court 10 dismiss the Complainl in Divorce. COUNT II - EQUITABLE DISTRIBUTION, INSURANCE POLICIES. AND EXCLUSIVE POSSESSION OF MARITAL PROPERTY 10. Admitted. However, il is specifically denied lhal equilable distribulion is applicable in lighl of the answers sel forth above of the Divorce Complaint. 11. Admitted. 12. Denied. II is denied lhal contracls and policies of insurance are vilallo Plainliff's support, mainlenance, and/or olher righls. 13. Admitted. 14. Denied. Defendanl denies il is appropriale for lhe Plainliff and lhe parties' daughler. Tiffany, 10 have exclusive possession of lhe marilal residence. WHEREFORE, Defendanl requesls lhe court 10 dismiss Counlll of Plainliff's Complaint. COUNT III - ALIMONY. ALIMONY PENDENTE LITE. ATTORNEY'S FEES AND COSTS 15. Denied. II is expressly denied Plainliff lacks sufficienl property 10 provide for her reasonable needs. 16. Denied. II is denied Plainliff is unable 10 support herself through employmenl in lhal she has received a check from Clouse Trucking, Inc. and conlinues 10 receive lhe same. 17. Denied. It is denied lhal the Defendanl has sufficient income and assets. It is further denied lhallhere is a support obligalion of lhe Plainliff. 18. Denied. II is denied lhallhis action is necessary and further denied lhallhe Plainliff should incur any considerable expenses for which she is unable 10 provide for herself. 19. Denied. II is denied Plainliff is wilhoul sufficient funds 10 support herself or meel her cosls and expenses of liligation. Moreover, a review of a verificalion signed by lhe Plainliff herein in lhe Pelilion for Special Relief, lhe Pelilioner averred lhallhe parties have a nel worth of Twenty Million ($20,000,000) Dollars which certainly provides more lhan ample wherewilhal to support herself and pay her counsel. 20. Denied. II is denied Plaintiff's income is nol sufficienllo provide for her reasonable needs and pay for her attorney's fees and cosls of liligalion. 21. Denied. II is denied thai Defendanl has adequale eamings 10 provide for Plainliff's support. II is further denied lhal he has an obligation for her support order, counsel fees, cosls or expenses. WHEREFORE, Defendanl requesls lhe court 10 dismiss Counllll of Plainliff's Complaint. Respectfully submitted, Mancke Wagner Hershey & Tully Dale: 10/23/01 P. 2 orth F ronl Slree! Harrisburg, PA 17110 717/234-7051 . VERIFICATION I verify lhallhe stalemenls made in the foregoing documenl are true and correcllo the besl of my knowledge, informalion, and belief. I undersland lhal false slalements herein are made subject 10 the penallies of 18 Pa.C.S. 94904 relaling 10 unsworn falsificalion 10 aulhorilies. ~~~AQ ~ . W RD LOUSE Dale: 1 0/23/01 CERTIFICATE OF SERVICE I, Debra K. Spinner, Secretary in the law firm of MANCKE, WAGNER, HERSHEY, & TULLY, do hereby certify that I am this day serving a copy of the foregoing document to the following persons and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing the same in the United States Mail, Harrisburg, Pennsylvania, with first class postage, prepaid, and addressed as follows: Maria P. Cognetti, Esquire 210 Grandview Avenue Suite 102 Camp Hill, PA 17011 By Dei~. ~.i~f~~retarY MANCKE, WAGNER, HERSHEY & TULLY 2233 North Front Street Harrisburg, PA 17110 P. Richard Wagner, Esquire Attorneys for Defendant DATE: jtJ!afl/tJ/ I / 0 rJ () ~ n c::'> --0 [;) n -'-', m rT; -t i-'" -, ~. ..r.," C W 1'1 Z .;:1 ~ , C.J r~ ,----, -=1 :s: .......' ""T) -', :.) "" ~ C; -- C') () ."':4 rn )> c: ~) 0 "-~ ~ 5 c.) -< ~ 12 (") ?-: ~:~ "~)~ :-")3 -<G :.-;-~~~ -':!1eL --.;,: "'3 :..J c.) C'..~ M ,.- t...' CJ ~ ci>- w ...J ~ ~ a :; ~ E ffi <( I- 'Z <[ ~ > ~ ~ ll.. II. > II.C> o ,>- l' ~ ~ww.~ 5~:r~~ u CJ) ('I ~ z a: ~ <[ <l: W ,~ ~J: . CALENE M. CLOUSE, Plainliff v. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. ()J- 59&:;6' J. EDWARD CLOUSE Defendanl CIVIL ACTION - LAW IN DIVORCE PRAECIPE TO THE PROTHONOTARY: Please issue a rule upon lhe Plainliff, Calene M. Clouse, 10 file a Bill of Particulars as il relales 10 lhe counl in divorce based upon 3301 (a) of lhe Divorce Code. Respectfully submitted, P. . gner 2233 North Fronl Slreel Dale: 10/23/01 Harrisburg, PA 17110 717/234-7051 agner Hershey & Tully And Now this October 31, 2001, a Rule is issued in accordance with above Praecipe. S:.~~:~= . CERTIFICATE OF SERVICE I, Debra K. Spinner, Secretary in the law firm of MANCKE, WAGNER, HERSHEY, & TULLY, do hereby certify that I am this day serving a copy of the foregoing document to the following persons and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing the same in the United States Mail, Harrisburg, Pennsylvania, with first class postage, prepaid, and addressed as follows: Maria P. Cognetti, Esquire 210 Grandview Avenue Suite 102 Camp Hill, PA 17011 By ~~~ Debra K. Spinn r, Secretary MANCKE, WAGNER, HERSHEY & TULLY 2233 North Front Street Harrisburg, PA 17110 P. Richard Wagner, Esquire Attorneys for Defendant DATE: /~/~~;fJI (") 0 (") C on ;;:: 0 --, vC:; n n-ILr: -l z.( W ZC (f)",. :::;., --, r:..c.:; ""i) ~C) - , -c' ?'~ 5> .' Cf? C ~ z :Ii =< (,) -< C') ~ c"': -, <( I_~ ::::::; - C)~ u_ 1~::1 ~:.J C'? ._s~ :~c :;;...:. ,.... c.:...1LU U '}_!Cl_ 0 ~ : , :-.J 0 C) 0 cr:>- W ...J Iii ~ Z ....J w..... <:J :> ~ " . <l: f-- ~ ~ ~ S c(j ~ a., . >-. " o. l' ~ ?; W W 6:ffi '3 ~ I ~!a (J (/) <'I ~ Z a: ~ <( <l: w "~ :?:I CALENE M. CLOUSE, Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 01-5995 CIVIL TERM J. EDWARD CLOUSE, Defendant : CIVIL ACTION - LAW : IN DIVORCE AFFIDAVIT OF ACCEPTANCE OF SERVICE I, P. RICHARD WAGNER, ESQUIRE, do hereby accept service of a true and correct copy oflhe Complaint in Divorce direcled to my client, J. EDWARD CLOUSE, Defendant in the above-captioned matter, pursuant to Pennsylvania Rule of Civil Procedure No. 402(b). DATE, ,/D'6/r ER, ESQUIRE (") 0 0 c -" .i. rp& :z: .._~ 0 ~ m <: ~"il~ _:0 l5S; N '-em '''5:' ~"'. ,.') 0 .""9- ~ " .' -., ~ i~ -n ~8 :::J:: :2!n >r;;:: ~ Om ,....j Z 0 35 =< Q) -< ORDERlNOTIC.!'JQ ~I:J;~'M~UlI!IU;QMiFOR SUPPORT ./JJfti:, ,(tJf J~'t?/I//L State Commonwealth of Pennsvlvania fJ~~fr lj>/'l/03'9t,/V Co./City/Dist. of CUMBERLAND ( ;e..S///yo Date of Order/Notice 11/29/01 M, .?~4 9 0&0/ Court/Case Number (See Addendum for case summary) /);o!;ES Y7/~:3 9-3{,:. J;e <8/1115 ) RE: CLOUSE, J E. ) Employee/Obligor's Name (last, First, Mil ) 175-30-2045 ) Employee/Obligor's Sodal Security Number ) 9349100864 ) Employee/Obligor's Case Identifier ) (See Addendum for plaintiff names associated with cases on attachmenV ) Custodial Parent's Name (last, First, MI) ) (E) Original Order/Notice o Amended Order/Notice o Terminate Order/Notice Employer/Withholder's Federal EIN Number CLOUSE TRUCKING INC EmployerlWithholder's Name 2075 RITNER HWY Employer/Withholder's Address CARLISLE PA 17013-9303 See Addendum for dependent names and birth dates associated with cases on attachment. ORDER INFORMA TION: This is an Order/Notice to Withhold Income for Support based upon an order for support from CUMBERLAND County, Commonwealth of Pennsylvania. By law, you are required to dedud these amounts from the above-named employee's!obligor's income until further notice even if the Order/Notice is not issued by your State. $ 793.00 per month in current support $ o. 00 per month in past-duesupport Arrears 12weeksorgreaterl Oyes (Xl no $ 0.00 per month in medical support $ 0 00 per month for genetic test costs $ per month in other (specify) for a total of $ 793.00 per month to be forwarded to payee below. You do not have to vary your pay cycle to be in compliance with the support order. If your pay cycle does not match the ordered support payment cycle, use the following to determine how much to withhold: $ 183.00 per weekly pay period. $ 366 00 per biweekly pay period (every two weeks). $ 396 50 per semimonthly pay period (twice a month). $ 793 00 per monthly pay period. REMITTANCE INFORMA TlON: You must begin withholding no later than the first pay period occurring ten (10) working days after the date of this Order/Notice. Send payment within seven (7) working days of the paydate/date of withholding. You are entitled to dedud a fee to defray the cost of withholding. Refer to the laws governing the work state of your employee for the the allowable amount. The total withheld amount, and your fee, cannot exceed 55% of the employee's/ obligor's aggregate disposable weekly earnings. For the purpose of the limitation on withholding, the following information is needed (See #9 on pg. 2). If remitting by EFT/EDI, please call Pennsylvania State Colledions and Disbursement Unit (SCDU) Employer Customer Service at 1-877-676-9580 for instrudions. Make Remittance Payable to: PA SCOU Send check to: Pennsylvania SCOU, P.O. Box 69112, Harrisburg, Pa 17106-9112 IN ADDITION, PA YMENTS MUST INCLUDE THE DEFENDANT'S NAME AND THE PACSES MEMBER ID (shown above as the Employee/Obligor's Case Identifier) OR SOCIAL SECURITY NUMBER IN ORDER TO BE PROCESSED. DO NOT SEND CASH BY MAIL. BY THE COURT: Date of Order: NaV 2 9 2001 MlULED SelVice Type M 1:J.4j-cJ/ OM8No.:0970-0154 Expiration Date: 12131/00 ~ ?VM.tE o m EN-028 Worker ID $IATT VlNVmJSNN3d AlNnm (1\!\flf:J:J8i^1nG ~,. .(" '.ld C..> - 'Ij-a~ 10 ';J;:I ",,1 ,-\ ,., v ~ J,/ .:20 ADDITIONAL INFORMATION TO EMPLOYERS AND OTHER WITHHOLDERS o If checked you are required to provide a copy of this form to your employee. 1. Priority: Withholding under this Order/Notice has priority over any other legal process under State law against the same income. Federal tax levies in effect before receipt of this order have priority. If there are Federal tax levies in effect please contact the requesting agency listed below. 2. Combining Payments: You can combine withheld amounts from more than one employee/obligor's income in a single payment to each agency requesting withholding. You must, however, separately identify the portion of the single payment that is attributable to each employee/obligor. 3.. Repoltil,g tL~ PArJctttJDa.tb u('.vitl,I,oldil,g. '.'otlllll;,jl l<:;;f.lVIl tin::; 1-'g,7datelda~ of n;tLI,vIJ;"l5 nl,~11 ~~I,J;'15ll,,=, payl,,~IIt. TI,t;;; paydatcldat!. of nitl,I,old;lIg;& ti,t;; dab:, 01. ul,id, Alllotll,t neB nill,I,<;;;IJ (,viII ti,l. 1.1IIplor~~'1. YYCJ.l5<:;;~' You must comply with the law of the state of the employee's1obligor's principal place of employment with respect to the time periods within which you must implement the withholding order and forward the support payments. 4. * Employee/Obligor with Multiple Support Holdings: If there is more than one Order/Notice to Withhold Income for Support against this employee/obligor and you are unable to honor all support Order/Notices due to Federal or State withholding limits, you must follow the law of the state of employee's/obligor's principal place of employment. You must honor all Orders/Notices to the greatest extent possible. (See #9 below) 5. Termination Notification: You must promptly notify the Requesting Agency when the employee/obligor is no longer working for you. Please provide the information requested and return a copy of this Order/Notice to the Agency identified below. WITHHOLDER'S ID: 2316492790 EMPLOYEE'S/OBUGOR'S NAME: CLOUSE. J E. EMPLOYEE'S CASE IDENTIFIER: 9349100864 DATE OF SEPARATION: LAST KNOWN HOME ADDRESS: NEW EMPLOYER'S NAME/ADDRESS: 6. Lump Sum Payments: You may be required to report and withhold from lump sum payments such as bonuses, commissions, or severance pay. If you have any questions about lump sum payments, contact the person or authority below. 7. Liability: If you fail to withhold income as the Order/Notice directs, you are liable for both the accumulated amount you should have withheld from the employee/obligor's income and other penalties set by Pennsylvania State law. Pennsylvania State law governs unless the obligor is employed in another State, in which case the law of the State in which he or she is employed governs. 8. Anti-discrimination: You are subject to a fine determined under State law for discharging an employee/obligor from employment, refusing to employ, or taking disciplinary action against any employee/obligor because of a support withholding. Pennsylvania State law governs unless the obligor is employed in another State, in which case the law of the State in which he or she is employed governs. 9. * Withholding Limits: You may not withhold more than the lesser of. 1) the amounts allowed by the Federal Consumer Credit Protection Act (15 U.S.c. 91673 (b)l; or 2) the amounts allowed by the State of the employee's/obligor's principal place of employment. The Federal limit applies to the aggregate disposable weekly earnings (ADWE). ADWE is the net income left after making mandatory deductions such as: State, Federal, local taxes; Social Security taxes; and Medicare taxes. 10. *NOTE: If you or your agent are selVed with a copy of this order in the state that issued the order, you are to follow the law of the state that issued this order with resped to these items. Requesting Agency: DOMESTIC RELATIONS SECTION 13 N. HANOVER ST P.O. BOX 320 CARLISLE PA 17013 If you or your employee/obligor have any questions, contad WAGE ATTACHMENT UNIT by telephone at (71 7) 240-6225 or by FAX at (7171 240-6248 or by Internet @ Page 2 of 2 Form EN-028 Worker ID $IATT SelVice Type M OMB No.: 0970.()154 Expiration Date: 12/31/00 ADDENDUM Summary of Cases on Attachment Defendant/Obligor: CLOUSE, J E. PACSES Case Number 617103944 / ?:111ft) Plaintiff Name I CALENE M. CLOUSE Docket Attachment Amount 01=5995 CIVIL $ 123.00 Child(ren)'s Name(s): DOB o It checked, you are required to enroll the child(ren) identified above in any health insurance coverage available through the employee's1obligor's employment. PACSES Case Number Plaintiff Name Docket Attachment Amount $ 0.00 Child(ren)'s Name(s): DOB o It checked, you are required to enroll the child(ren) identified above in any health insurance coverage available through the employee's1obligor's employment. PACSES Case Number Plaintiff Name Docket Attachment Amount $ 0.00 Child(ren)'s Name(s): DOB Oli~~~~ked, you are required to ~~;~I;;~e;~:I~(;~~) . identified above in any health insurance coverage available through the employee's1obligor's employment. SeNice Type M Addendum OMB No.: 0970.0154 ExpiratIon Date: 12/31/00 , 87H0393y3/f/C' PACSES Case Number Plaintiff Name CALENE M. CLOUSE Docket Attachment Amount 0086482001 $ 670.00 Child(ren)'s Name(s): T:J:l'l'AlrY .Il.. CL(lUSE.. DOB .o?f29/64 . .. .... .. . , ... n.. ". .... . .,.... '. .... ".'. ..,...... "." "." '.... ..... '". ," .n....' .. . ...... ,... . .... .,.... ".. .....'...,.,..... ."., .".'." ',".. ... '.,',"', ..... , .. ..,... .. . . Dlt~hecked, you are requir~d to~n;ollthechild(;~n)' identified above in any health insurance coverage available through the employee's1obligor's employment. PACSES Case Number Plaintiff Name Docket Attachment Amount $ 0.00 Child(ren)'s Name(s): DOB o It checked, you are required to enroll the child(ren) identified above in any health insurance coverage available through the employee's1obligor's employment. PACSES Case Number Plaintiff Name Docket Attachment Amount $ 0.00 Child(ren)'s Name(s): DOB :..':....".,..:,.:':..'.':"..:,..::.:..::.,::,.:':,...:':.'.':::::>'.'::',:",...'.:....,,:,.,::.,',',: ',::" . .'...'..... 'Olt ~"~cked, ;o~ ~;er~quir~d;o enroll the child(ren) . identified above in any health insurance coverage available through the employee's/obligor's employment. Form EN-028 Worker ID $IATT DR 31140 PACSES ID 617103944 CALENE M. CLOUSE, Plaintiff/Petitioner IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA vs. DOMESTIC RELATIONS SECTION CIVIL ACTION - LAW J. EDWARD CLOUSE, Defendant/Respondent NO. 2001-5995 CIVIL TERM ORDER OF COURT AND NOW, this 29th day of November, 2001, based upon lhe Court's determination that Petitioner's monlhly net income/earning capacity is $2,778.00 and Respondent's montWy net income/earning capacily is $3,857.86, it is hereby Ordered that the Respondent pay to the Pennsylvania State Collection and Disbursement Unit, $123.00 per month payable montWy as follows; $123.00 for alimony pendente lite and $O.OOon arrears First payment due. Arrears set at $. The effective date of the order is The retroactive arrears are to be paid in full within ten days upon receipl ofthe order. Payment may be made trhough the parites' couse! and reported to the DRO for credit. Failure to make each payment on lime and in full will cause all arrears to become subject to immediate colleclion by all of the means as provided by 23 Pa.C.S.9 3703. Further, if the Court finds, after hearing, that the Respondent has willfully failed to comply with this Order, it may declare the Respondent in civil contempt of Court and its discretion make an appropriate Order, including, but not limited to, commilment of the Respondent to prison for a period not to exceed six monlhs. Said money to be turned over by lhe P A SCDU to: Calene M. Clouse. Paymenls must be made by check or money order. All checks and money orders musl be made payable to PA SCDU and mailed to: PASCDU P.O. Box 69110 Harrisburg, PA 17106-9110 Payments must include lhe defendant's P ACSES Member Number or Social Security Number in order to be processed. Do not send cash by mail. ~~ VINVltlJ.SNN3d ALNnQJ C',I'/"i:!3::!iVnJ 95; :t!M :; - :'130 10 "'/Jr",..,. .....'. '.. '.' I\(jV..Ll,,'! '>U/," '_<.:'3 :/J:'do-!O-'C.3'//.J' :'0 Unreimbursed medical expenses that exceed $250.00 annually are 10 be paid 0% by the respondent and 100% by pelilioner. The petitioner is responsible to pay the first $250.00 annually in unreimbursed medical expenses. Respondent to provide medical insurance coverage. Within thirty (30) days after the entry oflhis order, the Respondent shall submit written proof that medical insurance coverage has been obtained or that application for coverage has been made. Proof of coverage shall consist, at a minimum, of: 1) the name of the health care coverage provider(s); 2) any applicable identification numbers; 3) any cards evidencing coverage; 4) the address to which claims should be made; 5) a description of any restrictions on usage, such as prior approval for hospital admissions, and the manner of obtaining approval; 6) a copy of the benefit booklet or coverage contract; 7) a description of all deductibles and co-payments; and 8) five copies of any claim forms. This Order shall become final ten days after the mailing of the notice of the entry of the Order to the parties unless either party files a written demand with the Prolhonotary for a hearing de novo before the Court. DRO: R. J. Shadday Mailed copies on /J-5"-()/ to < BY THE COURT, Petitioner Respondent Maria Cognetti, Esquire P. Richard Wagner, Esquire J. DR 31140 PACSES ID 617103944 CALENE M. CLOUSE, Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v. : DOMESTIC RELATIONS SECTION : CIVIL ACTION - LAW J. EDWARD CLOUSE, Defendant : NO. 2001-5995 CIVIL TERM DEMAND FOR HEARING DATE OF ORDER: November 29,2001 AMOUNT: $123.00 per month for alimony pendente lite FOR: Calene M. Clouse, Plaintiff REASON(S): 1. Hearing Officer erred in her calculation of Plaintiff s income 2. Hearing Officer erred in her calculation of Defendant's income 3. Hearing officer erred bv failing to attribute Defendant with an additional $348.826.00 of mcome PARTY FILING DEMAND FOR HEARING: Calene M. Clouse, Plaintiff MARIA P. COGNETTI & ASSOCIATES Date: December 10, 2001 By: ~ ~ / ) 't;Av L--/, v } 210 Grandview Avenue, Suite 102 Camp Hill, PA 17011 Telephone No. (717) 909-4060 Attorney for Plaintiff (") ~ [Rfh ?:.fJ 6jt;: ~;:-; ~:.... C. =::;: c; <:''''0 ""'c !j Q r::::, '-'1 '.J () ~ll - ..:::- ~J -~:-. ~ 'J: tv v. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW CALENE M. CLOUSE, Plainliff J. EDWARD CLOUSE, Defendant NO. 01-5995 CIVIL TERM IN RE: PLAINTIFF'S PETITION FOR SPECIAL RELIEF TO PREVENT DISSIPATION OF MARITAL ASSETS ORDER OF COURT AND NOW, this 28th day of December, 2001, upon agreement of counsel, the hearing previously scheduled for January 3, 2002, is continued generally. Counsel are requested to contact the court if they desire a hearing in this matter. BY THE COURT, Maria P. Cognetti, Esq. 210 Grandview Avenue t'TO~ ., \ Suite 102 f'-r ~ CampHill,PA17011 I.j}..J..<j'OI R Attorney for Plaintiff :9 P. Richard Wagner, Esq. 2233 North Front Street Harrisburg, PA 17110 Attorney for Defendant 0 0 0 C "11 ;s: C'7 -0 CD ", ~'J rnrn n Z:}' zc N .::_~o~ (J),t,:C: OJ :'T -<~~ ~:~~) !;":CJ -C, ',." " ~o '-.,--.,.-, -.,~. (;') ('") -- :1>0 N ern c:. --I ~ W ~ ..... -< :rc MARIA P. COGNETTI & ASSOCIATES MARIA P. COGNETTI, ESQUIRE Attorney I.D. No. 27914 210 Grandview A venue, Suite 102 Camp Hill, PA 17011 Telephone No. (717) 909-4060 Attorneys for Plaintiff CALENE M. CLOUSE, Plainliff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL V ANlA v. : NO. 01-5995 CNIL TERM J. EDWARD CLOUSE, Defendant CNIL ACTION- LAW IN DNORCE AFFIDAVIT OF SERVICE I, MARIA P. COGNETTI, ESQUIRE, do hereby certifY that a true and correcl copy of General Interrogatories First Set from Plaintiff to Defendant and Plaintiff s Request for Produclion of Do cum en Is were served upon the Defendanl by certified mail, return receipt requested, on the 31st day of December, 200 I. The original signed relurn receipt, number 7000 1530000257760575, is attached hereto and made a part hereof. Date: January 15, 2002 By: MARIA P. COGNETTI & ASSOCIATES ~~mE Attorney LD. No. 27914 210 Grandview Avenue, Suite 102 Camp Hill, PA 17011 Telephone No. (717) 909-4060 Attorney for P1ainliff Sworn to and sJ~bed before me this day Of.jQ.I\IAl1r~, 2002. fN~!~!t~ ..-. --.-..--.--....--...-:] r~~j~ioj::;-e:~"! ~ Keren A. Shef'.f'I., i\!()urv i"'..oblIc Harrlllb".!:. l's'.lI>",,:(;ounty My c.."lInI".' b.,'ll.1l:.I MoVl'l>!!. 20IlI ._ .a._____ . McD'itJr,'. ?ar~lVfIL\QJII~m HO(af'ltt ,..-".. I tot C;; SENDER: "CI . Complete items 1 and/or 2 for additional services. "iij . Complete items 3, 4a, and 4b. CI,) . Print your name and address on the reverse of this form so that we can return this ~ card to you. ~ . Attach this form to the Ironl of the mailpiece, or on the back if space does not f permit. . Wnle 'Return Receipt Requested" on the mailpiece below the article number. CI,) . The Return Receipt will show to whom the article was delivered and the date -= delivered. c o " S ~ Q. E 8 3. Article Addressed to: ~. Rid\o.xo. \.J.Jl~ ' ESC(lllVe, el'\c.l1llNo.qV'eYI*'(~~.wtlv..\\'j a No'/-\t1 Flon\- Sti ~ e,\- rYi~wq,OA nllD ~ x ... !!! PS ember 1994 I also wish to receive the following services (for an extra fee): 1. 0 Addressee's Address 2. 0 Restricted Delivery Consult postmaster for fee. 4a. Article Number ,; " .~ ~ '" '5. '0; " ~ \ a: c 4b. Service Type :; o Registered ~ Certified \ ~ o Express Mail 0 Insured g' PlAeturn Receipt for Merchandise 0 COD .~ 7. Date of De v, c 3 ( -Of : 8. Addresse 's Address (Only if requested ~ and fee is paid) i ~ .... 102595.98.6'0229 Domestic Return Receipt t I c c: ~m ~l! ~:2: ,;::0 ~o ~(j ~ .J' \ c. !"-~ () 47 " -:ry ~ 0 ~ 1,-> C- ;::! ~g; ",. Z r'li;1J Z~ N -om ~6 w -09 0 :--IQ ;.::: ",. r:...,'I ~8 :x 90 ':9 (3m ~ 't;! ~ .,.. :::0 N -< MARIA P. COGNETTI & ASSOCIATES MARIA P. COGNETTI, ESQUIRE Attorney I.D. No. 27914 210 Grandview A venue, Suite 102 Camp Hill, PA 17011 Telephone No. (717) 909-4060 Attorneys for Plaintiff CALENE M. CLOUSE, Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 01-5995 CIVIL TERM 1. EDWARD CLOUSE, Defendanl : CIVIL ACTION - LAW : IN DIVORCE CALENE M. CLOUSE, Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v. : DOMESTIC RELATIONS SECTION : CIVIL ACTION - LAW : PACSES ID 617103944 : NO. 2001-5995 CIVIL TERM J. EDWARD CLOUSE, Defendant CALENE M. CLOUSE, Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v. : DOMESTIC RELATIONS SECTION : CIVIL ACTION - LAW : PACSES ID 871103936 : NO. 00864 S 2001 J. EDWARD CLOUSE, Defendant MOTION FOR CONTINUANCE AND NOW, comes Plaintiff, CALENE M. CLOUSE, by and through her attorney, MARIA P. COGNETTI, ESQUIRE, and files the following Motion for Continuance and in support thereof avers as follows: 1. Plaintiff is Calene M. Clouse, an adult individual residing at 2075 Ritner Highway, Carlisle, Cumberland County, Pennsylvania. 2. Defendant is J. Edward Clouse, an adult individual residing at 2075 Ritner Highway, Carlisle, Cumberland County, Pennsylvania. 3. Plaintiff and Defendant were married on December 6,1960, and separated on October 11, 2001. 4. On or about October 18,2001, Plaintiff filed a Complaint for Divorce which contained a claim for alimony pendente lite. 5. On or about October 18,2001, Plaintiff filed a Complaint for Spousal and Child Support. 6. On November 29,2001, a conference was held at the Cumberland County Domestic Relations Office. 7. On November 29,2001, an Order was entered with regard to Plaintiff's request for alimony pendente lite and child support. 8. On or about December 10,2001, Plaintiff filed a Demand for Hearing with regard to said Order. 9. A hearing has been set for March 15,2002 and March 19,2002 before Michael Rundle, Support Master. 10. Plaintiff respectfully requests a continuance of this matter because she is not prepared to proceed due to the following reasons: a. On or about December 28,2001, Plaintiff's counsel and Defendant's counsel met with the parties' business accountant, Michael Devlin. At that time it was agreed that Mr. Devlin would instruct the parties' business manager to raise the income of Plaintiff to bring it equal with the income of Defendant thereby negating the need for spousal support/alimony pendente lite. During 2001 Defendant made approximately $105,000.00 from his salary alone. During 2002, Plaintiff is receiving a monthly pay check of $3,500.00 gross or $42,000.00 per year. b. During the meeting with counsel and Mr. Devlin, it was further agreed that certain documentation would be provided to counsel with regard to confirming the sources and amounts of income. No documentation has been received by Plaintiff. c. Plaintiff, on numerous occasions, attempted to contact Mr. Devlin concerning the promises made during their meeting. When Plaintiff's counsel was finally able to get Mr. Devlin on the telephone, she was advised that it was Defendant's counsel thai was holding up the process. When Plaintiff's counsel spoke with Defendant's counsel she was told that il was Mr. Devlin that was holding up the process. Each has continually said they would make all attempts to provide the requested documentation. At this point in time not one piece of paper has been turned over to counsel. d. On or about December 28, 200 I, Plaintiff served lengthy discovery requests on Defendant. To date her requests remain unanswered. e. Plaintiff cannot adequately prepare her case without the information sought in her discovery or without the information which was promised to her by the accountant. f. Plaintiff has been unable to hire her expert to perform a disposable income calculation without the information sought in discovery or which was promised by the accountant. g. Plaintiff is unable to provide any useful information to her counsel. Counsel believes that lhis may be due to current medical problems which counsel believes 10 be Major Depressive Disorder or Bipolar Disorder. Counsel is attempting to confirm this diagnosis at the present time. II. Plaintiff believes and therefore avers that Defendant and the accountant have deliberately mislead her about their intentions to resolve this situation. 12. Despite promises to do so, Defendant nor the accountanl have directed the parties' business manager to raise Plaintiff's salary to make it equal with Defendant's salary. 13. Plaintiff believes and therefore avers that the hearing in this matter should be continued until such time as she is in possession of all of requisite information. WHEREFORE, Plaintiff respectfully requests this Honorable Court grant her request for a continuance of the March 15,2002, and March 19, 2002 hearing. Date: March I, 2002 By: Respectfully Submitted: MARIA P. COGNETTI & ASSOCIATES ~ Attorney LD. No. 27914 210 Orandview Avenue, Suite 102 Camp Hill, PA l70ll Telephone No. (717) 909-4060 Attorney for Plaintiff VERIFICATION I, CALENE M. CLOUSE, hereby verify and state that the facts set forth in the foregoing document are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. ~4904 relating to unsworn verification to authorities. ci6?:1usj~ DATE: mo.rch I) .ADm \lNtsb\family lawlClient Direol:ory\Clouse-e\Pleadings\Molion for Continuance.wpd 3/1/02 CERTIFICATE OF SERVICE I, Maria P. Cognetti, Esquire, Attorney for Plaintiff herein, do hereby certifY that on this date I served the foregoing Motion for Continuance by depositing a true and exact copy thereof in the United States mail, first class, postage prepaid, addressed as follows: P. Richard Wagner, Esquire MANCKE, WAGNER, HERSHEY & TULLY 2233 North Front Street Harrisburg, PA l7110 MARIA P. COGNETTI & ASSOCIATES Date: March 1,2002 By: 210 Grandview Avenue, Suite 102 Camp Hill, PA 17011 Telephone No. (717) 909-4060 Attorney for Plaintiff >- q;; ;:::: &?0 , (:~) Cj L:;! c '.-. 1._ C) ,... N '>- ~ -:J ,~) ;;; ()? (J~ :-, (I) .-'12: LLZ 1.!.JLU UJa.. "'-;:"' .2: ::.) () r. 0... I C~" /&7";: "",,,'-. '" C) Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNlY, PENNSYLVANIA CALENE M. CLOUSE v NO. 01-5995 CIVIL TERM Defendant CIVIL ACTION - LAW IN DIVORCE J. EDWARD CLOUSE, ORDER AND NOW, this ~ay of t:e. L, . 2003, upon a PetiDon of J. Edward Clouse, for emergency relief, a Rule is hereby issued upon the Respondent Calene M. Clouse, to show cause why the relief as requested should not be granted. Rule Returnable the-P niav of. ~ ~ Court Room ~ at I: 3 () o'clock, p. fh . \o~~~2J\t~~ 2.3<:.- Pending further order of court, Resp6f1 . eRe M. Clouse, i& hereby enjoined from executing any titles to any vehicles owned by the parties, Clouse Trucking, Inc., or otherwise transferring any marital assets of the parties or Clouse Trucking, Inc.) (J<,6: ft ~ I k1 i v ? { '7 ~t e' ('" '"'Xl) ~ BY THE COURT: (f~ of! JUDGE ~p~~~ >~~~:7 ~~>P? ['t?~ . c=' fJ:/- t.. . t? ~ '\"\UI\l~Q"'\N3d '] r\i\J " . .Vl.-~ '--C('Mn'" I \ ~ Ir,rn (\~')'1 'i:~~~:C~' iv I\J-\~ 1_~' - "-3 j "0 \ 't:G Hd l- \:i .:J U \ I U\f' (y<;" '. AU' ",-V" ~ ,.., (\1"'\"1 '3~)\j:h.....~-'.,..:J ' -~ jO CALENE M. CLOUSE, Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 01-5995 CIVJL TERM J. EDWARD CLOUSE, Defendant : CIVIL ACTION - LAW : IN DIVORCE PRAECIPE TO WITHDRAW APPEARANCE TO THE PROTHONOTARY: Kindly withdraw my appearance on behalf of Plaintiff, Calene M. Clouse, in the Dated: ;2(5103 ~. Maria P. Cognetti squire Sup. Ct. 1.D. #27914 210 Grandview Avenue, Ste. 102 Camp Hill, PA 17011 (717) 909-4060 above-captioned matter. PRAECIPE FOR ENTRY OF APPI:ARANCE TO THE PROTHONOTARY: Kindly enter my appearance on behalf of Plaintiff, Calene M. Clouse, in the above-captioned matter. ~~ Dated: J//o/03 Laune A. Saltzgive , Es uire Meyers, Desfor, Saltzgiver & Boy e 410 North Second Street P.O. Box 1062 Harrisburg, PA 17108 (717) 238-9428 o c-: -r- ~~: ,-11.' . rn'~' Z :{-; 2~[ (f):;:L~,. -/ ~~~Cr- .~~ :',;:"~ t-i >c:: ?:i -< c) <.~) ., p'l IX) ".~{..i ~ .:.) \.:) '-~ :-l~ ::0 -< CALENE M. CLOUSE, Plaintiff : IN THE COURT OF COMMON PLEAS . : CUMBERLAND COUNTY, PENNSYLVANIA v. : DOMESTIC RELATIONS SECTION : CIVIL ACTION - LAW : PACSES ill 617103944 : NO. 2001-5995 CIVIL TERM J. EDWARD CLOUSE, Defendant PRAECIPE TO WITHDRAW APPEARANCE TO THE PROTHONOTARY: Kindly withdraw my appearance on behalf of Plaintiff, Calene M. Clouse, in the above-captioned matter. Maria P. Coguetti, sire Sup. Ct. LD. #27914 210 Grandview Avenue, Ste. 102 Camp Hill, PA 17011 (717) 909-4060 Dated: d. J ::; ( b ~ PRAECIPE FOR ENTRY OF APPEARANCE i nr'""l TO THE PROTHONOTARY: . . "'-) " , . ; ~ i I Kindly enter my appearance on behalf of Plaintiff, Calene 11. Clo]J~e~ in th~~ _.n co above-captioned matter. ~~ ~sa tIer, squire Meyers, Desfor, Saltzgiver & Boy 410 North Second Street P.O. Box 1062 Harrisburg, P A 17108 (717) 238-9428 Dated: 02/;0/03 () "[--5 ;(0 (') s:: <Jtt., ~~f.T .' 0] 2 ~~, ;0..: -j -~ , . 1_> -::'1 L'-} t"-i" [8 c..J W ." rT"l '::::0 o -n 1"\.) ...-.".-t c;..? :..v (N CALENE M. CLOUSE, Plaintiff v. J. EDWARD CLOUSE, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA CIVIL ACTION - LAV{ NO. 01-5995 CIVIL TERM DEFENDANT'S PETITION FOR EMERGENCY RELIEF ORDER OF COURT ANI) NOW, this 19TH day of February, 2003, upon agreement of counsel, the hearing previously scheduled in the above matter for M:ay 22, 2003, is rescheduled to Thursday, May 29, 2003, at 1 :30 p.m., in Courtroom No.1, Cumberland County Courthouse, Carlisle, Pennsylvania. ~aurie A. Saltzgiver, Esq. 410 N. Second Street Harrisburg, P A 17101 Attorney for Plaintiff ~ P. Richard Wagner, Esq. 2233 North Front Street Harrisburg, P A 17110 Attorney for Defendant :rc BY THE COURT, J. ;; t~~ ~R10 O;{~20-lJ3 . ,",JU~"\ \ ,"""1 \~ r-, \ "J\\~~l \ U"\~\"'ol\\'~:::S: ~ ,'" ,'''' \ ' ,( . M(\I"\ I !\I,lr.'~\' 1 ' "c', ,',',.,'rJ'i'l\ IV I'\.~\ '" ,;,." ," ....' 9 \ : \ \ H\j (fl U;::.U \:,j :~O CALENE M. CLOUSE PLAINTIFF IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. NO . 01- 5 995 PACSES NO. 617103944 J. E. CLOUSE DEFENDANT IN SUPPORT PETITION FOR MODIFICATION OF AN EXISTING SUPPORT ORDER 1. The petition of Calene M. Clouse respectfully represents that on November 29, 2001, an Order of Court was entered for the support of Calene M. Clouse. 2. Petitioner is entitled to an increase of this Order because of the following material and substantial change in circumstances: Defendant has interfered with Plaintiff's receipt of income from the parties jointly owned business. WHEREFORE, Petitioner requests that the Court modify the existing order for support. Respectfully submitted, Lauri MEYERS, & BOYLE Attorney I.D. #61382 410 North Second Street P.O. Box 1062 Harrisburg, PA 17108 (717) 236-9428 Attorney for Petitioner MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 DR 31140 PACSES ID 617103944 CALENE M. CLOUSE, Plain tiff /Peti tioner vs. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA DOMESTIC RELATIONS SECTION CIVIL ACTION - LAW J. EDWARD CLOUSE, Defendant/Respondent NO. 2001-5995 CIVIL TERM ORDER OF COURT AND NOW, this 29\h day of November, 200], based upon the C0U11's determination that Petitioner's monthly net income/earning capacity is $2,778.00 and Respondent's monthly net income/earning capacity is $3,857.86, it is hereby Ordered that the Respondent pay to the Pennsylvania State Collection and Disbursement Unit, $123.00 per month payable monthly as follows; $123.00 for alimony pendente lite and $O.OOon arrears. First payment due. Arrears set at $. The effective date of the order is. The retroactive arrears are to be paid in full within ten days upon receipt of the order. Payment may be made trhough the parites' cousel and reported to the ORO for credit. Failure to make each payment on time and in full will cause all arrears to become subject to immediate collection by all of the means as provided by 23 Pa.C.S.~ 3703. Further, if the Court finds, after hearing, that the Respondent has willfully failed to comply with this Order, it may declare the Respondent in civil contempt of Court and its discretion make an appropriate Order, including, but not limited to, commitment of the Respondent to prison for a period not to exceed six months. Said money to be turned over by the P A S<IDU to: Calene M, Clouse. Payments must be made by check or money order. All checks and money orders must be made payable to P A SCDU and mailed to: PA SCDU P.O. Box 69110 Harrisburg, P A 17106-9110 Payments must include the defendant's PACSES Member Number or Social Security Number in order to be processed. Do not send cash by mail. Unreimbursed medical expenses that exceed $250.00 annually are to be paid 0% by the respondent and 100% by petitioner. The petitioner is responsible to pay the first $250.00 annually in unreimbursed medical expenses. Respondent to provide medical insurance Coverage. Within thirty (30) days after the entry of this order, the Respondent shall submit written proof that medical insurance coverage has been obtained or that application for coverage has been made. Proof of coverage shall consist, at a minimum, of: 1) the name of the health care coverage provider(s); 2) any applicable identification numbers; 3) any cards evidencing coverage; 4) the address to which claims should be made; 5) a description of any restrictions on usage, such as prior approval for hospital admissions, and the manner of obtaining approval; 6) a copy of the benefit booklet or coverage contract; 7) a description of all deductibles and co-payments; and 8) five copies of any claim forms. This Order shall become final ten days after the mailing of the notice of the entry of the Order to the parties unless either party files a written demand with the Prothonotary for a hearing de novo before the Court. DRO: R. J Sh1ll1day Mailed wpies on J'~'~ 1?/ to: < Petitioner Respondent Maria Co/:metti, Esquire p, Richard Wagner. Esquire BY THE COURT, J VERIFICATION I, Calp-np- C1011~P , verify that the statements made in this Petition for Modification of an Existinq Support Order are true and correct to the bes of my knowledge, information and belief. I understand that fals statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Dated: /~.i ~ ~IL~ ( X) Plaintiff Defendant MEYERS, DESFOR, SALTZGIVER & BOYLE . 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, pA 17108 (717) 236-9428 . FAX (717) 236-2817 CALENE M. CLOUSE PLAINTIFF IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. NO . 0 1 - 5 995 PACSES NO. 617103944 J. E. CLOUSE DEFENDANT IN SUPPORT CERTIFICATE OF SERVICE I hereby certify on this 21st day of February, 2003, that a copy of the foregoing Petition for Modification of an Existing Support Order was mailed, first-class, postage pre-paid to: P. Richard Wagner, Esquire Mancke, Wagner, Tully & Spreha 2233 North Front Street Harrisburg, PA 17110 MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 {;'> ~ v> "" ::> +- (J ~ ~:t}' ~~t ~;:: M.l-+~~ ,.' :.>'" " ~c! - c~~ ~ CJ b -- c'.':" -~ ~ C' (.L) -r, ~Tl ';:;0 C) -'1 i'",) y .. ~"1.. Sy f"V (:J .-.. ' :::J -< CLENE M. CLOUSE, Plaintiff/Petitioner IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA VS. CIVIL ACTION - DIVORCE J. E. CLOUSE, Defendant/Respondent NO. 2001-5995 CIVIL TERM IN DIVORCE Pacses# 617103944 ORDER OF COURT AND NOW, this 18th day of March, 2003, a petition has been filed against you, 1. E. Clouse, to modify an existing Alimony Pendente Lite Order. You are ordered to appear in person at the Domestic Relations Section, 13 North Hanover Street, Carlisle, Pennsylvania, on April 15, 2003 at 9:00 A.M., for a conference and to remain until dismissed by the Court. If you fail to appear as provided in this Order, an I Order of Court may be entered against you. You are further ordered to bring to the conference: (1) a true copy of your most recent Federal Income Tax Return, including W-2's as filed (2) your pay stubs for the preceding six (6) months (3) the Income and Expense Statement attached to this order, eompleted as required by the Rule 1910.11. (4) verification of child care expenses (5) proof of medical coverage which you may have, or may have available to you IF you fail to appear for the conference or bring the required documents, the Court may issue a warrant for your arrest. Copies mailed 3-25-03 to:< BY THE COURT, George E. Hoffer, President Judge Petitioner Respondent Laurie Saltzgiver, Esquire P. Richard Wagner, Esquire Date of Order: March 18, 2003 ,', "'L /j", ,.' ~ Q. ' "m ~daY' COnfc<ence:"cc< YOU HAVE THE RIGHT TO A LAWYER, WHO MAY ATTEND THE CONFERENCE AND REPRESENT YOU. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU MAY GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIA nON 2 LIBERTY AVE. CARLISLE, PENNSYLVANIA 17013 (717) 249-3166 () 1:..">/0 . (') r- ....' i." cti !, 7' (J) , -< ...~ r::; ',,' ~~ ):~ ~::1 r,:} -~ ':.;;0 .,.._,-J ,-'..) (".f; UD .-'- 1''':' r.- CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. NO. 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - LAW IN DIVORCE PLAINTIFF'S ANSWER TO PETITION FOR EMERGENCY RELIEF AND NOW, comes Respondent/Plaintiff, Calene M. Clouse, by and through her attorneys, Meyers, Desfor, Saltzgiver & Boyle and files the following Answer to Petition for Emergency Relief and in support thereof avers as follows. 1. No answer required. 2. No answer required. 3. Admitted in part and ?enied in part. It is admitted that the marital residence and offices for Clouse Trucking Inc., are located at 2075 Ritner Highway, Carlisle, Cumberland County. It is further admitted that Clouse Trucking Inc. is owned by the parties as equal, fifty-fifty shareholders. However, it is denied that the Respondent/Plaintiff resides at 2075 Ritner Highway, as Respondent/Plaintiff vacated the marital residence on or about February 18, 2003. 4. Admitted. 5. Denied. Petitioner was well aware that the Respondent/Plaintiff was removing her furniture and personal items from the marital residence prior to the parties return from Arizona. Furthermore, Respondent/Plaintiff removed only a portion of her personal MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 property as well as her furniture and furnishings and Respondent/Plaintiff has supplied a complete listing of all items taken. (See Exhibit "A") Respondent/Plaintiff moved all of the items into her new place of residence and did not dissipate, destroy or transfer any of the property. 6. Admitted, and by way of further answer, Respondent/Plaintiff removed the vehicle titles because Petitioner had repeatedly threatened to sell all of the trucks and vehicles and to dissipate the proceeds received therefrom. Respondent/Plaintiff returned all of these vehicle titles to the corporate office on or about April 2, 2003. 7. Admitted, and by way of further answer, Respondent/Plaintiff removed the vehicle titles because Petitioner had repeatedly threatened to sell all of the trucks and vehicles and to dissipate the proceeds received therefrom. Additionally, Respondent/Plaintiff returned all of the vehicle titles to the corporate office on or about April 2, 2003. Respondent/Plaintiff requests that neither party be permitted to transfer or sell any of the trucks or vehicles without the express mutual agreement of both parties. 8. Neither admitted nor denied. Proof thereof is demanded at time of trial. 9. Admitted, and by way of further answer, Petitioner can also 3 MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 execute and transfer titles by virtue of his position. Respondent/Plaintiff removed the vehicle titles because Petitioner had repeatedly threatened to sell all of the trucks and vehicles and to dissipate the proceeds received therefrom. Additionally, Respondent/Plaintiff returned all of the vehicle titles to the corporate office on or about April 2, 2003. Respondent/Plaintiff requests that neither party be permitted to transfer or sell any of the trucks or vehicles without the express mutual agreement of both parties. 10. Denied. Respondent/Plaintiff removed the motor vehicle titles to keep them in a safe place and to prevent Petitioner/Defendant ~rom selling the trucks and keeping the proceeds thereof, which the Petitioner had previously advised Respondent/Plaintiff that he intended to do. Respondent/Plaintiff returned the vehicle titles to the corporate office on or about April 2, 2003. 11. Denied. Respondent/Plaintiff has previously returned all vehicle titles to the corporate offices on or about April 2, 2003. Respondent/Plaintiff requests that neither party be permitted to transfer or sell any of the trucks or vehicles without the express mutual agreement of both parties. 12. No answer required, h~wever, Petitioner is well aware that Respondent/Plaintiff has moved her personal property and 4 MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 furniture and furnishings to her new home. Petitioner is well aware that Respondent/Plaintiff has never had any intention of dissipating any of this furniture, and has merely moved it into her new residence. Furthermore, Respondent/Plaintiff is agreeable to providing a list of furniture and furnishings which she has removed from the marital residence. (~ee attached Exhibit "A") 13. Admitted, by way of further answer, Petitioner also has access to said accounts and assets. The Court has previously issued an Order entered on October 31, 2001 which prohibits the dissipation of marital assets and any additional order is frivolous and unnecessary under these circumstances. WHEREFORE, Respondent/Plaintiff requests this Honorable Court deny Petitioner's Petition for Emergency Relief. Respondent/Plaintiff requests this Honorable Court issue an order which provides that neither party can transfer or sell any of the trucks or vehicles without the express mutual agreement of both parties. PLAINTIFF'S COUNTER-PETITION 14. Paragraphs one through thirteen of the Petition for Emergency Relief are incorporated by reference as if fully set forth herein. 15. The parties and their counsel attended a Domestic Relations MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236.9428 . FAX (717) 236.2817 Conference on April 15, 2003. At that conference, counsel for Plaintiff advisea Defendant's counsel that Respondent/Plaintiff had returned the vehicle titles to the corporate office on or about April 2, 2003. 16. Respondent/Plaintiff has incurred counsel fees in responding and defending herself against Petitioner's Petition for Emergency Relief, which is wholly unnecessary, frivolous and filed for purposes to harass Petitioner. 17. Respondent/Plaintiff requests that Petitioner/Defendant be ordered to reimburse her for her counsel fees, costs and expenses incurred in defending herself against the Petition for Emergency Relief. WHEREFORE, Respondent/Plaintiff requests this Honorable Court order Petitioner to pay her counsel fees, costs and expenses in defending herself against this Petition for Emergency Relief. Respectfully submitted, "\ Laurie A. a MEYERS, DESF & BOYLE Attorney I.D. #613 2 410 North Second Street P.O. Box 1062 Harrisburg, PA 17108 (717) 236-9428 Attorney for Respondent/Plaintiff 6 MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 FURNITURE WIFE REMOVED FROM MARITAL RESIDENCE 2 - French Provincial night stands (1 drawer) 1 - pine table round drop leaf 40" top (4 legs) 1 - pine night stand with drawer 1 - oak 3 shelf stand 19"x14" each shelf 1 - walnut stand or table top 17 1/211 4 legs 1 - oak umbrella stand 2 - child oak chair with wicker seat 1 - poplar or pine corner cupboard 1 top door 6 glass no drawer 1 - Dutch cupboard pine or poplar top door 9 glass no drawer married 1 - cherry settee 46" 1 - round foot stool (oak) 1 - round table painted brow~ 14" 1 - oak chair (new) 1 - oak and pressed cherry kitchen chair 1 - maple desk chair 1 - oak stool 1 - 1 door jelly cupboard (pine) 1 - oval maple coffee, table 1 - oval foot stool (new) 1 - cherry China closet arch top 2 doors 20 pieces of glass, 2 bottom doors 8 pieces of glass 1 drawer across bottom 1 - mahogany "what not" 4 shelves 1 drawer 1 - walnut Dutch cupboard top 2 doors 1 piece glass per door 3 drawers 2 bottom doors 1 - comb back chair different woods 1 - Windsor chair cherry (new) 4 - comb back cherry chairs (new) 1 - cherry table with drawer 59"x34" 1 - 15"x14" small cupboard painted green and orange with flowers 1 drawer 1 door 1 - glass curio French cabinet 3 glass mirror back 1 - painted cupboard bird feeder theme 31x19 1 door 1 - mahogany shaving stand 1 - Grandfather clock cherry Michael Strieby Greensburg 1 - walnut Victorian table oval white marble top 1 - Victorian what not corner stand 6 shelves 1 - walnut high chest 3 drawers over 2 over 4 1 - child's cherry high chair (new) 1 - Primitive painted table with 9" hole in top shelf 2 shelves 21x21 2 - 3 cushion sofas 1 - cherry settee 77" 24 arrow back 1 - pine corner cupboard 9 glass 1 top door, 2 bottom doors 1 - cherry chest of drawers graduated drawers inlaid fan corners 1 - pine corner cupboard blind doors 1 - cherry jelly cupboard 38x17 1 door 1 - round child table 1 - Clark spool cabinet walnut 6 drawers 1 - painted cupboard white with animals 7x14 new 1 - grain painted chest of drawers 2 drawers over 3 1 - cherry clothes press 2 doors no glass over 3 drawers 1 - mahogany night stand 1 drawer in center. 1 - small pine blanket chest 14x25 1 - comb back Windsor ladies rocking chair 4 shelf "what not" stand painted wine wash stand painted with birds and cats 1 crow sunflower stand 2 drawer mahogany stand 18x24 new legs round table 31" walnut high chest 3 over 2 over 5 painted wash stand tan fruit and nuts walnut chest of drawers 2 over 3 walnut table 1 drawer 26x~0 cherry chest of drawers 4 graduated cherry high post bed queen size (new) maple night table 1 drawer watch cupboard painted 2 top doors 6 glass each 3 drawers over 2 doors refinished kitchen cupboard poplar hanging oak cupboard 24x18 hanging yellow pine corner cupboard 8 pieces glass primitive tavern table 2 shelf water bench wooden child barber chair tall wooden chair painted awful green Victorian white marble turtle top table walnut chest on chest top 3 over 3 bottom 3 drawers poplar rocking chair cane (seat new) walnut or mahogany high boy top center drawer with fan 2 drawers on sides of center drawer 4 long drawers below bottom 1 center fan drawer 1 drawer on each side of fan drawer green painted ladies rocking chair oak book case 1 piece glass front 24x51 walnut child round table children's Sunday school chairs ladies maple rocker with cane seat arm chair rocker (new) pine chest of drawers 4 walnut Victorian chest of drawers 3 white marble top child's high chair (pine) Ladder back petticoat maple rocking chair (reed seat) bow front walnut chest of drawers 4 ladies walnut cane seat and back rocker child rocking chair painted red (new) painted small 20x12 chest with birds on tree red ribbon (new) 1 - child chair cane back and seat 1 - stool mahogany woven seat fine rope 1 - hanging cupboard 2 doors 24x5 30" long 1 - pair stained glass side lights Miscellaneous stained glass windows Miscellaneous pictures Miscellaneous small items Miscellaneous "what nots" Miscellaneous lamps Tin chandelier Personal property 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 4 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - VERIFICATION I, Calene M. Clouse , verify that the statements made in this Plaintiff's Answer to Petition for Emergency Relief are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. ~.dz7t; ~ . ......... Dated: May 28, 2003 (X) Plaintiff Defendant MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 ~.....~..." ............. ............... r-" " ,.... ~..., "'........ ............ CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. NO. 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - LAW IN DIVORCE CERTIFICATE OF SERVICE I hereby certify on this 28th day of May, 2003, that a copy of the foregoing Plaintiff's Answer to Petition for Emergency Relief was mailed, first-class, postage pre-paid to: P. Richard Wagner, Esquire Mancke, Wagner, Tully & Spreha 2233 North Front Street Harrisburg, PA 17110 7 MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 (") 0 () C <.....:;. ." ~ :~ :~ -0 CiJ ':iiM mn' ,,' ::! z :X) < "1 Zr' j",' '1 S!.~~, :_i --,. OJ '--,,.. , ~CJ '"I 0 .'1); ,:~=H Pc :.1: ZC< :':.1~ >c i'v Z --'-I :.n ):> =< :0 -< CALENE M. CLOUSE, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW' J. EDWARD CLOUSE, Defendant NO. 01-5995 CIVIL TERM DEFENDANT'S PETITION FOR EMERGENCY RELIEF ORDER OF COURT AND NOW, this 29TH day of May, 2003, upon consideration of the attached letter from P. Richard Wagner, Esq., attorney for Defendant, the hearing previously scheduled for May 29, 2003, is cancelled. BY THE COURT, J. Laurie A. Saltzgiver, Esq. 410 N. Second Street Harrisburg, P A 17101 Attorney for Plaintiff P. Richard Wagner, Esq. 2233 North Front Street Harrisburg, P A 17110 Attorney for Defendant '~ ~ 5,,~2.9~O~ ~~. :rc r"" "" '. r V'l"NA1,l.,SNN3d "I' ~\Int"')'i, '-ff-,r"llu:J8IA1n"'l - \, J"ll 1\ '-! '. I. ',' C...;.... Y1r "J is :tH!d 6Z AVW 80 ^bVWr'iO.~;lU;::>j .JHl .:10 3JL1!O-G~ril:l LAW OFFICES MANCKE. WAGNER 8: SPREHA 2233 NORTH FRONT STREET JOHN B. MANCKE P. RICHARD WAGNER EDWARD F. SPREHA, JR. HARRISBURG, PA 17110 PHONE (717) 234-7051 FAX (717) 234-7080 May 28, 2003 Sent Via Fax The Honorable J. Wesley Oler Cumberland County Courthouse One Courthouse Square Carlisle, P A 17013 Re: Clouse v. Clouse No: 01-5995 Dear Judge Oler: This letter will confirm that the undersigned, cotmsel for Mr. Clouse, and Laurie Saltzgiver, counsel for Mrs. Clouse, have reachc:xl an agreement regarding the hearing on May 29,2003, at 1:30 p.m. The hearing can be canceled. I will file a ~pe withdrawing the Petition. ,/'/ ,,/ Your attention is appreciated. ./ / ...t"'// PRW/dks cc: Laurie Saltzgiver, Esq. Mr. Ed Clouse CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. : NO, 01-5995 J, EDWARD CLOUSE Defendant CIVIL ACTION .. LAW IN DIVORCE PETITION FOR SPECIAL AND EMERGENCY RELIEF AND NOW, comes Petitioner/Plaintiff, Calene M, Clouse, by and through her attorneys, Meyers, Desfor, Saltzgiver & Boyle and files the following Petition for Special and Emergency Relief and in support thereof avers as follows, 1, Petitioner is Calene M. Clouse, and adult individual residing at 4 East Linden Drive Carlisle, Pennsylvania, (hereinafter "Wife"), 2, Respondent is Edward J. Clouse and adult individual residing at 2075 Ritner Highway, Carlisle, Pennsylvania (hereinafter "Husband"), 3. The parties were married on December 6, 1960, Wife filed a Complaint in Divorce on or about October 18, 200 I. 4. During the course of the marriage, the parties purchased a farm with Robert Line. Said farm is deeded in the names of Husband and Robert Line, Said farm is known as the Line Farm of approximately 130 acres in Middlesex Township, Pennsylvania (hereinafter "Line Farm"). 5. Wife has discovered that Husband and Mr. Line have obtained a purchaser for this farm property. Wife subsequently discovered that a contract for the sale of this MEYERS, DESFOR, SAlTZGIVER & BOYLE 410 NORTH SECOND STREET. P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) ~!36-2817 property was executed on August 25,2005 and the sale price is $3,000,000.00. (See attached Exhibit "A.") 6. Wife has advised Husband's counsel, Mr. Line, and the purchaser that she does not want to interfere in the sale of this property, however, she does want to protect her marital interest therein, (See attached Exhibit "8.") 7. Thereafter, Wife's counsel, Laurie A. Saltzgiver, Esq, contacted Husband's counsel, Richard p, Wagner, Esq, regarding this issue, Wife's counsel advised Husband's counsel that Wife did not wish to interfere with the sale of this property, however, she wanted input as to the ultimate disposition of the marital proceeds from the sale. 8. To date, Husband's counsel has not responded to Wife's counsel's request regarding Husband's proposed disposition of the parties' portion of the proceeds from the Line Farm. 9. Wife has no information regarding the amount of the expected proceeds to be realized from the sale of the Line Farm, 10. Husband's interest in the Line Farm is a marital asset and subject to equitable distribution. 11. Despite the issuance of two prior Orders regarding the dissipation of marital property, See Orders of October 31,2001 and February 7, 2003. (Exhibits "c" and "0"), Husband has executed the contract for sale of the Line Farm and has failed to advise wife regarding this sale. 12. Wife brings the within Petition requesting that the proceeds from Husband's one half 4 MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 2:36-2817 interest in the sale of the property known as the Line Farm be placed in a joint escrow account unless otherwise specifically agreed upon by the parties. WHEREFORE, Wife requests this Honorable Court to issue an Order requiring that the proceeds from Husband's one half interest in the salt: of the property known as the Line Farm be placed in a joint escrow account unless otherwise agreed upon by the parties, Respectfully submitted, ~~~,,~g, Attorney LD, 61382 Meyers, Desfor, Saltzgiver & Boyle 410 North Second Street P.O, Box 1062 Harrisburg, PA 17108 (717)236-9428 Attorney for Plaintiff 5 MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET. P.O. BOX 1062 . HARRISBURG, PA 1710B (717) 236-9428 . FAX (717) 2:36.2817 REAL ES1,bTE SALES CONI'RACJ.' This Agfeement (the "Comract") is made lIl1II entered Into lIS of August 25, 2005 by and between ROBERT LINE aud ED CLOUSE (b~ rof"...d 10 lIS "Seller"), and GATOR DEVELOPMENT, LLC, its successor and/or usigas ("BU)W"). 1. OFfER. ~ IlgROs to purchase at a price of'I'b= Million Dollars ($3,000,000.00) ("P\JrQbue Price") Oll the tams """ for1h -ill, the following dc3cribed ~ In Middlesex Township, CUmberland CouJIty, P A: SpecffiqUy, all land and bl1ndlft~ as lega\ly d=ibed on Bddbit A, ....-me! herem md ir-npuldll.<L 2., EARNFSr MONEY DEPOSIT. Buyer sball remit a $20,000.00 JlClII-nfimdable deposit 1IpOII the re<;eipt of a fully ea=uted Agtwment C,he<einaflcr, "Elalculi0ll Pate"). Thia J.areement DIllY be signed in COOIIlerpEIs 8Dd .. fiIx sigoltQm ,SbaII be, de:emed an ori&ina1 RlgIlI'ft"".. SaId deposit sbaU be appliocl, m fWl,. 10 the final ~ . prioo, 'IbIs deposit tha11 be l'\d1mdable In the flVent tb&t Seller """"lJt ~ property to BU)"lI' It Closing by speoill1 .........t,Y deed, good ...d, IIIIIIb:table and Insurable as sw:II by a 1it1e iDsaranco eompany or companies of BlI)'Q"'s Rlection, free IID.d 11m of a1llieus (wIlh exception only of any1it1e ~0DlI approved by Bu,...). 3. lNVESTIGATIO~ l>nll'OD. Buyer sbaII have the right, far a period of30 days after d1<: Execull0I11)ato 10 perform its due dilig&lDCe with ~ to the propctty, im:1uding but not limited to ~ cngInoerin&. , enviroDmClltld md other sWd.ics, and to evaluate 1he phygical condition and eo:ooomil; prospecllI of tho jII"I"'.l]o a& woll as olher related JDattt;r. (h~ "Oiligeuoe Period"). BU)'OZ'sdue diJi&ellee will take into llCCOIlI1tZOlllllg, utilities, llOil condi1ion II1d state approvals for iIIgress ODd 1lgr=llS, as ,.,.ll asolhcr ~l<lpw~ W-. No llOil ofulurbam:c Q: driviog 1bnt fatlIImlpS is penuittecl. In the c:vem 1bat ~ is not fWIy ~ with the IlODdiIion orpl'OSpeCts of the t"upcrty. Buya- sbaII have the right, in Bll')'CI"S .ole aDd absol\llle ~ to tenoiDate 1hethis Agn:em0llt, by 'M'iIIz:o IIOIicc to Soller g!VllII on or before the ~ of the Dilipw:e Period, whcteupon 1lle pries sIraU be n:IC8l1ed and ~ of any and ell fimh...1iab1!ity or obligation under this Agreomont. 4. SETl'LJi'.Mlr.NT AND CLOSING. SetllfmCIl1 sball be held within (iO days after tbj e>q>ira1ioo oflhe Diligeoce Period lit the ofilges of Chelsea Settlement Servilles, !nO. Buyers ml)' not perform any soU 1lostS, lest borings, exClMltioa, or soU disturbance of any kind until fIm1 se:ulOlllClllt unless Seller pennils It in writing. SIllier shall p"y allllDCes levied as a result Of the removal of the properly from the CIClIII md GrccIl progIlIIL AlIl'Clll estate taxes for the CUttCDt tax yoar sbaII be ~"\,,idbd at Closing. Rea1ty Transti=r "IB:l<M shall be divided CYaI1y , between Buyer md Seller. Seller shall obtan final meter readings and pay all utilitias prior to Clo-in!:- Seller llIId Purclwcr shall beoIr their awi1 rospedivc closing costs llnQ. attorneys fees.. AU Pl'O-talio<w 8ball be final. Buyer, It Buyer's ,ole option, shaIl havo the right 10 request SCllttement o<x;ur prior to the time sohCllules set forth in 1his Ap=~ . 5. 'J'ElUtfB OF PAYMENT. The balance of the purchase prlco. Two Million N"me Hundred. aDd Eighty Thousand ($2,9&0,OQO.00) shall be by check, wire transfer, or any othllr torms to which both partiQS are In agreen=t lit !he time of sottiCInel1t and the llOIl\"'Y8Dce of a ~ pursuant to the terms llontained in this Agreement. Buyer is ~ of Seller's desire to use some of the ll8lClll proceeds in a "1031 Exchange" 8S pennitled by IRS and, to the extelIt possible. Buyer will COOpemte with SIllier to lIO<Xllllplish that goal. 6. ASSIGNMltNT. Buyer may not assign this Agreement to any other person or entity, with the exception ofa llOtpOl'ation with substllntia11y the same sh8reholders as Gator Dovelopment, u.c without tho Seller's wriIlen 00DlleIIt. Seller's COD$OIrt sbaU Dot be IIllI'easoIlabl withheld. In the ovont of an assignment, all terms of 1be <>rigina\ Agreement sballl"lOlllllin in full ful'lle and effect. . 7. CONli'mENI'IALITV. Thll panics shall keep tho oontents of this Agreement confidential and sMlI mt disclose its IlODtcnt to anyone other than its respective attomeys,accounlBntS, III1li ompl~. 8. DEFAULT. JftblaCoutrllCtIJ taminate4 wi:lhoutB~'s delimit, BuyerIII&)' cle\ltDithet (l)to~1IWl CoIltract IIId noccive tho: r:ctum of its EameIt MI:Juey or (Ii) pmlllC lhc mnedy of specific perfurDumco qaIast SelIfIr. If Buys- iWiults ~. then Seller sbaIl be CIItitled to t.......l.... 1hls CoDtnICl, iI1 wlIich evCDt 1hc , Bamest 1dcDey tball be rebdned by Seller IS Iiquidallld dmnagcs Illd as SeIler'a sole nmedy. In the CVCIIt Buyer 1..ltI..... Iitlpdim IgIIiIISt Seller fur lIpCCl!fm ~cc, Seller sbaD reimburse Buya- for Buyer's costs md ___ inoIvdlDc P1lSOIIlble attomey's fces cmIy if Buy<< is the prevallUlg~. Eel:h part)' shall give the otba- written lI01i.cc of any I!Ie$ed bRach or dc6w1t hmunder. except fur Buyao's :6d11l1'll to pay 1110 b81anoe of the ~ Pri.ce at the C\osiI1s. 1b alleged IWaultIng part)' shalllm.ve 1l:lI1 (10) dqs ftvm tho date of receipt of any IIlJCb I1OIIoe ofbmch or defimh ill which to ~ saicllnaoh or delilOlt. There sbaIl be no _ porlod for Buyets tiUlure toP'-)" the ~ of tho Pumhasc Price at the Closing. 9. MISr.Itl:.1 ..t.1\T1I'nus.. L ' The ~.afCommon PI~ ofC~ County, plIll1l hear.r$Y C\iS~ or D1isun~ roPfIIiDI the temls of 1hls Apomont, pursuaIlt to tho laws of the Commcnw...Jth ofPOIlIIS)'mma in elroot !lUbe tlDle of1l1o eueutiDnhcrcofand as they maybe ImOIlcIed subseque.a.tly. b. Thla A&t-.etlt embodlos tho adJn, IglWD1eD1 '*""- the parties, md there .... no oth<< 1I&f~ or 1lIIdentInt\ins om1 or wriIImI, l;.;tMlOl1 tho parties, except as =ited herein. c. TIme shall be of the -= oftlW AgRement and all of iflI conditiaDs or modificatiol!S. d. This Agruement shaU inure to ud be biDdIDg llpoQ the partie5 henlll> IIIId 1heU-lIlIccessors Illd ~ heirJ, ~ IlId admilIistraton. e. The fIil1llO of cilher part}' 11> ilIsist llpoll slrict emorCealent of my provision otthls Aateement sballllOt ~ .. wah= of tho right to eofOfllOlllellt oftbat proYisiml or of my other PIO\'iSioo. f. 'No mOdifi<:Btiml of this Asrocmeot sb&\I be bindiDg urn- aid modification is iI1 'Writiog IIIId cbdy IppI'OVed by SoIl..-1IIId Buyw. g; A real esbt.n.lOY~i fund c<<lSl3 to ~.. penon who bas obtained II tiDlIl oMlju4gmentapiat II Pem1s,ylwnia lWeasod fCI1 0BIlJle btoblr owing 11> fraud, mi...Q"~OIl or deceit in II n:al CiSlIIll tp............. IIDd who bas been 1III&ble to collect the .rwlll"'''''t afb::r ClXhaustiIlg legallllld equilabIe tlllDediea. DoIailo about tho fw14l1lll)'bo obtained by ealliDg tho PoansylV1ll1iabll&ta\$C.......:_:~ at (717) 783-3658. h, The plllties 1u:nIto aelcnowledge that there is no real estate broker involved In this V:amiaclian and 1bat therll is no roal -llOIllIlIisslon or fee due any parly in n:la1i.on to this trusactlon. IN WlTNESS WBEIU1:0F, tho parties hereto have hcrctmto set their handS and soals tho day aI1d yea rust above wrIIteb, intendiug to bo legally bound h_by. Date: ?-- 25> T Development Groop,lLC SELLER: By: ~6<L~ Robilrt Line Date: ?-:z..r-o!) ~1~A);1hA~ Ed Clouso Date:. R'- ~S' -t?S ',,," . :' .. '1re~~\'l~i',"" v ~If'l'i'l'l " . .1tD.ll\12.. " ~. d :z . ll.... ~.~. .~,~ ;:"'~ I . ~ .-. " ,....JII "ob"-:ll,, \ .11."C.l'~' ,. )8,4.n ~ '., ~ tn _ 'P - i~ .. 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I" I]" ~: !~i I.~ ""I,.. ..... >- ~,,:Il>in'':; ~:o ~C' I: ,z -II: ~fL";: !,io: .. ..F\-tj!: 1,.~' I' 'i: ~.. .~,~,;Sl ~i , r , ;: ~, ..~ ;~ ,~. , I ';0 '. ,_~.!.' J=< \ "...~...:t....o..v.,,\"r\ .c.tlt.~ J.LtUl....... '\ ~ . " _.J, . .:'- \. \~,l~~ ~d.. \ i .. .... E1( ,I', i(O_,\ ". 0-. \, \ ~,. }"", I;~ 'J., \. .........-;;) f\~\ 1';9= . O'r. ~ " ',1' .. \ i~t~ \Ji ; ::3""--;'. '"f''' \ \. ~~.-..." ;rI f \'" , <::" ". J ~I~ I \ ...... ..!\ =/'" '" v 0.. ~\ e 0 . "':I!' I ' Vl~ 1 .....;. ~ c nil if. -:-R';} .... '\ '" ill!lmfl ' "~: ...~;S::i.i\l JI" Iii .i~!l' \ \'~ , ;;~Jllf:;of , ~~L ~ ' ... \t i~l!fi~;~i \.~ )"'9--1.('<.,' .~ .: rl'-'::'i... ~ i y" '""',, ~ ~I . ~,,-. \~ ' 1 '" litl. ...:11 I .t-- !\.o !.Ij ~1i ,..c....-f.L(!f .l~.l:' :"'!s" .......~, ........, ,~, =. ~... ....... \ i ,.; i.i.i~ ' 1 Au.ebmCDt "A" continued Land \0 be llllmIe)'ed as per agreement Augll8t 25, 2005 Re$ldual of farm llOr1'I8)'8d by IRbeI M. AhI.c II \0 J. 5dWard CIouM and Robart A. Line Jr. dated 3-22-1&78 ~ Cumb8rtInd eo..rty CoIIrt House 27. S - 348 now c:on\aIns appl'CllClmalely 132 _ and lIfDne hoUIe , having been 8I.tlodMded Into e InIctS 01 ~ 7 -88, 2llllllfllll, 36 -. 42 w:res, 14 -.ancl,hoI-.wlth4acr.... N;. nlferredto in plen book 78, ~ 118, .heet 1 of3lnthe oIIloe of \he Cumberland County Re<:order of Dcleds. ~(J~~ ~~ -----....... LAW OFFICES MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET P.O. SOX 1062 I. EMANUEL MEYERS {1915-197Ql BRUCE D. DESPOR LAURIE A. SALTZGIVER CATHERINE A. BOYLE KELLY K. SMITH HARRISBURG. PA. 17108 (717) 236-9428 FAX (717) 236-2617 WE8SITE "N\^IW.meyersdestor.com EMAIL IsaltzgiverOmeyersdestor.com cboy1e@meyersdestOl'".com ksmith@meyersdesfor.com August 12,2005 Robert Line 2070 Ritner Highway Carlisle, PA 17013 Edward Clouse c/o: P. Richard Wagner, Esquire Mancke, Wagner, Tully & Spreha 2233 North Front Street Harrisburg, PA 17110 Gator Development Group, LLC c/o: Chris Zampogna 5 Saratoga Place Camp Hill, P A 17011 RE: The Line Farm Gentlemen: Please be advised that 1 represent Calene Clouse. the wife of Mr. Edward Clouse. Mrs, Clouse has requested that 1 advise you that 1 represent her regarding her interest in the property known as the Line Farm of approximately 130 acres in Middlesex Township, Pennsylvania, As Mrs. Clouse's interest in this property is a marital asset. she has requested that 1 protect her interest in that regard. Please be advised that Mrs, Clouse does not intend to stand in the way in the sale of this property, however, 1 am merely requesting that you keep me advi"ed oflhe status of the sale in light of my client's interest therein and her possible cloud on the deed to the property. Accordingly, please keep me advised and forward copies of any and all agreements and advise regarding any potential real estate settlement date, MEYERS, DESFOR, SALTZGIVER & BOYLE Thank you for your attention. I look forward to hearing frem you. LAS/elk cc: Calene Clouse Sincerely, '\ C-----" ~~i) ~ :....- (~ . . CALENE M. CLOUSE, Plaintiff IN THE COURT OF COlvlMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA v. CIVIL ACTION - LAW J, EDWARD CLOUSE, Defendant NO. 01-5995 CIVIL TERJ\1 ORDER OF COURT ------------------------ AND NOW, this 31st day of October, 2001. upon consideration of Plaintiffs Petition for Special Relief To Prevent Dissipation of Marital Assets, and following a telephone conference in which Plaintiff was represented by Maria P. Cognetti, Esq., and Defendant was represented by P. Richard Wagner, Esq" a hearing is scheduled for Thursday, January 3, 2002, at 1 :30 p.m" in Courtroom No.1, Cumberland County Courthouse, Carlisle, Pennsylvania. PENDING the hearing or further order of court, (1) neither party shall transfer or encumber marital assets without receiving full value therefor (Le., neither party shall give away any marital property) and (2) if marital property in the form of a capital asset is transferred or encumbered for value, the proceeds of such transfer or encumbrance shall be placed in an escrow account. BY THE COURT, T RUE COpy FROM RECORD !'1 Testimony wnereol, I here unto set my nand 'd the seal of said Court It can.sIe. Pa. I illS 1M- C)..; l13!t !!. ~ 02"" ( . 1.<. ~~,(~~. Prothonotary 02/10/2003 09:00 FAX 717 9094068 ~AR!A P COG~ETri IiIJ 002 (" , ,.. I Plain1iff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CALENE M, CLOUSE v NO, 01-5995 CIVIL TERM Defendant CIVIL ACTION - LAW IN DIVORCE J. EDWARD CLOUSE, ORDER ANDNOW,this 7#dayOf ~J , 2003, upon a Petition of J. Edwa-d Clouse, for emergency relief, a Rule is hereby issued upon the Respondent, Celene M, Clouse, to shOlV cause why the relief as requested should not be granted, Rule Returnable th~ .Pday of ~ ' 2003, Court Room l at J}>U o'clock, f.. rY\ \k>Tlt fPliZ-Tl ES A ~lZ Pencing furlJ1er order of court R=y,-" ,dl::IIL Cl!Jl",,~ M. Cloijse, is ~ereby enjoined from execllting any tiIes,to any vehicles owned by the parties, Clouse Trucking, Inc" or oltierIVise transferring any marital assets ofthepartiesorClouseTrucking,lnc') e"'i-Q.e.p+- '0,-\ 1YIu.t...o....\ A:r<'v",~ L ~ BY THE COURT: & (J,. ""kIJ c2d ,a. t' ' " JUDGE TRUE COPY FROM RECORD In Testimony whereof, I here unto sal my hand and the seal of said Court at Carlisle, Pa. This....?.........: day of ,~.,......( ~ ,4.L.A if. , ". .#.,......~?t ............C.7._.....c...~=:;ry ,,-:J" VERIFICATION I, Calene M. Clouse , verify that the of my knowledge, information and belief. I understand that fals statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Dated: 9/21/2005 ~.LL, )1 v/~ ( x) Plaintiff Defendant MEYERS, DESFOR, SALTZGIVEA & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 2:16-2817 CALENE M, CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. NO. 01-5995 1. EDWARD CLOUSE Defendant CIVIL ACTION- LAW IN DIVORCE CERTIFICATE OF SERVICE I hereby certify on this m day of 2005, that a copy of the foregoing Petition for Special and Emergency Relief was mailed, first-class, postage pre- paid to: P. Richard Wagner, Esquire Mancke, Wagner, Tully & Spreha 2233 North Front Street H~'~~lO Laurie A. Saltzgive , Attorney for Plaintiff 6 MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 o -;-; ....' (.."? ,? """, (/) p*l -0 N N ~ :?-n f11F:-. -08 ~xjl;) <":j(:") :j ?f;\ ;"-)1 ::::"'1 '" ~Q. S:I !,.1 v RECEI'/ED S[P 2 2 ~005 CALENE M. CLOUSE Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v, : NO. 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - LAW IN DIVORCE RULE TO SHOW CAUSE AND NOW, this zs!5 day of <'C r t . , 2005, a RULE is issued upon the Defendant, Edward J. Clouse, to show cause why the within Petition for Special and Emergency Relief should not be granted, Said Rule returnable at a hearing on the /7 M day of ()-t'~~ 2005 at 1" :t'o~.m, o'clock in Courtroom No, I BY THE COURT: J. ~Vl~~ 1 htj& 5'" A.U MEYERS, DESFOR, SALTZGIVEA & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 81 :8 Wd 92 d3S SGOZ A"tj\ii"\")',,\ i ('"lcJ :JHl :iO .'~.",-il..\..., r","d_,'_ ...II 3::)H:!O-G3l1:I CALENE M. CLOUSE, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v CIVIL ACTION - LAW 01-5995 CIVIL TERM J. EDWARD CLOUSE, Defendant IN DIVORCE IN RE: PETITION FOR SPECIAL RELIEF AND EMERGENCY RELIEF ORDER OF COURT AND NOW, this 17th day of October, 2005, upon consideration of Plaintiff's Petition for Special and Emergency Relief filed September 22, 2005, and pursuant to an agreement of counsel reached in chambers of the undersigned judge in the persons of Laurie A. Saltzgiver, Esquire, on behalf of the Plaintiff, and P. Richard Wagner, Esquire, on behalf of the Defendant, the hearing scheduled for this date in the matter is continued generally based upon counsel's understanding that a stipulated order will be submitted for the Court's signature respecting the matter at issue herein. By the Court, J. . Richard Wagner, Esquire 2233 North Front Street Harrisburg, PA 17110 For Defendant ~aurie A. Saltzgiver, Esquire 410 North Second Street P.O. Box 1062 Harrisburg, PA For Plaintiff CD ~ " " 1- '- i== u.. o , , o OJ? '"-::::j c_::."' <'-' - - CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v, NO, 01-5995 .J. EDWARD CLOUSE Defendant CIVIL ACTION - LA W IN DIVORCE STIPULATION FOR COURT ORDER The parties to the above-captioned action. Calene Clouse, (hereinafter "Wife") and J. Edward Clouse, (hereinafter "Husband") hereby agree and stipulate by and through their legal counsel, Laurie A Saltzgiver, Esquire, for Wife and, Richard Wagner, Esquire, for Husband as follows, Whereas, the parties were married on December 6, 1960 and Wife filed a Complaint in Divorce on October 18, 200 I, Whereas, Wife filed a Petition for Special and Emergency Relief on September 22, 2005, Whereas, said Petition for Special Relief was scheduled for a hearing on October 17, 005. Whereas, Husband wishes to sell his interest in the property known as the Line Farm ocated in Middlesex Township, Cumberland County, PA, Whereas, Wife has concerns about her marital interest in the Line Farm and in rotecting that interest regarding the sale of the Line Farm, MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 I S :2 (rid 8- AON 500Z Ab'\/JG";U~.L~:~;;~'d :JHl .::lO j')iJ3C1--(Eili.:J Therefore, the parties agree and stipulate as follows, 1. The parties have agreed and requested that the hearing on Wife's Petition for Special Relief be continued generally while the parties attempt to resolve the issue regarding the disposition of the proceeds of the property known as the "Line Farm". The parties acknowledge that Husband is a one-half owner of the property known as the Line Farm which is approximately 130 acres located in Middlesex Township, Cumberland County, Pennsylvania (hereinafter "Line Farm''). 2. The parties acknowledge and agree that the Line Farm is titled in the name of Husband and Robert Line, The parties acknowledge and agree that Husband's interest in the Line Farm is a marital asset. 3. The parties acknowledge that there is a contract for sale of the Line Farm for a total sale price of $3 million, The settlement on sale of the Linc Farm is scheduled to be on or before November 24, 2005. 4, The Clouse's expect to receive approximately $1,5 million dollars as a result of the sale of the Line Farm, 5. The pm1ies have reached an agreement to resolve Wife's Petition for Special Relief as follows: a, Husband shall keep the proceeds trom the sale ofthe Line Farm as his separate non-marital property, It is acknowledged that Husband intends to use the proceeds from the sale of the Line Farm in a 1031 exchange to purchase a property known as the Mercer Property, The parties acknowledge that they and their marital business, Clouse Trucking, lnc, currently rent the Mercer Property MEYERS, DESFOR, SAlTZGIVER & BOYLE 410 NORTH SECOND STREET. P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 and they have a first right of refusal to purchase the Mercer Property, Wife agrees that she will cooperate, if necessary, with Husband in the purchase of the Mercer farm in the form of a 1031 exchange as permitted by the IRS, Husband shall keep the proceeds from the sale ofthe Line Farm and any subsequent property obtained through the 1031 exchange or any other property or asset purchased with the money whatsoever. as his own separate non-marital asset. b. In exchange for Husband's receipt of the entire proceeds from the sale of the Line Farm, Wife shall receive a lump sum payment in the amount of $750,000,00, Husband shall make this lump sum payment to Wife from a source offunds which are not marital funds, This $750,000,00 payment and any asset or investment which Wife may make with this sum of money shall be Wife's own separate non-marital property, 6. The parties request that this Stipulation be entered as a Court Order. Laurie A. Saltzgiver, Attorney for Plaintiff /Richa ,gner. Esquire Attorney t()f Defendant BY THE COURT: ,(p ~(L 'IJ C - J. OV, '-\ I 2..o""~ P\ \,--5 MEYERS, DESFOR, SALTZGIVEA & BOYLE 410 NORTH SECOND STREET. P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v, NO, 01-5995 1. EDWARD CLOUSE Defendant CIVIL ACTION .. LAW lN D1VORCE PETlTION FOR SPECIAL REllEr. IN CONTEMPT AND FOR ADVANCE ON EQUITABLE DISTRIBUTION AND NOW, comes Plaintiff, Calene M, Clouse. by and through her attorneys, Meyers, Desfor, Saltzgiver & Boyle and files the following Petition for Special Relief, in Contempt and for Advance on Equitable Distribution and in support thereof as t()l\ows: I. Petitioner is Calene M, Clouse, Plaintiff in the above-captioned action (hereinafter "Wife"), 2. Respondent is 1. Edward Clouse. Defendant in the above-captioned action (hereinafter "Husband"), 3, The parties were married on December 6. 1960. 4. Wife filed a Complaint in Divorcc on October 18, 200 I, COUNT] CONTEMPT 5, Paragraphs one through four of the Petition for Special Relief, in Contempt and for Advance on Equitable Distribution are incorporated by reference as if fully set forth herein. 6. Despite the issuance of two prior Ordcrs prohibiting the dissipation of marital property, see Orders of October 31, 2001 and February 7, 2003. (Exhibits "A" and "13") Wife believes and avers that Husband has withdrawn funds li'om the cash value of a Pacific MEYERS, OESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET .. P.O. BOX 1062 .. HARRISBURG, PA 17108 (717) 236-9428 .. FAX (717\ ?"l.~_"p.~", Life Insurance policy which is a marital asset. 7. Wife believes that Husband has withdrawn approximately $1,038,000,00 from the cash value of a Pacific Life insurance policy without her knowledge or consent. (See Exhibit "C") 8. In light of Husband's withdraw of approximately $] .038.000.00 from the cash value of the Pacific Life insurance policy, Wile rcquests that this COUlt tind Husband in contempt of the Court Orders ofOctobcr 31, 2001 and February 7, 2003, WHEREFORE. Petitioner, Calene M, Clouse requests this Honorable Court find Husband in Contempt of the Court Orders of October 31,200 I and February 7, 2003. COllNT II ADVANCE ON EOUIT ABtl<: ]J]STRIBUTlON 9. Paragraphs one through eight of thc Petition for Special Relief, in Contempt and for Advance on Equitable Distribution arc incorporated by reference as if fully set forth herein, 10. The parties are the owners of approximately cleven farms and substantial pieces of real estate which are marital property, (See Exhibit "1)") II. The parties obtained a draft of a Family Limited Partnership Agreement (hereinafter "FLP"), According to said agreement, the parties would place the cleven farms in the Family Limited Partnership and Husband and Wife would each be one (1 %) percent general partners. They would each own ti.1rty-nine (49%) percent ofthe Limited Partnership interest. The proposed additional limited partners are the parties' two daughters, Heather Kutz and Vallery Clouse, The Family Limited Partnership MEYERS, OESFOR, SALTZGIVER &: BOYLE 410 NORTH SECOND STREET. P,O. BOX 1062 . HARRISBURG, PA 1710$ (717) 236-9428 . FAX (717\ 'J'lIUJO~'" Agreement has not been executed to date, 12. In the course of discussing the Family Limitcd Partnership Agreement, the eleven properties were transferred into the namc of the Family Limited Partnership. One of the properties transferred into the Family Limited Partnership was the "Stevens Farm" located at 329 Springtield Road, North Newton Township, Cumberland County, Pennsylvania, The Stevens Farm had previously been titkd in Wife's name alone, although it is admittedly a marital asset. Wi Ie did not anticipate that the "Stevens Farm" would be placed in the Family Limited Partnership, however, it was ultimately transferred to same. ]3, The parties discussed gifting a portion of their Limited Partnership interest to the parties'daughters, Wife indicated that shc did not wish to gift any of her Limited Partnership interest to the daughters at this point in time, However, Wife indicated that she was agreeable to Husband gifting a portion of his Limited Partnership interest provided that he took same as an advance on equitable distribution, (See Exhibit "E") 14. Subsequently, Wife discovered that Husband had, in fact, gifted thirty-one (31%) percent of his Limited Partnership interest to the parties' daughter, Heather Kutz, Husband did so without executing any documentation as required by Wife. 15. 23 Pa,C,S,A. ~3502(t) provides as follows. "I Plartial distribution.- The Court, upon the request of either party, may at any stage of the proceedings enter an Order providing for an interim partial distribution or assignment or marital property." 16, Wite believes and avers that Husband's transfer of thirty-one (31%) percent ofthe Family Limited Partnership to Heather Kutz was in effect an advance on equitable MEYERS. DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.o. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-?R11 distribution to Husband, Furthermore. Wife believes thai the removal of$I,038,000.00 from the life insurance policies, referenced in COl\l1t I ofthe within petition, is also an advance on equitable distribution to Husband. 17. In light of Husband's receipt of substantial funds and assets as an advance in equitable distribution, Wife requests that the Court award her an advance on equitable distribution. 18, Wife requests that the property known as ,.the Stevens Farm", previously titled in her name alone, be transferred from the Family Limited Partnership to her name alone, and that same be an advance on equitable distribution \0 her. 19. Wife requests that any taxes or transfer tees incurred through this transfer be paid by Husband. WHEREFORE, Petitioner, Calene M, Clollsc reqllests this Honorable Court award her the property known as the Stevens Farm and Ihal said property be transferred from the Family Limited Partnership to her name alone and that same be an advance on equitable distribution to her. Wife further requests that Husband be ordered to pay any and all fees, taxes and costs of transfer for same, COUNT III COUNSEL FEES 20. Paragraphs one through nineteen of the Petition ft)r Special Relief, in Contempt and for Advance on Equitable Distribution are incorporated by reference as ifJi.llly set forth herein. MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET. P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 21. Wife has incurred counsel fees in bringing the within Petition. 22. In light of Husband's actions in violating the Orders of October 31,2001 and February 7.2003, Wife requests that Husband be ordered to pay her counsel fees incurred in bringing this Petition, WHEREFORE, Petitioner, Calene M, Clouse, respectfully requests this Honorable Court find Husband in contempt and sanction Ilusband and order him to pay Wife's attorney fees incurred in bringing this Petition, Respectfully submitted. Lauric A ,'a t {(ve ,'Esq Atlorney LD, 6L, 2 Meyers. Dcsfor. Salt,~iver & 410 North Second Street 1',0, Box 1062 Harrisburg, PA 17108 (717)236-942X Attorney for Petitioner MEYERS, DESfOR. SALTZGIVER & BOYLE 410 NORTH SECOND STREET. P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 -- (' CALENE M. CLOUSE, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW rn NOV 02 2001 I~ _!~~I..:7LJU U L5tS -------- -..-...----.......... J, EDWARD CLOUSE, Defendant NO. 01-5995 CIVIL TERM ORDER OF COURT AND NOW, this 31st day of October, 200L upon consideration of Plaintiffs Petition for Special Relief To Prevent Dissipation of Marital Assets, and following a telephone conference in which Plaintiff was represented by Maria p, Cognetti, Esq., and Defendant was represented by p, Richard Wagner, Esq" a hearing is scheduled for Thursday, January 3, 2002, at 1:30 p.m" in Courtroom No.1, Cumberland County Courthouse, Carlisle, Pennsylvania. PENDING the hearing or further order of court, (J) neither party shall transfer or encumber marital assets without receiving full value therefor (i.e., neither party shall give away any marital property) and (2) if marital property in the form of a capital asset is transferred or encumbered for value, the proceeds of such transfer or encumbrance shall be placed in an escrow account. BY THE COURT, T RUE COPY FROM RECORD ! '1 Testimony wllemof, I here u/Tll) set my hand '<'I the seal cK said Coort It caru&le. Pa. ,i<lS /4..1-~ day!!.~ 02<-<;1 . /{. ~~~~. Prottlonotary EXHIBIT I nAil 02/IQ'Z003 09:00 FAX 717 9094068 JlAR 1.1. P COG~ETfL , ' Iii1 OG2 tr."-". ~ Plainliff IN THE COURT OF COMMON PLEAS CUMBERlAND COUNTY. PENNSYLVANIA CALENE M. CLOUSE v NO. 01-5995 CIVIL TERM Defendant CIVIL ACTION. LAW IN DIVORCE j, EDWARD CLOUSE, ORDER AND NOW, this 7""OayOf cV:.J , 2003, upon a Pettion of J Edwa-d Clouse, for emergency relief, a Rule is hereby issued upon the Respondent Calene M, Clouse, to show cause why the reiief as requested should not be granted, Rule Returnable the~ ,,{fday I)f ~ ' 2003, Court Room l at )'}CJ o'clock, f. r'Y\ iX>Ttt fPt{tTI ~S A (1..(' Pending further order of court R=~"'IJ;,IIL 0aI!,,~ M. CI(j~se. is hereby enjoined from executing any li1Iesto any vehicles owned by the parties, Clouse Trucking, Inc., or otherwise transferring any mama! assets oftheparliesorClouseTrucking,lnc) f"'i-e.<-r I:J,-\ MU.\...o-..\ A":{e-e.,.....~ L ~ BYTHE COUR: /J '); /1../ /' Is! (,k. ,:J~ ~f i:A. v v "JJDGE TRUE COpy FROM RECORD In Testimony whereof, I here 0010 sal my hand and the seal of said Coort at Carlisle, Pa. This,?.. day of ,(~...., ~ ..,........~..a-.....%.~~;;;y~ EXHIBIT I I liB" l '0 \ \ t ;; u.\ -0 o 0; l ~ ?,\ -; ~ ~ ~ oJ Eo , .. U1 ~ ::;.?,(a ';i '0 .... ~ ~ ~ ~ -i o t, : l, ~ ~ ~\ 'e ~ ~ ~\ - ~ i ~ ~ 1'. . ~ ~ ~t'" i r li\~\~ 1 \ r l' .. ~ ~ ~ \\\\~ \ 'il '5';.'" \ ~\\ it" ..... ~\ \ l \ ~ .. ...----. -' - - - ~ ... '" '" ~ -;; '" ~ ~ '0 -- 1 % l . . ..., EXH\Brr l~ li\ t !! .. o w ~ , Cl ~\ ---------------- AppraisalN alue 1. Blue Ball 75 Clouse Lane 3638 Division Highway $ ],100,000,00 2, Coover Farms 128 Spriugview Rd 965,000.00 3. Grantville Farm 67 Webster School Rd 587,50000 A King Farm #1 "1', 48 Mudlevel Rd King Farm #2 35 Mudlevel Rd 1,080,000,00 5, Stevens Farm 329 Springfield Rd 665,000,00 6, Craighead Farms 1698 Holly Pike 851,000,00 7, Smav & Wickard Farms 700 Newville Road 1,550,000,00 8, Shrewsburv 30 Plank Road ] 65,000.00 9, John George House 2085 Ritner Highway ]00,420,00 10, Chambersburg Farm Service 961-975 S, Main Street, Chambersburg ],500,000,00 11. Rosenberrv 1 Mi1kyvtay Drive, Shippensburg Purchased in name of FLP 5/2/05 159,000,00 ---~------ -------.--- $ 8,722,920,00 EXHIBIT I "D" LAW OFFICES MEYERS, DESFOR, SALTZGIVER 0. BOYLE: 410 NORTH SECOND STREET P.Q, BOX 1062. I. EMANUEL MEYERS (19(5-\970) BRUCE: D. DESF"OR LAURIE: A. SALTZGIVE:R CATHERINE A. aOYLE KELLY K. SMITH HARRISBURG, PA, 17108 (717) 236-9428 FAX (7l71 a~€-2eI7 WEBS1TE W'NW,meyersdesfor.com EMAIL lsaltzgiver@meyersdesfor.com cooyle@meyersdesfor.com ksmith@meyersdes~or.com December 22, 2003 VIA FAX & U.S. MAlL Michael Devlin, CPA Boyer & Ritter, CP As 141 W. High Street Carlisle, PA 17013 RE: Calene Clouse v.], Edward Clouse Dear Mike: I have received your fax today regarding the proposed gifting of Ed and Calene' s interest in the Family Limited Partnership to Heather. Please be advised rhat Caleo.e does not wish ro gift such a significant portion of her interest in the FLP to Heather at this lime, Additionally, Calene will only agree that Ed can gift a portion of his interest \0 Heather upon the following conditions: 1. Ed will be responsible for any tax incurred as a result of the gifting, ., Ed agrees that any interest which he gifts to elther of the girls will be charged to him as an advance on his portion of equitable distribution in the divorce action, Ed will agree to execute a written agreement indicating same, Additionally, Ihis agreement will also state that this advance on equitable distribution to Ed will not affect any marital distribulion to Calene, These are the terms upon which, and only upon which. Calene will agree to the gifting of any interest in FLP to either Heather or Vallery at this time, EXHIBIT I I liE II MEYERS, DESFOR, SALTZGIVER & BOYLE Thank you for your attention. ~:\\\ j ~ ~ Laurie l'i,~~gtr i'~ LAS/elk cc: Calene Clouse p, Richard Wagner, Esquire (via fax & D,S, Mail) Bruce Brown, CPA (via fax & D.S, Mail) VERIFICATION I, Calene M. Clouse , verify that the statements made in this Petition for Special Relief, in Contempt and for Advance on Equitable Distribution are true and correct to the bes of my knowledge, information and belief. I understand that fals statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Dated: 4/28/2006 ~( ,'/ ~ }4 l d~ (X Plaintiff Defendant I I I I I II MEYERS, DESFORf SALTZGIVER & BOYLE 410 NORTH SECOND STREET. P.O. BOX 1062 . HARRISBURG, PA 171Q8 (717) 236-9428 . FAX (717) 236-2817 CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v, NO, 01-5995 1. EDWARD CLOUSE Defendant CIVIL ACTrON - LA W IN DIVORCE CERTIFICATE OF SERVICE I hereby certify on this 28th of April, 2006. that a copy ofthe Petition for Special Relief. in Contempt and for Advance on Equitable Distribution was mailed, first-class, postage pre-paid to: P. Richard Wagner. Esquire Mancke, Wagner. Tully & Spreha 2233 N0I1h Front Street Harri.sburg. PA 17110 MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v, NO, 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - LA W IN DIVORCE PETITION FOR CONTEMPT AND ENFORCEMENT OF COURT ORDER OF NOVEMBER 4. 2005 AND NOW. comes the Plaintiff, Calene iv1, Clouse, by and through her attorneys, Meyers, Destor. Saltzgiver & Boyle and files the I'ollowing Petition tor Contempt and Enforcement of Court Order of November 4. 2005 and in support thereof avers as follows: I. Petitioner is Calene M, Clollse, Plaintiff in the above-captioned action (hereinafter "Wife"), 2, Respondent is J. Edward Clouse, Defendant in thc above-captioned action (hereinafter "Husband"). 3, The parties were married on December 6. 1960, 4. Wife filed a Complaint in Divorce on October 18.2001. 5. Wife filed a Petition for Special and Emergency Relief on September 22. 2005 regarding her concerns about her marital interest in the property known as the "Line Farn1". 6. The parties resolved Wife's Petition lor Special and Emergency Reliefthrough a Stipulation tor Court Order which becamc an Order of Court on November 4, 2005. (See Exhibit "A") MEYERS, OESFOR, SAllZGIVER & BOYLE 410 NO~TH SECOND STREET. P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717\ ?AA_?s:tn 7. Pursuant to said Court Order of November 4,2005. Husband was permitted to keep the funds from the sale of the Line Farm to use lor a 1031 exchange and Wife agreed to cooperate with same. Husband did, in lact, receive the parties' proceeds from the sale of the Line Farm and used them for a 1031 exchange with Wife's cooperation. 8. Pursuant to paragraph 5(b) of said Court Order, Husband was to make a lump sum payment in the amount 01'$750,000,00 to Wife, Husband has failed to make this $750,000,00 payment to Wife, 9. Wife through her counsel, has on numerous occasions requested Husband make the $750,000.00 lump sum payment to her. Husband has failed to make said payment. 10, Wife has sent correspondence on November 18.2005, December 6, 2005 and December 16,2005 to Husband, (See Exhibits "B", "C" and "D") Husband has responded on one occasion, (See Exhibit "E") However, Husband has failed to make the $750,000,00 payment to Wife to date, (See Exhibit "F") 11. Wife believes and avers that Husband is in contempt of the Court Order of November 4, 2005. 12. Wife requests this Honorable Court tind Husband in contempt of the Court Order of November 4, 2005 and Order Husband to pay her the $750.000.00 lump sum payment pursuant to said Stipulation and Order. Wire further requests that the Court find Husband in contempt and sanction Husband and Order him to pay Wife's attorney fees incurred in bringing this Petition, MEYERS, DESFOR. SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 WHEREFORE. Plaintiff. Calene M, Clouse requests this Honorable Court find Husband in contempt of the Court Order of November 4,2005 and Order Husband to pay her the $750,000.00 lump sum payment pursuant to said Stipulation and Order. Wife further requests that the Court find Husband in contcmpt and sanction I Ius band and Order him to pay Wife's attorney fees incurred in bringing this Petition, Respectfully submitted, \\~ C)' l~tzive.E Attorney l.D. 6 82 Meyers, DesioI', Saltzgiver & Boyle 410 North Second Street 1',0, Box ]062 Ilarrisburg, P A J 71 OS (717)236-9428 Attorney lor Plaintiff MEYERS, DESFOA, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v, : NO. 01-5995 1. EDWARD CLOUSE Defendant CIVIL ACTION - LAW IN DIVORCE STIPULATION FOR COURT ORDER The parties to the above-captioned action, Calene Clouse, (hereinafter "Wife") and J, Edward Clouse, (hereinafter "Husband") hereby agree and stipulate by and through their legal counsel, Laurie A Saltz giver, Esquire, for Wife and, Richard Wagner, Esquire, for Husband as follows. Whereas, the parties were married on December 6, 1960 and Wife filed a Complaint in Divorce on October 18, 2001. Whereas, Wife filed a Petition for Special and Emergency Relief on September 22, 2005. Whereas, said Petition for Special Reliefwas scheduled for a hearing on October 17, 005. Whereas, Husband wishes to sell his interest in the property known as the Line Farm ocated in Middlesex Township, Cumberland County, PA. Whereas, Wife has concerns about her marital interest in the Line Farm and in rotecting that interest regarding the sale of the Line Farm, EXHIBIT J IIAII & BOYLE . HARRISBURG, PA 17108 36-2817 410 NORTH S Therefore, the parties agree and stipulate as follows, 1. The parties have agreed and requested that the hearing on Wife's Petition for Special Relief be continued generally while the parties attempt to resolve the issue regarding the disposition of the proceeds of the property known as the "Line Farm". The parties acknowledge that Husband is a one-half owner of the property known as the Line Farm which is approximately 130 acres located in Middlesex Township, Cumberland County, Pennsylvania (hereinafter "Line Farm"), 2, The parties acknowledge and agree that the Line Farm is titled in the name of Husband and Robert Line. The parties acknowledge and agree that Husband's interest in the Line Farm is a marital asset. 3, The parties acknowledge that there is a contract for sale of the Line Farm for a total sale price of $3 million, The settlement on sale of the Line Farm is scheduled to be on or before November 24,2005. 4. The Clouse's expect to receive approximately $1,5 million dollars as a result of the sale of the Line Farm. ), The parties have reachd 0.11 agre~ment to resolve Wife's Petition for Special Relief as follows: a. Husband shall keep the proceeds from the sale of the Line Farm as his separate non-marital property, It is acknowledged that Husband intends to use the proceeds from the sale of the Lille Farm ill a 1031 exchange to purchase a property known as the Mercer Property, The parties acknowledge that they and their marital business, Clouse Trucking, lnc, currently rent the Mercer Property MEYERS, DES FOR, SALTZGIVER &. BOYLE 410 NORTH SECOND STREET. P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 and they have a first right ofrefusal to purchase the Mercer Property, Wife agrees that she will cooperate, if necessary, with Husband in the purchase of the Mercer farm in the form of a 1031 exchange as permitted by the IRS, Husband shall keep the proceeds from the sale of the Line Farm and any subsequent property obtained through the 1031 exchange or any other property or asset purchased with the money whatsoever. as his own separate non-marital asset. b. In exchange for Husband's receipt of the entire proceeds from the sale of the Line Farm, Wife shall receive a lump sum payment in the amount of $750,000.00, Husband shall make this lump sum payment to Wife from a source of funds which are not marital funds, This $750,000.00 payment and any asset or investment which Wife may make with this sum of money shall be Wife's own separate non-marital property. 6, The parties request that this Stipulation be entered as a Court Order. \ / Laurie A. Saltzgiver, s Attorney for Plaintiff /Richa' " gner, Esquire Attorr.ey for Defendant BY THE COURT """"'!J:<:: i"i'\, "Y c::".~\\A :(!:rf':"D ~ h ..... \.," , ",'.\v.,'tf'.-li.-."-,<-~'\. In T2S~~lmon\/ \!:';I~~')~' ! h:;r: ~~~,? set ~y hai1d er.c ,"e s~7\ " ~c'" \.(\1(: aAjrolslP" Po. ~;;i ~........'1...... ,~k....:....Q~...." . .....~IJ1...."f' rothonotary tl~aefl ( C1 ,- ], . jJov, '-\ l {DO:::' I' 1\ MEYERS, DESFOR, SALTZGlVER & BOYLE 410 NORTH SECOND STREET. P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 LAW OFFICES MEYERS, DESFOR, SALTZGIVER & BOYLE I. EMANUEL MEYERS (1915#1970) BRUCE D. DESFOR LAURIE A. SALTZGIVER CATHERINE A. BOYLE KELLY K. SMITH P. Richard Wagner, Esquire Mancke, Wagner, Tully & Spreha 2233 North Front Street Harrisburg, PAl 71 10 410 NORTH SECOND STREET P.O. BOX I06~ HARRISBURG, PA, 17108 (717) 236-9428 November 18. 2005 RE: Calene M, Clouse v. 1. Edward Clouse Dear Rich: FAX{7(7) 236-2617 WESSITE ~.meyersdesfor.CQm EMAJL lsaltzgiver@meyersdesfor.com cboyle@meversdestor.ccm ksmith@meversdesfor.com [ understand that settlement on the sale of the Line/Clouse farm has been set for Tuesdav, November 22, 2005, Please advise when my client ean expect to receive the $750,000,00 lump sum payment from your client pursuant to the Coun Order of November 4,2005, Thank you for your attention, I look forward to hearing from you. LAS/elk cc: Calene Clouse ~~k ~ \ I EXHIBIT I "RII LAW OFF!CES MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NO~TH SECOND STREET P.O. BOX 1062 I. EMANUEL.. MEYERS U915~1970) BRUCE D. DESFOR LAURIE A. SALTZG1VER CATHERINE A. SOYLE KELLY K. SMITH HARRISBURG, PA. 17108 (717) 236-9428 December 6. 2005 VIA FAX & D,S, MAIL p, Richard Wagner, Esquire Mancke, Wagner. Tully & Spreha 2233 North Front Street Harrisburg. P A 1711 0 RE: Calene M, Clouse v, J. Edward Clouse Dear Rich: FAX (717) 2.36-2.8\7 WES5lTE W'N\I~_meyersdesfor.com EMAlL lsaln:giver@meyersdesfor.com cboyle@meyersdesfor,com ksmltl'1@meyersdesfor.com I understand that the Clouse/Line fann settlement occurred on November 30. 2005. Pursuant to Ihe Court Order of November 4.2005. your client owes my client $750.000.00 as a lump sum payment in exchange for his retaining the Clouse' s portion of the funds from the sale of the property, Please advise when your client intends to make this lump sum payment to my client, I have previously inquired regarding this issue. Please advise as soon as possible, t, S,incereh. ~ \ . ~\lli\ Laurie A, Saltzgive\ \ LAS/elk cc: Calene Clouse EXHIBIT J "r" LAW OFFKES MEYERS, DESFOR, SALTZGIVER '" BOYLE 410 NORTH SECOND STREET P.O. BOX. 1062 \. EMANUEL-MEYERS (1915-1970) BRUCE D. OE:SFOR LAURIE A. SAL TZGIVER CATHE:RINE: A. BOYLE KELLY K. SMITH HARRISBURG. PA, 17108 (717) 236-9428 FAX (717) 236-2817 W(BS1TE www.meyersdesfor.com EMAIL Isato:giverOmeyersdesfor.com cbay(e@meyersdesfor.com ksmith@meyersdesfor.com December 16, 2005 VIA FAX & D,S. MAIL p, Richard Wagner, Esquire Mancke, Wagner, Tully & Spreha 223 3 North Front Street Harrisburg, PA 17110 RE: Calene M. Clouse v, 1. Edward Clouse Dear Rich: This is the second time Ihat I have \witten you regarding the S750.000,00 lump sum payment which is owed by your client to mine pursuant to the Court Order of November 9, 2005, 1 am aware that the Line farm closed on November 30. 2005, Please advise when your client intends to make the required payment to my client. If! do not hear from you by Wednesday, December 28, 2005 regarding this issue, I will be filing a Petition wilh the Court and requesting attorney fees and sanctions from your client Please get back to me regarding this issue. SinCere,IY. \ ,,' '~', / \ \\\\ 1~\i N, ~\j~\ 2\ I.' i La~'ie ~altZgi;'er' "'" LAS/elk cc: Calene Clouse EXHIBIT I liD II LAW OFFICES JOHN B. MANCKE P. RICHARD WAGNER EDWARD F. Sf'REHA. JR. MANCKE, WAGNER Be SPREHA 2233 NORTH FRONT STREET HARRISBURG. PA 17110 PHONE (717) 234-7051 FAX (717) 234-7080 December 30, 2005 Laurie A. Saltzgiver, Esquire 410 North Second Street P,O. Box 1062 Harrisburg, P A 17108 Re: Clouse Dear Laurie: As an update on the above-captioned matter, be advised that on December 28,2005, Mr. Clouse purchased an additional piece of property for purposes of the roll over of the proceeds from the sale of the previous farm in question. As you know, there is a 6 month period of time within which an ultimate decision has to be made for purposes of a 1031 roll over. My client is aware of your client's demand for $750,000.00 in cash, and he is in the process of obtaining the resources to be able to accomplish the same. Your attention is appreciated. Sincerely, P. Richard Wagner PRW/dks cc: Mr. Ed Clouse EXHIBIT I "E" LAW OFFICES MEYERS. DESFOR, SALTZGIVER & BOYLE 410 NORTH SECONQ STREET P.O. SOX 1062 1. EMANUEL MEYERS (\9\5-\970) 8RUCE Q. OE:SF"OR l.AURIE A. SALTZGlVER CATHERINE A. BOYLE KELLY K. SMITH HARRISBURG, PA. 17108 (717) 236-9428 FAX. (717) 236-2617 WESS1TE www.meyersdesfor.com EMAI\...lsaltzgrver@meyersdesfor.com cboyje@meysrsdesfor.Gom ksmith@meyersdesfor.com January] L 2006 p, Richard Wagner, Esquire Mancke, Wagner, Tully & Spreha 2233 North Front Street Harrisburg, PA ] 7] 10 RE: Calene M. Clouse v, J, Edward Clouse Dear Rich: I received your correspondence indicating that your elient is working on getting the $750,000,00 payment to my client and I thank you for same. Please provide me with more information regarding this payment including an indication as to when your client anticipates making this payment. Thank. you for your attention. Sincerelv, ~,~ill~4,~ LAS/elk cc: Calene Clouse EXHIBIT I nF" I VERIFICATION I, Calene.Clouse , verify that the statements made in this Petition for Contempt and Enforcement of Court Order of November 4, 200~re true and correct to the bes of my knowledge, information and belief. I understand that fals statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Dated: 4/28/06 /1 / ( 'x~'j::ai!i;f~L;~ Defendant MEYERS, OESFORj SALTZGtvER &: BOYLE 410 NORTH SECOND STREET .. P.O. BOX 1062 .. HARRISBURG. PA 17108 (7171236-9428 .. FAX (717) 236-2817 CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. NO. 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - I ,^ W IN DIVORCE CERTIFICATE OF SERVICE I hereby certify on this 28th day of April, 2006, that a copy of the foregoing Petition for Contempt and Enforcement of Court Order ofNovcmber 4.2005 was mailed, first-class, postage pre-paid to: P. Richard Wagner. Esquire Mancke, Wagner. Tully & Spreha 2233 North Front Street Harrisburg. l' A 1711 () 7 MEYERS, DESFOA, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 CALENE M. CLOUSE Plaintiff MAY 0 3 2006 t Y IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - LAW IN DIVORCE RULE TO SHOW CAUSE AND NOW, this ~day of ~ , 2006, a RULE is issued upon the Respondent, J. Edward Clouse, to show cause why the within Petition for Special Relief, in Contempt and for Advance on Equitable Distribution should not be granted. Rule returnable 2,,-0 days from date of service. BY THE COURT: J. MEYERS, DESFOR. SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 -fJN1io-~~~ . '/-.!"';C;,!A "n,.. S ' ., 'OY;I IV I "c /{a~ " Aw., $... ~YJl!QD, rt%/i(a ~:i't~~tliJ. :10 CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA y v. NO. 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - LAW IN DIVORCE RULE TO SHOW CAUSE AND NOW, this -3J day of ~ , 2006, a RULE is issued upon the Respondent, J. Edward Clouse, to show cause why the within Petition for Contempt and Enforcement of Court Order of November 4,2005 should not be granted. Rule returnable 1,.() days from date of service. BY THE COURT: J. MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 11 ^, V;MtI17~SNN3d '\.Uvr;OJ Qft.o/i/..,..,S ~fJ, '. /. r.. I 11'\ -.A V 9/ ,? 11<1 S~.{ tl1 fOol AWJ.o,No.H.iOW E/J I 301:J..-I~1:i ll: ;/() '\ CALENE M. CLOUSE, Plaintiff, v. J. EDWARD CLOUSE, Defendant TO: CaIene M. Clouse c/o Laurie A. SaItzgiver, Esquire 410 North Second Street P.O. Box 1062 Harrisburg, P A 17108 : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO: 01-5995 : CNIL ACTION - LAW : IN DNORCE NOTICE TO PLEAD You are hereby notified to plead to the within document within twenty (20) days after service hereof, or a default judgment may be entered against you. DATE: .5/rA'f/~(P . I Respectfully submitted, MANCKE, WAGNER & SPREHA .Ri . . #23103 2233 North Front Street Harrisburg, PAl 7110 (717) 234-7051 Attorney for Defendant CALENE M. CLOUSE, : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff, v. : NO: 01-5995 : CNIL ACTION - LAW J. EDWARD CLOUSE, : IN DNORCE Defendant. DEFENDANT'S ANSWER TO PETITION FOR CONTEMPT AND ENFORCEMENT OF COURT ORDER OF NOVEMBER 4. 2005 WITH NEW MATI'ER ANSWER AND NOW, comes the Defendant, J. Edward Clouse, by and through his attorneys, Mancke, Wagner & Spreha, and files the following Answer: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. Admitted. 7. Admitted, however, at this juncture, the 103 I exchange property in Maryland has not been finalized in that the Deed has not been properly deeded to H.V. Properties as is required. 8. Admitted in part, denied in part. It is admitted that it was anticipated there would be payment of approximately 50% of the sale price which was anticipated to be $750,000.00; however, the parties did not receive a total of$I,500,000.00. Moreover, Husband has made an advance to Wife of $1 00,000.00 by check number 334 on May 17,2006, which was cashed by the Plaintiff herein. In addition, Husband has attempted to borrow from a life insurance policy the balance of the proceeds necessary to comply with the intent of the stipulation. 9. Admitted in part, denied in part. It is admitted that Wife has, through counsel, requested Husband to make the payment, and Husband, through counsel, has kept Wife's counsel advised of the status of the matter. Husband has in fact made one (1) payment as set forth above, and has attempted to borrow money from an insurance policy to comply with the balance of the Order. 10. Admitted in part, denied in part. It is denied that Husband has failed to make the $750,000.00 to Wife. 11. This is a conclusion for which no answer is required, however, Husband denies that he is in contempt of any Court Order. 12. No answer is required, however Husband believes that he has complied with the Court Order of November 4,2005, has as indicated above, paid the Wife $100,000.00, and has attempted to remove as a loan sufficient sums from an insurance policy in order to be able to pay Wife the balance of what is due her. Husband denies that Wife is entitled to attorneys' fees in bringing this Petition. WHEREFORE, Defendant requests the Court to dismiss the Petition. -2- NEW MATTER 13. Paragraphs 1 through 12 above are incorporated herein by reference and made a part hereof. 14. At all times, Husband has complied with the Order in spirit and in intent. 15. Husband has endeavored to borrow sufficient sums in order to be able to provide Wife with 50% of the proceeds from the sale of the Line property. 16. On May 17,2006, Husband paid the sum of $1 00,000.00 to Wife. 17. Wife shall be responsible for any tax consequence on the payment of the 50% of the proceeds for the sale of the Line property which must be taken into consideration in determining the balance of what is due Wife. -3- WHEREFORE, Defendant requests the Court to give credit for the $100,000.00, plus any costs that have been incurred by the Husband in the sale of the Line property that generated Wife's 50% share of the net equity. Respectfully submitted, P.Rich . . #23103 2233 North Front Street Harrisburg, P A 17110 (717) 234-7051 AttomeysfurDefundant Date: .5/~'//~? / I -4- VERIFICATION I verify that the statements made in the foregoing document are true and correct. I understand that false statements herein are made subject to the penalties of 18 PaC.S.A. Section 4904, relating to unsworn falsification to authorities. PMmJet::J DATE: 5/dLf/tJt? / f CERTIFICATE OF SERVICE I, Debra K. Spinner, secretary in the law firm of Mancke, Wagner & Spreha, do hereby certify that I am this day serving a copy of the foregoing document to the following persons and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing the same in the United States Mail, Harrisburg, Pennsylvania, with first class postage, prepaid, and addressed as follows: Laurie A. Saltzgiver, Esquire 410 North Second Street P.O. Box 1062 Harrisburg, P A 17108 By ~~_~~ Debra K. Spinner, S tary Mancke, Wagner & Spreha 2233 North Front Street Harrisburg, P A 17110 p, Richard Wagner, Esquire Attorney for Defendant/Husband Date: .5/ ~//J? I I 'EJr:! ...."".'n,." ':~--"/'VI h.J 2 t : I Hd 92 ,( ~1~/9DaZ I ;J\.', n, ',- '.. ",' 'J -HI ::10 ^UVlf.)i'\'~;)""jJ..~jc:" :1 3::.)!:!:iO--QJ7J::J CALENE M. CLOUSE, : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff, v. : NO: 01-5995 : CIVIL ACTION - LAW J. EDWARD CLOUSE, : IN DNORCE Defendant. DEFENDANT'S ANSWER TO PETITION FOR SPECIAL RELIEF. IN CONTEMPT AND FOR ADVANCE ON EOUlTABLE DISTRIBUTION AND NOW, comes the Defendant, J. Edward Clouse, by and through his attorneys, Mancke, Wagner & Spreha, and files the following Answer: I. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. COUNT I CONTEMPT 5. No answer is required. 6. Denied. It is denied that Husband has withdrawn funds from the cash value of a Pacific Insurance policy. Husband has endeavored to obtain a loan in order to be able to pay Wife the proceeds due pursuant to the November 4, 2005 Order. 7. Denied. It is denied that Husband has withdrawn $1,038,000.00 from the cash value of a Pacific Life Insurance policy. Husband has endeavored to secure a loan through the Pacific Life Insurance policy for the purposes of the following: A. to pay the transfer tax on the transfer of 11 properties into a family limited partnership; and B. pay the Wife the balance of what is due on the November 4, 2005 Order. 8. Denied. It is denied that Husband has removed $1,038,000.00 cash value from the Pacific Life Insurance policy, and therefore, Husband cannot be found in contempt of Court. WHEREFORE, Defendant requests the Court to dismiss Count I of Wife's Petition. COUNT II ADVANCE ON EOUITABLE DISTRIBUTION 9. Answers I through 8 above are incorporated herein by reference and made a part hereof. 10. Admitted. I I. Admitted. 12. Admitted in part, denied in part. It is denied that the Wife did not anticipate that the "Stevens Farm" will be placed in the Family Limited Partnership. The said property was transferred by Wife in the presence of the attorney who drew up the Family Limited Partnership and Agreement, and Wife expressly knew what Wife was anticipating. Moreover, the Husband -2- has paid the transfer tax on all 11 transfers that has amounted to in excess of $150,000.00 in transfer tax, all of which were known to Wife. 13. While the parties may have discussed certain portions concerning the Limited Partnership, a Limited Partnership has not been executed as contained in paragraph 1 I above, therefore, averment 13 is expressly denied as having any relevancy to this matter. 14. Denied. It is denied that there has been any gifting of a Limited Partnership interest, in that according to Wife's averment contained in paragraph 11, the Family Limited Partnership Agreement has not been executed, therefore, Husband is incapable of gifting any interest until such time that the Agreement is signed. 15. No answer is required. 16. Denied. It is denied that there has been any advance on equitable distribution, and it is further denied that the removal of $1,038,000.00 was an advance on equitable distribution to Husband. 17. Denied. It is denied that Wife is entitled to any advance on equitable distribution, it being specifically averred that Wife has no need for any advance, is otherwise comfortable and protected. 18. Denied. It is denied that the Stevens Farm should be transferred unto the Wife as an advance on equitable distribution, Wife having her own home in which she lives that is valued between $450,000.00 and $500,000.00. -3- 19. Denied. It is denied that all taxes and transfer fees should be paid by Husband in that if Wife is requesting certain transfers to be made, she should be responsible; however, all transfers that have been made thus far in anticipation of the Family Limited Partnership Agreement, have been paid by Husband. WHEREFORE, Husband requests the Court to dismiss Count IT of Wife's Petition. COUNTID COUNSEL FEES 20. Answers to paragraphs 1 through 20 above are incorporated herein by reference and made a part hereof. 21. Admitted. 22. Denied. It is denied that Husband should be responsible for the counsel fees incurred by Wife in that Wife's Petitions are both frivolous, without foundation, without merit, and Wife has substantial sums in order to be able to pay her own counsel fees. -4- WHEREFORE, Husband requests the Court to dismiss Count ill of Wife's Petition. Respectfully submitted, Mancke, Wagner & Spreha Attorneys for DefendantlHusband Date: 5/iI'I/~~ . I -5- VERIFICATION I verify that the statements made in the foregoing document are true and correct. I understand that false statements herein are made subject to the penalties of 18 PaC.S.A. Section 4904, relating to unsworn falsification to authorities. ~&0~e&/M7J DATE: 5/dLf/ tJ~ . , CERTIFICATE OF SERVICE I, Debra K. Spinner, secretary in the law firm of Mancke, Wagner & Spreha, do hereby certify that I am this day serving a copy of the foregoing document to the following persons and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing the same in the United States Mail, Harrisburg, Pennsylvania, with first class postage, prepaid, and addressed as follows: Laurie A. Saltzgiver, Esquire 410 North Second Street P.O. Box 1062 Harrisburg, P A 17108 By 1fkk<Y*~ Debra K. Spinner, ecretary Mancke, Wagner & Spreha 2233 North Front Street Harrisburg, P A 1711 0 P. Richard Wagner, Esquire Attorney for DefendantIHusband Date: ..5 /~ ~ / I&' I / n r-- ;:: '" c.:::;. c::::) c::--. =~ :x.'.~ -< N 0) o "T) =;:! -"- .., mp -;-) fTl :;]0 C)/) -;'.'~ ::[, .:'C) i.jm ::i;.! :J.J --< " -~ (..) c..-.: CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - LAW IN DIVORCE MOTION TO SCHEDULE HEARING AND NOW, comes the Plaintiff, Calene M. Clouse, by and through her attorneys, Meyers, Desfor, Saltzgiver & Boyle and files the following Motion to Schedule Hearing and in support thereof avers as follows: I. Movant is Calene M. Clouse, Plaintiff in the above-referenced action. 2. Respondent is J. Edward Clouse, Defendant in the above-referenced action. 3. On May 1,2006, Movant filed two Petitions in the above-captioned action, specifically a Petition for Special Relief, in Contempt and for Advance on Equitable Distribution and a Petition for Contempt and Enforcement of Court Order of November 4,2005. 4. A Rule to Show Cause was issued on both Petitions on May 3, 2006. 5. Respondent filed answers to both petitions on May 26,2006. 6. The above matters are now ready for hearing. 7. Movant requests that both Petitions be heard at the same time. WHEREFORE, Movant requests this Honorable Court schedule a hearing on the Petition for Special Relief, in Contempt and for Advance on Equitable Distribution, and the Petition for Contempt and Enforcement of Court Order of November 4,2005. MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 . Respectfully submitted, Laurie :A. Salt glV Attorney 1.0. 6138 Meyers, Desfor, Sal zgiver Boyle 410 North Second Street P.O. Box 1062 Harrisburg, PAl 71 08 (717)236-9428 Attorney for Movant MEYERS, DESFOR, SALTZGIVER " BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - LA W IN OIVORCE CERTIFICATE OF SERVICE I hereby certify on this ,gild day of ~ ' 2006, that a copy ofthe foregoing Motion to Schedule Hearing was mailed, first-class, postage pre-paid to: P. Richard Wagner, Esquire Mancke, Wagner, Tully & Spreha 2233 North Front Street Harrisburg, P A 17 I 10 \ Laurie A. Sa tzgiver, Es Attorney for Movant MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 n (: :;.=.J;. r--..;, ~ .~~J C-' I Ln -0 --- (.,-, f',) ~7~ o. :.:< o -n .~ ::r: fll71 f~ c:; .. CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. NO. 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - LAW IN DIVORCE PLAINTIFF'S ANSWER TO NEW MATTER AND NOW, comes the Plaintiff, Calene M. Clouse, by and through her attorneys, Meyers, Desfor, Saltzgiver & Boyle and files the following Answer to New Matter and in support thereof avers as follows: 13. No answer required. 14. Denied. Husband has not forwarded the required $750,000.00 to Wife pursuant to the Order of November 4,2005. In fact, Husband had not made any payments to Wife prior to the filing of her Petition for Contempt and Enforcement on May 1, 2006. It is only since Wife filed that Petition that Husband forwarded the $100,000.00 to Wife. Furthermore, Husband supplied Wife with no information as to when he intended to make any payments to Wife, despite her numerous inquiries regarding same. 15. Wife is without sufficient information to form a belief as to the truth and veracity of this averment and proof thereof will be demanded at time of trial. 16. Admitted. By way of further answer, Husband paid this $100,000.00 to Wife after Wife filed her Petition for Enforcement and Contempt on May 1, 2006. 17. Denied. The Court Order of November 4,2005 requires a $750,000.00 payment from Husband to Wife. The purpose of the Court Order of November 4,2005 was so \ I ~-~--- MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 .. Husband could use the proceeds from the sale of the Line Farm property for a 1031 exchange and thus avoid taxes. Since Wife agreed to cooperate in Husband's 1031 exchange, the $750,000.00 payment owed by Husband to Wife is also a non-taxable event and has nothing to do with any taxes which Husband mayor may not have incurred in any transaction. WHEREFORE, Plaintiff requests that Defendant's New Matter to Plaintiffs Petition for Contempt and Enforcement of Court Order of November 4,2005 be denied. Respectfully submitted, Laurie A. Saltzgiv , Esq . re Attorney J.D. 61382 Meyers, Desfor, Saltzgiver & Boyle 410 North Second Street P.O. Box 1062 Harrisburg, PAl 71 08 (717)236-9428 Attorney for Plaintiff MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 VERIFICATION I, Calene Clouse , verify that the statements made in this Plaintiff's Answer to New Matter are true and correct to the bes of my knowledge, information and belief. I understand that fals statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Dated: 6/6/06 _P.. /.r _N..- .) (x) Plaintiff Defendant MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 , . CALENE M. CLOUSE Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 01-5995 J. EDWARD CLOUSE Defendant CIVIL ACTION - LA W IN DIVORCE CERTIFICATE OF SERVICE I hereby certify this C ~ay of -J ~ , 2006, that a copy of the foregoing Plaintiffs Answer to New Matter was mailed, first-class, postage pre-paid to: P. Richard Wagner, Esquire Mancke, Wagner, Tully & Spreha 2233 North Front Street Harrisburg, PAl 71 10 MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 () !"':-:- "> cO'::> <::::> 0,> o -11 :::;j 1'"i1.:r.! r- -0 ii; .~,.) C] 3(~., ~? i1; /tj t., -< I -...J -0 -,... ':Y (.,,) I..D . '" I'y ( RECEIVED JUN 0 6 t'j~a (' ALENE M. CLOUSE Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 01-5995 J. EDWARD CLOUSE Defendant : CIVIL ACTION - LAW : IN DIVORCE ORDER OF COURT AND NOW, this fltL day of -if \ ~ f _ , 2006, upon consideration of Plaintiffs Petition for Contempt and Enforcement of Court Order of November 4,2005 and Defendant's Answer to said Petition and New Matter, and Plaintiffs Petition for Special Relief, in Contempt and for Advance on Equitable Distribution and Defendant's Answer to said Petition a hearing is hereby scheduled for the frY' 2006 at 1..J...]!Qm. o'clock, in Courtroom No. I t, ft-. day of t CLu.~ BY THE COURT: 1 J. ,()\I ~\~ {)\g ~YJ~cI hllJ.I{)6~ MEYERS, DESFOR, SALTZGIVER & BOYLE 410 NORTH SECOND STREET . P.O. BOX 1062 . HARRISBURG, PA 17108 (717) 236-9428 . FAX (717) 236-2817 ... ,', .. C I :8 fJ.d 2 i fmr 9DOZ )\b'tlO;-,;c.-:..OdcJ 31-11 :f0 ::l;)J:i-!Ci'-o.:n 1:1 - \.~ CALENE M. CLOUSE, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA v. CIVIL ACTION - LAW J. EDWARD CLOUSE, Defendant NO. 01-5995 CIVIL TERM ORDER OF COURT AND NOW, this 17th day of August, 2006, upon consideration of Plaintiffs Petition for Contempt and Enforcement of Court Order of November 4, 2005, and of Plaintiffs Petition for Special Relief in Contempt and for Advance on Equitable Distribution, and following a hearing held on August 16, 2006, the petitions are granted to the following extent: 1. Defendant is adjudicated in contempt with respect to both petitions and shall reimburse Plaintiff for attorney's fees in connection therewith in the amount of $3,392.12, within 30 days of the date of this order; 2. With respect to the Petition for Contempt and Enforcement of Court Order of November 4,2005, Defendant shall pay to Plaintiff the sum of $650,000.00, within 60 days of the date of this order, from a source of funds that are not marital funds; 3. With respect to the Petition for Special Relief, in Contempt and for Advance on Equitable Distribution, Defendant shall, within 60 days of the date of this order, cause to be paid to Plaintiff from marital assets under his control the sum of $150,000.00 as an advance on equitable distribution; nothing in this paragraph is intended to represent a fmding by the court as to how much of the approximately $1,038,000.00 utilized by Defendant from the marital asset known as Pacific Life Insurance Policy No. VP60018890 is to be treated as an advance on equitable distribution received by him, but it does ... / . IflNVI\ll\SNt~3d ,lJ..Nncr n>,,":>ij8i"lnD 0\ :2 \old LI 5lW 900Z Al:l\I10NOH10dd 31-1l :10 3:)1:J~O-{l311:1 o.r-' .,. represent a finding that his receipt of these moneys, whether deemed to be a withdrawal or a loan, was not compatible with the order of court dated October 31, 2001. 4. Plaintiff is encouraged to consult with her counsel and such fmancial advisors as counsel recommends on the best means to maintain her financial well-being. viaurie A. Saltzgiver, Esq. 410 N. Second Street Harrisburg, P A 17101 Attorney for Plaintiff ~chard Wagner, Esq. 2233 North Front Street Harrisburg, P A 1711 0 Attorney for Defendant :rc 0\9 0.; ,'. oOtv BY THE COURT, CALENE CLOUSE, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA VS NO. 01-5995 CIVIL TERM J. EDWARD CLOUSE, Defendant CIVIL ACTION - LAW IN DIVORCE ORDER OF COURT AND NOW, this 16th day of August, 2006, upon consideration of Plaintiff's Petition for Contempt and Enforcement of Court Order of November 4, 2005, and Plaintiff's Petition for Special Relief in Contempt and for Advance on Equitable Distribution, and following a hearing held on this date, the record is declared closed and the matter is taken under advisement. By the Court, ~rs, Desfor, Saltzgiver & Boyle LaurieA. Saltzgiver, Esquire 410 North Second Street P.O. Box 1062 Harrisburg, PA 17108-1062 For Plaintiff ~ancke, Wagner & Spreha P. Richard Wagner 2233 North Front Stree Harrisburg, PA 17110 For Defendant t\}O i' & :mlc ," VINV/\lASNN3d AlNnU) 0'li"1H"'1i:'JnD IS :8 \old 86 ~rw 900Z AWIONOHlOUd 3Hl :30 30!:I~O'(]311:1 . . Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CALENE CLOUSE, VS NO. 01-5995 CIVIL TERM J. EDWARD CLOUSE, Defendant CIVIL ACTION - LAW IN DIVORCE TRANSCRIPT OF PROCEEDINGS Proceedings held before the HONORABLE J. WESLEY OLER, JR., J., Cumberland County Courthouse, Carlisle, Pennsylvania, on Wednesday, August 16, 2006, in Courtroom Number 1. APPEARANCES: LAURIE A. SALTZGIVER, Esquire For the Plaintiff P. RICHARD WAGNER, Esquire For the Defendant 1 <; ;(, \:~\! ~ - rICH q\\u~ " ~.'\(.",,,.... c ,",," 'Jut ..\0 Atj'l _'~.Ii ',\,), J..',/":Cl ,..l' I ... ::Cc\lJ,c-,CBl\;:\ 10 11 12 13 14 15 . . 1 INDEX TO WITNESS 2 3 FOR PLAINTIFF EXAMINATION 4 J. Edward Clouse, as of cross By Ms. Saltzgiver By Mr. Wagner 5 23 5 6 7 FOR DEFENDANT DIRECT CROSS REDIRECT RECROS~ Charles R. Neubold, Jr. 34 46 49 Heather Kutz 52 67 69 J. Edward Clouse 70 75 EXAMINATION J. Edward Clouse By the Court 78 DIRECT CROSS REDIRECT RECROSS Heather Kutz, recalled 80 82 83 8 9 16 17 18 19 20 21 22 23 24 25 2 10 11 12 13 14 15 . . 1 INDEX TO EXHIBITS 2 3 FOR PLAINTIFF IDENTIFIED ADMITTED Ex. No. 1 - Pacific Life documents 13 32 Ex. No. 2 - Family Limited Partnership agreement 19 32 Ex. No. 3 - list of farms In FLP 19 32 Ex. No. 4 - diagram 19 32 Ex. No. 5 - letter 21 32 Ex. No. 6 - bill of counsel fees 32 32 Ex, No. 7 - spreadsheet 49 85 4 5 6 7 8 9 FOR DEFENDANT IDENTIFIED ADMITTED Ex. No. 1 - statement of financial condition 46 84 16 17 18 19 20 21 22 23 24 25 3 . . 1 Wednesday, August 16, 2006 Carlisle, Pennsylvania 2 (The following proceedings were held at 1:53 p.m.:) 3 4 THE COURT: This is the time and place for a 5 hearing on Plaintiff's Petition for Contempt and Enforcement 6 of Court Order of November 4, 2005, and Plaintiff's Petition 7 for Special Relief in Contempt and For Advance on Equitable 8 Distribution in the case of Clouse v. Clouse at No. 01-5995 9 Civil Term. 10 We will indicate that the Plaintiff, Calene 11 M. Clouse, is present in court with her counsel Laurie A. 12 Saltzgiver, Esquire, and the Defendant, J. Edward Clouse, is 13 present in court with his counsel P. Richard Wagner, 14 Esquire. Ms. Saltzgiver? 15 MS. SALTZGlVER: Thank you, Your Honor. I 16 would ask that if there are any witnesses that are going to 17 testify later on that they be sequestered. 18 THE COURT: Mr. Wagner? 19 MR. WAGNER: Well, the only one is the 20 accountant. And do you want him out of here? 21 MS. SALTZGlVER: Uh-huh. Yes. 22 MR. WAGNER: Okay. That's fine. 23 THE COURT: All right. You have no objection 24 to the witnesses being sequestered? 25 MR. WAGNER: Not at all, 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . THE COURT: All right. And so you're asking that somebody MR. WAGNER: Well, I think she's asking that the accountant leave. MS. SALTZGIVER: That's correct, Your Honor. MR. WAGNER: Don't leave. Just set outside. MS. SALTZGIVER: I call Mr. Clouse to the stand as on cross examination. J. EDWARD CLOUSE, called as of cross examination, having been duly sworn, testified as follows: EXAMINATION BY MS. SALTZGIVER: Q Please state your name and address for the record. A Pardon? Q Please state your name and address for the record. A The initial "j" Edward Clouse. 2075 Ritner Highway, Carlisle, Pennsylvania. Q And you're married to my client, Calene Clouse? A Yes. Q And you currently operate Clouse Trucking, 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Inc.; isn't that correct? A Partially. Q And you also operate Carlisle Equipment Inc.; isn't that correct? No. You're owner of Carlisle Equipment, Inc., Partially. With my client; is that correct? Yes. Now, are you aware of the order of November I know of it, yes. Okay. That's the order that requires you to pay my client $750,000. You're aware of that order? A I saw it, yes. MS. SALTZGlVER: Okay. I ask the Court to take judicial notice of the order of November 4th, 2005. THE COURT: I believe it's part of the recorc MS. SALTZGlVER: Yes, Your Honor. BY MS. SALTZGlVER: Q Now, you have not paid my client the $750,000 pursuant to that order, have you? A Partial of it. A Q aren't you? A Q A Q 4th of 2005? A Q in the case, 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q You've paid her $100,000; isn't that correct? A That's correct. Q And $750,000 minus $100,000 is $650,000; isn't that correct? A I can't hear what you're saying. Q Can you hear me now? A Partially. Q Is this better? A Yes. Q Would it be better if I moved closer to you or if I used the microphone? A I don't know. Q Okay. I believe my last question to you, Mr. Clouse, was 750,000 minus $100,000 that has been paid leaves 650,000; isn't that correct? A We don't know what the half of the distribution of the sale really was after the taxes. That's the reason why, and I still don't know to this day. Q Aren't you aware of my client's request for payment? A Yes. Q Okay. My client's made personal requests to you for payment; is that correct? A Yes. Q You've also been requested to make payments 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . to Calene pursuant to requests from my office; isn't that correct? A Yes. Q Isn't it true that you have approximately $680,000 sitting in an M & T Bank account? A I have no idea. MS. SALTZGlVER: May I approach, Your Honor? THE COURT: Yes, you may, BY MS. SALTZGlVER: Q Can you look at this, Mr. Clouse? You need your glasses? A Sorry about that. Q That's okay. There you go. A That's what it says. Q Does that document refresh your recollection? A I have no idea. I've never seen the document before. Q Okay. A I don't keep track of my banking. My daughter does the banking. Q Okay. Are you acquainted with the bank account numbers on that document? A Not at all. No. Q So you don't know if you have $680,000 in a bank account? 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A I have no idea, no. Q It's possible though, isn't it? A Yes. Q Now, I'm going to ask you some additional questions. Are you aware of the court order of October 31 of 2001 which prohibits either party from dissipating any marital assets? A I don't know what you're talking about. MS. SALTZGlVER: May I approach, Your Honor? THE COURT: Certainly. For the record, are you showing the witness a piece of paper? MS. SALTZGlVER: Yes, Your Honor. For the record I'm showing him the order of court dated October 31, 2001, which was attached as an exhibit to my second petition. THE COURT: All right. THE WITNESS: And what is this? I don't know what it is. BY MS. SALTZGIVER: Q Okay. Can you read it, Mr. Clouse? A Yes. Q Do you agree with me this is a court order of October 31, 200l? A I guess it is. I didn't realize that though. Q And this order provides that neither party 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . shall transfer or encumber marital assets without receiving full value therefore under No.1. Did you see that, Mr. Clouse? A Yes. Q And in addition, No.2, if marital property in the form of a capital asset is transferred or encumbered for value, the proceeds from such transferred and encumbered shall be placed in an escrow account? A Yes. I see that. MS. SALTZGlVER: I ask that the Court take judicial notice of the order of October 31, 2001. THE COURT: Again, I don't think it's a matter of judicial notice. It's simply part of the record in the case. BY MS. SALTZGlVER: Q Mr. Clouse, are you aware of a court order of February 7th of 2003. I'll show you a copy of that court order. A This is the first I've seen either one of these. Q Do you agree with me that's a court order of February 7th, 2003? A Yes. MS. SALTZGlVER: I believe that order is part of the record as well, Your Honor. 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . THE COURT: All right, BY MS. SALTZGlVER: Q Mr. Clouse, is it true that during the year 2005 you withdrew funds from your Pacific Life Insurance Policy? A I can't hear what you're saying. Q Please listen carefully. Isn't it true that during the year 2005 you withdraw funds from your Pacific Life Insurance Policy? A I borrowed from my life insurance policy, yes. Q And initially, you withdraw -- you withdrew funds from the policy; isn't that correct? A I don't know what you're talking about now. Q Isn't it true that you withdrew funds and later transferred it into a loan? A We transferred some funds from my life insurance policy, yes. THE COURT: When you say withdrew funds, Ms. Saltzgiver, what do you mean? Are you saying that he borrowed on the cash surrender value of the policy? MS. SALTZGlVER: I'm going to get into the specifics of that, Your Honor. I have documentation that shows that he withdrew the funds and later they were transferred into loans and that there were 2 withdrawals 11 . . 1 during 2005. 2 THE COURT: By withdrawal, what does that 3 mean? 4 MS. SALTZGlVER: Apparently, cash was 5 withdrawn from the cash value. 6 THE COURT: If I can make a record. 7 Withdrawn on the cash surrender value? 8 MS. SALTZGlVER: Yes. 9 THE COURT: And so the value of the policy 10 decreased? 11 MS. SALTZGlVER: That's correct, Your Honor. 12 THE COURT: And the amount of insurance 13 decreased? 14 MS. SALTZGlVER: That's correct, Your Honor. 15 THE COURT: All right. 16 MS. SALTZGlVER: And I have documentation of 17 the current value of the account which also reflects the 18 withdrawals. 19 THE COURT: All right. 20 MR. WAGNER: May I see that, please? 21 MS. SALTZGlVER: How would you like the 22 exhibits marked, Your Honor? 23 THE COURT: Your exhibits would be 24 Plaintiff's exhibits, and the stenographer will mark them. 25 MS. SALTZGlVER: I have a copy of the exhibit 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . for Your Honor. THE COURT: If Mr. Wagner has no objection, I will look at it before it is admitted. Otherwise, I would wait until it is admitted. MR. WAGNER: Thank you because I have -- this is the first I've seen it. And depending upon the characterizations that are being made, I may object to because of the person who prepared it I don't think is here. THE COURT: I will not look at it yet. BY MS. SALTZGlVER: Q Mr. Clouse, I'll show you what's been marked Plaintiff's Exhibit 1. If you look under the first tab, do you see that document? It's called transaction confirmation. A Yes. Q And this is for your Pacific Life Insurance policy, and you're the named insurer? A Yes. Q This gives a summary of the policy values as of June 1st of 2005; isn't that correct? A Yes. Q And under the last section, it shows that $165,000 was withdrawn from the policy; isn't that correct? A Yes. Q Now if you look at the third page of the 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . exhibit, do you see the third page? A Yes. Q That reflects that $165,000 check was transferred to you? A Yes. THE COURT: What is that amount again. MS. SALTZGlVER: $165,000. THE COURT: One sixty-five? MS. SALTZGlVER: Yes. THE COURT: And what is the date of the transfer? MS. SALTZGlVER: June 6th of 2006. THE COURT: I need a witness to say what it was. MS. SALTZGlVER: Okay. I'm sorry, Your Honor. I misspoke. BY MS. SALTZGlVER: Q Mr. Clouse, if you can look -- return to page 1 of the exhibit. This shows a transaction date of June 1st of 2005; isn't that correct? A I didn't -- yes, 6-1-05. Q And that shows that $165,00 was withdrawn from the account; isn't that correct? A Q Yes. Can you turn to the sixth page of part one of 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . the exhibit? A Yes. Q Okay. Now, that shows a summary policy value as of November 29th of 2005; isn't that correct? A Am I on the right page? Q That's page 6. A What was the question? Q That shows the policy values as of November 29th, 2005; isn't that correct? A Yes. Q And that shows that there was a withdrawal of $873,000; isn't that correct? A Can you show me where it says existing on that? Q If you look under the third section between the dashes. A Yes. Q Okay. And then if you look at the last page of section one, now that's a letter from you to Tim Fobering at Pacific Life; isn't that correct? A Yes. Q And is that your signature on that page? A Yes. Q Okay. And in that letter, you request that Pacific Life convert the withdrawals to loans; isn't that 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . correct? A They were originally supposed to be loans. That's what it was to be understood. And then someone informed me that that's not the way they were showing up. But they were originally to be loans, Q Then if you look to Section No. 2 on the first page, that shows an account summary as of January 11th of 2005; isn't that correct? A Yes. Q Okay. And then it shows the accumulated value as of January 10th, 2006 A Yes. Q -- isn't that correct? Okay. And that reflects less policy owner withdrawals of a 1,038,000? A Might be. Q Did you see that? A I didn't -- I couldn't hear you. Q That reflects policy owner withdrawals of 1,038,000 under the account summary; isn't that correct? A Yes. THE COURT: What kind of a policy is this? Is it a whole life or term policy? Do you know? THE WITNESS: I think whole life. It was paid up. THE COURT: Was it paid up? 16 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . 1 THE WITNESS: Many years ago. 2 THE COURT: All right. And what was -- what 3 was the amount of insurance if you recall? THE WITNESS: I don't remember. THE COURT: And who -- who was the beneficiary? THE WITNESS: My wife and Clouse Trucking. don't know who -- I don't know. I THE COURT: 0 ka y . All right. Ms. Saltzgiver. BY MS. SALTZGIVER: Q Now you're also involved in a Family Limited Partnership; is that correct, Mr. Clouse? A Yes. Q And we refer to the Family Limited Partnership as an FLP? A Yes. Q And this FLP was created as a means of gifting assets to your children during your lifetime; isn't that correct? A I think so, yes. Q Okay. THE COURT: Do you want to define FLP? You used the initials, but for the record I need to know what you're talking about. 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . MS. SALTZGlVER: I apologize, Your Honor. BY MS. SALTZGlVER: Q We refer to the Family Limited Partnership as an FLP; isn't that correct, Mr. Clouse? A Yes. Q Okay. And this FLP holds 11 farms; isn't that correct? A I don't know what it is. Q The FLP holds a number of farms that you and Calene acquired during your marriage; isn't that correct? A Yes, ma'am. Q And isn't it true that you and Calene executed deeds transferring to these farms into the name of the FLP? A Yes. Q And those deeds have been recorded with the Court; isn't that correct? A I would guess so. I have no idea. Q But the FLP agreement has not been executed by either you or Calene; isn't that correct? A I have signed it some time ago. Q But Calene hasn't signed; isn't that correct? A I don't think so. Q Mr. Clouse, I'll show you what has been marked as Plaintiff's Exhibit No.2. That's the FLP 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . agreement we've been discussing, isn't it? A Might be. I don't know. Q Well, look it over, please. A Yes. Q Now I'll show you what's been marked as Plaintiff's Exhibit No.3. A Yes. Q Do you agree with me that these are the farms which have been transferred into the FLP? A I think so. I'm not sure. Q Now, isn't it -- strike that. Mr. Clouse, I'll show you what has been marked as P-4. Are you familiar with that diagram? A No. Never saw it before. Q Does this diagram represent how the FLP has been set up? A It might be. I don't know. Q Okay. Isn't it true, Mr. Clouse, that you wanted your wife to gift a portion of her limited partnership interest in the FLP to your daughter Heather? A The same as I was going to donate. Q And you were also going to donate -- donate a portion of your limited partnership interest to Heather as well; is that correct? A I can't hear you. I'm sorry. 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q You also intended to donate an equal portion of your limited partnership interest to Heather as well; isn't that correct? A Heather and Vallery both were to be getting a portion. Q And my client does not agree to that; isn't that correct? A That's not what I understood when we set it up. We talked about it before we set it up, and we all agreed on what we were doing. Or we would have never signed the deeds. Q But at the time you requested that your wife contribute -- gift an equal -- a portion of her limited partnership interest equal to yours to the children, isn't it true that Calene refused to do so? A After we done it. I thought we had done it. Q Isn't it true that after Calene refused to donate a portion of her limited partnership to Heather that you in fact donated a portion of your limited partnership interest to Heather? A I'm not sure. Q Isn't it true my client conveyed to you through counsel that she did not object to you transferring your portion of your limited partnership to Heather provided you agreed in writing that this would be an advance to you 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . upon equitable distribution? A I can't hear what you're saying. I'm sorry. Q Can you hear me now? A Yes. Q Isn't it true, Mr. Clouse, that my client advised you through counsel that she was agreeable to you transferring a portion of your limited partnership interest to your daughter provided that you took that as an advance on equitable distribution? A I don't remember that at all. Q Isn't it true that that in fact is something that you discussed with your accountants? A Pardon? Q Isn't it true that that advance on equitable distribution to you was something that you discussed with your accountants? A We may have. I do not recall. Q Show you what's been marked as P-5. A I've never seen this before in my life that I know of. Q So you're claiming your accountant doesn't keep you advised regarding your affairs? A I've never -- I've never seen that before. Though, on the other hand, I don't always read my mail. My daughter -- daughters usually do; or Kirby goes through our 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . mail. Q You've transferred approximately 30 percent of your limited partnership interest to your daughter Heather, haven't you? A I don't know. Q You don't know? A I don't know. Q Now, one of the farms that has been transferred into the FLP is a farm known as the Stevens Farm; isn't that correct? A Yes. Q And the Stevens Farm was previously titled in my clients name alone; isn't that correct? A Yes. Q And aren't you aware that my client wasn't happy that the Stevens Farm was transferred into the FLP? A In exchange, I put six times that much of my own in. Q So you are aware that she was unhappy that the Stevens Farm was transferred into the FLP? A This was months after the fact. Q You're aware, aren't you, that Calene has requested that the Stevens Farm be returned to her? A Yes. Q And in fact, Calene has requested that the 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Stevens Farm be titled in her name alone and be an advance on equitable distribution to her; isn't that correct? A I don't know. MS. SALTZGIVER: Nothing further. THE COURT: Mr, Wagner? MR. WAGNER: I'll cover the limited what was covered here, but I may reserve the right to perhaps recall him later. EXAMINATION BY MR. WAGNER: Q Mr. Clouse, do you have in front of you please the exhibit that Ms. Saltzgiver gave you that's captioned at the front Pacific Life? A Yes. Q It's been represented that this is a -- an indication of what the status of your life insurance policy is; and I'll ask you if you flip to the second page if you would please. Do you have the second page in front of you? A Yes. Q Would you indicate what the death benefit amount is that's listed on the second page of this exhibit? A $3,319,893.66. Q And who is the beneficiary of this policy? Is your wife the beneficiary? 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Yes, Q And the date above that amount lS -- what's the date, please? A August the 2nd, 2006. Q All right, If you would go to the first page after the first yellow sheet marked as Exhibit I? A I'm sorry. I didn't hear you. Q Okay, Go to the first yellow sheet. The next page after that. A Yes. Q A third of the way down on the right-hand side, there is a number after the phrase current face amount. What is that number? Did you hear me? Can you read that number? A Q I don't understand what you're saying. Okay. Do you see the number $2,891,299? A I'm sorry. Yes, I do. Q Okay. Wait for that to go by, Okay. Would you look at the top of the page where it says transaction confirmation, transaction date? What's the date listed there? Does that say June 1st, '05? A Yes, 6-1-05. Q Is this your understanding from this exhibit that in June 1st of '05 the face amount of the policy was 2.891 million dollars? Is that the death benefit? 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Yes. Q And in August of 2006, it's 3.3 million? A Yes. Q Now the moneys that have been characterized as a withdrawal are in fact loans, are they not? A Yes. Q And you understand that you owe that money back to this policy? A Yes. Q Mr. Clouse, I want to ask you a couple of questions about your -- your business to be able to clarify why a lot of the answers were you don't know, Let's first of all begin with the development of the Family Limited Partnership. You and your wife consulted with a law firm to have that done, did you not? A No. Heather, my daughter, and my wife conferred with a law firm I never even heard of at that time. Q Okay. Was that Susan Lederer? A Yes. Q And did you and your wife go to Susan Lederer's office and that's how this agreement was put together? A The whole family went, yes. Q Okay. And was that in an effort to try to 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . develop an estate plan for your family? A It was recommended, yes. Q And when you say recommended, who recommended it? A Several different people, our accountants anc even our insurance people recommended it. Q Let's start with that. Do you have accountants that handle your business affairs, sir? A Yes. Q What's the name of the accountants? A It has been Boyer & Ritter since 1962. Q Do you have a separate person that advises you on insurance matters? A Yes. Q Who is that? A Charlie Telfer. Q And where is he located? A Grantville. Q And in certain business transactions in which you engage, do you have other lawyers that assist you in those -- those transactions? A Yes. Q Who are they? A All depending on what the situation might be. Q Have you had a series of lawyers representing 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . you in the different businesses in which you and Calene have been involved in different transactions? A Yes. Q And your day-to-day activities at Clouse Trucking, do you have a bookkeeper that takes care of the money corning in and the money going out? A Yes. Q Who is that? A Kirby Dunlap. Q Do you also have a personal checking account and -- that is taken care of by someone? A That's taken care of by Kirby Dunlap and Heather, my daughter. Q And when I say taken care of, I mean, when people write checks out, pay the bills, make the deposits, do they do that for you? A Yes. Q Is that why on a day-to-day basis you don't have a handle on what's going on? A Yes. Q Now when you and your daughters and your wife went to see Susan Lederer and she put together this rather large document that I believe has been marked as Plaintiff's Exhibit No.2, it references the potential agreement as of April 1st, 2005. Does that infer the family went there 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . sometime late '04, early 'OS. A I suspect so. Q Do you have a recollection of when you went there? A Not really. Q Okay. And as a result of this Family Limited Partnership, you've indicated that was done as a recommendation for an estate planning of you and your wife? A Yes. Q And as part of that estate planning, was it recommended that these various farms that are listed on the exhibit number 11 in number were to be put into the Family Limited Partnership? A Yes. Q Were deeds signed by the parties to effectuate that? A Yes. Q Who drafted the deeds? A I guess Mrs. Lederer. Q Okay. And where did you sign the deeds? A At her office. Q Did -- did Mrs. Clouse sign the deeds? A Yes. Q And was she with you when she signed the deeds. 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Yes. Q And those deeds included the Stevens' deed? A Yes. Q At the time they were signed, did Mrs. Clouse object to Mrs. Lederer that she didn't want to sign over the Stevens Farm into the Family Limited Partnership? A She said she was reluctant to; but at the same time, she saw I was putting in six times as much as she was. Q And then she signed at the "x"? A Yes. Q And that was witnessed by Mrs. Lederer -- Susan Lederer, the lawyer? A Yes. Q Have there been other assets transferred into this limited partnership in anticipation of it being signed if you know? A I don't know. Q The loans that you took against the insurance policy, what was the -- the reason for taking a loan against the policy? A You would probably have to ask my daughter Heather or Kirby, but it was through this 1031 Exchange. Some of the money was due before we were getting the money from the 1031. 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q Let me understand what you're telling us. You were bought -- the 1031 Exchange is the purchased property in Maryland; is that correct? A Yes. Q And it was anticipated you were to use the proceeds from Line to buy the property in Maryland? A Yes. Q But before that materialized, you needed the money to buy the property In Maryland? A We had to put some money down on it. Q And is that what the loan was for? A I think so. You would have to ask Heather. Q Are you saying ask Heather because she was in charge of doing that? A Yes. I -- I don't remember what it -- truthfully what all it was used for. MR. WAGNER: I have no further questions this point. THE COURT: Ms. Saltzgiver? MS. SALTZGIVER: No further questions for this witness. THE COURT: How many daughters -- how many children do you have? THE WITNESS: We have three daughters. The oldest one is 30 . . 1 THE COURT REPORTER: I'm sorry. I can't hear 2 you. 3 THE COURT: You'll have to speak into the 4 microphone if you will. 5 THE WITNESS: We have three daughters. 6 THE COURT: All right. And 7 THE WITNESS: Tiffany is how old is 8 Tiffany, 42? And she's Mongoloid. And we have Heather. 9 She's probably 39. She runs the business. Then we have 10 11 12 13 14 15 you. 16 MR, WAGNER: Judge, there's going to be an 17 exhibit for counsel fees being requested, and we'll 18 stipulate to the exhibit. We won't concede that any moneys 19 are due. 20 THE COURT: When you say you'll stipulate to 21 the exhibit, are you stipulating that the fees charged are 22 necessary -- 23 MR. WAGNER: And reasonable. 24 THE COURT: -- reasonable and proper for the 25 services rendered and that the services rendered were Vallery. She's the youngest. And she helps a little bit with the business, but she also has another job. THE COURT: And how old is she? THE WITNESS: She's 36. THE COURT: Okay. You may step down. Thank 31 . . 1 necessary in relation to the petitions? 2 MR. WAGNER: Yes. We're stipulating for that 3 purpose, but not that they should have to be paid. 4 THE COURT: All right. 5 MS. SALTZGlVER: That stipulated exhibit, 6 Your Honor, is -- has been marked as Exhibit P-6. 7 THE COURT: Plaintiff's Exhibit what? 8 MS. SALTZGlVER: Six. Your Honor, I have no 9 additional witnesses. I move for admission of the exhibits 10 P-l through P-6, 11 THE COURT: Mr. Wagner? 12 MR. WAGNER: No objection. 13 THE COURT: All right. Plaintiff's Exhibits 14 1, 2, 3, 4, 5, and 6 are admitted. Now, Plaintiff's 15 Exhibits 4 and 5 really were not identified by a witness. 16 Can counsel stipulate as to what they are? 17 MR. WAGNER: Five, Your Honor, is a letter to 18 Mr. Michael Devlin, CPA. 19 THE COURT: And the stipulation is that in 20 fact was sent? 21 MR. WAGNER: If Laurie is representing she 22 did, I'll -- I'll stipulate that she sent it. 23 THE COURT: Are you representing you did sene 24 it? 25 MS. SALTZGlVER: Yes, Your Honor. 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . THE COURT: All right. MR. WAGNER: And No.6 was a chart that I've seen, and my client does not know what that is. THE COURT: Are you making that No.4, Plaintiff's Exhibit No.4. MS. SALTZGlVER: That's correct, Your Honor. THE COURT: All right. Well, I -- I admitted it because there was no objection to its admission. But there really is no -- no identification of it. MR. WAGNER: And that's why it's a harmless admission from my perspective. THE COURT: I've never heard that term. I'll look it up. All right. Ms. Saltzgiver, anything further? Anything further? MS. SALTZGlVER: No, Your Honor. THE COURT: All right. Mr. Wagner. MR. WAGNER: Call Chuck to the stand. THE COURT: I'll tell you what, why don't we take a five-minute recess. (A recess was taken.) CHARLES R. NEUBOLD, JR., having been duly sworn, testified as follows: 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . DIRECT EXAMINATION BY MR. WAGNER: Q Sir, would you identify yourself with your full name, please? A My name is Charles R. Neubold, Jr. Q And your profession, sir, is what? A I'm a Certified Public Accountant. Q And how long have you been a CPA? A Nineteen years. Q And your professional address is what? A 144 West High Street, Carlisle. Q What is the name of the company or firm with whom you practice? A Boyer & Ritter Certified Public Accountants. Q And has Boyer & Ritter Certified Public Accountants been providing service to Mr. and Mrs. Clouse including their various entities and businesses throughout the years? A Yes. Q Do you have an idea of how long that was? A I've been associated for 18 years; and before that, it's probably been another 20 years before that. Q And in your association with Mr. and Mrs. Clouse, does that include providing service to both of them and in that you meet with both of them regularly, talk 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . with them, provide documents and tax returns on behalf of both? A Correct. Over the years, we filed joint tax returns for them. Q Let me begin first of all with did you prepare a financial statement dated March 31st, 2006, of the financial circumstances of Mr. and Mrs. Clouse? A Right. We have draft financial statement, and that was prepared. Q And what was the purpose of that draft statement? A I think it was the purpose of the draft statement was to get a handle on all the assets of the Clouses. Q And was this draft statement prepared by your office? A Correct. Q And how -- how did you go about preparing it? What sources did you utilize to come up with the numbers that you have in this document? A We -- for the cash, we used copies of bank statements or confirmations that were sent to the bank for values on a certain date. We sent -- got photo copies of different appraisals, tax return, book values for some of the businesses; and we contacted Charlie Telfer who is their 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . investment adviser to get values on life insurance policies and so forth. Q You -- you used the word -- the name Charlie Telfer. Is he the person that provides advice on insurance and investments for Mr. and Mrs. Clouse? A Yes. Q And you discussed with him the various evaluations? A Correct. Q And was this particular document that's a draft March 31st, 2006, statement of financial conditions shared with both Mr. and Mrs. Clouse? A Correct. Q At or about the time prepared? A Yes. Q And that was not prepared in anticipation of today, was it? A No. Q Okay. And did the -- did you hear back from Mr. Clouse in terms of his thoughts regarding your evaluations? A Right. We -- Mr. Clouse reviewed this and so did his daughter Heather, And we gave Mr. Clouse representation letter to confirm, basically, that he agreed with the numbers and that then I had e-mailed a draft of the 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . statement to Laurie and to show over for Mrs. Clouse. Q So my point is at or about the time this document was prepared, you shared with Mrs. Clouse and her attorney? Did Mr. Clouse get back to you indicating he accepted this financial statement? A Yes. Q Did Mrs. Clouse get back to you? A She did not affirm that she agreed with all the numbers on the financial statements, Q But as I read these various numbers, from your perspective as the family CPA, you're telling the Court to the best of your knowledge these numbers and -- that you have on this document accurately reflect the condition of Mr. and Mrs. Clouse and the businesses as of March 31st, 2006? A Correct. Q Okay. I want to ask you to look at page 2 of your document. I'm going to ask you for look at that document for a second and look at specifically page 2. And page 2 has a statement of financial condition broken into 3 categories, Edward Clouse, Calene or Mrs. Clouse, and joint assets; is that correct? A Correct. Q How did you differentiate between Edward and Calene and joint? 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A From the documents either from the tax returns or the deeds associated with the different accounts or the names that were on the accounts. Q And what was the total amount of the assets or net worth that you determined for Mrs. Clouse? A $3,462,441. Q And that was net worth of assets in her control? A Correct. Q Now, I know Mr. Close has about 8.1 million; but at least 3.46 is with Mrs. Clouse? A Correct. Q Now, you also have a joint exhibit. How much is the joint, meaning owned by both of them titled together? A $4,311,910. Q And total net worth as you determined it to be in March of 2006 was what? A $15,897,166. Q $15,897,166. THE COURT: Say that once again. THE WITNESS: $15,897,166. BY MR. WAGNER: Q Now, I want to specifically look at an entry under Ed's name cash 687593 on page 2? A Yes. 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q Are you aware of what that number reflects, what the source of it is, and what's happened to that? A Well, as of March 31st, that was the balance in his checking account. The source of that money was the loan distribution from the life insurance policy. Q And do you know what that was used for? A Well, some of that money that came from the life insurance policy was used to purchase the property in Pittsburgh, some fees that were associated with the lifetime exchange on the Mercersburg property, and also the transfer of taxes for the Family Limited Partnership. Q Transfer taxes on the Family Limited Partnership? A Property that was put into the Family Limited Partnership. Q I'm going to ask you about that. You're aware that there is a draft proposal for a Family Limited Partnership; is that correct? A Correct. Q And did you become aware of that as the accountant for Mr. and Mrs. Clouse? A Correct. Q How did you become aware of it? A We had a meeting with the estate tax attorney Susan Lederer, and we discussed the formation of the Family 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Limited Partnership. Q And who is we when you say we met with her? A Mike Devlin, a CPA in my office, and myself and Mr. and Mrs. Clouse. Q Mr. and Mrs. Clouse? A I believe they were both there. Q And all of you met to discuss the issue concerning the formation of a Family Limited Partnership? A Correct. Q And did you -- have you looked at the draft of the Family Limited Partnership? Have you reviewed it? A Correct. Q Okay. And do you know if Mrs. Clouse reviewed that through an independent CPA? A I believe that she had Bruce Brown from Brown & Shultz was given a draft of that agreement. Q And pursuant to that agreement, properties were to be titled in the name of the FLP; is that correct? A Correct. Q Including one farm known as the Stevens Farm? A Correct. Q And were all the deeds actually executed by the parties and recorded in anticipation of the formation of this partnership, A Correct. I have copies of all the deeds that 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . were transferred into the Family Limited Partnership. Q Now, let me ask you this. At this time, absent the execution of the Family Limited Partnership, what kind of an implication is there as a result of the anticipated transfers and then no formation of the limited partnership? A There's several -- all of the transfer taxes have been paid to pay -- to transfer the deeds into the Family Limited Partnership. That has been taken care of. Also, part of the reason for the Family Limited Partnership was for a gifting and estate tax purposes to make things easy to transfer between Mr. and Mrs. Clouse to their children. Also, Heather Clouse has an investment with the Gaming Licensing Board; and she needed a certain net worth and put everything put those farms in the FLP so they could transfer part of the value of that to their daughter so that she would qualify for this investment. Q All right. Let's briefly sort of touch on that. You said Heather the daughter has to have a certain net worth because of the Pennsylvania gaming issue; is that correct? A There's a partnership that they're involved with. And to qualify to be a partner in this investment, you have to have a certain net worth which I believe is like 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . five million dollars. Q Generally speaking, what consequences do the Clouses experience if the FLP is not followed through with or if assets that are transferred into it are brought -- are backed out? A Well, we would have to retitle all of the properties back into the individual's name since mostly everything that is in there is real estate. Q When you met with Mrs. Clouse concerning the formation of the FLP and at the time the deeds and so forth were executed, any indication from her or from anyone on her behalf that she objected to the formation of this or particularly the inclusion of the Stevens Farm? A My involvement with that was with the initial setup of the FLP. I was not there at the transfer of the the deeds or anything like that. I was there before that occurred. Q Now, sir, in terms of the formation of the FLP, what benefits do -- do Mr. and Mrs. Clouse retain, if you will, if that -- that is formulated? In other words what I'm really getting at is what -- how much jeopardy is the Stevens Farm involved with if it is not part of this FLP? A There's two parts of that question. The benefit of the FLP and the inclusion of the Stevens Farm, it 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . was just one of the other assets that was put into the FLP. And Mrs. Clouse owns 50 percent of that FLP through a LLC that she's the sole owner of. And Mr. Clouse owns the other 50 percent of the FLP, and they are both the general partners. And the two daughters are the listed as limited partners. So both Mr. and Mrs. Clouse control all the assets in that FLP, Q So Mrs. Clouse doesn't, if you will, lose anything by having the Stevens Farm in the FLP? A She does not lose anything by having that -- I mean, right now the Stevens Farm was titled in her name. So she would theoretically lose that asset in her name. So she cannot -- once she puts it in there, she cannot sell that and take the trans -- the proceeds from that. Q Let me ask you this, The acquisition of the Stevens Farm occurred during the marriage between her and Mr. Clouse; is that correct? A Correct. Q So it was a marital asset in the sense it was purchased during -- MS. SALTZGlVER: Objection, Your Honor. This witness is not qualified to testify regarding what's marital and not marital. MR. WAGNER: I'll ask it this way. BY MR. WAGNER: 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q Was it purchased during the time they were married? A Correct. My understanding is yes. And to go along with that, your question about the benefits of the FLP, if both partners agreed to sell a piece of property within that limited partnership, they could transfer those proceeds to Mrs. Clouse if she wanted to within the FLP and also assign that gain to her personally, So with the -- with the two having control, they can do this proportion and distribution if they would like within the partnership guideline, prepare the list of different benefits of the Family Limited Partnership. Q And and -- and that list of benefits to the FLP, would you just briefly describe that they are, sir? A One of the benefits would be to -- the FLP allows Ed and Calene to maintain control of the real estate while transferring the interest to Heather and Vallery. It enables Ed and Calene to benefit from the lack of control. As far as the marketabilities for gift and estate tax purposes, they would get discount under IRS regulations. It also restricts subsequent transfers of the real estate held in the FLP which means that if they're held outside of the FLP, both the individuals are in control, When it's in the FLP, the people who are general partners control the property. 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . The FLP has a lot of flexibility, and you can move things in and out of the FLP without having a lot of tax consequences, But what it does is it reduces the expenses. So as like, for example, with the real estate, we can transfer value in the real estate between Mr. and Mrs. Clouse to Heather and Vallery without incurring any transfer taxes. And it's very efficient to -- to do that. Q Sir, one question I do have. If -- if the if the LLP -- excuse me there a tax consequence? A There's -- there's no tax consequences per se if the FLP is not consummated, is besides having to retitle it and pay all the transfer taxes over agaln. Q And what would that amount to if you know? A I can't remember what the total transfer taxes that were paid on all the properties together. Q Do you have approximate? A $122,000 or something like that I believe. Q So off of the top to the best of your recollection, one of the consequences is a $122,000 tax consequence? A Right. And if we just pulled out the Stevens Farm which has a fair market value of $607,000 from its appraisal, transfer taxes on just that one farm was $12,197. Q I'm going to ask if your statement of 45 . . 1 financial condition that you prepared March 31st, 2006, and 2 is marked, please, as Defendant's Exhibit No.1, can you 3 verify that Defendant's Exhibit No.1, the statement of 4 financial conditions on March 31st, 2006, accurately 5 reflects from your standpoint as the CPA financial condition 6 of the Clouses? 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Yes. MR. WAGNER: Cross-examine. CROSS EXAMINATION BY MS. SALTZGIVER: Q Mr. Neubold, if you turn to page 2 of what has been marked as 0 No. 1 where you have the assets listed, those are listed under whose name they are recorded in; isn't that correct? A Correct. Q You don't necessarily make any determinations regarding what's marital and what's nonmarital; isn't that correct? A Correct. Q And I believe you testified that Mrs. Clouse has not agreed with all the numbers in this statement? A Correct. Q Do you recall a meeting with -- between yourself, Mike Devlin of your office, Mrs. Clouse, myself, 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . and Bruce Brown? A Yes. Q Okay. And do you recall Mrs. Clouse telling you at that meeting she was unhappy about the transfer of the Stevens Farm into the FLP? A At that meeting, yes. Q And do you recall at that meeting advising us that Mr. Clouse had in fact transferred a portion of his limited partnership interest to Heather? A There -- in order to qualify for the gaming license for Heather to have the fair market value, a gift was supposed to be made to transfer a portion of the FLP to Heather. And at that meeting, we had talked about if Mrs. Clouse would split that with Mr. Clouse or if she would join in with the gifting so it was a consensual gift to avoid gift tax. Q Is it true that at that meeting that you informed us that Mr. Clouse wanted to use approximately $400,000 of Mrs. Clouse's gift tax exclusion? A Correct. Q And that was because of this transfer of the limited partnership agreement -- limited partnership to Heather? A Correct. And right now all that's on -- on hold. 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q There's no question, Mr. Neubold. Now, while this Stevens Farm remains in the FLP, my client cannot sell it on her own; isn't that correct? A Correct. Q She also cannot obtain a loan against it to get any cash; isn't that correct? A Well, she could -- not against that particular farm. But she still has the value of that FLP if it was consummated in her name. So she would have that net worth against her name. Q But at this point in time while the Stevens Farm is in the FLP, my client cannot obtain a loan or a mortgage against that property; isn't that correct? A Against that property no or correct. Correct. Q Now, we look again at page 2 of Defendant's Exhibit No.1. Under assets, it shows cash under Edward $687,593; isn't that correct? A Correct. MS. SALTZGIVER: I don't have any copies of this, Your Honor, so I'm going to show it to Mr. Wagner. BY MS. SALTZGIVER: Q Mr. Neubold, I'll show you what's been marked as Plaintiff's Exhibit No.7, Can you identify that document for me? 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A That's a spreadsheet that we have of the different bank accounts and whose names that they were in. Q And that reflects that Mr. Clouse has approximately 684,000 in an M & T bank account; isn't that correct? A Correct as of March 31st. MS. SALTZGIVER: Thank you. Nothing further, Your Honor. REDIRECT EXAMINATION BY MR. WAGNER: Q I just need to clarify. That reflects March 31st, 2006; is that correct? A Correct. Q Is that same M & T Bank account that you just referred to, is that the same number as on page 2 of Defendant's Exhibit No.1 where you have it listed cash under Ed Clouse? A That is included in that number. There's another bank account added to that. Q And the source of that I believe you told us was at least partially or if not all the loan proceeds from an insurance policy? A Correct, cash value that was distributed froIT the insurance policy. 49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q Okay. And it's the same number that was you -- you told us earlier has been reduced because of the purchase of some property? A I don't know if it's been reduced. I haven't seen the statements afterwards. Q So what you're telling us is as of what is there today no one knows? A I have no knowledge of that. Q All right. Finally, if -- is there a consequence if the FLP has all the properties put into it? Is there a tax consequence to -- to one person versus another if we back -- if we don't put the Stevens' property but Mr. Clouse puts his properties in? A Well, the problem you run into is that -- the real problem would be the transferring of the value making the gift to Heather Clouse. We had transferred 2.6 million dollars of the FLP out of whoever's portion it is to -- to Heather. If Mrs, Clouse doesn't join in on the gift, there will be approximately $306,000 in gift tax to be paid. If Mrs. Clouse -- number one, she can join in with the gift and still use Mr. Clouse's percentage of the FLP, we avoid the gift tax and use her partner unified credit. Or she can split it with Mr. Clouse. Q So what you're basically telling us is 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . nonparticipation is over $306,000 tax issue to Mr. Clouse at this point? A Correct. MR. WAGNER: No further questions. MS. SALTZGIVER: I have one, Your Honor. RECROSS EXAMINATION BY MS. SALTZGIVER: Q Mr. Neubold, isn't it true that at -- at our prior meeting that you told us that Mr. Clouse cashed that Mr. Clouse -- Mr. Clouse withdrew funds from the life insurance policy to pay Mrs. Clouse the money that he owes her? A Well, we -- he withdrew a million dollars out of the life insurance policy; and that money was sitting in the bank account in his personal bank account. Q And isn't it true that you told us that that money was sitting there to pay Mrs. Clouse? A That money was -- could be used to pay Mrs. Clouse. Q Isn't that what you told us that money was for? A I don't want to say the money was for; but that money was -- was there in anticipation of that. Q You don't recall telling us that the money 51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . was sitting there to be transferred to her? A Not those exact words. I can't recall that. MS. SALTZGIVER: Okay. Nothing further, Your Honor. MR. WAGNER: I have no redirect, THE COURT: You may step down. Thank you. Mr. Wagner, may the witness be excused? MR. WAGNER: Yes, if you like. MS. SALTZGIVER: No objection. THE COURT: You may stay or leave as you choose. Thank you. HEATHER CLOUSE, having been duly sworn, testified as follows: DIRECT EXAMINATION BY MR. WAGNER: Q Would you tell the Judge your full name? And you have to speak up nice and loud for the Court, please. A Heather Kutz. Q And what's your address, Heather? A 2215 Ritner Highway, Carlisle. Q Heather, you are the daughter of Mr. and Mrs. Clouse in the courtroom today? A Yes. Q Are you employed? 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Yes. Q What do you do? A Work at Clouse Trucking. Q What do you do there? A Manage, do a lot of managing operations. Q Do you also take care of Dad's bank accounts, his personal and business bank accounts? A It's mostly done by the other accountant, but I do know some about his bank account, Q I'm going to ask some questions, first of all, And I know it's a very uncomfortable position to be in, but I'm going to have to ask you some questions. First of all, are you aware that Dad withdrew -- made a loan against an insurance policy in the last year's period of time? A Yes. Q How are you aware of that? A I knew that he was doing it to pay the taxes for the FLP transfers. Q And was there any other reason he was withdrawing the money if you know or taking a loan? A Yes, Q What was the other reason? A He purchased property in Pittsburgh and to either pay the tax -- the tax that might be due September 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . 15th or to pay it to my mom. Q What was the -- what tax was due on September 15th? A Transfer tax. Q On what? A Gift tax. It's a gift tax. Q And do you know what the amount of the gift tax is? A Between 3 and 400. I don't know for sure. Q Three and four hundred dollars? A Three and four hundred thousand. Q Now, I'm going to ask you a little bit about Mom's situation. Mom and Dad do not live together; is that correct? A Correct. Q And Mom has her own home? A Yes, Q Do you have an indication of what -- can you describe briefly the home? Is it a small apartment? Is it a small house? Tell us a little bit about the house. A It's two-story. I don't know. Maybe 4,000 or 4500 square feet in size. Q Is it paid for? A Yes. Q Do you know what the price of the home was? 54 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Four something -- 400 some thousand. Q Does Mom live there alone? A No, with my sister. Q And that sister is the sister that has a challenge; is that correct? A Yes. Q Do you do some of the books at Clouse Trucking also in terms of payroll and payment of the expenses and payment of the bills? A Yes. Q Are you familiar with whether or not your mom receives a paycheck or receives a pay from Clouse trucking? Yes, she does. How much does she receive? 42,000 a year. How much does your dad receive? 42,000 a year. So they're paid an equal amount of money; is A Q A Q A Q that correct? A Q Yes. Does Mom come to work there? Does she work in any capacity? A Yes. Q What does she do? A She'll go for license in Harrisburg or MBRs 55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . or inspection stickers. Q Is she there is it an 8 to 5 or 40 hour a week job that Mom performs or -- A As needed. Q How about Dad? A 24/7. Q He's the hands on fellow who operates Clouse Trucking? A Yes. Q In addition to the payment of money to Mom in the form of a salary, does she also receive child support for the oldest daughter? A Yes. Q How much is that? A 793 a month. Q $793? A Yes. Q Does she also receive social security for Mom? A Yes. Q I'm sorry. Does Mom receive it for the daughter? A It goes into her -- Tiffany's own personal account, yes. Q And how much is that? 56 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A I'm not sure what that lS. Q Now in anticipation of -- well, at some point in the near future, did you have occasion to review Mom's bank account in terms of deposits and expenditures in the last 18-month period of time? A It was -- the beginning of '05, there was $90,000 cash in there. And then she did a few withdrawals out of it. And then it was 111,000. And then she received a tax return from the government that which Ed received half and she received half; and that was $17,900. So since March of '06, there was -- she had received 190 -- around 190 to $195,000. Q All right, And are you aware in May of '06 Dad in anticipation of the 750,000 payment paid $100,000? A Yeah, That's not counted in that figure. Q It's not counted? A No. That is not counted in that figure. Q So if we count that figure, we're talking roughly 300 and -- almost $300,000? A Right. It would be more than that because she has received payroll checks since that and social security and support. Q Is there a mortgage payment on her home? A No. Q Is her car paid for? 57 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Yes. Q Is -- is health insurance paid for through the company? A Yes. Q Are you aware of any major expenses that your mother has? A She would have the general electric, telephone, TV, groceries. Q In anticipation of this matter today, did you talk to Morn about what she was looking to achieve through this process? A Well, six weeks, two months ago, I went up and asked her, you know, what -- MS. SALTZGIVER, Objection, Your Honor. Hearsay. MR. WAGNER: Not if she's asking Mrs. Clouse and she gets a response from Mrs. Clouse. That's not hearsay. THE WITNESS: I talked to my morn about it. THE COURT: Ms. Saltzgiver, do you have a response to the response? MS. SALTZGIVER: It's hearsay. THE COURT: Well, it's an admission of a party. You're right. It's hearsay. But there's an exception to the rule unless -- unless you feel this is not 58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . an admission. MS. SALTZGlVER: I don't know what she's going to say, Your Honor; so I can't anticipate that. THE COURT: Go ahead, Mr. Wagner. BY MR. WAGNER: Q Did you talk to your mom about the proceedings and what she was looking to achieve? A I talked to my mom and asked -- she told me that she wanted her money. And I said, I would get her her money but she needed to sign the FLP paperwork that we had done which she was there and so was Bruce Brown and everybody was there. And they were all on the same page of setting this FLP up to protect everybody. Q And what did your mom say when you said, What do you want? A She told me she didn't know what she wanted. Q Does -- are you familiar with your mother's habits in terms of spending and so forth? A She does spend, yes. Q Well, that doesn't tell us much. What are you saying she does spend? Is it for necessary items, or are there expenditures that are rather flagrant and flamboyant? MS. SALTZGlVER: Your Honor, I'm going to object this. It's speculative. It's also the opinion of 59 . . 1 the witness which is really not relevant to today's 2 proceedings, 3 THE COURT: How would this be relevant? 4 MR. WAGNER: Well, it's relevant because one 5 of the requests being made is to transfer the Stevens Farm 6 back so she can control it for purposes getting a mortgage 7 to get money to live on a day-to-day basis. That's the 8 representation that was made. 9 So, therefore, I want to be able to establish 10 that, A, she has in the last year gone through $300,000, she 11 has basically everything paid for, she receives support, she 12 receives a salary, and that through the daughter that we 13 would anticipate indicating that what she spends money for 14 is not for reasonably necessary items. 15 MS. SALTZGlVER: And, Your Honor, we also 16 have Defendant's Exhibit No.1 which shows just on one page 17 that husband's total assets are 8.1 million and wife's are 18 3.4 million. Some daughter's opinion on what one of these 19 parties spends is really not relevant to this case today. 20 THE COURT: You are asking for an advance of 21 equitable distribution, are you not? 22 MS. SALTZGlVER: That's correct, Your Honor, 23 THE COURT: The objection is noted but 24 overruled. 25 MR. WAGNER: Thank you. 60 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . BY MR. WAGNER: Q Could you describe for the Judge your mother's spending habits in terms of things that she needs versus things she doesn't need? A Well, she goes to Arizona. She'll buy boxes and boxes of stuff and then bring it home and leaves it sit in the house and don't even open the boxes with the stuff in it. Q What kind -- what kind of things are in the boxes if you know? A When we went, there was necklaces, jewelry, all kinds of stuffs in boxes; and she don't do anything with it. Q Can you give the Court an indication of the -- of the values of these assets that she's buying? How much does she spend? A I don't know how much she spends; but she spends -- well, I can say for the last year, you know, it was $250,000. But it's, you know, just if you go to her house, you can see that it's just piled up everywhere, in the attic. And she tells me, Oh, that's your inheritance. Well, we don't know what the stuff is worth in the boxes. You know -- you know, it's just not -- how are we ever going to know? She's bipolar. And she's been trying to get her medicine straight. 61 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . MS. SALTZGIVER: I'm going to object, Your Honor. This is not a medical doctor. She's not qualified to testify to my client's health condition or medical -- THE WITNESS: I know what medicine she's taking. MR. WAGNER: I'll go back. BY MR. WAGNER: Q Are you familiar with your mother's medical condition as a result of what she told you? A Well, I went to the drug store; and I picked the medicine up. And I know what it's for and Q Okay. Has your mother told you what her medical condition is? A Yes. Q And what did she tell you her medical condition is? A She's bipolar. Q And is she on medication for that? A Yes. Q Has she indicated to you that she's having difficulty with that medication? A Yes. Q What is she indicating to you is the difficulty? A Well because of the way she acts. One minute 62 . . 1 she's happy. The next minute she's mad. One day she's mad. 2 Next week she's happy. She can't -- she wants to sleep all 3 the time. They have her on sleeping pills. I told her that 4 she needed to find a new doctor at Hershey, and I gave her 5 names. But she won't go. 6 Q Have you personally witnessed her what we 7 might say are mood swings because of her condition? 8 9 A Q Yes. And are some of these mood swings times that 10 she's out of control? 11 A When she gets out of control, she'll go spenc 12 money for things we don't need; and it makes her happy. 13 Q As her daughter and being aware of the 14 financial circumstances of the family, do you have any 15 concern about Mom's ability to manage money, large sums of 16 money? 17 18 19 speculation. MS. SALTZGlVER: Your Honor, again, this is This is the client's opinion of -- the witness's opinion. The witness is a daughter. I don't see 20 how this is at all relevant to this case. 21 THE COURT: Mr. Wagner? 22 MR. WAGNER: We think it's relevant again 23 because they're asking for an advance distribution of 24 assets. And the question becomes, one, is there a need, 25 and, two, if there is an advance, is it necessary for her to 63 . . 1 -- to live on or will it be potentially dissipated. And our 2 concern is, quite frankly, she's gone through 300 grand in 3 the last year. 4 THE COURT: You may ask the question. 5 BY MR., WAGNER: 6 Q Do you -- do you have any concerns about your 7 morn's ability to manage money given her medical condition at 8 the present time? 9 A Well, for what she spent the money on for the 10 last year, I have no idea. So I would be worried about what 11 she spendtthe last, you know, 250 to $300,000 on because I 12 don't -- you know, she didn't need a house. You know, I 13 don't know if it's just stuff in boxes or not. 14 Q Did you as a family member participate in the 15 meeting with Susan Lederer and set up the Family Limited 16 Partnership, the FLP? 17 18 19 20 21 22 23 24 25 A Yes. Q Was Dad there? A Who? Q Was your father there? A Yes. Q And your mother? A Yes. Q And your sister? A Yes. 64 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q Vallery? A Q A Q your mom? A Q The one who's sitting in the courtroom, Yes, and Bruce Brown. Bruce Brown is the CPA for your mom? Correct. Were there deeds signed in your presence by No. Were there deeds signed if you know at some point and put into the family partnership? A Yes, Q During the times -- how many times did you meet with Susan Lederer that your mother was there? A Maybe four or five. Q Did your mother ever indicate that she did not want to be part of the FLP? A No. Q Did she ever indicate that she did not want any certain assets to go into the FLP? A No. Q Was there a point in time after the deeds were transferred into the FLP that Mom registered objections to this process? A Yes. Q Do you have any indication of how long after? 65 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A No, I do not. Q What objections are you aware of? A She didn't want one of the farms put in that was in her name. But her one farm and he put three in of his that was in his name alone. Q You're aware from the participation in the attempt to form the FLP that there were three farms in Dad's name alone, one in Mom's name? A Correct. One was 114 acres which was hers; and his was 643 acres, his 3. Q And Dad put his three in, and Mom did not want to put hers in? A Yes. Q Did she tell you why? A No. Q Did she ever give a reason why she wasn't going to do to participate after these various meetings and she signed the deeds? A I don't know why she didn't want to do it. MR. WAGNER: Cross-examine. CROSS EXAMINATION BY MS. SALTZGIVER: Q Now, Heather, you mentioned that you wanted your mother to sign the papers for the FLP; isn't that 66 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . correct? A Yes. We asked her to sign the papers for the FLP. Q And in relationship to that FLP, each of your parents are general partners; isn't that correct? A Right. Forty-nine percent. Q And they own the general partner -- the general partner interest pursuant to an LLC that each of them have created; isn't that correct? A They each own the same amount, yes. Q And that's pursuant to an LLC? Are you aware of that, or you're not aware of that? A Yeah, I know there's an LLC. Yes. But I don't think the LLC was signed either, I don't think anything was signed. Q And in fact, isn't it true that the governing documents for the LLC haven't even really been discussed or fleshed out at this point? A They are by Boyer & Ritter, and they've been signed by Dad. Q Are you aware of whether your mother has ever seen the governing documents for the LLC? A I have no idea. Q Now, you're named in the FLP as a limited partner; isn't that correct? 67 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Yes. And so is my sister. The four of us. Q And the intent in the FLP is to gift the two of you an interest in the limited partnership? A Yes. Q And as you acquire that interest in the limited partnership, you also share in the income from the limited partnership; isn't that correct? A Yes. Q And Chuck Neubold had previously told us you were applying for a license with the Gaming Commission; isn't that true? A Yes. Q And as part of that application process, you need to prove that you have a net worth of five million; is that correct? A Yes. Q And isn't it true that you needed a portion of the limited partnership interest to meet that five million dollar threshold? A Yes. Q Isn't it true that you wanted your mother and father to gift you a portion of their limited partnership interest so you can meet that threshold? A Yes. Q Isn't it true your mother refused to do so? 68 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Yes. Q And that made you angry, didn't it? A No. Because if not, Dad will have to pay the $300,000 in taxes as a joint owner. MS. SALTZGIVER: I have nothing further. THE COURT: MR. WAGNER: Mr. Wagner? Just -- just one or two. REDIRECT EXAMINATION BY MR. WAGNER: Q What you're going to receive or what you anticipate receiving as a beneficiary or as a partner in the FLP is a question of whether it comes either from Dad or from Mom or both, you're still going to get what you think you're going to get? A Right. Yes. Q And it's your understanding that if Mom does not participate, there's a tax -- a significant tax consequence. I believe you said earlier 3 to $400,000 that will be paid? A Correct. MR. WAGNER: I have nothing further. Thank you. THE COURT: Ms. Sa1tzgiver? MS. SALTZGIVER: Nothing further. 69 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . THE COURT: Okay. You may step down. Thank you. May this witness be excused? MR. WAGNER: Yes. THE COURT: Ms. Saltzgiver, do you have any objection? MS. SALTZGIVER: No objection. THE COURT: All right, You may stay or leave as you choose. Thank you. J. EDWARD CLOUSE, having been duly sworn, testified as follows: THE COURT: Give your full name again, please. THE WITNESS: Initial "j" Edward Clouse. THE COURT: Thank you. DIRECT EXAMINATION BY MR. WAGNER: Q And I have a few questions. I want to follow-up on what we've talked about so far. Can you hear me? I want to follow-up on a couple of questions that have been developed as a result of the testimony, and I want to be as specific as possible. Do you have a concern regarding Calene's spending habits as far as sums of money are concerned or large sums of money? 70 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Yes. Q What is that concern, or what are those concerns? A Well, actually, ever since we were married, all of our money went into a joint personal account which she had control of. She spent it all. That included groceries, the telephone bill for the house. Q Let's look at perhaps the last five years. Any indication of how much money Calene, if you will, spent for unnecessary items in your opinion? A I have no idea. The bank has even called me up and wanted to know if they were to cash the checks. Q Can you give the Court an example of the amounts of checks she writes in terms of money? A One had her signature was for 25,000 for somebody that they never heard of. She signed the check, and handed it to somebody to buy a stone. Q Let me ask you this question. Was there a recent time when she left checks that were signed out on the counter for someone to get? A We have went different places, and she would take checks along. And one particular time, she walked away and some lady come up and said, Hey, you left this lay. Here she left several checks lay she had already signed without any names or any amounts or anything else on it. 71 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q So she had just signed checks? A And left them lay. Q Where did this event happen? A At the Harrisburg Department of Transportation. Q You've heard your daughter indicate that her knowledge of her mom, your wife's spending habits have been in the last year maybe $300,000. Is that -- is that an exaggeration; or is that a typical expending spree your wife goes on? A That's typical for years. Q And are you telling the Court that you made the kind of money and had the assets for her to be able to do that? spending A Q purchased? A Q A Q A Q A Q Yes. The house that she lives in, when was that A couple years ago. Who bought it for her? The business bought it. And how much did they pay for it? I don't know how much. Any indication of how much it's worth? Four hundred plus. Does she have a mortgage on it? 72 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Not that I know of. Q How about her car? . Does she drive a car? A Yes. Q Is that paid for? A I guess. Q And she gets the salary of the business equal to yours; is that correct? A Yes. Q Where do you live at? A I live at the business, Q And is that why your daughter said 24/7? You're there basically all the time, right? A Yes. Q Do you -- do you have a concern regarding your wife's ability to manage large sums of money or even manage a farm such as the Stevens Farm? A Yes. Q What's that concern? A That she'll waste it away. Q Has she in the past from your experience wasted large sums of money? A It disappears. Q What do you mean it disappears? A She goes shopping, She goes to craft shows. She'll leave sometimes and be gone a week for a time, and we 73 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . don't even know where she's at. Q And are you aware of the amounts of money that she has with her before she leaves or when she goes on these trips? A Not really. Q Do you have any idea of the amounts of money she spends on these trips? A Not each trip as per trip. I know that she spends heavily. Q Heavily means something different to everybody. What do you mean by heavily? A Well, I know she spends a couple hundred thousand every year. Q And in terms of spending a couple hundred thousand each year, do you see items that are purchased such as new cars or boats or apartments or investments; or is it A No. I mean, every year for a number of years we go to Arizona supposedly on vacation, And it's a gem show; and she'll just go down and say, I'll take this, this, and this and this and give a check and say, Mail it to us or whatever. And maybe they do, I never see it, but there's no reason why they couldn't just cash the check. Q How much are we talking about at a time? How many dollars and cents is what I'm looking for? 74 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A Each time, I don't really know. Alls I know is when I see what's out of the bank account, Q Is that what caused you to say hundreds of thousands of dollars a year? A Yes. Q One final area. The Stevens Farm, was that purchased while you and Mrs. Clouse were married? A Yes. Q Was it purchased before you separated? A Yes. Q And what were the proceeds that -- what where did the proceeds corne from to buy that farm? A From Clouse Trucking. MR. WAGNER: Thank you. No further questions. THE COURT: Ms. Saltzgiver. CROSS EXAMINATION BY MS. SALTZGIVER: Q Mr. Clouse, isn't it correct that you and Mrs. Clouse sold a farm known as the Alice Cramer farm and split the proceedings from the sale of that farm? Do you recall that? A Yes. Q And isn't it true that my client used her 75 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . half of those proceeds to purchase her current residence? A That might have been, Q Isn't it true that you used the funds from the sale of the Line Farm in a 1031 Exchange to purchase the Mercer property? A Some of it. Q Isn't it true that the total purchase price for the Mercer property was 2.18 million? A I'm not sure, I know that the 1031 -- we don't even know yet what taxes we owe with. When the 750,000 was said, that was because that was -- that's what I thought we had. But when the taxes are done, that's not what we thought. Q I'm asking you about the Mercer property, Mr. Clouse. A I don't know. Q Isn't it true that the purchase price of that property was over two million? A Yes. Q And over the past year in addition to the purchase of the Mercer property, isn't it true that you also purchased a property in the Pittsburgh area? A Yes. Q And the purchase price of that was over $600,000? 76 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . A No. Q It was approximately $600,000? A Yes. Q Thank you. A But the Mercer property I did not put in my name. I put it in our children's name. And the property in Pittsburgh was bought on a sales agreement for someone else so that would not be my property either. Q So you're telling us that you gifted a 2 million dollar property to your children, and you're concerned about a $25,000 check that my client wrote? Is that what you're telling the Court today? A I'm concerned about wasting wasteful money. MS. SALTZGIVER: Okay, Mr. Clouse. I have no further questions. MR. WAGNER: I have no -- no redirect. EXAMINATION BY THE COURT: Q The money that you took from the life insurance, where -- where did that go again? A Pardon? Q The money that you got from the life 77 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . insurance policy, where did that go? A That was used to pay the taxes on the transfers of FLP's; and that that didn't complete. But now if it goes bad, then I'm going to owe 300 to $400,000 to put it back. So that's going to be probably $600,000 of just wasted money because my wife and daughter went first to make the FLP before I even knew about it. And after they had all the arrangements made, they came -- they came to me and told me it was a good idea. So I went along with it, and the money came out of the life insurance that I had to pay this. Q How much did you take out of the life insurance? A I don't know that either. Q Are you saying all of it went for these transfer taxes? A No. Q Where did the rest? A Part of it went to the property that I bought In Frederick that went in that's in H & V properties which our daughters own, not me, Q How much was that do you think? A I don't know. Heather could tell you. Heather 78 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q I can't really ask you to ask somebody else. You don't know? A I didn't spend any of it as a personal spending. THE COURT: I understand that. Any other questions by either counsel? MR. WAGNER: No. MS. SALTZGIVER: No, Your Honor. THE COURT: Okay. You may step down. Thank you. MR. WAGNER: I just briefly want to call Heather to clarify a couple of things. HEATHER KUTZ, recalled. HEATHER KUTZ, having been duly sworn, testified as follows: THE COURT: Will you state your name again, please? THE WITNESS: Heather Kutz. DIRECT EXAMINATION BY MR. WAGNER: Q Heather, I want to follow-up on some of the things that were just said. First of all, in terms of the 79 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Cramer property that was referred to that there was a sale. Something happened to the proceeds of the Cramer property. What happened to the proceeds of the Cramer property? A The Cramer property was a 1031 Exchange for a Chambersburg farm service. Q So no proceeds were paid to Mom? A She got 400 or somewhere around there. She got money out from Clouse Trucking or Clouse Farms. She did get the money from there, but the Cramer money was from the 1031 Exchange. Q Okay. And in terms of the -- the money that was the loans from the insurance policies, we're talking a little over a million dollars. Are you familiar with what happened to the money? What was paid by that money? A Two -- around 200,000 of it was for the transfer of taxes on the FLP properties. Some of it is in an account now for -- to see if we have to pay taxes on the money come September 15th. Q That's the 3 to $400,000 we're talking about? A Yes. And some of it was towards the money and the property in Pittsburgh. And the H & V Properties is also owned by Calene and Ed. That's a marital asset. That wasn't given to me and my sister because can't happen until after 2 years because it's a 1031 Exchange. But it's not mine and my sister's. 80 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . in Q I just want to clarify that. The property Maryland that we're talking about, the Mercer property -- A Yes. Q -- that's part of this IRS 1031 Exchange? A Yes. It is not mine and my sister's, Q And your understanding is that it's still your mom and dad's and you can't get it for a minimum of two years? A That's correct because the 1031 Exchange and the Pittsburgh. Q And that same thing that's true of the Pittsburgh property; is that correct. A Right. It's 50 percent each of theirs, hers and his both. Q So when Dad said it's in you guys' names, it's anticipate you might get it. But right now as we speak, it's in each party's name? A Right. 50/50. H & V Properties is just the name of the LLC, We don't own it. MR. WAGNER: I have nothing further. THE COURT: Ms. Saltzgiver? MS. SALTZGIVER: I have a few. CROSS EXAMINATION BY MS. SALTZGIVER: 81 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . Q So you are claiming that H & V Properties is owned 50 percent by my client? A Yes. If something happens to my dad, in his will, everything goes to my mom. So it's hers. Q But my client's name isn't on anything connected with H & V Properties; isn't that correct? A I have no idea. Q H & V Properties is an LLC that was recently formed; isn't that correct? A Yes. Q Now this 3 to $400,000 that you're talking about, this gift tax, isn't it true that the gift taxes only occur if the gift is actually made? A Yes. Q And A The gift will be made by either my mom and dad both or just my dad. Q And this is the gift of the limited partnership interest to yourself? A Yes. Q Then you're representing to the Court that your father has informed you he's going to make the gift to you either on his own or in addition to your mother? A Yes. MS. SALTZGlVER: I have nothing further. 82 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 . . MR. WAGNER: One other question I have, REDIRECT EXAMINATION BY MR. WAGNER: Q Earlier there was a reference made to Mrs. Clouse, and was it you that went to see Susan Lederer? A Yes. And so did my other -- Vallery, my -- my mom went. My dad went. We all went. Q Who initiated the idea of an FLP, Family Limited Partnership? A My mom -- well, my mom did because of the interest to protect everybody in the family from signing off on her or there to somebody else. Q So you're telling the Court that the person who really was instrumental in initiating the formation of the FLP was your mom? A I think it was everybody in general. Q But your mom was a willing participant? A Yes, because she kept going back to the meetings. Q Did -- and that's -- was there a time when initially you and Mom and Vallery went to Susan Lederer before Dad even knew that you were going? A I don't recall. MR. WAGNER: Thank you. I have nothing 83 . . 1 further, 2 THE COURT: Ms. Saltzgiver? 3 MS. SALTZGlVER: Nothing further. 4 THE COURT: You may step down. Thank you. 5 Anything further, Mr. Wagner? 6 MR. WAGNER: I don't believe so, no, 7 THE COURT: Do you want to move the admission 8 of Defendant's Exhibit 1, 9 MR. WAGNER: I do. 10 THE COURT: Ms. Saltzgiver, any objection? 11 It's the statement of financial condition. 12 MS. SALTZGlVER: I have no objection to the 13 exhibit, Your Honor. However, I do want to point out that 14 the accountant did testify that my client does not agree 15 with all of the figures in that document. 16 THE COURT: All right, Defendant's Exhibit 17 No.1 is admitted, Ms. Saltzgiver, do you have any rebuttal 18 testimony? 19 MS. SALTZGlVER: I do not have any rebuttal, 20 Your Honor. I do have -- do want to move for the admission 21 of P-7. 22 THE COURT: Plaintiff's Exhibit 7? 23 MS. SALTZGlVER: Yes. 24 THE COURT: Mr. Wagner, that was the 25 spreadsheet. 84 . . 1 MR. WAGNER: No objection. 2 THE COURT: Okay. 3 MS. SALTZGlVER: And I didn't have copies of 4 that, so if I could make copies after the hearing, Your 5 Honor. 6 THE COURT: Plaintiff's Exhibit 7 is 7 admitted. 8 MS. SALTZGlVER: Thank you, Your Honor. 9 THE COURT: Does counsel wish to make closing 10 arguments? 11 MR. WAGNER: Only if the Court deems them 12 appropriate. 13 THE COURT: I would appreciate it. Just a 14 very brief summary of your positions. Mr. Wagner? 15 MR. WAGNER: Thank you. If it please the 16 Court, the overall theme that we're attempting to suggest to 17 the Court is that there are a number of issues here that 18 involve distribution of property, the formation of 19 partnerships, tax consequences, all of which really are at 20 this juncture unknown and speculative and lend themselves, 21 we believe, to the argument that the idea of now 22 transferring property out of a limited partnership format 23 back to someone in their individual name creates so much of 24 a potential consequence that it would not be prudent to do 25 so, 85 . . 1 And to suggest to the Court that it should be 2 done as an advance on equitable distribution so she can have 3 it in her own name and do what she wants, that's not in 4 keeping of marital property definition because if it was her 5 own name, she could not encumber, borrow against it, or sell 6 it without involving the husband because it's marital. 7 So we submit to the Court the idea of making 8 a partial equitable distribution when we have the vast sums 9 and the intricacies of this economic situation cries out for 10 potential consequences that have not been proven by Wife. 11 And we think as a result there should not be a -- a transfer 12 back out of the Stevens' property in anticipation of 13 equitable distribution. 14 In terms of the proceeds from the loan, the 15 testimony from their own exhibit shows that the face value 16 of the policy is now 3.3 million dollars when before the 17 loans it was 2.2. The document itself refers to the matters 18 as loans. They are an obligation owed back, so there has 19 not been the erosion of that asset as has been suggested. 20 So we think the second and third reason we're 21 here, i.e., insurance proceeds and removal of Stevens back 22 to her should not occur. As it relates to the balance of 23 the moneys owed on the November order, the question became 24 the consequences of some of the expenses associated with 25 that. There has been advance of $100,000; and we ask the 86 . . 1 Court to consider those -- that advance and those tax 2 consequences in addressing that issue. 3 THE COURT: Does the record indicate or show 4 how the increase in the insurance policy value occurred? 5 MR. WAGNER: Yes. It was his testimony, 6 THE COURT: I understand that. You say it 7 shows it, But does it show why it occurred? 8 MR. WAGNER: No. And we just have to stand 9 to the document. The document shows a death benefit of 3.3 10 million dollars effective August the 2nd, '06. The document 11 shows a -- a benefit value of 2.89 million in June of '05. 12 So -- 13 THE COURT: We don't know why it went up in 14 value? 15 MR, WAGNER: No. But the argument was it's 16 dissipated; and the representation is that it -- it eroded 17 the death benefit. Now, I'm just pointing out that their 18 document does not support that; therefore, they haven't 19 carried their burden of proof that there has been any 20 violation of a court order by dissipating a marital asset. 21 THE COURT: Ms. Saltzgiver? 22 MS. SALTZGlVER: Your Honor, this case is 23 very simple. On the first issue, we have a court order of 24 November 4th, 2005. Husband agrees to transfer $750,000 to 25 my client from a nonmarital asset. He's provided her with a 87 . . 1 hundred thousand dollars. He still owes her $650,000. 2 What has or has not occurred with the 1031 3 Exchange, first of all, there's been no evidence put into 4 into the case today regarding any sort of tax consequences. 5 As far as we know, the 1031 Exchange went through, Husband 6 received those proceeds. 7 The order does not read if Husband gets less 8 than 1.5 million that Wife gets less than $750,000. The 9 stipulation in the order says what it says. The Husband has 10 not abided by the order. He owes my client $650,000, plus 11 he owes her attorney fees that she incurred today, 12 On the other issue, we have a life insurance 13 policy which is a whole life policy which has 2 components. 14 It has a cash value, and it has a death benefit. Okay, 15 This is an investment. Over time, the cash value increases. 16 We can see from the first page of portion No, 2 of the 17 exhibit that in January of 2005 the cash surrender value was 18 2.6 million. 19 In January of 2006, the cash surrender value 20 was 1.7 million. So clearly, the loans against the life 21 insurance policy decreased the cash value. Clearly, that is 22 a dissipation of this asset. Whether or not husband is 23 paying it back is not here nor there. He's dissipated this 24 asset. 25 In addition to that, we have this FLP. The 88 . . 1 FLP while it's an estate planning device does not change the 2 character of this property as marital property. Everything 3 is still marital. Husband and Wife are the general 4 partners. They alone have the power to govern the FLP. 5 The limited partners have no rights to make 6 any decisions in the FLP. As they gain an interest in the 7 limited partnership, they can gain a portion of the income. 8 But they have no decision as to what is bought and sold, how 9 the FLP is managed, nothing. 10 That's why we do not feel that the -- that 11 entering into the FLP harmed my client in any way because it 12 does not change the character of the marital property. 13 However, as the parties gift away their limited partnership 14 interest, that does change the character of the property. 15 If they decide to gift part of their interest 16 to a third party, then that in essence is an advance on 17 equitable distribution to that general partner because 18 they're taking their interest and they're giving to someone 19 else. So they have would have to take that as an advance on 20 equitable distribution. 21 Now, what we heard today is that Husband 22 intends to make this gift to Heather the daughter whether or 23 not Wife agrees or not. Clearly, he's anticipating taking 24 an advance on equitable distribution from the limited 25 partnership. All my client is asking for is that be 89 . . 1 attributed to Husband as an advance and then she also 2 receive an advance on equitable distribution. 3 She's requesting the property return of the 4 Stevens Farm. You may have a number of questions as to why 5 the FLP hasn't been signed, why -- and the documents have 6 been -- the deeds to the properties have been transferred. 7 I can't answer that question for you, Your 8 Honor. I can tell you it's -- it's not my client's intent 9 to not proceed with the FLP However, there have been a 10 number of issues which have not been fleshed out. The most 11 glaring of which is the governing documents for the LLC. 12 I can tell you my client has never seen that 13 document because I haven't received the document until very 14 late yesterday. And that document is in draft form. And I 15 can tell you that just a first flesh I have a number of 16 issues with that document. 17 However, what the parties choose to do in 18 estate planning or gifting to their children is really of 19 of no concern to the Court. Any gifting, any agreement 20 between of two of them is something between the two of them, 21 However, as I've said, the FLP is -- was 22 entered into by both parties by agreement. It does not 23 change the property as characterized as marital property by 24 entering into the FLP which is why my client agreed to enter 25 into it. 90 . . 1 What we're requesting is that the Stevens 2 Farm be transferred to her into her name alone so she can 3 sell it, she can obtain a loan against it, she can have some 4 security for her future. The accountant testified that 5 there would be transfer taxes if that is transferred to her. 6 If so, the transfer tax would be about 7 $12,000. Certainly, it's insignificant compared to the 8 property which Husband purchased over the past year which is 9 a $600,000 property in Pittsburgh and 2.18 million dollar 10 property in Mercer. 11 We heard a lot about my client's spending 12 practices. You can see from the financial statement the 13 husband has twice as much in his name as -- twice as many 14 assets titled in his name's as my client has in her name. 15 And that's just from a glance at the financial statement. 16 You can see he's been purchasing property. 17 He's been taking money out of his life insurance policy. 18 All my client is requesting is the return the Stevens Farm 19 and the payment of her attorney's fees and the additional 20 $650,000 which is owed to her pursuant to the November 2005 21 order. 22 THE COURT: What are your attorney's fees as 23 shown on the exhibit? 24 MS. SALTZGlVER: I need to check on that, 25 Your Honor. Just a minute, please. Fees and expenses total 91 . . 1 $3,392.12. 2 THE COURT: And that covers both petitions? 3 MS. SALTZGlVER: That covers both petitions. 4 It does not cover attending today. 5 THE COURT: And is it your view that I'm 6 being asked to approve a withdrawal or distribution from 7 this Family Limited Partnership at this time by Mr. Clouse 8 for the benefit of his daughter or one of his daughters? 9 MS. SALTZGlVER: I haven't heard any request 10 of that, Your Honor. 11 THE COURT: So that issue is not in front of 12 me at time, is it? 13 MS. SALTZGlVER: I don't think so. 14 MR. WAGNER: What? 15 THE COURT: The issue of whether Mr. Clouse 16 would be permitted to withdraw from the Family Limited 17 Partnership funds to gift property. 18 MR. WAGNER: That's -- that is not -- no, 19 that issue is not here at this particular point in time. 20 But to the extent that it was -- it was -- these deeds are 21 in the name of the Family Limited Partnership, the question 22 becomes have all the parties been joined in order to have 23 the Court direct to be returned back to the -- to Mr. and 24 Mrs. Clouse to effectuate her request. 25 THE COURT: All right. Well, it's a very 92 . . 1 interesting case. I want both the parties here I'm awfully 2 sorry things have gone this sour for you. And we'll enter 3 this order. 4 MS. SALTZGlVER: Your Honor, if I could say 5 one thing in response to what Mr. Wagner just said? 6 THE COURT: Certainly. 7 MS. SALTZGlVER: I just want to point out to 8 the Court that the FLP, you do not have to approve anything. 9 The general partners who are the husband and wife are 10 decision makers as far as that which is why it continues to 11 be characterized as marital property. 12 MR. WAGNER: My reference not to create 13 confusion was my understanding is it's been deeded to the 14 Family Limited Partnership. So to the extent there's a 15 request that go back to its original form would be our 16 position that those parties would have to be joined because 17 the Court doesn't have jurisdiction over the Family Limited 18 Partnership members at this juncture without them being 19 joined. 20 MS. SALTZGlVER: But there's no ownership 21 interest at this point by the limited partners. It's owned 22 a hundred percent by Husband and Wife, so the Court 23 certainly has jurisdiction over it. The FLP is not an even 24 an entity. We don't have a signed agreement. We have some 25 deeds that have been transferred into, really, a nonentity. 93 . . 1 So the Court certainly has the power since it's between 2 Husband and Wife, wholly owned by Husband and Wife, to 3 transfer it back to my client. 4 THE COURT: These deeds have been recorded 5 down there? 6 MS. SALTZGlVER: Yes. 7 MR. WAGNER: Yes. 8 THE COURT: Mr. Wagner, is that your 9 understanding? 10 MR. WAGNER: Yes, they have, Your Honor. 11 THE COURT: And the deeds are from the 12 Clouses to this FLP? 13 MR. WAGNER: Correct, Your Honor. 14 THE COURT: Is that right? 15 MS. SALTZGlVER: That's correct, Your Honor. 16 THE COURT: We'll enter this order: 17 AND NOW, this 16th day of August, 2006, upon 18 consideration of Plaintiff's Petition for Contempt and 19 Enforcement of Court Order of November 4, 2005, and 20 Plaintiff's Petition for Special Relief in Contempt and for 21 Advance on Equitable Distribution and following a hearing 22 held on this date, the record is declared closed and the 23 matter is taken under advisement. 24 MR. WAGNER: Thank you, Judge, for your 25 patience and time. 94 . . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. SALTZGlVER: Thank you, Your Honor. (The proceedings adjourned/concluded at 4:06 p.m.) 95 . . CERTIFICATION I hereby certify that the proceedings are contained fully and accurately in the notes taken by me on the above cause and that this is a correct transcript of same. ; ,~ , , ,'I, , ",' .' :, '(' !/ / ,,,,.,.,. . TYi ~ , V ;, I !"""" ,/ i i ; Cs f i,1;+-" (~/ " "; I MAndy L. 'oftez, RPR' Officia~JCourt Reporter - -- -- - - - - - - - -- - - - - -- --- The foregoing record of the proceedings on the hearing of the within matter is hereby approved and directed to be filed. tv ov Date S 2-(;)0" I 'Wesley 96