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HomeMy WebLinkAbout04-04-08 (2) IV IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYL VANIA In Re: Estate of Camilla R. Westcott, Deceased. Orphans' Court Division No. 21-05-0491 () ;;;g :=;0 ':::::> :::0 CD;!~1 =:;=g p;g ;;3 :~ r::g ,::"'3 J) ^.&- c!i ~3~:n. C) ',;::- :::J:: -i-i ::D ::Q == ,-") This "Stipulation of Counsel for Settlement of Objections" (this "Stipula1ton"), wh~ is-:~ ;;; f'> '1 made effective as of the N day of April, 2008, is executed in connection with the audit STIPULATION OF COUNSEL FOR SETTLEMENT OF OBJECTIONS conducted by the Orphans' Court Division, of the Court of Common Pleas of Cumberland County, Pennsylvania (the "Court") in the above-captioned matter arising from objections filed (the "Litigation"), by the parties set forth below, being the sole parties having or expressing an interest by way of pleadings filed of record in the Litigation, with the intention of compromising, settling, and concluding, finally and completely, the Litigation upon terms acceptable to such parties. Recitals A. Camilla R. Westcott, now deceased ("Camilla" or the "Decedent"), executed a Last Will and Testament, dated February 17, 1978 (the "Will"), which is a part of the record of this case. B. Item Seventh of the Will created a testamentary trust (the "Trust") for the benefit of 'William W. Westcott ("William"), as life tenant, and charities to be designated as residuary beneficiaries. C. Item Seventh named Commonwealth National Bank to serve, solely, as trustee of the Trust. 1 D. In 1991, by merger and legal succession, Commonwealth National Bank became Mellon Bank, N.A. ("Mellon Bank"). E. Camilla died on May 19,2005, a resident of Cumberland County, Pennsylvania. F. The Decedent's son, William W. Westcott, filed a renunciation to serve as a personal representative of the Estate of Camilla R. Westcott, deceased (the "Estate"). G. Thereafter, Manufactures and Traders Trust Company ("M&T Bank") petitioned to serve as an Administrator, D.B.N, C.T.A. of the Estate, and was so appointed by the Register of Wills of Cumberland County, Pennsylvania. H. M&T conducted an administration of the Estate, and then, on July 27,2007, filed its First and Final Account of the Estate (the "Account") for audit with the Court. 1. In the Account, M&T Bank proposed distribution of the net residue to Mellon Bank (as successor to Commonwealth National Bank), to serve as nominated trustee of the Trust created under Item Seventh of the Will. J. On August 24, 2007, William, as an objectant, filed "Objections to Statement of Proposed Distribution" regarding the Account. K. On August 28, 2007, the Court issued an order appointing Stephen D. Tiley, Esq., of Carlisle, Pennsylvania, to serve as an auditor (the "Auditor"), to hear the matter and make recommendations to the Court pursuant to local Orphans' Court Rules. L. On October 18,2007, Mellon Bank filed a "Reply to Objections, with New Matter" (the "Reply"). Mellon Bank also filed on that date a "Consent to Serve as Trustee" (the "Consent"), which further attached a Secretary's Certificate regarding succession. M. Pursuant to the Auditor's Notice of Hearing, on Friday, November 2,2007, a hearing was held before the Auditor, who heard testimony from the parties. N. The Auditor thereafter received Post-Hearing Briefs. O. The Auditor's time within which to file his Report was extended by Order of Court dated November 15, 2007, and then again by Order of Court dated February 27, 2008, to March 14, 2008. 2 P. The Auditor filed a Report with Recommendations on March 14, 2008 (the "Auditor's Report"), and provided notice thereof to the parties. Q. Considering the factual findings of the Auditor and his proposed recommendations to the Court, which affect the parties in various ways, and desiring to expedite the settlement of the Litigation in a cost-effective and confidential manner, the parties desire to substitute this Stipulation and its agreements among the parties in place of the Auditor's Report, and to settle the Litigation with an approving order of the Court consistent with this Stipulation. R. The parties are represented by the following counsel, who are authorized by their respective clients, to enter into this Stipulation on their behalf: a. M & T Bank, as Executor of the Estate & Successor Trustee of the Trust: Roger M. Morgenthal, Esq. River Chase Office Center, 3rd Floor 4431 North Front Street Harrisburg, P A 17110 b. Mellon Bank:, as Nominated Trustee: Neil E. Hendershot, Esq. 320 Market Street, P.O. Box 1268 Harrisburg, PA 17108 c. William W; Westcott:, as Life Tenant of the Trust: lvo V. Otto, III Esq. 10 East High Street Carlisle, P A 17013 Provisions 1. The Recitals, including definitions set forth above, are incorporated by reference into the substantive provisions of this Stipulation. 2. Mellon Bank, N.A., shall withdraw its consent to serve as Trustee of the Trust, and thereby create a vacancy in the office of Trustee for the Trust. 3 3. M&T Bank accepts the office of Trustee for the Trust; and M&T Bank shall be substituted in the Account for Mellon Bank to receive the net residue of the Estate and to act thereafter as the Trustee of the Trust. 4. Reasonable costs and counsel fees incurred Mellon Bank shall be paid from the income of the Trust. 5. Reasonable costs and counsel fees incurred by M&T Bank shall be paid from the income of the Trust. 6. Fees of the Auditor in the amount of $7,230.00 shall be paid from the income of the Trust. 7. Transcriptionist costs shall be paid, or shall be reimbursed to M&T Bank and to Mellon Bank in the amounts previously contributed by them, from the income ofthe Trust. 8. The parties authorize their respective officers to execute and deliver such documentation consistent with this Stipulation, in such forms acceptable to their respective counsel, so that the Litigation can be concluded consistent with this Stipulation. 9. This Stipulation may be executed by counterpart signature pages, which, when attached together, shall form one agreement. 10. This Stipulation shall be filed with the Court for its approving Order, which shall be in a form acceptable to counsel for the parties, and which shall provide for withdrawal from the record of the Auditor's Report, with a docket notation that this Stipulation was substituted therefor. The substantial form of such an Order is attached hereto. 11. The filing of this Stipulation shall discontinue the Objections and the Reply filed in the Litigation. 4 Execution IN WITNESS WHEREOF, counsel for the respective parties have executed this Stipulation, intending to bind their respective clients, who have authorized such actions, to be effective on the date of the last such execution. Witnesses: Counsel for M&T Bank: ~ ~ flGt ( Z h~~/~ ~lJe~ Counsel for Mellon Bank: ~cLLMU-- Neil E. Hendershot, Esq. ---- Ivo V. Otto, III, Esq. 5 IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA In Re: Estate of Camilla R. Westcott, Deceased. Orphans' Court Division No. 21-05-0491 ORDER OF COURT AND NOW, this _ day of , 2008, upon consideration of the "Stipulation of Counsel to Settle Objections", and upon the joint motion of counsel who submitted it to this Court for approval, it is hereby ORDERED and DECREED, as follows: 1. The Stipulation is approved and shall be filed in the record of this matter with the effect of an adjudication by this Court. 2. The Auditor's Report previously filed in this matter shall be withdrawn from the record. 3. The Account (as defined in the Stipulation) is hereby confirmed absolutely. By the Court: Judge Sitting in the Orphans' Court Division 6