HomeMy WebLinkAbout05-27-04 (3)
No. 21 - 86 - 398
ORPHAN'S COURT DIVISION
COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
IN RE: ESTATE OF ROBERT M. MUMMA, DECEASED
SUPPLEMENTAL STATEMENT OF OBJECTIONS TO THE ACCOUNT OF BARBARA
K. McK. MUMMA AND LISA M. MORGAN AS CO-EXECUTORS OF THE ESTATE OF
ROBERT M. MUMMA, DECEASED
SUPPLEMENTAL STATEMENT OF OBJECTIONS TO THE FIRST, SECOND, THIRD
AND FOURTH INTERIM ACCOUNTINGS OF BARBARA K. McK. MUMMA
AND LISA M. MORGAN AS CO-TRUSTEES OF THE MARITAL TRUST UNDER WILL
THE WILL OF ROBERT M. MUMMA, DECEASED
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IN RE: ESTATE OF IN THE COURT OF COMMON PLEAS
ROBERT M. MUMMA, Deceased CUMBERLAND COUNTY, PENNSYLVANIA
ORPHANS' COURT DIVISION
NO. 21-86-398
SUPPLEMENTAL CONSOLIDATED STATEMENT OF OBJECfIONS TO THE
ACCOUNT OF BARBARA K. McK. MUMMA AND LISA M. MORGAN AS CO-
EXECUfORS OF THE ESTATE OF ROBERT M. MUMMA, DECEASED AND TO
THE FIRST, SECOND, THIRD AND FOURTH INTERIM ACCOUNTINGS OF
BARBARA K. McK. MUMMA AND LISA M. MORGAN AS CO-TRUSTEES OF THE
MARITAL TRUST UNDER WILL THE WILL OF ROBERT M. MUMMA,
DECEASED
AND NOW, comes Robert M. Mumma, II (hereinafter "Objector"), a named
beneficiary with interests in both the Marital Trust and the Residuary Trust created
under the Will of Robert M. Mumma, Deceased, who makes the following Consolidated
Objections to the Account of Decedent's Estate (the" Account") and the Interim
Accountings of the Marital Trust created by the Will of Decedent (the" Accountings"):
1. THE MARITAL TRUST APPEARS TO BE OVERFUNDED. THE ESTATE
ACCOUNT AS FILED FAILS TO ALLOCATE FUNDS TO THE MARITAL TRUST
IN ACCORDANCE WITH THE EXPRESS DIRECflON IN DECEDENT'S WILL.
A.) Under Item Seventh of Decedent's Will the amount to be awarded to the
Marital Trust is a standard pecuniary formula gift:
SEVENTH: If my wife, BARBARA McK. MUMMA, survives me, I give and bequeath
to the trustees hereinafter named, an amount equal to fifty (50%) percent of my total
gross estate as finally determined for Federal Estate Tax purposes, taking into account
and including therein, for computation purposes, my undivided interest in the value of
all my interests in property which pass or which or have passed to my wife under other
I provisions of this Will, or otherwise than under this Will, but only to the extent that such
interests are, for purposes of the Federal Estate Tax, included in determining my gross
estate and allowed as a marital deduction.
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B.) The Account as filed fails to compute the amount to be awarded to the
Marital Trust with reference to the Federal Estate Tax Return, nor does the Account give
credit (for computation purposes) against the amount to be awarded to the Marital Trust
for the value of the joint marital and other property which had passed to BARBARA
McK. MUMMA under other provisions of the Will or outside of probate (which
property was required to be included in the Federal Estate Tax return as filed). A copy
of relevant portions of Federal Estate Return Form 706 as filed are attached hereto as
Exhibit" A".
Total Gross Estate (Federal) $16,645,786.00
1h of Total Gross Fed Estate $ 8,322,893.00
Less: Schedule M Spousal
Joint & Other Property
Passing Outside Probate (861,018.00)
Total Amount Which Should
Have Been A warded to
Marital Trust 7,461,875.00
C.) Under the Account as filed, the following principal amounts were
actually distributed to the Marital Trust (See Exhibit "B" attached hereto):
1986 -1987 (Vol1, Page 60) $6,289,808.65
2001 - 2002 (Vol 4, Sch E, Page 1) 2,358,359.85
Total Principal Distributions
To Marital Trust $ 8,648,168.50
D.) The Marital Trust is over funded by $1,186,293.50 calculated as follows:
Actual Principal Distributions $ 8,648,168.50
Required Under Will (7,461,875.00)
Martial Trust Overfunded by: 1,186,293.50
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These overfunding amounts may need to be adjusted as Objector was not able to
determine if the adjustments to valuations were made by the Internal Revenue Service in
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I time for filing of these objections. If any asset valuation adjustments occurred on the
federal estate tax return, then the carrying values of those affected assets should have
had corresponding adjustments on the Account, as the Will directs that the adjusted
amounts for federal estate tax purposes are to be used as the basis for determining the
gift to the Marital Trust.
E.) Objector believes that the Marital Trust maybe overfunded by additional
amounts depending on adjustments to the Estate Account upon this Court rulings on
certain of Objector's other objections set forth below.
2. THE ACCOUNT AS FILED FAILS TO ADEQUATELY EXPLAIN OR
DOCUMENT SIGNIFICANT CHANGES IN CERTAIN MAJOR INVESTMENT
HOLDINGS OF THE ESTATE.
A.) One of the primary assets of the Decedent's estate was the shares of
Pennsylvania Supply Company, a closely-held Mumma family corporation, which
shares are reported on the Account with a fiduciary acquisition/ carrying value of
$9,144,473.00. According to the Account as filed, Decedent's shares of Pennsylvania
Supply Company were liquidated on or about December 19, 1986. See Exhibit "C"
attached hereto.
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Although it is not clear from the Account as filed, Decedent's shares of
Pennsylvania Supply Company were ultimately exchanged for other investments
including: (i) an unknown number of shares of Hummelstown Quarries, Inc. (with a
reported Inventory Value of $593, 421.04); (ii) an unknown number of shares of Nine
Ninety Nine, Inc (with a reported Inventory Value of $2,495,665.85); (iii) an unknown
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number of shares of Union Quarries, Inc. (with a reported Inventory Value of
$1,050,000.00); (iv) an unspecified interest in a certain real estate listed as Mumma Realty
Associates I (with a reported combined Inventory Value in excess of $3,745,211.80); and
(v) an unspecified interest in certain real estate listed as Mumma Realty Associates II
(with a reported combined Inventory Value in excess of $848,213.85). See Exhibit "D"
attached hereto.
The Account as filed is totally devoid of any concise or detailed information
relating to the exchange of the shares of Pennsylvania Supply Company for the various
above-referenced assets. The Account as filed reports alleged capital gains on alleged
distributions of the shares of Hummelstown Quarries, Inc, Nine Ninety Nine, Inc and
Union Quarries, Inc (See Exhibit "D" attached hereto) but there no way to determine or
verify the Inventory values for those shares as listed in the Estate accounting.
Other assets appear and disappear on the Account as if by magic. For example,
the Account shows $487,771.03 of capital gains on July 21, 1993 on the sale of the 'Paxton
Street Yards', yet where this asset came from and the nature of this asset is never
explained. The Account may best described as a pattern of "Now you see it, ... Now
you don't" .
This lack of concise and detailed information relating to the exchange of the
shares of Pennsylvania Supply Company and the acquisition of substituted assets is
directly contrary to the mandate of the Fiduciary Accounting Standards as set forth in
the Pennsylvania Orphans Court Rules:
A second schedule (entitled "Changes in Investment Holdings") should show all
transactions affecting a particular security holding such as purchase of additional shares,
partial sales, stock splits, change of corporate name, divestment distributions, etc. This
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schedule, similar to a ledger account for each holding, will reconcile opening and closing
entries for particular holdings, explain changes in carrying value and avoid extensive
searches through the account for information scattered among other schedules.
(Emphasis Supplied).
B.) The lack of proper accounting for the exchange of the shares of
Pennsylvania Supply Company has made it impossible for Objector to adequately
determine if there are any capital gains on the exchange of the Pennsylvania Supply
Company shares or if there has been subsequent appreciation in the value of the assets
which were received in the exchange.
To the extent that the Estate has capital gains on the exchange of the shares of
Pennsylvania Supply Company, or has had subsequent appreciation in the value of the
assets received for the shares of Pennsylvania Supply Company, then the Account as
filed has improperly allocated such capital gains and subsequent increases in value of
those exchanged assets to the Marital Trust.
Under Althouse Estate, 404 Pa. 412, 172 A.2d 146 (1961) in those instances where
there is a pecuniary formula Marital Trust (such as in Decedent's will) all capital gains as
well all increases in the value of any estate assets which occur during administration
must be allocated solely to the Residuary Trust.
3. THE CO-EXECUTRICES OF THE EST ATE FAILED TO PRESERVE
ASSETS CONTAINED IN DECEDENT'S SAFETY DEPOSIT BOX 3332 AT THE
DAUPHIN DEPOSIT BANK AT THE TIME OF HIS DEATH AND/OR FAILED TO
ADEQUATELY INVESTIGATE THE DISAPPEARANCE OF DECEDENT'S ASSETS
WHICH WERE CONTAINED IN THIS SAFETY DEPOSIT BOX.
A.) On the date of his death Decedent was the joint owner (with Objector
Robert M. Mumma II) of Safe Deposit Box 333210cated at the Dauphin Deposit Bank
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and Trust Company in Harrisburg, Pennsylvania (hereinafter "SDB 3332"). This was
the largest safe deposit box that Dauphin Deposit rented and was the size of a small foot
locker.
B.) In August of 1985 Objector and his father inventoried the contents of SDB
3332. This August 1985 visit was the last time that SDB 3332 was entered prior to
Decedent's death. At the time of this August 1985 inventory SDB 3332 contained
various assets belonging to or titled in the name of the Decedent, including his share
certificates for Pennsylvania Supply Company (and its subsidiaries) as well as corporate
records and shareholder agreements relating to Decedent's Pennsylvania Supply
Company stock.
e.) On Apri123, 1986, eleven days after Decedent's death, Objector and his
mother, BARBARA McK. MUMMA, entered SDB 3332 to recover Decedent's will. At
the time of recovery of Decedent's will Objector saw various assets owned by the
Decedent as well as the Pennsylvania Supply Company corporate records and
shareholder agreements referred to in Subparagraph B above present in SDB 3332.
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Objector and Barbara McK. Mumma were informed at this time that SDB 3332 would be
sealed pending inventory by the Pennsylvania Department Of Revenue.
D.) On November 2, 1989 a formal inventory of SDB 3332 by an officer of the
Pennsylvania Department of Revenue in the presence of BARBARA McK. MUMMA
revealed only personal papers and letters of the Decedent; neither Decedent's shares or
other assets nor any corporate records or shareholders agreements relating to the
Pennsylvania Supply Company were present.
E.) The Co-executrices of the Estate have failed to properly investigate
and/ or pursue responsible parties for the loss of Decedent's assets in SDB3332.
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F) Objector believes that the missing corporate records of Pennsylvania
Supply Company contained shareholders buy/sell agreements which (a) would have
limited the value of the Pennsylvania Supply Company stock and (b) given certain other
parties (including Objector) the right of first refusal to purchase said shares of
Pennsylvania Company Stock.
4. THE NUMBER OF SHARES OF PENNSYLVANIA SUPPLY
COMPANY STOCK (700) LISTED ON THE ACCOUNT IS OVERSTATED AND/OR
HAS BEEN OVERVALUED.
A.) According to the Co-executrices of the Estate and their counsel the
corporate records of Pennsylvania Supply Company have mysteriously" disappeared" .
Objector believes that Decedent did not own the amount of shares of Pennsylvania
Supply Company stock indicated on the Account.
B.) Objector believes that there are in existence shareholder agreements
which have been deliberately withheld by the Co-executrices and their counsel which
would have limited the value of the Decedent's shares of Pennsylvania Supply
Company by giving the other shareholders (including Objector) the right to purchase the
Pennsylvania Supply Company stock at a value fixed in the shareholders agreement.
Objector believes that these shareholders agreements were withheld to facilitate a sale of
certain assets of Pennsylvania Supply Company to third parties outside of the family.
5. LIQUIDATION OF THE PENNSYLVANIA SUPPLY COMPANY
STOCK WAS CONTRARY TO THE EXPRESS WISHES OF THE DECEDENT AND
WAS UNNECESSARY.
A.) The express wishes of the Decedent with regard to his holdings in private
family held corporations are contained in Paragraph Thirteen of his Will:
THIRTEENTH: Notwithstanding the powers herein otherwise given, I direct that my
stock in privately held corporations, supervised and administered by me as the Executive or
operating officer prior to my decease, or my stock in privately held corporations which otherwise
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is owned by me at my decease, be not sold unless all of my trustees and particularly my
individual trustee or trustees, shall agree in writing that such stock shall be sold. It is my desire
that if expedient and possible, the businesses which I have personally directed during my lifetime
and of which I have had an interest be continued for the benefit of and under the management and
control of my family.
According to Decedent's Federal Estate Tax Return as filed (See Exhibit" A"),
Decedent's total gross estate was valued at $16,645,786.00. Decedent's shares of
Pennsylvania Supply Company stock were included at a value of 9,144,473.00. In other
words, even with the $861,018.00 of nonprobate property removed from the Federal
Estate Tax return calculations, Decedent's Estate had $6,640,295 in assets other than the
Pennsylvania Supply Company stock. Most of these other assets were fairly liquid
and/ or income producing.
According to Decedent's Federal Estate Tax Return as filed (Exhibit" A"),
Funeral and Estate Administration Expenses amounted to 560,040.00, and Decedent's
Debts/Mortgages amounted to $4,614,191.00. Federal Estate taxes payable were
$42,695.00; Pennsylvania Inheritance Tax was $617,480.00. The total of expenses and
inheritance/ estate taxes payable by the Estate was $5,834,406.00.
Other Assets Available $ 6,640,295.00
Estate Expenses/Taxes (5,834,406.00)
Balance Available $ 805,889.00
As the above calculations demonstrate, there was no necessity from an estate
administration standpoint for the liquidation of the Pennsylvania Supply Company
stock. At the time that the Pennsylvania Supply Company stock was liquidated, the
surviving spouse, BARBARA McK. MUMMA and each of Decedent's four children,
ROBERT M. MUMMA II, BARBARA M. McCLURE, LINDA M. ROTH, and LISA M.
MORGAN, all had significant personal assets and/ or income from other sources. There
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simply were no compelling reasons for the Estate's liquidation of the Pennsylvania
Supply Company stock. It is Objector's position that the PennsylVania Supply Company
stock should not have been liquidated.
B.) It is Objector's belief that the liquidation of the Pennsylvania Supply
Company stock was part of a common plan or scheme by the Co-executrices, BARBARA
McK. MUMMA and LISA A. MORGAN, to vest control of certain of the stock of certain
subsidiary corporations (which has been owned by Pennsylvania Supply Company)
unto themselves free of trust. By moving a significant percentage of these shares
outside of the Estate, BARBARA McK. MUMMA and LISA A. MORGAN could assure
the sale to buyer CRH would go through if problems or objections should be raised.
CRH was not certain that the Co-executrices had the authority to sell and want
indemnification. (See Exhibit L - Stradley, Ronon, Stevens & Young Memo dated
04/27/89).
(1) In December 1987 the Co-executrices, caused the Estate to
Transfer to the Marital Trust property having a value of $6,289,808.85 including
615 shares of Hummelstown Quarries, Inc.; 50 shares of Union Quarries, Inc.;
653.5870 shares (Common) of Nine Ninety Nine, Inc.; and 829.2340 shares (10%
Preferred) of Nine Ninety Nine, Inc (hereinafter collectively referred to as the
I "Transferred Stock"). The above-referenced shares of the Transferred Stock
were received by the Estate as part of the liquidation of the Pennsylvania Supply
Company stock.
(2) Although the Marital Trust was funded in December 1987, there
was no significant funding of the Residuary Trust until 15 years later in 2002.
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(3) The allocation of the aforesaid shares of the Transferred Stock to
the Marital Trust is not a decision that a reasonably prudent fiduciary would
have made. By allocating the Transferred Stock (instead of cash) to the
pecuniary formula Marital Trust, the Estate was needlessly forced to incur capital
gains of $1,170.687.90 resulting in the payment of over $360,000.00 in fiduciary
income taxes. Had the Co-executrices allocated the Transferred Stock to the
Residuary Trust, such allocation would not have resulted in the payment of any
fiduciary income taxes.
(4) The Martial Trust grants to BARBARA McK. MUMMA a
discretionary, non-cumulative, annual right of withdrawal of up to five (5%)
percent of any then existing principal of the Marital Trust. No such withdrawal
rights are contained in the Residuary Trust.
(5) Although the withdrawal rights granted to BARBARA McK.
MUMMA do not vest her with a right to select individual assets of the Marital
Trust to fund the withdrawals, beginning in 1987 and continually annually up
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through 1993 BARBARA McK. MUMMA has systematically exercised her 5 %
withdrawal rights under the Martial Trust to convey various shares of
Hummelstown Quarries, Inc. and Nine Ninety Nine, Inc. (both common and
preferred) to herself individually.
(6) It does not appear that the systematic withdrawal of the shares of
Hummelstown Quarries, Inc. and Nine Ninety Nine, Inc (both common and
preferred) by BARBARA McK. MUMMA from the Marital Trust was financially
motivated. During the period from 1987 through 1993 while she was making
said systematic withdrawals of shares of Hummelstown Quarries, Inc. and Nine
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Ninety Nine, Inc (both common and preferred) into her own name, BARBARA
McK. MUMMA did not withdraw from the Marital Trust the over One Million
($1,000,000.00) Dollars in accumulated income which was available for
distribution to her under the express terms of the Marital Trust. Objector
believes that the object of the systematic withdrawals by BARBARA McK.
MUMMA of the stock of Hummelstown Quarries, Inc. and Nine Ninety Nine, Inc
(both common and preferred) was to give her control to effect a sale of the stock
of these corporations.
C. According to the Accountings, the Marital Trust liquidated its stock
holdings in both Hummelstown Quarries, Inc. and Nine Ninety Nine Inc. (Common) on
or about July 21, 1993. Objector believes that BARBARA McK. MUMMA liquidated her
personally owned shares in Hummelstown Quarries, Inc and Nine Ninety Nine, Inc.
(Common) on or about July 21, 1993 as part of the same transaction as the sale of shares of
Hummelstown Quarries, Inc. and Nine Ninety Nine, Inc by the Marital Trust.
D. It is Objector's position that this Court should order that the liquidation
of the Pennsylvania Supply Company stock and the sale of the related assets should be
rescinded.
6. THE CO-EXECUTRICES OF THE EST ATE REFUSED TO CONSIDER
ANY OTHER OFFERS FOR THE SALE OF THE PENNSYLVANIA SUPPLY
COMPANY ASSETS WHICH WERE SOLD OurSIDE OF THE FAMILY TO CRH,
LPC. DESPITE THE FACT THAT OBJECTOR HAD MADE A HIGHER OFFER FOR
THESE SAME ASSETS.
7. IMPROPER ACCOUNTING FOR FULTON BANK BUILDING IN
LEMOYNE, P A.
A.) The Fulton Bank Building located at 599 TweUth Street in Lemoyne
Pennsylvania (hereinafter the "FBB") is listed on the Estate Account as a principal real
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property asset of the Decedent with a date of death carrying value of $500,000.00. See
Exhibit /lE_l/1 attached hereto.
B.) The Estate Accounting as filed provides that as of March 31, 1988 the FBB
is deemed transferred to the Marital Trust as a distribution of income in the amount of
$500,000.00; however, there is no corresponding credit with regard to this asset on
principal side of the Estate. See Exhibit /IE -2/1 attached hereto.
C.) The Marital Trust Accounting as filed provides that as of March 31, 1988,
the FBB is then deemed transferred to BARBARA McK. MUMMA as a distribution of
income to her in the amount of $500,000.00. See Exhibit /lE_3/1 attached hereto.
D.) Objector believes that the FBB was improperly characterized as income in
order to allow its distribution to BARBARA McK. MUMMA without effecting the
continuing scheme of using her 5% principal withdrawal powers for removal of the
Hummelstown Quarries, Inc. and Nine Ninety Nine, Inc. stock from the Marital Trust.
8. IMPROPER ACCOUNTING OF STOCK DISTRIBUTIONS TO
BARBARA McK. MUMMA
A.) The Accountings for the Marital Trust show receipt on December 28, 1987
of (i) 55.8368 shares of Nine Ninety Nine, Inc. Common with a value of $144,902.36 and (ii)
70.8421 shares of Nine Ninety Nine, Inc 10% Preferred with a value of $104,655.92. The
origin of these share is unclear but they appear to be stock dividends. They are listed on
the Marital Trust accounting as /lOther Income/l. See Exhibit /IF_l/1
B.) These same 55.8368 shares of Nine Ninety Nine, Inc. Common with a
value of $144,902.36 and) 70.8421 shares of Nine Ninety Nine, Inc 10% Preferred with a
value of $104, 655.92 are listed as distributed as income to BARBARA McK. MUMMA.
See Exhibit /IF_2/1. In the case of the 70.8421 shares of Ninety Nine Inc 10% Preferred, these
shares are listed as being distributed to BARBARA McK. MUMMA on November 19, 1986
- more than one year before their alleged receipt by the Marital Trust.
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C.) Under the express direction of Decedent's will, any stock dividends
received by either the Estate or a trust created under the will are to be treated as principal
and not income:
TWELFTH: I direct that all dividends upon shares of stock at any time constituting
part of my estate or any Trust hereby established payable in stock of the corporation declaring the
same shall be deemed to be corpus, except that such dividends paid regularly (i.e. at regular or
substantially regular intervals) out of current earnings may, at the discretion of my Executors or
trus tees be deemed to be income.... .
9. IMPROPER ACCOUNTING FOR/DISTRIBUTION OF ESTATE
INCOME TO BARBARA McK. MUMMA.
A) Under In re: Estate of Fike, 506 A2d 398 (1986), where the non-personal
property of a decedent's estate is divided between marital/residuary trusts (such as in
the instant case with Decedent Mumma's estate), all net income earned by the
decedent's estate during administration (other than required interest on distributive
shares under 20 Pa. C.S.A S 3543) is to be allocated to and paid over to solely to the
residuary trust, where such income then becomes part of the principal of the residuary
trust.
B.) The estate accounting as files shows a repetitive pattern of direct cash
income distributions to BARABARA McK. MUMMA (See Exhibits G-l, G-2, G-3):
06/05/91 150,000.00
03/31/92 150,000.00
11/10/92 25,000.00
02/05/97 500,000.00
12/23/98 400,000.00
10/29/01 400,620.04
01/04/02 7,859.65
TOTAL 1,625,620.69
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The above-referenced cash income distributions to BARBARA McK. MUMMA
were in addition to the "income" distributions to her which are the subject of Objections
4 and 5 above. Since BARBARA McK. MUMMA is not an income beneficiary of the
Decedent's estate and was therefore not entitled to a direct distribution of the above-
referenced cash amounts from the Decedent's estate, she should be ordered to return
these amounts to the principal of the Residuary Trust.
10. OBJECTION TO VALUATION OF LEADVILLE, COLORADO
PROPERTY.
Objector believes that the property listed as 167% acres of vacant land in
Leadville, Colorado with a carrying value of $3,161.00 (See Exhibit "H") is
substantially undervalued.
11. OBJECI10N TO VALUATION OF BENDER PROPERTY IN MOUNT
HOLLY SPRINGS, PENNSYLVANIA
Objector believes that the property listed as the Bender Property comprising 9
tracts of ground in Mount Holly Springs, Pennsylvania with a carrying value of
$144,000.00 (See Exhibit "1") is substantially undervalued.
12. OBJECI10N TO VALUATION OF GROVE PROPERTY IN MOUNT
, HOLLY SPRINGS, PENNSYLVANIA
Objector believes that the property listed as the Grove Property comprising
195.733 acres of ground in Mount Holly Springs, Pennsylvania with a carrying value of
$117,493,000.00 (See Exhibit "l") is substantially undervalued.
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13. OBJECTION TO VALUATION OF LEBANON ROCK, INC. STOCK
The Account values Decedent's initia15,000 shares of Lebanon Rock, Inc. (50%
interest) at $50,000.00. Objector believes that these 5,000 shares of Lebanon Rock, Inc.
were substantially undervalued. Lebanon Rock, Inc. was incorporated on December 6,
1985 (merely 4 months before Decedent's death) with an initial capitalization of property
valued at $357,000.00. Lebanon Rock, Inc. held substantial quarry holdings in Lebanon
County, Pennsylvania.
It appears that on December 23, 1993 Decedent's Estate received an additional
5,000 shares of Lebanon Rock, Inc. to which the Estate then assigned a carrying value of
$2,000,000.00. (See Exhibit "]").
14. FAILURE OF ESTATE TO PERFORM UNDER THE SHAREHOLDERS
AGREEMENT FOR IDGH-SPEC, INC. STOCK
Decedent and Objector had a shareholders agreement for the High-Spec stock.
The estate has refused to perform as required under the Agreement and sell Decedent's
shares of High-Spec to Objector.
15. OBJEcrION TO VALUE OF HIGH-SPEC, INC. STOCK
The Account values Decedent's 5,000 shares of High-Spec, Inc. (50% interest) at
$5,000.00. Objector believes that these 5,000 shares of High-Spec, Inc. were substantially
undervalued. High Spec, Inc. was incorporated on April 26, 1985 (less than one year
before Decedent's death). During the year of its existence High-Spec, Inc. had acquired
real property both in Sailfish Point Florida and Lemoyne Pennsylvania with a total
acquisition value of 696,000.00. (See Exhibit "K")
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16. OBJECTIONS TO THE AITORNEY FEES PAID BY DECEDENT'S
ESTATE AND THE MARITAL TRUST TO MORGAN LEWIS AND BOCKIUS
A.) The estate account as filed show that for the period 1986 to 2003
Decedent's Estate paid Morgan Lewis and Bockius (hereinafter "MLB") attorney fees,for
representing the Estate totaling $114,587.58.
B.) The Marital Trust Accountings as filed show that for the period from 1986
to 2003 the Marital Trust has paid MLB attorney fees for representing the Martial Trust
totaling $1,511,417.70.
C.) The compensation to MLB should be reduced or denied for the following
reasons:
(1) Neither the nature of the services rendered, the amounts charged
for those services, nor the necessity for such services are enumerated in either the Estate
Account or the Trust Accountings;
(2) The amounts paid by the Marital Trust are grossly excessive;
(3) Co-executrix, Lisa M. Morgan was a member of MLB; Decedent's
will does not contain any provisions authorizing the executrices or the trustees to hire or
retain themselves;
(4) MLB preparation of the Estate Accounting was not in accordance
with Decedent's will and applicable law as evidenced by the enumerated objections set
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forth above; and
(5) MLB breached its duties to the residuary beneficiaries of both the
Martial and Residuary trusts by failing to act impartially for the benefit of all
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beneficiaries and instead aligning itself with BARBARA McK. MUMMA in her plan or
scheme to liquidate the Pennsylvania Supply Company and failing to prevent
BARBARA McK. MUMMA from improperly diverting funds from the Estate.
(6) A portion of the MLB fees were personal expenses of the Co-
executrices and Co-Trustees as part of their personal scheme to II squeeze out" Objector's
interests in certain family corporations. (See Exhibit "L").
17. OBJECTIONS TO mE AlTORNEY FEES PAID BY THE MARITAL
TRUST TO STRADLEY, RONON, STEVENS & YOUNG
The attorney fees paid by the Marital Trust to Stradley, Ronon, Stevens & Young
were personal expenses of the Co- Trustees as part of their personal scheme to II squeeze
out" Objector's interests in certain family corporations. (See Exhibit "L")
18. OBJECTION TO JURISDICTION
Objector believes that the jurisdiction of this Court is improper in that the
Decedent had his principal residence in Hummelstown, Dauphin County, Pennsylvania
and probate of this Estate should be occurring in Dauphin County, Pennsylvania.
19. INCORPORATION OF PRIOR OBJECTIONS FILED BY CHARLES
SHIELDS
Objector incorporates by reference the Objections previously filed with Judge
Sheeley on his behalf. (See Exhibit "M".)
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20. RESERVATION OF ADDmONAL OBJECTIONS
Objector reserves the right to raise additional objections, as additional facts,
documentation or other evidence becomes available.
Respectfully Submitted,
MILLER LIPSIIT LLC
DATE: ~/~? (btf
,
Br e A.Sc ljer
ttorney ID No.: 75954
P.O. Box 959
Camp Hill, PA 17001-0959
(717) 909-5921
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Form 706 UnIted States Estate Tax Rb......rn
(Rev. March 1985) Estate of. citizen or resident of the Unlt~ States (s.. separ.telnstructlons) OMBN".I54~15
Department of the T rusury To be flied fordececlentl dylnlafter D-.nber 31, 1981, and before January 1. 1988. Expires 12.31.87 ~i1
'nternal Revenue Semee SectIon references are to tile Internal Revenue Code.
Decedent's tirst name and middle initial (and maiden nama, it any) Decedent's last name Date of death
ROBERT M A ril 2 1 6
Oomicile attime at death 49 Hillcrest Road o.cedenrl ~ security no.
Wonnle sbur PA 17043 1 14 11 2 14 1 5 : 07 : 1889
Name at executor (see instructions) Exlicutor's address (number and street inCluding apartment number or rural
Barbara McK. Mumma & Lisa M. Mar an route. city, town or IlOSt office, state and ZIP Code)
c/o Margan, Lewis & Bockius
Executor's SOCial Security number (see instructions) 2000 One Logan Square
229 20 8580 & 198-36_ 67 Phi adel hia PA 1 1
Name and location at court where will was Pfobated or estate administered Case number
0 hans' Court Qumberland Count Penns Ivania 21-86-398
If decedent died testate, check here ~ lia and attach a certified copy of the will. It Form 4768 is attached, check here ~ KJ
.......... .. ~... ~...- ... .,,,"".... .- - ....... 601.502(,X3~" .. '" a .. _.', -.. ....... '....., '_~
-, M' """"-'<<~'-~~ .........-.'....m........,,, _,__.. ."--"''''a~"""
Name at representative (print or type) State Address (number and street, city, state and ZIP Code)
Arthur L. Klein, Esq. 2000 One Logan Square
Mor an Lewis & Bockius PA Philadelphia, PA 19103
",,"~m"'.m... ..'....,,-- <.... ....._...... '"'_, "''' _...... -........m "'''' _.. ,..
not Under SUspenSIon ' barment trom practice before the Intema' Re.enue Service and am qualified to practice in the State shown abov_
Signature
1 1 16 645 786
2 2 15 986 105
3 3 659 681
..
4
4
5 5 659 681
6 ions, 6 214 882
. .... .
7 after December 31, 1976. Include gift taxes paid
ent was the donor of these giftS and they are 7
8 8 214,882
9
10
11 155,800
12 59,082
13
16, 387
14 Subtract hne 1 42,695
15 Credit tor Feder 977 Kitts (section 2012) (attach computation) 15
16 Cred.t tor torelgn (from Schedule(S) p>. (AttaCh Form(s) 706CE) . 16
17 Credit for tax on pr transfers (from Schedule Q) , 17
18 Total (add hnes 15, 16, and 17) .
19 Net estate tax (subtflct hne 18 trom line 14) . 42,695
20 Prror payments. ExPlain in an attached statement.
21 United States Treasury bonds redeemed in payment of estate tax
22 Total(add hnes 20 and 21) . ~4,6541*
23 Balance due subtract hr.e 22 trom line 19
Hote: Please attach the necesury supp_men,., documents. You Iftwt.~ the QNth c.f't/fIQr..
Under pe~jlles of perjury, I d~re lIlat , "- ......ined lflis retum, .nclUdi"l accompanyinc schedules and stAtements, and to the best of my' -.:;. '~.~ .ristru.;'.
correct. and compl.te. OecJaralron Pl'eParer lhIIn the ..acutor.s basecI on all information of which Pl'eParer has any knowteclce. '1/1 (J/~'t- '.;;
49 Hillcrest Road -
Date ' I
'1JtJi/1 ~ I1 nYJ~ X, :Or9an, Lewis . Bockius #23-0891050 ~
2000 One Logan Square,Philadelphia,
~~tur. of preparer other than ..ecut.)r . Acldress(.ndZIPCOde) PA 19103 Date
For Peperwork Reduction Act Hotlce, ... pqe 1 of the Inltructlons. Form 706 (Rev. 3.85)
*Including Interest 9' compounded 182 Days _ $1,959
MLB 01374 II
I
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Form 706 (Rev. 3-85)
Estate of: ROBERT M. MUMMA
PI.... check the ..Y.... 0' "No" box to, ..ch qu..twn. Yes No
6 Does the gross estate contain any section 2044 property (see instructions)? x
7a Have Federal gift tax returns ever been filed? x
If "Yes," please attach copies of the returns, if available, and furnish the following information:
7b Period(S) covered 7c Internal Revenue ottice(s) where filed
1963-1983
If you answ.r ..Y.... to any of qu.stlon. 8.16. you must attach acldltlonallnformatlon as d.scrlbed In th.lnstructlons.
8a Was there any insurance on the decedent's life that is not included on the return as part of the oss estate? X
8b Did the decedent own any insurance on the life of another that is not included in the ross estate? X
9 Did the decedent at the time of death own any property as a joint tenant with right of survivorship in which (1) one or more of the other
t joint tenants was someone other than the decedent's spouse and (2) less than the full value of the property is included on the return as
part of the gross estate? X
10 Did the decedent. at the time of death, own any interest in a partnership or unincorporated business or any stock in an inactive or
closely held corporation? X
11 Are any ~f the contents of any safe deposit box which the decedent either owned or had access to not included on the return as part of
the gross estate? . X
12 Did the decedent make any transfer described in section 2035, 2036, 2037 or 2038 (see the instructions for Schedule G)? X
13 - Were there in existence at the time of the decedent's death:
a Any trusts created by the decedent during his or her lifetime?
b An trusts not created b the decedent under which the decedent assessed an wer, beneficial interest or trusteeshi ? X
14 Did the decedent ever possess, exercise or release any general power of appointment? . X
15 Was the marital deduction computed under the transitional rule of Public Law 97.34, section 403(e)(3) (Economic Recovery Tax Act of
1981)? X
If .Yes." attach a separate computation of the manta I deduction, enter the amount on item 18 of the Recapitulation. and note on item
18 "computation attached."
16 Was the decedent. immediately before death, receiving an annuity described in the "General" paragraph of the instructions for
Schedule I?
Recapitulation
Item Gross estate Alternate value Value at date of death
number
1 Schedule A-Real Estate 4,295,60
2 Schedule B-Stocks and Bonds 9,255,11
3 Schedule C-Mortgages. Notes, and Cash 405,25
4 Schedule D-Insurance on the Decedent's ufe (anach Form(s) 712) . 516,76
5 Schedule E-Jointly Owned Property (attach F orm(s) 712 for life insurance) 298,45
6 Schedule F-Other Miscellaneous Property (attach Form(s) 712 for life'insurance) 1,874,59
7 Schedule G- Transfers Dunng Decedent's L,f. (anach F ormes) 712 for life insurance)
8 Schedule H-Powers of ApPOintment.
9 Schedule I-Annuities.
10 Total gross estate (add items 1 through 9) Enter here and on page I, line 1 . 16,645,78E
Item OecluctlonS Amount
numbel
11 Schedule J-Funeral Expenses and Expenses Incurred on Administering Property Subject to Claims . 560,04
12 Schedule K-Debts of the Decedent 4,614,19'
13 Schedule K-Mortgages and Liens.
14 Total of items 11 through 13 5,174,23
15 Allowable amount of deductions from Item 14 (see the Instructions for item 15 of the Recapitulation) 5.174.23
16 Schedule L-Net Losses During Administration .
17 Schedule L-Expenses Incurred in Adm'nlstenng Property Not Subject to Claims
18 Schedule M-Bequests, etc.. to Surviving Spouse 10,811,87
19 Schedule O-Charitable. Public, and Similar GiftS and Bequests .
20 Total allowable deductions (add items 15 through 19). Enter here and on page l,line 2 15,986,10'
Page 3
MLB 01376
Form 706 (Rev. 3-85)
-'
Estate of: ROBERT M _ MUMMA,
'.
SCHEDULE M-Bequests, etc., to Surviving Spouse
1 Did any propertY pass to the surviYillfl spouse es a result of a qualified disclaimer?
" "Yes, .. atuJch a copy of the written disclaimer requiffld by section 2518(b).
Item OeIc:riptian of JNUperty int-u ~ to ~ IpOUIe
number YMIe
. 1 SEE SCHEDULE M ATTACHED
i
Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule .
2 Total .
3 (a) F lderel estate tax payable out of property interests listed above
(b) Other death taxes payable out of Property interests listed above
(c) Add items (a) and (b).
4 Net value of property interests listed above (subtract 3(c)from 2). Also enteron the Recapitulation, pqe 3, at item 18. $10,811,874.00
(" more s~ is nHChId, atuJch the continuation sch<<Jule from the end of this pac. or additioN/ Schedule M-Pag. 14
shHts of the >>me siD.)
MlB 01412
po) " -
~ ~ ~. K. ImMMA
J3!XXJEaom ~V~ SPQws
. 1. Joint~, specific bequest:g
ani life :insui:anc:e:
A. Jointly held
~ - Sc:h. E $ 298,453
B. - Sc:h. 0 516,765
c. Tangibles - Sc:h. 'F Item 1 36,000
D. Tangibles - Sc:h. F Items 3 & 4
excluc:li.n3' the clock
ani jewelry 9.800 $ 861,018
n. OtJAr.TP1'Ilon 'rI!:RMnm1n'>> Im~t' PR>mRTY _
Trust un:Jer Article VII of the
Will of RdJert M. 1bma ~
gift EqUal to Ma1e-ha1f of total.
9nJSs estateA'
1/2 of $16,645,786 = 8,322,893
'!he executors of the Estate of
RciJert M. Jlmma hereby elect, umer
IRe ~2056(b) (7) (B), to treat as
qualifiEd- te!:minable int:eJ:est
property ani deduct umer IRe ~2056
100% of the T1:ust urxJer Article VII
of the Will of RciJert M. Itmma
In. OtDU'.TP1'Ilon 'l'ERMnom1n'-R Drl~l. ~~ _
Trust un:Jer Artic1e VIII of the Will
of Rebert M. Kmma ~ the
residuazy estate detemined as follows
(Gross estate less SCbedules J & 1<) $11,471,555
less :
A. Pl:~ passiD;r to ~1Se UOOer
I and n above (9,183,911)
B. Specific ~~ - clade & javell:y (1,200)
c. Specific bequest - 1981 Mercedes (19,000)
D. Pennsylvania inheritance tax (596,427)
E. Florida estate tax (359)
F. Federal. estate tax (42.6951 L 9.843.59'1
1,627,963
Page 1 of 3
MlB 01413 j
rATE OF ROBERT M. MUMMA
DISTRIBUTIONS OF PRINCIPAL
~ITAL TRUST U/W ROBERT M. MUMMA
11/19/86 CASH $ 2,500.00
12/15/87 615 SHS.
HUMMELSTOWN QUARRIES, INC. 799,051. 80
12/15/87 50 SHS.
UNION QUARRIES, INC. 1,340,000.00
12/28/87 BENDER & GROVE PROPERTY
(MOUNT HOLLY) 277,184.50
12/28/87 653.5870 SHS.
NINE NINETY NINE, INC., COMMON 1,696,126.86
12/29/87 829.2340 SHS.
NINE NINETY NINE, INC.
10% PREFERRED 1,225,037.87
12/31/87 TRANSFER OF HAMILTON BANK
MORTGAGE ON TRANSFER
OF BENDER & GROVE PROPERTY - 222,363.24
12/31/87 TRANSFER OF LISA MORGAN
MORTGAGE ON TRANSFER OF
PENNSBORO CENTER - 50,000.00
12/31/87 TRANSFER OF YORK FEDERAL
MORTGAGE ON TRANSFER OF
PENNSBORO CENTER - 277,729.14
12/31/87 PENNSBORO CENTER
WORMSLEYSBURG, CUMBERLAND COUNTY 1.500.000.00
TAL DISTRIBUTIONS TO
ITAL TRUST U/W ROBERT M. MUMMA $ 6,289,808.65
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. ~
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SCHEDULE E (CONT'D)
DISTRIBUTlm
VALUE
(OBERT M. MUMMA MARITAL TRUST
11/16/01 CASH $1 ; 358 ,,359 . 8 ~
12/06/01 CASH 800,000.OC
03/31/02
NOTE TO MARITAL TRUST FOR
FINAL FUNDING
NOTE TO MARITAL TRUST 12/15/01
FINAL FUNDING OF TRUST
INVENTORY VALUE REPORTED
AS MARKET VALUE 200,000.00
~TAL DISTRIBUTIONS TO
DBERT M. MUMMA MARITAL TRUST $2,358,359.85
=============
'OTAL SCHEDULE E $6,044,675.23
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~ED~E E ESTATE OF ROBERT M. MUMMA
E 2
OF ROBERT M. MUMMA
INCREASES AND DECREASES ON SALES. LIOUIDATIONS AND DISTRIBUTIONS
INVENTORY INCREASE
PROCEEDS VALUE (DECREASE)
PENN NATIONAL TURF CLUB
COMMON
12/23/86 $ 7,500.00 $ 7,500.00 $ 0.01
SALE OF 5000.00 SHARES
......
---
PENNSYLVANIA SUPPLY CO
COMMON
12/19/86 9,242,798.30 9,144,473.00 98,325.31
GAIN ON LIQUIDATION
700.00 SHRS
BENDER & GROVE PROPERTY
(MOUNT HOLLY)
12/31/87 277,184.50 277,184.50 O.O(
GAIN ON DISTRIBUTION
FULTON BANK BUILDING
599 TWELTH STREET
LEMOYNE. PENNSYLVANIA
03/31/88 500,000.00 500,000.00 O.O(
GAIN ON DISTRIBUTION
LOT 1B, LEMOYNE SQUARE
(PART OF MRA II)
07/06/87 490,430.60 254,312.71 236,117.8~
GAIN ON SALE
PENNSBORO CENTER
WORMSLEYSBURY. PA
12/31/87 1,500,000.00 1,500,000.00 0.0(
GAIN ON DISTRIBUTION
PMA BUILDING
03/28/88 1,029,474.16 925,000.00 104,474.1E
GAIN ON SALE
PAGE: 15
...., - -- - -
ESTATE OF ROBERT M. MUMMA
INCREASES AND DECREASES ON SALES, LIOUIDATIONS AND DISTRIBUTIONS
I
(CONTINUED)
INVENTORY INCREASE'
PROCEEDS VALUE (DECREASE)
DERRY AIRE, INC.: COMMON
02/01/88 48,200.00 22,500.00 25,700.00
GAIN ON S
HUMMELSTOWN QUARRIES, INC.
COMMON
SUB S CORPORATION
12/15/87 799,051.80 593,421. 04 205,630.76
GAIN ON DISTRIBUTION
NINE NINETY NINE, INC.
12/28/87 3,170,723.01 2,495,665.85 675,057.16
GAIN ON DISTRIBUTION
UNION QUARRIES, INC.
12/28/87 1,340,000.00 1,050,000.00 290,000.00
GAIN ON DISTRIBUTION
LAGO MAR
MEMBERSHIP CERTIFICATE
06/03/87 2,500.00 2,500.00 0.00
SALE OF PROPERTY
DELRAY CLUB
08/06/87 3,400.00 4,400.00 - 1,000.00
LOSS ON SALE
1505 SOUTH NINETEENTH ST
SWATARA TWNSHP. PA
i 11/04/88 707,669.00 760,000.00 -52,331.00
I
LUCKNOW PARCEL 7B
(MRA I)
03/31/90 276,531.64 91,390.10 185,141. 54
PENN NATIONAL TURF CLUB
03/31/91 0.00 1,250.00 - 1, 250. 00
TOTAL $19,395,463.01 $17,629,597.20 $ 1,765,865:81
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PAGE: 16
V..rL:L:~ T'-
IF ROBERT M. MUMMA
STATEMENT OF ASSETS ON HAND 03/31/91
INVENTORY
VALUE
JOINTLY HELD PROPERTY
MUMMA REALTY ASSOCIATES I $3,653,821. 70
MUMMA REALTY ASSOCIATES II 848.213.85
4.502.035.55
ISCELLANEOUS ASSETS
DEFIANT YANKEE 4,200.00
RALPH HANOVER 50.750.00
54.950.00
TOTAL ASSETS ON HAND $5,350,574.51 *
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ASSETS ON HAND SUBJECT TO MORTGAGES AND
NOTES PAYABLE. SEE PAGE 119.
-
. ROBERT M. MUMMA
PAGE: 118
ESTATE OF ROBERT M. MUMMA
RECEIP~S OF PRINCIPAL
REAL PROPERTY
1505 SOUTH NINETEENTH STREET
SWATARA TOWNSHIP, DAUPHIN CNTY $ 215,000.00
LEASEHOLD IMPROVEMENTS 525.000.00
$ 740,000.00
BENDER PROPERTY
9 TRACTS HOLLY) 144,000.00
FULTON BANK BUILDING
599 TWELFTH STREET
LEMOYNE, PENNSYLVANIA 500,000.00
GROVE PROPERTY
195.733 ACRES (MOUNT HOLLY) 117,439.00
PENNSBORO CENTER
WORMSLEYSBURG, CUMBERLAND CNTY 1,500,000.00
PMA BUILDING 925,000.00
SOUTH NINETEENTH STREET
LANDLOCKED, .1813 ACRES 1. 007 . 00
TOTAL REAL PROPERTY 3,927,446.00
12-1
PAGE : 1
~.__lL _~1I_~.L"
E OF ROBERT M. MUMMA C, ~
DISTRIBUTIONS OF INCOME
TbL TRUST U /W ROBERT M. MtJMl'1h.
/28/87 55.8368 SHS
NINE NINETY NINE, INC., COMMON $ 144,902.36
~/28/87 70.8421 SHS.
NINE NINETY NINE, INC.
10% PREFERRED 104,655.92
3/31/88 FULTON BANK BUILDING
~99 TWELTH STREET
~
~ DISTRIBUTIONS TO
ITAL TRUST U jW ROBERT M. MUMMA $ 749,558.28
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rAL DISTRIBUTIONS OF INCOME $ 749,558.28
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PAGE: 115
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SCHEDULE D-1
DISTRIBUTIONS OF INCOME TO BENEFICIARIES
BARA MCK MUMMA
1/19/86 70.8421'SHS.
NINE NINETY NINE, INC.
10% PREFERRED . $ 104,655.92
1/05/88 55.8368 SHS.
NINE NINETY NINE, INC.
COMMON 144,902.36
3/31/88
FULTON BANK BUILDING
599 TWELFTH STREET, LEMOYNE, PA 500,000.00
11/30/89 CASH 0,00'0.00
12/27/89 CASH 38,000.00
14/13 / 8 9 CASH 530,000.00
15/16/89 CASH 60,000.00
16/16/89 CASH 70,000.00
17/07/89 CASH 21,000.00
18/16/89 CASH 15,000.00
)9/15/89 CASH 140,000.00
l2/04 /9 0 CASH 100,000.00
AL INCOME DISTRIBUTIONS $1,763,558.28
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MARITAL TRUST U/W
E 86 ROBERT M. MUMMA
SCHEDULE A-I (CONT'D)
OTHER RECEIPTS (CONT'D)
FIDUCIARY
ACQUISITION
VALUE
STOCK, COMMON FUNDS
OTHER RECEIPTS
55.8368 SHS. NINE NINETY NINE, INC.
COMMON
RECEIVED 12/28/87 $ 144,902.36
70.8421 SHS. NINE NINETY NINE, INC.
10% PREFERRED
RECEIVED 12/28/87 104,655.92 $ 249,558.28
REAL ESTATE, PARTNERSHIPS, ETC.
FULTON BANK BUILDING
599 TWELFTH STREET, LEMOYNE, PA
RECEIVED 03/31/88 500,000.00
TOTAL RECEIPTS OF INCOME $3,735,281. 39
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SCHEDULE A-I MARITAL TRUST U/W
PAGE 34 ROBERT M. MUMMA
Exhibit F
SCHEDULE D-1
DISTRIBUTIONS OF INCOME TO BENEFICIARIES
70.8421"SHS.
NINE NINETY NINE, INC.
10% PREFERRED' $ 104,655.92
01/05/88 55.8368 SHS.
NINE NINETY NINE, INC.
COMMON
03/3 /88
FULTON BANK BUILDING
599 TWELFTH STREET, LEMOYNE, PA 500 000.
01/30/89 CASH 40,00'0.00
02/27/89 CASH 38,000.00
04/13 / 89 CASH 530,000.00
l
05/16/89 CASH 60,000.00
06/16/89 CASH 70,000.00
07/07/89 CASH 21,000.00
J
08/16/89 CASH 15,000.00
09/15/89 CASH 140,000.00
I
i 12/04/90 CASH 100,000.00
OTAL INCOME DISTRIBUTIONS $1,763,558.28
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86 MARITAL TRUST U/W
~GE ROBERT M. MUMMA
SCHEDULE E-1
STATEMENT OF DISTRIBUTIONS OF INCOME
DISTRIBUTION
VALUE
$ 150,000.00
03/31/92 CASH 150,000.00
11/10/92 CASH 25,000.00
TO
$ 325,000.00
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TAL SCHEDULE E-1 $ 325,000.00
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ESTATE OF ROBERT M. MUMMA
SCHEDULE E-1
STATEMENT OF DISTRIBUTIONS OF INCOME
DISTRIBUTION
VALUE
II STRI BUT IONS
lARBARA MCK MUMMA
02/05/97 CASH $ 500,000.00
12/23/98 CASH 400,000.00
POTAL DISTRIBUTIONS TO
lARBARA MCK MUMMA $ 900,000.00
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: POTAL DISTRIBUTIONS $ 900,000.00
ffiANSFERS TO PRINCIPAL
03/31/99 CASH
TRANSFER FOR CAPITAL GAIN
2/13/93 INCLUDED IN NET INCOME
OF MRA I $ 4,336.73
03/31/99 CASH
TRANSFER FOR CAPITAL GAIN
2/15/94 INCLUDED IN NET INCOME
OF MRA I 1,636.50
03/31/99 CASH
TRANSFER FOR 2/21/96 CAPITAL
GAIN INCLUDED IN NET INCOME
FOR MRA I 15,094.40
03/31/99 CASH
TRANSFER FOR 1/3/97 CAPITAL
GAIN INCLUDED IN NET INCOME
FOR MRA I 418,727.83
03/31/99 . CASH
TRANSFER FOR 4/8/98 CAPITAL
GAIN INCLUDED IN NET INCOME
FOR MRA I 282,805.75
'CHEDULE E-1 ESTATE OF ROBERTM. MUMMA
AGE 1
c- 2--
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SCHEDULE E-1
STATEMENT OF DISTRIBUTIONS OF INCOME
DISTRIBUTION
VALUE
, MCK MUMMA
1/01 CASH $ 400,620.04
/02 CASH
STATUTORY INTEREST 7,859.65
IISTRIBUTIONS TO
,MCK MUMMA $ 408,479.69
=============
M. MUMMA RESIDUARY TRUST
/03 CASH
DISTRIBUTIONS ALLOCATED TO
THE INCOME ACCOUNT $ 75,000.00
ISTRIBUTIONS TO
M. MUMMA RESIDUARY TRUST $ 75,000.00
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CHEDULE E-1 $ 483,479.69
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E-1 ESTATE OF ROBERT M. MUMMA
ESTATE OF ROBERT M. MUMMA
MEMORANDUM TO INVENTORY
1. Property known as Leadville,
Colorado, vacant land, 167 1/2 acres $3,161. 00
MLB 01254
1
!ltilldllllil
ESTATE OF ROBERT M. MUMMA
RECEIP~S OF PRINCIPAL
REAL PROPERTY
1505 SOUTH NINETEENTH STREET
SWATARA TOWNSHIP, DAUPHIN CNTY $ 215,000.00
LEASEHOLD IMPROVEMENTS 525,000.00
$ 740,000.00
BENDER PROPERTY
9 TRACTS (MOUNT HOLLY) 144,000.00
FULTON BANK BUILDING
599 TWELFTH STREET
LEMOYNE, PENNSYLVANIA 500,000.00
GROVE PROPERTY
195.733 ACRES (MOUNT HOLLY) 117,439.0C
PENNSBORO CENTER
WORMSLEYSBURG, CUMBERLAND CNTY 1,500,000.OC
PMA BUILDING 925,000.OC
SOUTH NINETEENTH STREET
LANDLOCKED, .1813 ACRES 1,007.0(
TOTAL REAL PROPERTY 3,927,446.0
PAGE : 1
ESTATE OF ROBERT M. MUMMA
RECEIPTS OF PRINCIPAL
(CONTINUED)
STOCKS
DAUPHIN DEPOSIT TRUST CO.;
COMMON
04/12/86 740.00 SHARES $ 25,438.00
04/12/86 DIVIDEND OF RECORD 199.80
$ 25,637.
DERRY AIRE, INC.; COMMON
CLOSELY HELD
04/12/86 28.33 SHARES 22,500.
HIGH-SPEC, INC.; COMMON
CLOSELY HELD
04/12/86 5000.00 SHARES 5,000.
-
LEBANON ROCK, INC.; COMMON -------
CLOSELY HELD
04/12/86 5000.00 SHARES 50,000.
PENN NATIONAL TURF CLUB;
COMMON
CLOSELY HELD
04/12/86 5000.00 SHARES 7,500.
PENNSYLVANIA SUPPLY COMPANY;
COMMON
CLOSELY HELD
04/12/86 700.00 SHARES 9.144.473.
TOTAL STOCKS 9,255,110,
7-1
PAGE : 2
Exhibit
--- ..~.._." "" ,......"""'.."..-.......,
r- T
~ R~yr'SOS EX. (7,831
COMMONWEALTH OF PENNSYlV~, ..A SCHEDULE "C-1"
INHERITANCE TAX RETURN CLOSEL Y HELD CORPORATE STOCK
RESIDENT DECEDENT I INFORMATION REPORT 1
~TATE OF
FILE NUMBER
MUMMA 21-86-398
ROBERT M.
I. Name of Carpa,ation LPh"nrm Rnrk Tnr State of Inc. Pennsvlvania
Address Jon 1 P""t-nn St-rppt- P 0 Rnx 1111 Date of Inc. December 6, 1985
Harrisburg, PA 17105 Total Number of Shareholde,.. 2
2. Federal I. D. Number 23-2383628 Business Reporting Vear January I, to December 31
(As per form 1120)
3. Type of Business Quarry Product Crushed stone
~. 5. Estimated Yalue of Decedent'. Interest
srOCK TY'E TOTAl. . SNARlS 'AI VALUE ' SHAlES OWNED UNIT VALUE TOTAL
OUTSTANDING BY DECEDENT
eo-.... 10,000 10 5,000 10 50,000
'r.f<err~
Provide all rights and restrictions pertaining ta eod. class of stock.
6. Was decedent employed by the Corporationf ~Yes oNo
If yes, Position President Annual Salary S NONE Time Devoted to busine.s Part
7. Amount and type of company indebtedness to decedent ot date of death: S.51 , 4 4 5
8. Was there 'ife insurance payable, upon deoth of decedent, to the corporation' DYes GilNo
If yes, Cosh Surrender Ya/ue: S N/A Net Proceeds Payable: S N/A
Owner of Policy N/A'
9. .~ .h. d_d.M nil M ""'d., _k of >hi, m...,y ...." ~. yoo' .- .. d..~ .~. d... 01 d~.h ... _ M .... 12113182 M w;~.
""'0 yeors if the date of death was priM to 12/13/82.0 Ves rRJ No
If Yes:
, OF SHARES TUNSFIRIE OR ftURCHASEI AMOUNT DATI
10. Did the cOrporation hove on interell in orher CMporations or partnerShips' oVes ~No
If Y", '.....~. -...", ;"._~ -. _... ...... "",~.. Sdood,. ..C.1.. M ..C.2'.....""'" __...
11. Was there a written shareholder's agrMlIl8nt in eHect at the time of the decedent's death' oVe. g]No
If yes, attach copy of agreement. )
12. Was the decedent's stoel< so/en DYe. &JNo
If ye., provide 0 copy of the agr__ 0I101e. etc.
13. Wo. the corporation dissolved or liquidoted orter the decedent's deathf oVes ~No MLB 01313
I If yes, prOvide a breakdown of liquidation dillribution., etc.
1~. Pleose submit the following information:
A. A detailed desaiption Showing the method of computation utilized in the valuation of the decedent's stock.
8. Comp/ooo 'op;.. of '~ociol .....-. '''_pl... m~.. of.... 'odomi r.. '''''''('_ "20'........ _ of ....~ .... . _.. .-.
C. A statement of dividends paid each year. List those declared and unpaid.
D. List Names of OHicers, Salaries, Bonuses and any ather benefits received fram Corporation.
.. II ,h. Comp.., ....d '~I ....... ~'"i~ · ,.. ...... .... _pi... ad"'''d.. ood ..i...... Po> Mo,'" Vo"". If 'ool .....
Appraisals hove been secured, please attach copies.
F. List principal stockholders at date of death, number of shares held, and relationship to decedent.
15. All OTH" 'NFORMATION "LAn", TO A'FlXING TH. TRU. V AW. 0' TH. .RC'.'NT'S INTERm SNOU," ACcOMPANY
THIS SCHEDULE.
:[-2-
-
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I
I Attachment Schedule C - 1
Lebanon Rock. Inc.
14. A. Cost
C. None
D. Officers Salaries. Etc.
R.M. Mumma. President None
R.M. Mumma II. Secretary-Treasurer None
E. Address Fair Market Value
201 Prescott Road. Cost 12/85 $ 357.000
Lebanon. Pennsylvania
F. Stockholders Shares Held Relationship
R.M. Mumma 5.000 Decedent
R.M. Mumma II 5.000 Son
-::r: ~ MLB 01314
SCHEDULE A-I
STATEMENT OF INCREASES ON SALES,
LIQUIDATION OR DISTRIBUTION
:~ INCREASES ON SALES, REDEMPTIONS, ETC.
I
i INVENTORY
PROCEEDS VALUE I NCREA
STOCK
LEBANON ROCK, INC.
07/21/93 5,000 SHS.
FUNDS RECEIVED FOR OPTION
! TO PURCHASE -
i INVENTORY VALUE ASSIGNED $ 140,120.42 $ 50,000.00 $ 90,120.
12/12/93 5,000 SHS. 2,000,000.00 .00 2,000,000.
TOTAL SALES, REDEMPTIONS, ETC. $2,140,120.42 $ 50,000.00 $2,090,120.
------------- ------------- -----------
------------- ------------- -----------
TOTAL SCHEDULE A-I $2,140,120.42 $ 50,000.00 $2,090,120.
------------- ------------- -----------
------------- ------------- -----------
J~3
SCHEDULE A-I ESTATE OF ROBERT M. MUMMA
REV.1S0S EX. {7-8l1
COMMONWEALTH OF PENNSYlVA. ..A SCHEDULE "C-1"
INHERITANCE TAX RETURN CLOSELY HELD CORPORATE STOCK
RESIDENT DECEDENT INFORMATION REPORT
ESTATE OF FILE NUMBER
ROBERT M. MUMMA 21-86-398
1. Nome of Corporation Hiqh-Spec. , Inc. State of Inc. Florida
Address 1001 Paxton Street. P.O. Box 3331 Dote of Inc. 4/26/85
Harrlsbura. PA 17105 Total Number of Shareholders 2
2. Federal/. D. Number 23-/.346013 Business Reporting Year January 1 to December 31
(As per Form 1120)
3. Type of Business Real Estate Pradud
... 5, Estimated Value of Decedent's Interest
STOCK TY'E TOTAL' SHAlES 'AI VALUI . SHAIIS OWNED UNIT VALUI 10TAL
OUTSTANDING IY DKEDENT
c-.. 10.000 1 5,000 1 5,000
".,."... I
Provide 011 rights and restrictions penaining to eacn clan of stock.
6. Was decedent employed by the Corporation' I8lYes DNa
If yes. Position President Annual Salary S NONE Time Devoted to businen Part
7. Amount and type 01 company indebtedness to decedent at dote 01 death: S 177,124
8. Was there lile insurance payable. upon death of decedent, to the corporation' DYes e9Na
If yes. Cosh Surrender Vallie: S Net Proceeds Payable: S
Owner 01 Policy
9. Did the decedent sell or transfer stock of this company within one year prior to death if the dote of death was on or after 12/13/82 or within
two years il the dote 01 death was prior to 12/13/82.0 Yes KJ No
If yes:
, OF SHARES TRANSFEREE OR PURCHASER AMOUNT DATE
10. Did the corporation have an interest in other corporations or pannerships' DYes 6rJNo
If yes. report the necessary information on a separate sheet, including Schedule "C. 1 " or "C-2" for each interest.
11. Was there a wri"en shareholder's agreement in eHect at the time of the decedent's death' DYes liINo
't
If yes. a"ach copy of agreement.
12. Was the decedent's slock sold' DYes ~No
If yes, provide 0 copy of the agreement of sole, etc. MLB 01310
13. Was the corporation dissolved or liquidated after the decedent's death' DYes 129No
If yes, provide 0 breakdown of liquidation distributions. etc.
U. Please submit the following information:
A. A detailed description showing the method of computation utilized in the valuation of the decedent's stod:.
B. Complete copies of financial statements or complete copies of the Federal Tall Returns (Form 1120) for the year of death and .. preceding years.
C. A statement of dividends paid each year. list those declared and unpaid.
D. List Names of OHicers, Salaries, Bonuses and any other benefits received from Corporation.
E. If the Company owned Reol Estate, furnish 0 list showing the complete oddress/es and estimated Fair Market Value/s. If Real Estate
Appraisals hove been secured, please o"ach copies.
F. List principal stockholders at dote of death, number of shores held, and relationship to decedent.
15. ALL OTHER INFORMATION RELATIVE TO AFFIXING THE TRUE VALUE OF THE DECEDENT'S INTEREST SHOULD ACCOMPANY
THIS SCHEDULE.
Exhibit K
I Attachment Schedule C - 1
I
High-Spec. Inc.
14. A. Cost
C. None
D. Officers Salaries. Etc.
R.M. Mumma. President None
R.M. Mumma II. Vice President-Treasurer None
W.O. Boswell. Secretary None
E. Address Fair Market Value
Sailfish Point Blvd.. Cost 1985 $ 396.000
Stuart. Florida
Lemoyne Square. Cost 1986 $ 300.000
Lemoyne. Pennsylvania
F. Stockholders Shares Held Relationship
R.M. Mumma 5.000 Decedent
R.M. Mumma II 5.000 Son
MLB 01311
r T
Law Orrin"
Stradley; Ronan. Stevens & Young
J G
2600 One Commerce Square
Philadelphia. Pennsylvania 19103 -7098
( 215) 564 - 8000
To: William E. Zeiter, Esquire and E. Joseph
Hochreiter
From: Date:
DRLandrey 4/27/89
Subject:
~
I would like to have a meeting in Philadelphia at our
offices at 10:00 a.m. on Thursday, May 4, 1989 with the attendees
being Kim, Lisa, Joe and appropriate attorneys from Morgan, Lewis
and Stradley, Ronon. Kim and Lisa have advised me that they could
make such a meeting in our offices that morning and the purpose of
this memo is to inquire as to whether each of you could also
attend.
The primary purpose of the meeting will be to develop
positions with Kim and Lisa on the big picture items which are
open in the CRH negotiation~ 'T'l1P~p jt:pmc:: lRoludc LIlt::
"-
1 . The squeeze-out of Bob's shares. The issues here
include whether this will be accomplished prior to or after the
closing, the tax implications of the various squeeze-out scenarios
and the positions we should take with CRH on costs and potential
exposures.
2 . CRH has raised the question of whether the trustees
of the marital trust are prepared to sell the Nine Ninety-Nine
shares in the marital tr.ust prior to the final resolution of Bob's
appeal on the Paragraph 13 issue. If the trustees are willing to
so sell these shares, CRfl,has stated that they would want to have
certain re?ision rights \n'~~e event it ~as finally determined by
an approprlate court that.~ ~ trustees dld not have the power of
sale; we will need to consider under what terms and conditions -
if any - we would consider a recision situation.
3 . We need to make sure that we understand from Kim and
Lisa the precise identity of the assets and liabilities which are
to be taken out of Nine Ninety-Nine prior to the closing. These
will certainly include the assets described in Exhibits A through
C of the December 19, 1988 letter of intent. They may also
include additional assets not expressly covered by the exhibits to
the letter of intent (such as some land at the Hummelstown Quarry
and some land - or sales proceeds - relating to the Snyder farm).
In the event this list of retained assets will include those
assets not yet expressly discussed with eRH, we will need to
Exhibit
develop an approach to CRH for these items. In addition, we need
to carefully consider the liabilities of Nine Ninety-Nine which
are going to be removed from Nine Ninety-Nine prior to the
closing.
4. The allocations of the overall purchase price need
to be reviewed. In this connection, we have prepared proposed
allocations and we have provided this approach in writing to Kim,
Lisa and Frank Baird at Legg, Mason. I am having hand delivered
to Bill Zeiter this morning here in Philadelphia a copy of the
velo-bound booklet which has the proposed allocation materials and
I am sending a copy of this booklet to Joe Hochreiter by Federal
Express tonight.
5. We will need to develop negotiating positions with
respect to tne threshold for the post-closing indemnity, the time
period for the indemnity and the cap on the indemnity. At our
meetings with Ron Collins and Valerie Lambiase in Washington last
week, we proposed that the threshold be $250,000, that the time
period for the indemnity be claims made within a year after
closing (with the exception of filed tax returns where the time
period for claims would be the statute of limitations for the tax
return in question) and we proposed a cap on the indemnified
claims of $2,500,000 (net of insurance and tax affects). CRR will
almost certainly not accept these positions and we have to develop
a further negotiating approach on these issues.
I think it would be very timely to meet on May 4 if you
can arrange your schedules to accommodate such an event. This is
a good day for Kim and Lisa and Dean and I will be fresh from two
days of contract negotiation with Ron Collins and Valerie Lambiase
which negotiations we will be having in Washington on May 2 and
May 3 .
I look forward to hearing from you as to vJhether this is
convenient.
uo..Lrt.
DRL
jcmp
attachment
cc: Mrs. Barbara McK. Mumma
Mrs. Lisa M. Morgan
-
--~"~"~. --"""P""~",_.....--...---..'"~
-
No. 21-86-398
ORPHANS' COURT DIVISION
i I
I
IN RE: ESTATE OF ROBERT M. MUMMA
t
I
Ii
Ii
i'
I: STATEMENT OF OBJECTIONS TO FIRST AND
INTERIM ACCOUTN FOR THE MARITAL TRUST
UNDER WILL OF ROBERT M. MUMMA, DECEASED
I
I
I
CHARLES E- SHIELDS ill
ATIORNEY-AT-LA W
COMMONWEALTH NATIONAL BAND BUILDING
2 W. MAIN STREET
MECHANICSBURG, PA J7055
'.
I
IN RE: EST ATE OF :IN TIlE COURT OF COMMON PLEAS OF
ROBERT M. MUMMA, Deceased :CUMBERLAND COUNTY, PENNSYLVANIA
late ofcuxnberland County,
Pennsylvania : NO. 21-86-398
:ORPHANS' COURT DIVISION
ST A TEMENT OF OBJECTIONS TO FIRST AND INTERIM ACCOUNT FOR
THE MARITAL TRUST UNDER WILL OF ROBERT M. MUMMA. DECEASED
AND NOW COMES Robert M. Mumma, II, individually, and Robert M.
Mumma, II and Gary M. Gilbert, as court-appointed guardians of the estates of Susan
Mann Mumma and Marguerite Mann Mununa, (hereinafter "Objectant") by his attorneys,
Charles E. Shields, III, of Mechanics burg, and William C. Costopoulos, ofLemoyne, and
respectfully represents:
1. Robert M. Mtnnma, II is a beneficiary under the duly probated will of his
father and is an interested party to these proceedings.
2. Robert M. Mumma, II and Gary M. Gilbert are the court-appointed
guardians of the estates of Susan Mann Mumma and Marguerite Mann Mumma pursuant
to Order of Judge John T. Miller of York County Orphans' Court, dated October 4, 1991.
3. The above-named Susan Mann Mumma and Marguerite Mann Mumma
are holders of shifting executory devises Wlder the duly probated will of their grandfather
and are also interested parties to these proceedings.
4. The above parties made the following objections to the accoWlt for the
following reasons:
A. OBJECTIONS BASED ON RECEIPTS OF PRINCIPAL
(Schedule A., Page)
1. Objections to the valuations used for the following assets:
11!I1~;m~w"
(a) Nine Ninety-Nine, Inc. ($2,921,164.73)
(b) Hummelstown Quarries, Inc. ($799,051.80)
(c) Union Quarries, Inc. ($1,340,000.00)
(d) Bender and GTove Properties ($277,184.50)
2. We object to the values as being less than the true values of
the respective as is more specifically set forth in our objections
related hereto in the estate account.
3. Miscellaneous Assets (Page 2)
(a) Objectant believes that executrices engaged in self-
dealing by permitting mortgages and notes payable to them
personally to remain outstanding during the administration of the
estate despite the fact that such obligations contained interest rates
that were exorbitant in relations to the rates then prevailing in the
open market. Objectant reserves the right to object to the nature of
these obligations to the eJCtent additional informational may
become available.
B. DISBURSEMENTS OF PRINCIPAL (Schedule C, Page 4)
1. Morgan. Lewis & Bockius (Pages 4&5)
(a) Morgan, Lewis & Bockius is a law firm based in
Philadelphia, Pennsylvania.
(b) They have represented the Marital Trust as counsel to
the trustees for the purposes of administration, several lawsuits,
and in defending the actions of the trustees which have benefited
--.-.-- ~ - "'
- ~ ". ~ .
the trustees personally to the detriment of other beneficiaries of the
Trust.
(c) Various entries are made for them with the designation
"legal fees."
(i) 8/6/88 $8,690.00
(ii) 717/89 $79,780.00
(iii) 10/10/89 $80,000.00
(iv) 9/28/90 $293.712.00
$462,182.00
(d) The nature of the services rendered, the benefit to the
trust, and why they were necessary is not given nor are they
itemized.
(e) Objection is made to these payments as being improper
and excessive in light of the self-dealing of the trustees, their
conflicts of interest as well as responsibility asswned, the services
performed and results achieved. A full itemization of the services
underlying these payments is requested as well as a copy of all
time records.
(f) Morgan, Lewis & Bockius has been paid substantial
additional fees in connection with the representation of various
family enterprises and therefore we request a full itemization of all
payments to Morgan, Lewis & Bockius as well as the services
underlying the same and all time billings associated therewith.
3. Craig. Hockreiter & Co. (page 4)
- -~--" "" --~-~~
(a) As reflected in the account, the following payments
were made to Craig, Hockrieter & Co.:
(i) 1/30/89 $11 ,924.17
(ii) 5/31/89 $17,226.50
(b) The nature of the services rendered, why they were
necessary and the benefit received by the trust is not given nor are
they itemized.
(c) Objectant believes that the services provided by Craig,
Hockreiter & Co. were to the benefit of family corporations and/or
the trustees individually should be charges accordingly. An
itemization of the services underlying these payments is requested.
4. Stradley. Ronan. Stevens & Young (Page 4)
(a) Stradley, Ronan, Stevens & Young is a law firm based
in Philadelphia, Pennsylvania.
(b) There is an entry made for them under the designation
"legal fees" in the amount of $217,253.05.
(c) The nature of the services rendered, why they were
necessary and the benefit received by the trust is not given nor are
they itemized.
(d) Objection is made to these payments as being improper
and excessive in light of the self-dealing of the trustees, their
conflicts ofinterest as well as responsibilities assumed, the
services performed and results achieved. A full itemization of the
il
"B~_U~IJI~.t~llliI!II!l;ll~
services underlying these payments is requested as well as a copy
ofa11 time records.
(e) Objectant believes that the services provided by
Stradley, Ronan, Stevens & Young were to the benefit of certain
family corporations or to the personal benefit of the executrices,
and should be charged accordingly. An itemization of the services
underlying these payments is requested.
C. DISTRIBUTION OF PRINCIPAL TO BENEFICIARIES
(Schedule D) (pages 6,7)
1. We object to the distributions as set forth in greater detail
in our general objections filed in connection with the estate
account. In particular, we object to the distribution shown in the
account as being undervalued and made for the sole purpose of
enabling the executrices/trustees to personally consolidate control
over the family enterprises in contravention of the testamentary
intent of Robert M. Mumma.
D. CHANGES IN PRINCIAPL INVESTMENT HOLDINGS
(Schedule F) (pages 10 et seq.)
'I 1. The interest payments made on the mortgage to Lisa
Morgan have been more particularly objected under A.3(a) above
and are herein renewed.
E. PAYMENTS OF ADMINISTRATION EXPENSES
(Schedule C-}) (Pages 52-84)
2. Lucker, Kennedy & Felmeden
-
-- ,
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(a) Lucker, Kennedy & Felmeden is an accounting firm
based in Buffalo, New York.
(b) They are listed as having performed ''professional
services." However, the nature of these services and why they wee
necessary is not given nor are they itemized.
(c) They were paid the following sums by the trustees:
(i) 2/7/89 $8,602.87
(ii) 4/24/89 $2,512.76
(iii) 11/28/89 $2,875.00
(iv) 12/19/89 $4,885.00
(v) 5/15/90 $3,125.00
(vi) 3/8/91 $11,466.26
(d) Objection is made to these payments as being
improper and/or excessive in light of the responsibilities assumed,
the services performed and results achieved and because objectant
believes some or all of these services may have been for the
personal benefit of the executrices/trustees. A full itemization of
the services underlying .these payments is requested.
3. Morgan & Morgan (pages 77, 79)
(a) Morgan & Morgan is a law finn comprised of Lisa M.
Morgan, and executrix/trustee of the estate, and Scott Morgan, her
husband. In an apparent case of self-dealing, without court
approval, Lisa M. Morgan hired her own firm to provide certain
services to the Marital Trust.
(b) The nature of these services and why there were
necessary is not given nor are they itemized.
111ll~';';""
(c) Morgan & Morgan was paid twice, to wit:
(i) 9/11/90 $202.50
(ii) 10/25/90 $77.85
(d) This payment is objected to as a matter of self-dealing
without court approval nor are they itemized.
(e) Objectant requests the right to examine all billings and
the like submitted by Morgan & Morgan in order to insure that the
estate was not charged for services which should have been
rendered as part of her duties as an executrix.
F. DISTRIBUTIONS OF INCOME TO BENEFICIARIES
(Schedule D-l) (Page 86)
1. We object to these distributions of stock as is set forth in
greater detail in our general objections filed in connection with the
estate accounting. In particular, we object to the distributions
shown in the accOlUlt as being undervalued and made for the sole
I purpose of enabling the executrices/trustees to personally
I
consolidate control over the family enterprises in contravention of
the testamentary intent of Robert M. Mumma.
WHEREFORE, the objectant respectfully requests this Honorable Court to
enter a decree or decrees to:
1. Reduce or deny compensation to Morgan, Lewis &
Bockius as attorneys for the trust.
'I 2. Reduce or deny compensation to Stradley, Ronan, Stevens
1
'I & Young for services purportedly rendered to the Trust.
,I
II
..... 1iII~",
- - - ~...""
-.
--- -.- -. "~-....
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3. Reduce or deny compensation to Lucker, Kennedy &
F elmeden.
4. Surcharge the Trustees for interest paid on their notes; fees
paid to Craig, Hockreiter & Co.; fees paid to Morgan, Lewis & Bockius;
Stradley, Ronan, Stevens & Young; Lucker, Kennedy & Felmeden, as a
result of their own self-dealing, benefits they have obtained from the
payment of their personal expenses by the trost, expenses incurred by the
tnlst as a result of their conflicts of interest, and such additional surcharges
as may be warranted under the facts and circumstances of this txust.
6. Revoke the distributions of the stock of the family
enterprises to Barbara McK. Mumma and to further require her to disgorge
all profits received therefrom.
7. Additionally, objectant requests that the court not approve
the account as filed; surcharges the Trustees individually and jointly for
any losses to the estate resulting from the self-serving actions taken by
them, reconvene the previously filed petition for removal of executrices
and trustees file by Robert M. Mumma, II which is currently before your
Honorable Court, and take such further action as the Court deems proper
to preserve the Trust for the benefit ofllie residuary beneficiaries and any
other persons in similar circumstances.
Respectfully submitted,
Charles E. Shields, III, Esquire
Commonwealth National Bank Bldg.
2 West Main Street
Mechanicsburg, Pa 17055
(717) 766-0209
J.D. # 38513
William C. Costopoulos
831 Market Street
Lemoyne, P A 17043
(717) 761-2121
By
Attorneys for Objectant,
Robert M. Mumma, II