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HomeMy WebLinkAbout12-11-09George B. Faller, Jr., Esquire - '"` I.D. No. 49813 ~ ~ -- ~~ ~ •-~ No V. Otto, III, Esquire I.D. No. 27763 ~~~~ ~`~ ~ 1 Q t • ~2 Jennifer L. Spears, Esquire LD. No. 87445 ~~=;fi; ~;'= Cl . MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER (~~ ;6~N " ; ~ T<,T MARTSON LAW OFFICES ~. Clr'':' - ~ - ~~ 10 East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Barbara McK. Mumma and Lisa M. Morgan IN THE COURT OF COMMON PLEAS OF IN RE: CUMBERLAND COUNTY, PENNSYLVANIA Estate of Robert M. Mumma, NO. 21-86-398 Deceased. ORPHANS' COURT DIVISION DESIGNATIONS OF BARBARA MCK. MUMMA AND LI5A M. MORGAN OF TESTIMONY TO BE READ AT HEARING Barbara McK. Mumma and Lisa M. Morgan hereby designate the following testimony to be read as part of their affirmative case in the hearing before the Auditor with respect to the objections of Robert M. Mumma, II and Barbara Mann Mumma to accounts with respect to the Estate of Robert M. Mumma, Deceased and the Trusts established under his will: A. Testimony of Robert M. Mumma, II Mrs. Mumma and Mrs. Morgan designate the following testimony to be read pursuant to Pa.R.E. 803(25) as an admission of a party opponent: Mumma v. Mumma, No. 66 Equity 1988, Transcript of Proceedings, (C.P. Cumberland Mar. 10, 1991) (excerpts attached as Exhibit "A"): From Page 677 Line 9 Page 677 Line 16 Page 679 Line 18 To Page 677 Line 11 Page 677 Line 21 Page 679 Line 24 Mumma v. Mumma, No. 66 Equity 1988, Transcript of Proceedings, (C.P. Cumberland Mar. 6, 1991) (excerpts attached as Exhibit "B"): From To Page 19 Line 14 Page 19 Line 25 Page 20 Line 1 Page 20 Line 19 B. Testimony of Ronald Nye Mrs. Mumma and Mrs. Morgan designate the following testimony to be read pursuant to Pa.R.E. 804(b)(1), in that Mr. Nye is, as testified to in this proceeding by Harry G. Lake, deceased and therefore unavailable: In re Estate of Mumma, No. 21-86-398, Transcript of Proceedings (O.C. Cumberland May 11, 1992 (excerpts attached as Exhibit "C"): From Page 24, Line 6 Page 26, Line 4 Page 26, Line 16 Dated: December 11, 2009 To Page 25, Line 9 Page 26, Line 11 Page 28, Line 6 Georg B aller, Jr., Esquire LD. No. 49813 No V: Otto,. III, Esquire I.D. No. 27763 Jennifer L. Spears, Esquire I.D. No. 87445 MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 717-243-3341 Brady L. Green, Esquire MORGAN, LEWIS & BOCKIUS LLP 1701 Market Street Philadelphia, PA 19103 215-963-5079 Attorneys for Barbara McK. Mumma and Lisa M. Morgan 2 BARBARA McK. MUMilA and ~ . LISA M. MORGAN, individually and as executrices of the Estate of Robert M. Mumma, deceased, and LINDA M. ROTH, Plaintiffs . V. ROBERT M. MUMMA, II, and BARBARA M. McCI,URE, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY 66 EQUITY 1988 IN RE: NON-JURY TRIAL VOLUME IV of IV Proceedings held before the Honorable HAROLD E. SHEELY, P.J., Cumberland County Courthouse, Carlisle, Pennsylvania, on Monday, March 13, 1991, at 9:40 a.m. in Courtroom No. 1. TREE CC?PY F y~~° ~:1 ~~~C;~~ 1q Test~mcn• .;h^~cc` i ;,: r<: .; .:a ~~y hand .., and the sd n~.',~ i .", , ,:,t ~. ', ~- ~,~. ~ a. This ... ~._ day ct ./s?~" ~xlc''%~' APPEARANCES : ~~ Prot;onotary THOMAS M. KITTREDGE, ESQUIRE WILLIAM F. MARTSON, ESQUIRE For Plaintiffs Barbara McK. Mumma and Lisa M. Morgan JOHN HARDIN YOUNG, ESQUIRE For Plaintiff Linda M. Roth JON A. BAUGHMAN, ESQUIRE CHARLES E. SHIELDS, III, ESQUIRE For Defendant Robert M. Mumma, II RICHARD W. STEVENSON; ESQUIRE For Defendant Barbara M. McClure /;~( ~~ Exhibit "A" 1 A Yes. 2 MR. BAUGHMAN: I'm going to ask the reporter 3 to mark this document, which I've shown to Mr. Kittredge, as 4 R-157. 5 (Whereupon, 6 Respondent's Exhibit No. 157 7 was marked for identification.) 8 BY MR. BAUGHMAN: 9 Q I show you what's been marked for 10 identification as R-157,. Mr. Mumma, and ask you what that 11 is? 12 A Karl Felmeden and I had a meeting at 13 Pennsylvania Supply -- 14 MR. KITTREDGE: If Your Honor please, you 15 were asked, Mr. Mumma, to state what it is. 16 THE WITNESS: This is the result of a meeting 17 between Mr. Felmeden and myself at 1001 Paxton Street. 18 MR. KITTREDGE: It was written by Mr. 19 Felmeden? 20 THE WITNESS: Yes, it's handwritten by Mr. 21 Felmeden. 22 MR. KITTREDGE: I'm going to object to any 23 testimony on this document. It's rank hearsay. It's dated 24 1982, long before anything involving this case. It has no 25 relevance whatever. 677 l ,~C U h 1 doesn't get around the hearsay rule. 2 MR. BAUGHMAN: Mr. Mumma has personal 3 knowledge of what is contained in this document. 4 THE COURT: Ga ahead. What time was this? 5 What era? 6 MR. BAUGHMAN: 1982, Your Honor. 7 THE COURT: 1982? 8 MR. BAUGHMAN: Yes, sir. 9 MR. KITTREDGE: Yes, sir. 10 THE COURT: I guess the document will speak 11 for itself whatever it is so let's just -- he identified 12 what it was, so I don't think we need to get into it any 13 further. 14 MR. BAUGHMAN: Your Honor, I would only want 15 to establish the circumstances under which it was prepared. 16 THE COURT: All right. Go ahead. 17 BY MR. BAUGHMAN: 1S Q Would you tell us, Mr. Mumma, what were the 19 circumstances under which R-157 was prepared? 20 A Mr. Felmeden was putting together a deal 21 where I could buy Pennsy supply, Inc. And this was the 22 method that he wanted to use to structure the deal; and this 23 was the price, $2 million that he came up with and the 24 financing that he had structured for it. 25 MR. BAUGHMAN: Thank you. I'm going to ask 679 I -,l (J n F S. BARBARA McK. MUMMA and , LISA M. MORGAN~j individually and as esecutrixes of the estate of Robert M. Mumma, . deceased, and LINDA M. ROTH, Plaintiffs , V. , ROBERT M. MUMMA, II, and , BARBARA M. McCLURE, , Defendants , IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY 66 EQUITY 1988 IN RE: DIRECT TESTIMONY OF ROBERT M. MUMMA II Proceedings held before the Honorable HAROLD E. SHEELY, P.J., Cumberland County Courthouse, Carlisle, Pennsylvania, on March 6, 1991, in Courtroom No. 1. ~. ~.. E; kt a: ~, L..._~~ ~r°~ ~~ %~J~ ;` r J !~ i i APPEA LACES: LLIAM F. MARTSON, ESQUIRE THOMAS M. KITTREDGE, ESQUIRE For Plaintiffs Barbara McK. MunMa and Lisa M. Morgan .~' JOHN HARDIN YOUNG, ESQUIRE For Plaintiff Linda M. Roth ANTHONY VALE, ESQUIRE JON A. BAUGHMAN, ESQUIRE CHARLES E. SHIELDS, III, ESQUIRE For Defendant Robert M. Mumma, II RICHARD 6J. STEVENSON, ESQUIRE For Defendant Barbara M. McClure In Testisrcny w~ierec `, i hr~re ~.,~nto set my hand and the seal cf said ~~~u;-i~ ai Carls':e, ,~a. This .........~~.... day c~....1..?~~~~......., ..~Y_ 3 .........:~~..~......~J.~..~..r t~rnthanotary Exhibit "B" i r is 1 the document that you got the tenants-in-common -- you said 2 it wasn't a copy. I take it it was on bond paper rather 3 than on -- 4 A It was on bond paper, and it was original 5 typewritten or laser printer or whatever it is; but this was 6 the real thing. ~ Q What did you do with it when you left the 8 meeting? 9 A It's my recollection I had all these notes of 10 things that were going to be changed on there, that Art and 11 I had agreed would be changed. I gave it and the power of 12 attorney, which was to be delivered to Art to Skinner to 13 take back to Art. 14 Q Let's go forward from there to discuss a 15 meeting that's been discussed here in testimony, and that 16 would be a March meeting with Mr. Hadley at your mother's 17 house. And your sister Lisa was also there? 18 A That's correct. 19 Q Do you recall -- in fact, did such a meeting 20 occur? 21 A Such a meeting occurred, and Hadley gave me 22 that list of documents that he has a receipt for; and he 23 gave r.:e the depreciation sheets, and I had that information. 24 Q Okay. And did you arrive late at the 25 meeting? 19 ., 1 A I arrived late at the meeting. I don't know 2 if it was two hours, but I got tied up at a job conference 3 on ane of the jobs we did; and I left there and went to the 4 meeting. 5 Q What happened at the meeting? 6 A I walked into the meeting. We talked. And 7 the question was, I was to make an offer for Pennsy Supply. 8 So I told George that it was my feeling that Pennsy Supply 9 was worth $5,000,000.00, that Pennsy Supply with the l0 aggregates was worth $7,000,000.00. And Kim, I guess I 11 started with the $7,000,000.00 figure; and they said they 12 didn't want to sell the aggregates as part of that, and that 13 they would enter into, you know, a royalty agreements or 14 whatever; but at this time, they didn't want to sell the 15 aggregate properties. I said Pennsy Supply was worth 16 $5,000,000.00 in that case. And I was drawing on the 17 negotiations I had had with Mr. Felmeden where he said it 18 was worth $2,000,000.00 in 1982, '83, that same group of 19 assets. 20 And the subject came up about Elco, and Kim 21 said that Elco was not part of the deal. She Baas not going 22 to sell Elco, that my father had told her that never ever 23 sell Elco. And I said, Elco is a subsidiary to Pennsy 24 Supply. If you buy Pennsy Supply, you buy Elco because it's 25 a wholly-owned subsidiary. 20 IN RE: ESTATE OF IN THE COURT OF COMMON PLEAS OF ROBERT M. MUMMA, late of Ct3MBERLAND COUNTY, PENNSYLVANIA Cumberland County, ORPHANS' COURT DIVISION Pennsylvania NO. 21-86-398 TN RE• TRANSCR~ OF_~ROCEEDINGS . Proceedings held before the Honorable HAROLD E. SHEELY, P.J., Cumberland County Courthouse, Carlisle, Pennsylvania, on Monday, May 11, 1992, at 9:30 a.m. in Courtroom Number One. A TRUE COPY F90FA RECCRD In Testimony wherof, !hereunto set my hand and the sea! Of said. Court at Carlisle, PA 'trf,is.~dday or , 20 G9 Clerk d~ file Orphans Court Cumb~;rl~,nd Co~snty APPEARANCES: MARL J. SONNENFELD, Esquire For the Respondent WILLIAM C. COSTOPOULOS, Esquire For the Petitioners CHARLES 8. SHIELDS, III, Esquire For Petitioners 1634 Exhibit "C" a 1 Harrisburg. 2 MR. SONNENFELD: Thank you, Mr. Eshelman. I 3 have nothing further of this witness, Your Honor. 4 THE COURT: Cross-examine. 5 MR. COSTOPOULOS: No questions, Your Honor. 6 THE COURT: I have none. Thank you. 7 MR. SONNENFELD: Your Honor, I have copies of 8 these exhibits, if you would care to have them. 9 THE COURT: I don't need copies. I'll have to the originals. 11 MR. SONNENFELD: I would move these exhibits 12 at this time. 13 THE COURT: They're admitted. 1a {whereupon, Respondents' Exhibits 1 and 2 15 were admitted into evidence.) 16 MR. SONNENFELD: Your Honor, I next call Mr. 17 Nye. 18 Whereupon, 19 RONALD E. NYE 20 having been duly sworn, testified as follows: 21 DIRECT EXAMINATION 22 BY MR. SONNENFELD: 23 Q Mr. Nye, you're retired; is that correct, 24 sir? 25 A Yes, heat's correct. 1656 23 1 Q And by whom were you employed prior? 2 THE COURT: I don't believe he gave us his 3 full name. 4 MR. SONNENFELD: Oh, I'm sorry, Your Honor. 5 BY MR. SONNENFELD: 6 Q Can you tell us your full name? 7 A Ronald E. Nye. 8 THE COURT: Can you spell that? 9 THE WITNESS: N-y-e. 10 BY MR. 5ONNENFELD: 11 Q Can you tell us your address, Mr. Nye? 12 A 707 Alison Avenue, Mechanicsburg, 13 Pennsylvania. 14 Q Thank you, sir. Is that correct that your 15 retired, Mr. Nye? 16 A That's correct. 17 Q By whom were you employed at the time of your 18 retirement? 19 A Pennsy Supply, Incorporated. 20 Q When did you retire from Pennsy Supply, 21 Incorporated? 22 A The end of December, 1991. 23 Q For how long were you employed by Pennsy 24 supply? 25 A Forty years. 255'7 z4 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 And what was your position at the time of your retirement in 1991? A Vice president of sales for aggregates crushed stone, blacktop. Q What were your duties and responsibilities? A Duties were to be responsible for sales of those materials, for filling out and taking care of the bidding process to various municipalities and the state and according prices to the contractors who requested them. Q Now, you heard Mr. Eshelman's testimony in court this morning? A Yes. Q And rather than have you repeat that do you agree with what he said and adopt that as your testimony? A Yes. Q Now, at sometime -- up to sometime is that correct that Pennsy Supply sold materials to Adams County Asphalt? A That's correct. Q And have you reviewed the records of Pennsy Supply and determined when Adams County Asphalt stopped buying materials from Pennsy Supply? A Yes, I did. We stopped selling them materials sometime in the latter part of 1988. Q And would it be correct to say that prior to 16J~ 25 1 2 3 4 5 6 7 e 9 10 it 12 13 14 15 16 17 18 19 20 21 22 Z3 24 25 that time Adams County Asphalt was a contractor buying its materials from Penney Supply? A That~s correct. Q Now, have you determined when Mr. Mumma, II, applied for a quarrying permit for the Fiddler's Elbow location? A Z recall, I believe it was sometime in June of 1988 when he applied for a permit. Q And when did he apply for a permit to operate a blacktop plant at Fiddlers Elbow? A I believe that was in September of '88. Q And when did McDermitt, Inc., get a permit to manufacture concrete at Fiddler's Elbow? A I believe that was sometime in November of 1989. Q And to the best of your recollection, when did Mr. Mumma, II, first begin publicly bidding on blacktop for state materials, contracts? A Far state materials, contracts, he started bidding on those materials against Penney Supply in December of 1989 and January of 1990. Q And when did he begin the bidding on crushed stone for such contracts? A For state contracts? Q Yes, sir. 165 26 1 A Okay. I'm sorry. The first one was in 2 December of 1989. I believe that was a blacktop, and I 3 believe the crushed stone was in January of 1990. 4 Q And when did Mr. Mumma, II, begin bidding to 5 supply materials to municipalities? g A He began bidding against us on municipality 7 bids in the early spring, which normally doesn't start until 8 sometime around March of 1990. g Q And was Mr. Mumma still bidding against 10 Pennsy Supply for those materials -- for those kinds oP jobs 11 as of tha time of your retirement in December of 1991? 12 A Yes. 13 Q And do you recall any specific jobs where Mr. 14 Mumma was bidding against Pennsy Supply? ig A Well, I remembex one specific job when he was 16 aggressively bidding against us. He was bidding as a 17 contractor for an overlay job in a Silver Springs Company 18 and Pennsy Supply was bidding against them. ig And he came in and hit that one pretty hard 20 and took it from Pennsy Supply. And it was kind of 21 disgusting because it was, you know -- he's about fifteen or 22 twenty miles on the other side of :the river from us and 23 we're sitting right in the Silver Springs Township. So I 24 was a little disappointed with that. 25 Q When you say he was aggressively bidding, 1660 27 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 1? 18 19 20 21 22 23 24 25 what do you mean by that? A Well, if I recall he was probably in excess of ten percent under us. Q And are there other jobs where that has occurred as well? A Yes. MR. SONNENFELD: Your Honor, I have nothing further of Mr. Nye. THE COURT: Cross-examine. MR. COSTOPOUL05: No questions, Your Honor THE COURT: I have none. Thank you. MR. SONNENFEI.D: Your Honor, might we at this time excuse Mr. Eshelman and Mr. Nye? MR. COSTOPOULOS: No objections. THE COURT: They may be excused. MR. SONNENFELD: Your Honor, I'd just like to read very briefly a few admissions into the Record. This won't take vezy long. THE COURT: Is this admissions now from the rule? MR. SONNENFELD: These are admissions that pertain to Mr. Mumma's competition with Penney Supply. These will be very brief, Your Honor. THE COURT: Go ahead MR. SONNENFELD: Thank you, Your Honor. 1661 zs CERTIFICATE OF SERVICE I, Melissa A. Scholly, an authorized agent of Martson Law Offices, hereby certify that a copy of the foregoing Designations of Barbara McK. Mumma and Lisa M. Morgan of Testimony to be Read at Hearing was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, and by e-mail addressed as follows: Mr. Robert M. Mumma, II Box F Grantham, PA 17027 Mr. Robert M. Mumma, II 840 Market Street, Suite 164 Lemoyne, PA 17043 Mr. Robert M. Mumma, II 6880 S.E. Harbor Circle Stuart, FL 34996-1968 Brady L. Green, Esquire MORGAN, LEWIS & BOCKIUS LLP 1701 Market Street Philadelphia, PA 19103-2921 (Attorney for Estate and Executrixes) Ms. Linda M. Mumma 512 Creekview Drive Mechanicsburg, PA 17055 Pro Se Ms. Barbara Mann Mumma 541 Bridgeview Drive Lemoyne, PA 17043 Pro Se Joseph D. Buckley, Esquire 1237 Holly Pike Carlisle, PA 17013 (Court Appointed Auditor) ;, MARTSON LAW OFFICES Melissa A. Scholly 10 East High Street Carlisle, PA 17013 Dated: December 11, 2009 (717) 243-3341 F:'' FILES\Clients\5844 Mumma Estate\5844.1.Mumma Estate\5844.1.398.Designations of Prior Testimony.doc