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Home My WebLink About08-26-11F:\FILES\Clients\5844 Mumma Estate\5844.19 Accounts and Distribution Trusts\5844.19.Petition to Authorize Distributions.8.25.1 I.wpd Revised 8/26/ I 1 1123 AA7 No V. Otto, III, Esquire I.D. No. 27763 George B. Faller, Jr., Esquire ~ . ,. -~~ LD. No. 49813 =_ ~ --~ "~ `' '-'-` Jennifer L. Spears, Esquire ~, ~~ ~= - -~ c ~ ~: - LD. No.87445 : _T~, j-, ;. , ~1 MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER -~ J MARTSON LAW OFFICES ~ =; 10 East High Street _ ' `~~ r:~,~ - `'~` Carlisle, PA 17013 ~ c : `~" c~ (717) 243-3341 Attorneys for 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 PETITION TO AUTHORIZE DISTRIBUTIONS Lisa M. Morgan, as trustee under the will of Robert M. Mumma, Sr., respectfully petitions this Court for an Order authorizing interim distributions of cash to the beneficiaries of the estate, as well as an order directing M & T Bank to disburse, by wire transfer, certain funds of D E Distribution Corporation to an account owned by D E Distribution Corporation at Fulton Bank as follows: 1. Petitioner is Lisa M. Morgan ("Mrs. Morgan"), trustee under the will of Robert M. Mumma and a beneficiary of the estate of Robert M. Mumma. 2. Respondents Robert M. Mumma II ("RMM II"), Barbara M. Mumma ("Babs Mumma"), and Linda Mumma are beneficiaries of the above estate. 3. Respondent M & T Bank ("M & T") is a banking corporation authorized to do business in the Commonwealth of Pennsylvania. 4. Robert M. Mumma, Sr. died on April 12, 1986. 5. Mrs. Morgan and her late mother, Barbara McK. Mumma ("Mrs. Mumma"), were named as executrices of and trustees of Marital and Residuary Trusts under the will of Robert M. Mumma. r 6. Mrs. Mumma and Mrs. Morgan filed Interim and Final Accounts of their actions as executrices of Mr. Mumma, Sr.'s Estate from the date of Mr. Mumma, Sr., through the closing of the Estate on September 30, 2003. 7. Mrs. Mumma and Mrs. Morgan also filed interim accounts for the Marital and Residuary Trusts for all periods from their inception through and including December 31, 2003. 8. RMM II and Babs Mumma filed Objections to Mrs. Mumma and Mrs. Morgan's accounts for the Estate and the Trusts. 9. Beginning in April 2009, and continuing over a total of 33 days ending in June 2010, Auditor Joseph Buckley presided over hearings with respect to the Objections filed by RMM II and Babs Mumma. 10. In September 2010, Mrs. Morgan filed accounts for the Trusts for the period from January 1, 2004, through and including that of Mrs. Mumma's death on July 17, 2010. 11. Mrs. Morgan also filed Petitions for Adjudication and Audit or Confirmation for the Marital and Residuary Trusts. 12. On November 22, 2010, RMM II and Babs Mumma filed Objections to the accounts. 13. By Order dated November 24, 2010, the Court referred all objections to Auditor Buckley. 14. Auditor Buckley conducted hearings on RMM II's and Babs Mumma's Objections during May and June of 2011. 15. Auditor Buckley's hearings have been concluded, a post hearing briefing schedule has been set and it is anticipated that an Auditor's report will be filed in dine course. 16. Mrs. Morgan was appointed executrix of the estate of Barbara McK:. Mumma on July 26, 201.0, by the Circuit Court for Palm Beach County, Florida to Estate No. 502010CPO02279. 17. Ancillary Letters Testamentary were issued and Mrs. Morgan was appointed as executrix of the estate of Barbara McK. Mumma on December 7, 2010, in Cumberland County, Pennsylvania, to Estate No. 21-10-1073. 18. The Residuary Trust under the will of Robert M. Mumma is t:he owner of 27.192650% of the stock of D E Distribution Corporation, a Pennsylvania corporation ("DE"). The other shareholders of DE and their percentage interests are as follows: RMM II - 14.03015% Linda Mumma - 13.948925% Babs Mumma - 13.948925% Lisa M. Morgan - 13.948925% Barbara McK.. Mumma Estate - 16.930560% 19. Mrs. Morgan, individually and together with her holdings in her representative capacities as Trustee of the Residuary Trust and Executrix of the Estate of Barbara McK. Mumma is the majority shareholder in DE, with an aggregate ownership of 58.072135% of the stock of DE. 20. Mrs. Morgan is the sole member of the Board of Directors of DE and is the sole authorized officer of DE. 21. DE holds excess cash in the amount of $100,000.00, which is available for distribution to the shareholders thereof. 22. A portion of the DE cash available for distribution is held in a money market account #XXXXXXXXXX5251 at M & T Bank. 23. M & T Bank has "frozen" the aforementioned account, refusing to honor withdrawals therefrom absent Court Order. 24. DE has a checking account #XXXXXX1422 at Fulton Bank. 25. The Residuary Trust under the will of Robert M. Mumma is the owner of an undivided 81.82507% interest in a tenancy in common known as Mumma Realty Associates I ("MRA I"). The other owners of MRA I and their percentage interests are as follows: RMM II - 4.24708% Linda Mumma - 4.23555% Babs Mumma - 4.23555% Lisa M. Morgan - 4.23555% Barbara McK. Mumma Estate - 1.2212% 26. Mrs. Morgan, individually and together with her holdings in her representative capacities as Trustee of the Residuary Trust and Executrix of the Estate of Barbara McK. Mumma is the majority in interest owner of MRA I, with an aggregate ownership of 87.28182%. 27. Mrs. Morgan, in her representative capacity as Executrix of the Estate of Barbara McK. Mumma, is the sole shareholder, director and officer of Mumma Realty Associates, Inc., ("MRA, Inc."), the manager of MRA I. 28. MRA I holds excess cash in the amount of $200,000.00, which is available for distribution to the owners thereof. 29. Certain of the distributees of DE and MRA I hold interests in Bobali Corporation ("Bobali"), a Pennsylvania corporation. 30. Bobali Corporation is the owner of various parcels of real estate with respect to which certain real estate taxes are unpaid and overdue. 31. Bobali is without sufficient cash to pay such real estate taxes. 32. The distributions from DE and MRA I as proposed herein would provide the shareholders of Bobali funds to contribute to Bobali to permit the payment of the unpaid real estate taxes and avoid such real estate being exposed to tax sales, currently scheduled for September 9 and 22, 2011. 33. RMM II, Babs Mumma and Linda Mumma have on various occasions sought distributions from the Residuary Trust and various related entities. 34. Mrs. Morgan wishes to make interim distribution from DE and MRA I to the owners of DE and MRA I of the amounts referred to above in the proportions referred to above prior to the conclusion of the audit proceedings and final distribution of the Residuary Trust and seeks authority from Your Honorable Court to so do. 35. Mrs. Morgan seeks an order from Your Honorable Court directing M & T to disburse, by wire transfer, the balance in the DE account referred to above to the DE account at Fulton Bank. 36. Respondents RMM II, Babs Mumma and Linda Mumma do not concur with the relief sought in this Petition. WHEREFORE, for the foregoing reasons, Mrs. Morgan respectfully requests that this Court issue a Rule to Show Cause upon Robert M. Mumma, Barbara M. Mumma and Linda Mumma and a Citation upon M & T Bank to show why the relief requested <.should not be granted. Respectfu submitted, By: _ No to, III, Esquire I.D. No. 27763 George B. Faller, Jr., Esquire I.D. No. 49813 Jennifer L. Spears, Esquire I.D. No.87445 MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER 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 19103-2921 (215) 963-5079 Attorneys for Lisa M. Morgan Date: August 26, 2011 V RIFI The foregoing Petition to Authorize I3istributions is based upon infoanation which has been gathered by my counsel in the preparation of the lawsuit, The language of the document is that of counsel and not my own. I have read the document and to the extent that it is based upon information which I have given to my counsel, it is true and correct to the best of my knowledge, information and belief. To the extent that the content of the document is that of counsel, I .have retied upon counsel in making this verification. This statement and verification are made subject to the penalties of 18 Pa. I.S. Section 49t)~ relating to unsworn falsification to authorities, which provides that if I make knowingly false averments, I may be subject to criminal penalties,,. - G~ Lisa M. Morgan F:IFILE41CT~m~S14t Maear Pxue171N.19 Aaeunu awd blrullwlop 7ewoWM. H.PMaltien to /rlNaSae Dlttl'OutMM.~.75.1 l.wpd CERTIFICATE OF SERVICE I, Tricia D. Eckenroad, an authorized agent for Martson Deardorff Williams Otto Gilroy & Faller, hereby certify that a copy of the foregoing Petition to Authorize Distribution was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Mr. Robert M. Mumma, II 6880 S.E. Harbor Circle Stuart, FL 34996-1968 Robert M. Mumma, II 840 Market Street Suite 33333 Lemoyne, PA 17043 Ms. Barbara M. Mumma 541 Bridgeview Drive Lemoyne, PA 17043 Ms. Linda M. Mumma c/o Carter Ellis 203 Friars Court Mechanicsburg, PA 17050 Joseph D. Buckley, Esquire 1237 Holly Pike Carlisle, PA 17013 M & T Bank One West High Street Carlisle, PA 17013 MARTSON LAW OFFICES By , Tricia D. Ec enroad Ten East High Street Carlisle, PA 17013 (717) 243-3341 Dated: ~~~~~~