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HomeMy WebLinkAbout03-19-12In re the Edith S. Rife Trust TO: John W. Maxwell and IN COURT OF COMMON PLEAS OF C ERLAND COUNTY, PENNSYLVANIA O HANS' COURT DIVISION NO. 11-0325 ORPHANS' COURT NO. 10-1006 ORPHANS' COURT NO.'83-0773 ORPHANS' COURT NOTICE '$'O PLEAD James D. Cameron, Esquire, and David A. Fitzsimons, Esquire, of Martson Law Office Attorneys for John W. Maxwell You are hereby notified that you have twenty (20) days in which to plead to the within New Matter or a Default Judgment may be entered against you. Date: March 19, 2012 ~~C/ W~yn~e, Esquire Supreme Court LD. # 15712 53 West Pomfret Street Carlisle, Pennsylvania 17013 Telephone: 717-243-0220 Ca-Counsel for Respondent Fred H. Junkin -..> N y. T i.' ~ ~~ 9 ;~1 Z7 c'' ~. i. :i ~~~ ~ b` '- rTi ' ~ `~ i,J D N ~, In re the Edith S. Rife Trust IN '11HE COURT OF COMMON PLEAS OF CU111'IBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION NO. 11-0325 ORPHANS' COURT NO. 10-1006 ORPHANS' COURT NO.'83-0773 ORPHANS' COURT ANSWER WITH NEW TTER TO MOTION OF JOHN W. MAXWELL FORULE TO SHOW CAUSE AND NOW, comes Fred H. Junkins, executor of the Estate of Charles J. Rife, and files the following Answer with New Matter to the Motion of October 27, 201 1, as ;,, .:~ ~~ N ~ ~ follows: n, 'c~ ~ ,r- ,~ ' ~ ANSWER ~~ ~ .. ~ C") C7 ^iD ~_ :, --~ ~_ n~ :70~ ~ 1 - 7 Admitted ~ ~ _- ~ m . . . w ~ ~ N ~ 8. Admitted. By way of further response, the Executor avers that he is unabl~'to negotiate a settlement of this case with John W. Maxwell because any settlement with John W. Maxwell would diminish the legacies of the other residuary heirs of the Estate of Charles J. Rife. Accordingly, the other residuary heirs of the Estate of Charles J. Rife are indispensable parties to the claims of John W. Maxwell. Settlement of the case without the participation of the other residuary heirs would expose the Executor to claims for surcharge. 9. Admitted. By way of further the amount of Six Hundred Thousand the Executor avers that the claim was in Dollars against a net estate of approximately Two Million Two Hundred Thousand ($2,200,000) Dollars. 10. The averments of ¶ 10 of the Mo~ion are admitted in part and denied in part. It is admitted that the Executor has not filed Ilan accounting as directed by the court in the Decree of June 17, 2011. By way of furtheriresponse, John W. Maxwell's own averments in ¶ 12. d. of his motion allege th~t it is not possible for the Executor to construct a proper accounting, as ordered by the court, because Chazles J. Rife failed to keep sufficient records of administration of ~he Trust to enable the Executor to prepaze the ordered accounting in a form consistent with Pennsylvania Orphans' Court Rule 6.1. The Executor further avers that, after diligent search, the Executor has been unable to locate any records, beyond the information that the Executor has disclosed to counsel for John W. Maxwell as averred in ¶ 7 of the m tion, that would be sufficient to enable the Executor to prspaze such an accounting and hat the Executor has disclosed everything that he has that could possibly be pertinent tp the Edith S. Rife Trust. After reasonable investigation, the Executor has been unable to determine whether or not the decedent, Charles J. Rife, failed to maintain books an~ records of his administration of the Trust that would be sufficient to enable the Executor to file an account as ordered by the Court. Therefore, the dame is denied, and proof thereof is demanded. 11. Admitted. By way of further res~onse, the averments of ¶ 10 above aze incorporated herein by reference as though 12. The' Executor responds to the a. Admitted. Byway of further failure of Chazles J. Rife to transfer the Trust Company that caused any losses to set forth. of ¶ 12 of the Motion, as follows: the Executor avers that it was not the of the Trust to Dauphin Deposit Bank and Trust. On the contrary, the Executor avers that it was the unforeseeable, intervening, ar~d superseding criminal conduct of a rogue currency trader at M&T Bank, the successor) to Dauphin Deposit Bank that caused the losses to the Trust which consisted predomirpantly of stock in Allied Irish Bank. By way of further response, the Executor avers that i~ was not the intention of Edith S. Rife that Charles J. Rife or a successor trustee be req fired to diversify the assets of the Edith S. Rife Trust. Schedule A to the Edith S. Rife .rust reveals that, at the time of creation of the Trust, the corpus of the Trust consisted plredominantly of stock of Dauphin Deposit Trust Company. There is no evidence that, Iduring the more than thirteen years from the date of her execution of the Edith S. Rife Tr~st on July 31, 1970, until her death on December 3, 1983, she took any action to rewire Charles J. Rife, as Trustee, to diversify the assets of the Trust. Her satisfaction with having most of her assets in the stock of Dauphin Deposit Trust Company was further confirmed by the facts that, at the date of death of Edith S. Rife, her inheritance tax return revealed that two-thirds of her estate also consisted of stock of Dauphin Deposit 'gust Company. The total value of her gross estate was $292,419.97. She had 7,076 shaves of Dauphin Deposit Trust Company common stock at $27.63 per share for a tota~ value of $195,509.88. Her real estate was valued at $75,000. She had other stocks with a total value of $19,599.01 and a checking account balance of only $2,311.08. b. After reasonable investigation, Rife failed to distribute the residue of his under the Last ~VVill and Testament of his Executor is unable to confirm that Charles J. s probate estate to the Trust as required and proof thereof is demanded. By way of further response, the Executor avers that here were no accounting, statement of proposed distribution, or releases filed in th~ Estate of Edith S. Rife that would confirm that the statement in Schedule J of the Pennsylvania Inheritance Tax Return for the Estate of Edith S. Rife was indicating anything oth r than that Charles J. Rife and his sister were the life beneficiaries of the Edith S. Rife T st. From the fact that there are 44,577 shares of Allied Irish Bank in the name of the Edit S. Rife Trust, the Executor believes and therefore avers that the assets of the residue bf the Estate of Edith S. Rife were transferred to the Edith S. Rife Trust and no1~ to Charles J. Rife and his sister. c. After reasonable investigation, the Executor has been unable to determine whether or not the shares of stock in Allied rish Bank were the sole assets of the Edith S. Rife Trust. Therefore, the same is denied, d proof thereof is demanded. Byway of further response, the averments of ¶ 12. a. a ove are incorporated herein by reference as though fully set forth. d. After reasonable investigation, the Executor has been unable to determine whether or not the decedent, Charles J. Rife failed to maintain books and records of his administration of the Trust that would be su ficient to enable the Executor to file an account as ordered by the Court. Therefore,) the same is denied, and proof thereof is demanded. By way of further response, the Executor avers that he has disclosed everything that he has that could possibly b~ pertinent to the Edith S. Rife Trust. WHEREFORE, the Executor of the of Charles J. Rife respectfully requests that the Motion of John W. Maxwell be NEW TTER STATUTE OF LIMIT TIONS AND CACHES 13. The Executor believes and of the existence of the written Edith S. Rife of death of Edith S. Rife on December 3, 1 Irish Bank stock in 2002, due to the rogue currency trader at M&T Bank, the the losses to the Trust which consisted 14. The Executor believes and of the provisions of the written Edith S. Rife on December 3, 1983, and the collapse avers that John W. Maxwell was aware in the nineteen years between the date and the collapse of the value of the Allied and superseding criminal conduct of a to Dauphin Deposit Bank, that caused of stock in Allied Irish Bank. avers that John W. Maxwell was aware Trust between the date of death of Edith S. the value of the Allied Irish Bank stock in 2002. 15. The Executor believes and diligence, John W. Maxwell could have written Edith S. Rife Trust between the date 1983, and the collapse of the value of the 16. Charles J. Rife, was a lay person avers that, with the exercise of reasonable himself aware of the provisions of the death of Edith S. Rife on December 3, Irish Bank stock in 2002. respect to financial matters and did not possess sophisticated financial acumen. 17. John W. Maxwell has not the provisions of the Edith S. Rife Trust designated, successor, corporate fiduciary that Charles J. Rife was actually aware that him to tender the Trust assets to the the death of Edith S. Rife. _„_ 18. For at least four years prior to the death of Chazles J. Rife, John W. Maxwell was an agent far Charles J. Rife under a 19. During his years as agent for general power of attorney. J. Rife, John W. Maxwell either knew or through the exercise of reasonable diligence (would have known of the dealings of Charles J. Rife with respect to the assets of 20. If Jdhn W. Maxwell would have Charles J. Rife tender the Trust assets to the the nineteen yeass between the date of S. Rife of which he now complains. Chazles J. Rife to the requirement that successor, corporate fiduciary in of Edith S. Rife on December 3, 1983, and the collapse of the value of the Allied Irish )dank stock in 2002, Charles J. Rife would have had an opportunity to have transferred the assets of the Trust to the designated successor trustee prior to the collapse of the 21. John W. Maxwell avers that he return in the Estate of Edith S. Rife, that Estate of Edith S. Rife to himself and his 22. The inheritance tax return in the in the Office of the Register of Wills of twenty-five years before John W. Maxwell Rife. Therefore, the Executor avers that in that respect are barred by laches or the 23. The Executor believes and registered any complaints to Charles J. Rife of the Allied Irish Bank stock. on the basis of the inheritance tax les J. Rife distributed the residue of the rather than to the Edith S. Rife Trust. of Edith S. Rife was a matter of record County, Pennsylvania, for more than his claim against the Estate of Charles J. claims against the Estate of Chazles J. Rife of limitations or both. avers that John W. Maxwell never any aspect of administration of the Estate of Edith'S. Rife or the Edith S. Rife 24. The Executor believes and avers that there is no reasonable explanation as to why John W. Maxwell didnot file his claim against Charles J. Rife during the twenty-eight years between the Rife and the filfng of his claim herein on 25. With the death of Charles J. F 3, 1983, date of death of Edith S. 17, 2011. prior to the advancement of any claims by John W. Maxwell, the Estate of Charles J by the inability of the Executor of the John W. Maxwell. fe is materially and irrevocably prejudiced of Charles J. Rife to respond to the claims of PARTIES 26. On September 17, 2011, John W Maxwell filed a claim against the Estate of Charles J. Rife in the amount of Six Hundre Thousand and No/100 ($600,000.00) Dollars for the alleged breaches of duty by Charles J. Rife as Trustee of the Edith S. Rife Trust. 27. The request for a declaration of was directed only to the Executor of the 28. The request for a declaration of did not join the other residuary residuary heirs of the Estate of Charles J. in the Motion of October 27, 2011, of Charles J. Rife. in the Motion of October 27, 2011, of the Edith S. Rife Trust or the 21 other all of whom would be materially and adversely affected by the claim of John W. axwell. 29. The Executor avers that Pa.R.C. .1032 deprives a court of jurisdiction where there has been a failure to join an indispensable party. 30. The jurisdictional issue of the raised at any point in the litigation, and the basis of lack of jurisdiction if the indispens 31. Eleven of the residuary heirs of would be materially and adversely affected charitable heirs. to join an indispensable party may be t is required to dismiss the action on the parties are not joined. Estate of Charles J. Rife, all of whom the claim of John W. Maxwell, are 32. John W. Maxwell has not joined the Attorney General of Pennsylvania, as the indispensable, official representative of the 403 Pa. 534, 170 A2d 106 (1961). WHEREFORE, the Executor of the that the Motion of John W. Maxwell be haritable, residuary legatees. Little Estate, of Charles J. Rife respectfully requests y submitted, W yne ~'. Shade, Esquire S reme Court LD. # 15712 53 West Pomfret Street C lisle, Pennsylvania 17013 Te ephone: 717-243-0220 Cc}-Counsel for Respondent Fred H. Junkins 18- The statements in the foregoing Answe information which has been assembled by my the statements is not my own. I have read the based upon information which I have given to best of my knowledge, information, and belies are made subject to the penalties of 18 Pa.C.S, authorities. Date: March 19, 2012 with New Matter are based upon attorney in this litigation. The language of statements; and, to the extent that they are my counsel, they are true and correct to the I understand that false statements herein § 4904 relating to unsworn falsification to Fred H. Jun ' In re the Edith S. Rife Trust 1N HE COURT OF COMMON PLEAS OF C ERLAND COUNTY, PENNSYLVANIA O HANS' COURT DIVISION NO. 11-0325 ORPHANS' COURT NO. 10-1006 ORPHANS' COURT NO. 83-0773 ORPHANS' COURT CERTIFICA I, Wayne F. Shade, Esquire, do the foregoing Answer with New Matter, to Show Cause in the above-captioned matter, United States mail, postage prepaid, to his 1325 North Front Street, Harrisburg, Esquire, Manson Law Office, 10 East High upon Steven A. Maxwell, Sherri Maxwell, OF SERVICE certify that I have this date served a copy of Motion of John W. Maxwell for Rule to John W. Maxwell herein by first class of record, James D. Cameron, Esquire, vania 17102, and David A. Fitzsimons, Carlisle, Pennsylvania 17013; and Maxwell, and Barry Maxwell by first class United States mail, postage prepaid, to their counsel of record, Craig A. Diehl, Esquire, 3464 Trindle Road, Camp Hill, Pennsylvania 17011. Date: March 19, 2012 W yne F~Shade, Esquire S reme Court LD. # 15712 53 West Pomfret Street C lisle, Pennsylvania 17013 T enhone: 717-243-0220 for Respondent Fred H. Junkins