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HomeMy WebLinkAbout05-14-12IN RE: ESTATE OF ROBERT : IN THE COURT OF COMMON PLEAS OF M. MLJMMA, Deceased : CUMBERLAND COUNTY, PENNS ANIA o : ORPHANS' COURT DIVISION ~~ ~ • ~~ t? =c : NO. 21-86-398 ~n - ~~:~ r IN RE: OPIIVION PURSUANT TO PA. R.A.P.1925 0°"' ~ OLER, J., May 14, 2012. ~~ ~ r In this seemingly endless decedenYs estate case,l which is presently subje t to court-appointed auditor proceedings,2 a beneficiary of the estate of lus deceased father, and remai.nderman of trusts created under his father's will,3 has filed yet another appeal from an order during the course of the proceedings.4 This appeal, in a multi-million dollar ~~ ~:~ : ;--; ,:~ ;3; _.; ~-, ~~ ~ .,. ~ ~ J ~ estate, challenges an order entered pursuant to the auditor's recommendation authorizing a transfer of funds from one ba:nk to another and a payment of $125,000.00 to a residuary trust for expenses of the trust.s Whether the appeal is interlocutory is beyond the scope of this opinion.6 ' I.etters Testameatary were granted on June 5, 1986. See Letters Testamentary, Will Book No. 100:38; Death Certificate of Robert M. Mumma, filed June 5, 1986; Docket, Register of Wills, No. 21-86-389, at 1. Z At this poiat, the auditor has conducted about 40 days of hearing. 3 Last Will and Testament of Robert M. Mumma. `No~ice of Appeal, filed January 12, 20I2. The Superior Court has aptly characterized appellant's conduct in this estate as "litigious." Opinioq dated Febrnary 22, 2012, No. 481 MDA 2011. With n~gard to appellant's prior appeais in thiy case alone, see, e.g., Norice of Appeal, filed September 15, 2005 (appeal quashe~ by Superior Court by order dated October 28, 2005, at No. 1546 MDA 2005), Notice of Appeal, filed January 14, 2009 (appeal qaashed by Superior Court by order dated March 27, 2009, at No. 270 MDA 2009); Noxice of Appeal, filed March 14, 2o i i(order affirmed by Superior Court by onier dated February 22, 2012, at No. 481 1~IDA 2011). Appellam is also engaged in litigation against his rece~ly~deceased mother's estate in Florida. See N.T. 88, Hearing, Januasy 28, 2011; RMM Exhibit 1, Hearing, January 28, 2011 (objections filed in mdher's estate). s Order, December 13, 2011. 6 As a general rule, in a decedem's estate "the confirmati~ of the Sna1 account of the personal npresentative represents the final order, subject to exceptions being filed and disposed of by the court. See 20 Pa. C.S. §3514." In re Fstate of Barkowski, 2002 PA Super 57, ¶~, 794 A.2d 388, 389-90; see generally In re Estate of Quinn, 805 A.2d 541 (Pa. Super. 2002) (appeai &om order directing partial distribution quashed as irnerlocutory). Under Pennsylvania Rule of Appellate Procedure 342(ax6), "[a]n The bases of the appeal have been expressed in a statement of errors complained of on appeal as follows: 1. Appellaut Robert M. Mumtna, II(hereinafter, "Appellant" or Mumma, II") respactfully submits that your Hpnorable Court erred by failing to address Mumma II's challenge to the Court's subject matter jurisdiction during the course of the proceedings before the Auditor, Jos~ph D. Buckley, Esquirc. 2. ~eed, the Auditor's Interim Report, date~i December 5, 2011, specifically aclmowledged tLat during the frst sud third telepho~ne conferences, "Mr. Mutnma argued that the court had no jurisdiction" (see pages 1& 2 of Interim Report). 3. Moreover, in his Answer to M&T Bank's Request For Parti~al Disposition On Undisputed Issues of Fact, filed December 14, 2011, Mumma, II, acding nro se• specifically alleged that "rhe Orphan's Court does not have jurisdiction over D-E Distribution or its assets." 4. As Auditor, Joseph Buckley lacked suthority to resolve and w determine a challenge to the subject matter jurisdidion of the Court a~ should have submitted this question to the Court. S. Tn fact, at page 1 of his Interim Report, Auditor Buckley stated as follows: I also provided all parties with a co~py af applicable sections of the Pennsylvania Consolidated Statutes relating to the Orphan's Court jurisdiction (20 Pa. C.S. ~711) and relating to income on distributive shares (20 Pa. C.S. ~3543) together with a copy of the Pennsylvania Supreme Co~rt's decision in P~e v. Daaher. 429 Pa. 576; 240 A.2d 518 (1968), a case wlrich discussed whether a court of common pleas or the orphan's caut had jurisdicrion W determine the ownership of certain realty recorded in decedeat's name at the time of death and of certain shares of corporate stock registered ia decedent's name at the time of death. 6. Appellant Robert M. Mumma, II respectfully submits that said case is inapplicable to the facts of the present matter. The fact is that Robert M. Mumma, at the time of his death, did ttot own stock in DE Distribution and Mumma Realty Associates was formed after his death, in addition, he did not own stock in Pennsy Supply 1nc. 7. Appellant Robert M. Mumcna, II also submits that no record was kept of the referenced telepho~ conference ca11s, and Auditor Buckley misrept+esented what was said by Robert M. Mumma, II. Moreover, Auditor Buckley berated Barbara Mumma to the exteirt thax she could not express her opinion. 8. The Trustee relies upon a purported agrcement among the tenauts-in-common to support her rights to the assets of the tenancy-in-common. The ag~eemeirt she relies upon contains an express provision that all disputes b~we~en the tenants are subject solely to arbihation in Dauphin County, Pennsylvania, and thus nat subject to the jurisdiction of the Orphans Court of Cumberland Ca~my, Pennsylvania. order [of an Orphans' Court] deterntining an ttrterest in real or P~~ PraP~Y" ~ 8PP~able. Whether appellant's challenge to tlris court's "subject matter" jurisdiction should be consaved as implicating tl~is provision of the appellate rules is beyond the scope of this apinion. 9. In addition to the jwisdictional challenge, Appellant Robert Mumma, II submits that the distributions authorized by the Court's Order of December 13, 2011, were inappropriate and an abuse of the Court's discretioq for the following reasons: a) The parties were not given an oppordmity to respond to the Auditor's Iteport; b) Neither D-E Distribution, nor Mumma Realty Associates were parties to any action before the Court; c) No Hearings were held in this matter and no record was kept of the telephone conferences; and d) Mumma Realty Asaociates is not a legal eMity in the Commonwealth of Pennsylvania.' This opi~nion in support of the order directing partial distribntion is written pursuant to Pennsylvania Rule of Appellate Procedure 1925(a). STATEMENT OF FACTS Overview of early history of this case. The early history of this estate has been related in the contexts of multiple prior appeals by appellant to the Superior Court in opinions authored by the Honorable George E. Hoffer, former President Judge, in an opuuon in 2000,g and in opinions by the undersigned judge dated July 15, 2005,9 November 4, 2005,10 November 8, 2006," December 8, 2008,'2 and May 31, 2011.'3 On 7anuary 6, 1499, Robert M. Mumma, II... petitioned this court for an accounting of the estate of his father, Robert M. Mumma, Sr. .., who died testate on April 12, 1986. The decedeut's will and the codicil thereto were probated on June 5, 1986. The will appoints Mrs. Barbara McK. Mumrria, decedent's widow [now also ~ C~cise Statement of Matters Complained of on Appeal Pursvant to Pa. R.A.P. 19259B), Filed on Beha,lf of Appellant Robert M. Mumma, II, filed Apri13, 2012. 8 See In rn: Estate ofRobertM. Mumma, No. 21-86-398 (Ct. Com. Pl. Cumb. Feb. 23, 200Q) (Hoffer, P.J,, appeal quashed 776 A.2d 300 (2001) (table decision). 9 See In re: Estate ofRobertM. Mumma, In re: Opinion Pursuant to PA. R.A.P. 1925, No. 21-86-398 (Ct. Com. Pl. Cumb. Jul. 15, 2005). 10 See In re: Esta~e ofRobertM. Mumma, In re: Opinion Pursuazrt to PA. RA.P. 1925, No. 21-86-398 (Ct. Com. Pl. Cbmb. Nov. 4, 2005). " See In re: Estate ofRobertM. Mumma, In re: Opinion Putsuaat to PA. R.A.P. 1925, No. 21-86-398 (Ct. Com. Pl. Cumb. Nov. 8, 2006). 'a See In re: Estate ofRobertM. Mumma, In re: Opinion Pursuaut to PA. RA.P. 1925, No. 21-86-398 (Ct. Com. Pl. Cumb. Dec. 8, 2008). 13 See In re: Estate ofRobertM. Mumma, In re: Opinion Pursuaat to PA. RA.P. 1925, No. 21-86-398 (Ct. Com. Pl. Cumb. May 31, 2011). decea,4ed], and Lisa M. Morgan [decedent's daughter] ... as executrices thereof and as ttustees of a Marital Trust and a Residuary Trust created thereunder .... Under the will, the presumptive remaindermen of the Tn~sts, if they survive Mrs. Mumma, are the decedceirt's children, petitioner Robert M. Mumma, II, Linda M. Mumma, Barbaza M. Mmruna and Mrs. Morgan. 17~e decede~rt bequeathed to his testamentary trustees an amouirt equal to fifty perceat of his total gross estate to be held in trust exclusively for the benefit of ~is wife during her lifetime, the principal to be distributed to the decedex-t's childnen upon her death. In addition, the decede~t gave his residuary estate to his testamentary tivstees to be held in t~vst exclusively for the benefit of lris wife during her lifrxime, the principal to be paid to the decedem's clrildren upon her death. (Decedern's widow and Mrs. Morgaa] filed iuterim accou~s of their acts and t~ansactions as executrices and as ttustees on August 9, 1991 .... (Robert M. Mumma, II,] disclaimed lris iuterest under the will in 1987. in 1989, [former Presid~nt Judge Harold E. Sheely of] this court g~anted petitioner's mation to revoke his disclaimer. [Robert M. Frey, Esq.], who was appointed guardian ad litem for the minor persons iirterested in the Estate in 1988, appealed the revacation of the disclaimer. The Superior Court ruled that Mr. Frey's representati~ of the estate with respect to the revocation of the disclaimer was beyond the sca~pe of lris limited aPpoiirtment and therefore he lacked sta~ding to appeal. [Robert M. Mumma, II, eventually] ask[ed] for a complete accaum~ng of the Estate, including an acxounding of the Trusts in which [he] claim[ed] an imerest. [Deoedern's widow and Mrs. Morgan] claimed ia response that they [could nnt] provide an acc;ouuting to [Robert M. Mumma, II] because he [did] nat have standing, and the issue of the revocation of [his] disclaimer ha[d] not been fully litigated ....'a The position of the executrices/trustees was rejected by the court, and an accounting by the executrices/hustees was ordered on February 23, 2400 ...."~s Appellant has proceeded pro se at various times, and with various counsel at other times. At the time the issues he raises on his current appeal were being developed, he was proceeding pro se; but a new attorney is now representing him on the appeal. The docket at this time com~rises 67 pages. The latest controversy was precipitated by a Petition To Authorize Distributions filed by the trustee of the residuary trust under the decedent's will.16 The petition noted 14 In re Estate ofRobertM. Mumma, No. 21-86-398, slip op. at 7-8, (Ct. Com. Pl. Ctimb. May 31, 2011); 1» re Estate of Robert M. Mumma, No. 21-86-398, slip. op. at 2(Ct. Com. Pl. Cumb. Nov. 4, 2005, citing In re Estate of Rob¢rtM. Mumma, No. 21-86-398, slip c~, at 1-3 (Ct. Com. Pl. Cumberland Feb. 23, 2000 (Hoffer, P.J.) (citations omitted). 'S In re Estate ofRobertM. Mumma, No. 21-86-398, slip op. at 8(Ct. Com. Pl. Cumb. May 31, 2011); In re Estate ofRobertM. Mumma, No. 21-86-398, slip, op. at 2-3 (Ct. Com. Pl. Cumb. July 15, 2005, cittng In re Estate of Robert M. Mumrncr, No. 21-86-398, slip. op. at 1-3 (Ct. Com. Pl. Cumb. Feb. 23, 2000) (Hoffer, P.J.), appeal quashed, 776 A.2d 300 (2001) (table decision). 16 Pedtion To Authorize Distributions, filed August 26, 2011. that two business entities in which the trust had a substantial interest-D E Distribution Corporation and Mumma Realty Associates I--ha.d funds available for distribution and that a bank (M&T) at which funds of D E Distribution Corporation were located was unwilling to release them to anyone without a court order.'~ This matter was referred by the court to the auditor for a brief interim report and recommendation. While this petition was pending, the bank (M&T) at which the D E Distribution Corporation account in question was located filed a petition describing itself as a mere stakeholder and sought authorization to transfer the fimd (amounting to about $86,000) to an account of D E Distribution Corporation at another bank.'g This petition was opposed by appellant, acting pro se, on the theory that "the Orphans' Court does not have jurisdiction over D-E Distribution or its assets. The proper venue for disputes over the funds in the M&T account is in the County where the account was opened.s19 In his interim report in response to the court's referrai, the auditor described the procedure he used in arriving at his recommendation: After contacting the parties or their representatives I conduded a series of telephone wnferences with all the parties. I also invited any local party to participate in person in my offices. Daring the first cariference, Attomey Otto and Linda Mwnma were present in my office and Robert Mumma, Barbara Mumma and Attorney Green were present on the telephone. Mr. Mumma's position was that the Orphan's Court had no jurisdictiott, the Trustee's position was that funds were needed for ongoing ex~enses. The three beneficiaries preseirt requested additional inforniation from the Trust's acc~unt. The Trust a~d its attorneys agrced to have the reque.sted financial information made available and a seco~i conference was scheduled. I also provided all parties with a cc~y of applicable sedions of the Pennsylvania Consolidated Statutes relabng to the Ocphan's Court's jurisdiction (20 Pa. C. S. ~ 3543) and relating to income on distributive shares (20 Pa.C.S. § 3543) together with a copy of the Pennsylvania Supreme Court's decision Pope v. Dasher, 429 Pa. 576, 240 A.2d 518 (1968), a c~se which discussed whether a court of common pleas or the orphaas' court had jurisdiaron to determine the ownership of certam realty recorded in decederrt's name at the time of death and of ceitain shares of corporate atock registered in decedeat's name at tha time of death. "Id. 18 Respondern M&T Bank's Request for Partial Disposition on Undisputed Issues of Fact, in ~e Nature of a Motion for Partiai Judgmeut on the Pleadings, filed December 7, 2011. 19 Respondent Robert M. Mumma's Answers to Responderrt MBcT Bank's Request for Partiat Disposition on Undisputed Issued (sic) of Fact, in the Nat~u~e of a Motion for Partial Judgment on the Pleadings, filed December 14, 2011. A second conference was held, Linda Mumma informed this office she did not dasire to participate, Attorney Otto was present in my affice and Robert Mumma and Barbara Mumma were prese~ on the telephone. During this conference Barbara Mumma and Robert Mumma stated that they had recently received the fuiaucial material they had requested and had not had time to review the information. A third confereuce was then scheduled. A third conference was held. Linda Mumma ivformed this office she did not desire to paiticipate, Attorney Otto was present in my office and Robert Mumma and Barbata Mumma were present on the telephone. Mr. Mumma azgued that the court had na~ jurisdiction, Barbaia Mumma stated maybe the cairt had jurisdidion and Attorney Otto stated that the court did have jurisdiction, but he would withdraw the p~ition and proceed. Attomey Otto stated that the Tr~stee had inforn-ed the Court t~at she, as Trustee would make no distributions without first pe~tioning the court.ZO As a result of the agreement on the part of the trustee not to make any distributions without first petitioning the court, a basically innocuous order was recommended by the auditor, which the court entered and which appellant has appealed: AND NOW, this 13th day of December, 2011, up~ t~e recommendation of the Auditor in this case it is hereby ordered that the Money Market Accoum of D E Distributian Corporation currently maintained at M& T Bank having an accou~ number ending in 5251 shall be released and M dt T Bank is hereby direct[ed] to disburse, by wire t~ansfer, ~e e~ire balance to D E Distributi~ Corporation's checking aacount at Fulton Bank. It is further ordered that the sum of $125,000.00 from the accou~s of the Mumma Rsalty Associates I be distributed to the Tn~st established under the Will of Robert M. Mumma and that ttris amou~ shall be a ciedit to aay firture distributions w wluch the said Trust established under the Will of Robert M. Mumma sl~all be entitled. In essence, the order simply directed the transfer of 586,000 of a corporation in wluch the trust was said to have a substantial interest from the account of the corporation at one bank to the account of the corporation at another bank, and the deposit of $125,000 in funds of another business entity in which the trust was said to have a substantial interest into the trus~ to be credited against future distributions of the entity. DISCUSSION The rationale for the auditor's recommendation is contained in the auditor's report, attached to this opinion and adopted by the court. With regard to the bank transfer, the report notes, inter a1ia, that "Mr. Mumma could offer no reasonable explanation for his [objection to a hansfer of funds from one bank account to another] other than personal 20 Auditor's Interim Report, December 5, 2011, appended to Order, December 13, 2011. animosity toward certain Fulton Bank employees, officers or directors ...." With regard to the disiribution to the trust of 5125,000 from available funds of Mumma Realty Associates I, the auditor's observations included the following: 'The Tmst owns a Iarge interest in Mumma Realty Associates I("MRA I'~. That interest is alleged to be over eighty (80) percent. ... Robert Mumma ... did not dispute that expenses are being incurneci by the Uust/estate but claimed that such expenses were only litigatioa costs and should therefore not be considered. ... The parties did not dispute that 5200,000.00 is available for distribution. Therefore I would recommend that $125,000.00 be distribnted to the Trust and that such distribution be a credit to any future distributions. Because the parties caonot agree on their respactive shares and no party, beneficiary, shazeholder, or pardner petitioned for a distributioq o~er thaa the Trustee, the pardes must be coment to await the final decision of the court in the audit of the accounts. With respeat to the jurisdictional issue being pursued by appellant, it would appear to be well-settlcd that an Orphans' Court in which a decedent's estate is pending has jurisdiction over matters relating to the ownership of assets by the estate and their administration. See Pope v. Dascher, 429 Pa. 576, 240 A.2d S 18 (1968); 20 Pa. C.S §711. With respect to the procedure employed by the auditor in this case in arriving at his recommendations, while it might have been beneficial to hold yet more auditor's hearings on the petition at issue, there is no indication that appellant expressed dissatisfaction ~t the time with the more informal procedure employed by the auditor. It was incumbent upon him to do so if he wished to make an issue of i~ Weiner v. Lee, 669 A.2d 424, 424 (Pa. Commw. 1995). In addition, the order entered was basically innocuous given the initial request of the trustee's petition. Finally, with respect to the court's adoption of the recommendation of the auditor and entry of the order appealed from without a hearing or further argument, the arguments of appellant on the issue were reviewed in detail in the auditor's report and considered by the court. The final auditor's report and recommendations, dealing with the many issues raised by appellant and others, will of course be subject to exceptions, briefs, oral argument, and disposition following review by the court. See Cumberland County Orphans' Court Rule 8.7-2. For the foregoing reasons, it is believed that the very limited order entered in accordance with the auditor's interim report in this case was a proper one. BY THE COURT, ~~ -~ c / ~ . esley Ol , r., S.J. Joseph D. Buckley, Esq. 1237 Holly Pike Carlisle, PA 17013 Auditor Thomas A. French, Esq. Rhoads & Sinon, L.L.P. 1 South Mazket Square P.O. Box 1146 Harrisburg, PA 17108 Attorney for M&T Banlc Brady I,ee Crreen Morgan, Lewis 8c Bockius, L.L.P. 1701 Market St. Philadelphia, PA 19103-2921 Attomey for Estate of Robert M. Mumma George B. Faller, Jr. Martson, Deardorff, Witliams, Otto, Gilroy & Faller 10 E. High St. Carlisle, PA 17013 Attorney for Estate of Robert M. Mumma Linda Mumma Roth 512 Creekview Lane Mechanicsburg, PA 17055 Linda Mumma Roth c/o Carter Ellis 203 Friar Court Mechanicsburg, PA 17050-6872 Barbara Mann Mumma 541 Bridgeview Drive Lemoyne, PA 17043 Richard F. Rinaldo, Esq. Willisms Coulson Johnson Lloyd Parker & Tedesco, LLC One Gateway Center, 16~' Floor Pittsbwgh, PA 15222 Jeffrey G. Braoks, Esq. Minto Law Gro~p, LLC Two Gateway Center 603 Stanwix Street, Suite 2025 Pittsburgh, PA 15222 IN RE: ESTATE OF ROBERT M. : IN THE COURT OF COMMON PLEAS OF MUMMA, deceased : CUMBERLAND COiJNTY, PENNSYLVANIA : ORPHANS' COURT DIVISION : N0.21-86-398 AUDITOR'S INTERIM REPORT, December 5, 2011 AND REQUEST FOR ORDERS To the Honorable 3. Wesley Oler, Jr.: Your Honor has appointed me Auditor in the above captioned matter and chazged me with reviewing the most recent and final account and proposed distribution in the above matter ~nd holding a hearing on the most recent accounting and proposed distribution. By Order dated October 5, 2011 you referred a Petition to Authorize Distributions and the Response to Petition to Authorize Distributions in this matter. After contacting the parties or their representatives I eonducted a series of telephone conferences with all the parties. I also invited any local party to partici~ate in person in my offices. During the first conference, Attorney Otto and Linda Mumma were present in my off ce and Robert Mumma, Barbara Mumma and Attorney Green were present on the telephone. Mr. Mumma's position was that the Orphan's Court had no jurisdiction, the Trustee's position was that funds were needed for ongoing expenses. The three beneficiazies present requested additional information from the TrusYs accountant. The Trust and its attorneys agreed to have the requested financial information made available and a second conference was scheduled. I also provided all parties with a copy of applicable sections of the Pennsylvania Consolidated Statutes relating to the Orphan's Court's jurisdiction (20 Pa.C.S. § 711) and reiating to income on distributive shares (20 Pa.C.S. § 3543) together with a copy of the Pennsylvania Supreme Court's decision Pope v. Dasher, 429 Pa. 576; 240 A.2d 518 (1968), a case which discussed 1 whether a court of common pleas or the orphans' court had jurisdiction Co determine the ownership of certain realty recorded in decedent's name at the time of death and of cenain shares of corporate stock registered in decedent's name at the time of death. A second conference was held, Linda Mumma informed this office she did not desire to participate, Attorney Otto was present in my office and Robert Mumma and Barbaza Mumma were present on the telephone. During this conference Barbaza Mumma and Robert Mumma stated they had recently received the financial material they had requested and had not had time to review the information. A third conference was then scheduled. A third conference was held, Linda Mumma informed this office she did not desire to participate, Attorney Otto was present in my office and Robert Mumma and Bazabaza Mumma were present on the telephone. Mr. Mumma argued that the court had no jurisdiction, Barbara Mumma stated maybe the court had jurisdiction and Attorney Otto stated that the court did have jurisdiction, but he would withdraw the petition and proceed. Attorney Otto stated that the Trustee had informed the Court that she, as Trustee would make no distributions without first petitioning the court. The undersigned identified three distinct matters. to be resolved: the first being the M& T Bank money market account with an account number ending in 5251. The second being the proposed distribution to the shareholders of DE Distribution and third a proposed distribution to the tenants in common of the MRA T agreement. The Residuazy Trust under the Will of Robert M. Mumma maintains alleges it is the owner of 27.192650% of the stock in DE Distributions, the late Mr. Mumma's four children and the estate of his late wife owning the balance in approximately equal shares. DE Distributions alleges it is holding excess cash in the amount of $100,000.00 an account at Fulton Bank and an 2 account at M& T Bank. It desires to consolidate the accounts into the Fulton Bank account and make a distribution. Robert Mumma II had requested that the M& T Bank not permit the funds deposited with that bank to be withdrawn and placed in the Fulton Bank account. Mr. Mumma could offer no reasonable explanation for his request. M& T Bank through its counsel has no objection to transferring the funds, but because of Ivlr. Mumma's objection desires a court order to permit the same. Because he offered no reasonable explanation other than personal animosity toward certain Fulton Bank employees, officers or directors, his objection should be dismissed and the Court should enter an order directing the funds to be transferred. The relative shares of ownership in DE Distributions is disputed by Robert and Bazbara IVlumma who raise arguments which had been raised in the origin~l hearings. When questioned why the Trustees needed addition funds the undersigned was informed that Robert Mumma and/or Barbara Mumma have initiated new actions in jurisdictions outside of Cumberland County and the Trust and Trustee have been called upon to defend these new actions. The new expenses relate to new litigation expenses. Mr. Mumma argued that DE Distributions, being a corporation should follow Pennsylvania statutes governing corporation. Therefore I believe the court should allow the corporation to act on it own accord tq distribute its excess funds as it deems appropriate. The Trust owns a large interest in Mumma Realty Associates I("MRA I"). That interest is alleged to be over eighty (80) percent. Mr. Mumma argued that the agreement between all the parties in interest in MRA I requires arbitration if the parties cannot agree thus the matter should be submitted to such arbitration. Robert Mumma and Bazbara Mumma did not dispute that expenses are being incurred by the trustJestate but claimed that such expenses were only litigation costs and should therefore not be considered. They argued that they would have to 3 indirectly incur a portion the cost of the defense to the litigation they had initiated against the Trust and Trustee. The undersigned does not know the parties to or the subject matter of the litigation, but it was stated that it is an action filed in Dauphin County. The parties did not dispute that $200,000.00 is available for distribution, Therefore I would recommend that $125,000.00 be distributed to the Trust and that such distribution be a credit to any future distributions. Because the parties cannot agree on their respective shares and no party, beneficiary, shareholder, or partner petitioned for a distribution, other than the Trustee, the parties must be content to await the final decision of the court in the audit of the accounts. ' I further recommend that if your Honor agrees with my recommendations, you enter Orders according~y and I have attached recommended orders to accomplish the same. Respectfully submitted, ,, ~ ~~ . ~: , : Supreme Court II~# 1237 Holly Pike Carlisle, PA 17013 (717) 249-2448 JoeBLaw(c~aol.com " l ~' /~, li"+'r ~ / ( f. Esquire, A ', or 38444 ~% 4 In Re: ROBERT MiJMMA- ORPHANS' COURT DIVISION COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA NO. 86-398 CERTIFICATE OF SERVICE OF ORDER ORDER DATE: OSl14/12 NDGE'S INITIALS: JWO TIME STAMP DATE: OS/14/12 ~ IN RE: OPINION PURSUANT TO PA RAP 1925 ........................................................... SERVICE TO: JOSEPH BUCKLEY ................................................................. GEORGE FALLER JR RICHARD RINALDO THOMAS FRENCH LINDA MUMMA ROTH - MECH & C/O CARTER ELLIS BRADY GREEN BARBARA MANN MUMMA JEFFREY BROOKS METHOD OF MAILING: ENVELOPES PROVIDED BY: , ~ USPS ^ PETITIONER ~ ~ ^ NDGE ^ HAND DELIVERED ~ CLERK OF ORPHANS COURT ^ OTHER MAILED: OSl14/12 ........................................................... SERVICE TO: ................................................................. METHOD OF MAILING: ENVELOPES PROVIDED BY: ^ USPS ^ PETITIONER ~ ~ ^ NDGE ^ HAND DELIVERED ^ CLERK OF ORPHANS COURT ^ OTHER MAILED: / eputy Clerk of hans' Co