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HomeMy WebLinkAbout07-23-13 � 7 Thomas A.French,Esquire � -_-A ='"' c�,..� ' +�r Attorney I.D.No. 39305 C � � ��� °� Jillian M.Golden,Esquire =°"� " �`- _-� M� � r„ ',p Attorney I.D.No.206510 �-�; �^ '� , - �t. RHOADS&SINON LLP � 3�_ =m.. r`.� .�i One South Market Square, 12th Floor � -� ' � � " P.O.Box 1146 .�� `"`-� � `�° -�, Harrisburg,PA 17108-1146 �=` � :; ; � � (717)233-5731 �'" ._ �� .-., Attorneys for Petitioner,Wendy Robbins :��' �;�: �-.�� . F�° .�.� � ��_ �, ��:� � ..,y..{ IN THE COURT OF COMMON PLEAS y OF CUMBERLAND COUNTY, PENNSYLVANIA In Re: ; No. 21-12-398 ; ; WALTER F. R.AAB LIVING TRUST ; ORPHANS' COURT -------------------------------------------------------------------------------------------------+-------------------------------- -----------------------------------------------------------------� In Re: ; No. 21-12-399� ; ; BERNICE J. RAAB LIVING TRUST ; ORPHANS' COURT �--------------------------------------------------------------------------------------------------+---------------------------------------------------------------------------------------------------� In Re: ; No. 21-11-842 , ; ; ESTATE OF BERNICE J. RAAB ; ORPHANS' COURT PETITION FOR APPOINTMENT O�IVO V. OTTO, III AS LIMITED ADMINISTRATOR PRO TEM OF THE ESTATE OF BERNICE J. RAAB AND LIMITED TRUSTEE PRO TEM OF THE WALTER F. RAAB LIVING TRUST AND BERNICE J. RAAB LIVING TRUST PURSUANT TO 20 PA. C.S. �4301 NOW COMES, Petitioner, Wendy Robbins, (hereinafter "Petitioner" or "Wendy") in her capacity as Co-ExecutriY of the Estate of�ernice J. Raab ("the Estate") and Co-Trustee of the Walter F. Raab Living Trust and Bernice J. Raab Living Trust (collectively "the Trusts"), and hereby petitions the Orphans' Court Division of the Cumberland County Court of Comr�on Pleas to appoint a Limited Administrator Pro T�m and Limited Trustee Pro Tem of the aforementioned Estate and Trusts for the specific purpose of marshaling and selling certain Estate and Trust assets because the acting and appointed Co-Executrices and Co-Trustees are in a position of conflicting interest and cannot agree on the proper administration and distribution of these assets � i resulting in delay, loss of value, and harm to the Estate and Trusts. In support of this Petition, Petitioner avers as follows: INTRODUCTION Three sisters, namely, Wendy Robbins, Mandy Raab Carson, and Laurie Ann Kucher, are the appointed and acting Co-Executrices and Co-Trustees of the Estate and Trusts, and also, equal co-beneficiaries of the Estate and Trusts. Since 2011, these fiduciaries have been in fundamental disagreement regarding the administration and distribution of the following Estate and Trust assets: (1) distribution of marketable securities and cash currently on account at Dominick & Dominick LLC valued at $6,540,247; (2) sale and/or distribution of real property located in Jupiter-Tequesta, Florida ("the Florida property") and Ocean City, New Jersey ("the New Jersey property"); and(3) sale and/or distribution of personal property previously located in Camp Hill, Pennsylvania at the family homestead (hereinafter "Criswell property"), personal property previously and currently locaied at the Florida property, personal property located at the New Jersey property, and family photographs located at the home of Mandy Raab Carson. These assets are referred to collectively herein as the "Disputed Assets." The inability of the fiduciaries to work cooperatively to liquidate and distribute the Disputed Assets is based, in substantial part, on the self-interest of Mandy Raab Caxson and Laurie Ann Kucher, who have an interest in obtaining Trust property, specifically, the New Jersey property, below fair market value. �he self- inter�st of these fiduciaries has created conflict, delay, and corresponding harm to the Estate and Trusts, and to Wendy as a co- beneficiary. For these reasons, as explained more fully herein, this Court may appoint a Limited Administrator Pro Tem and Limited Trustee Pro Tzm to liquidate the Disputed Assets and distribute the proceeds to the beneficiaxies. 2 � � PARTIES 1. Petitioner is an adult individual resic�ing at 513 Brom Court, Mechanicsburg, Cumberland County, Pennsylvania, 17050. 2. Respondent, Mandy Raab_Carson ("Mandy"), is an adult individual residing at 111 Bentley Drive, Pittsburgh, Pennsylvania, 1523 8. 3. Respondent, Laurie Ann Kucher ("Laurie"), is an adult individual residing at 126 Old Quarry Road, Clinton, Pennsylvania, 1502�. 4. Wendy, Mandy and Laurie are sisters, and the daughters of the late Walter F. and Bernice J. Raab. 5. Walter F. Raab died on April 3, 2003 and Bernice J. Raab died on July 26, 2011. 6. Together, Wendy, Mandy and Laurie, are th� named and acting Co-Executrices of the Estate and Co-Trustees of the Trusts. 7. The named beneficiary of the Estate of Bernice J. Raab is the Bernice J. Raab Living Trust. 8. Wendy, Mandy and Laurie are equal beneficiaries of both the Walter F. Raab Living Trust and the Bernice J. Raab Living Trust. 9. Additionally, Wendy, Mandy and Laurie, are equal beneficiaries of an Irrevocable Agreement of Trust dated November 9, 1990, as directed by Bernice J. Raab through the exercise of her limited power of appointment. P�ZOCEDURAL I�ISTORY 10. On April 2, 2012, Wendy commenced proc�eedings against Mandy and Laurie by filing an Emergency Petition for Injunctive Relief to Prevent the Dissipation and Co-Mingling of Assets. At that time, Wendy alleged that her sisters had raided Estate and Trust property and 3 1 � were co-mingling and dissipating Estate and Trust property in violation of their fiduciary duties to tl�e Estate and Trusts and to Wendy, as an equal co-beneficiary. 11. On April 3, 2012, the Honorable Thomas J. Placey issued a Preliminary Decree providing as follows: And now this 3rd day of April, 2012, upon consideration of the attached Petition for Injunctive Relief, it is ORDERED and DECREED, that Mandy Raab Carson and Laurie Ann Kucher, and all persons acting in concert with them and/or upon direction from them, are enj oined, pending hearing as set forth below, from (1) removing any personal property from the residences listed in the Petition; (2) otherwise removing or dissipating any assets held in the Trust, and (3) co-mingling any personal property of the Estate. A copy of the Apri13, 2012 Preliminary Decree is attached hereto as Exhibit"A." 12. On April 11, 2012, Wendy filed an Amended Petition requesting, inter alia, that Mandy and Laurie be removed as Co-Executrices and Co-Trustees of the Estate and Trusts. A hearing was set on the Amended Petition for April 17, 2012. 13. On April 17, 2012, Wendy filed a Motion for Continuance requesting that the April 17, 2012 hearing be postponed to the next h�aring date while the parties negotiated the "primary remaining issue" in the Arnended Petition, which was Wendy's request for removal of her sisters as co-fiduciaries. The parties agreed to keep the April 3, 2012 decree in place and to extend its application to Wendy. . 14. During this time, Wendy, Mandy and Laurie, by and through counsel, began discussing a proposed stipulation to govern interim Estate and Trust administration issues. 15. On May 10, 2012, relying in good faith on Mandy and Laurie's representations that they intended to enter a stipulation, Wendy filed another Motion to Continue the hearing on the Amended Petition and to consolidate the proceedings in relation to the Estate and Trusts, which were separately docketed. 4 ,� ► 16. On May 14, 2012, the Court granted Wendy's Motion, consolidated the matters and, generally continued the hearing on the Amended Petition. The May 14, 2012 Order stated: A further request to conduct a hearing in the above-captioned matters shall be initiated by the filing of a new petition by Petitioner. A copy of the May 14, 2012 Order is attached hereto as Exhibit"B." 17. Throughout May and early June 2012, Wendy, Mandy and Laurie, through counsel, negotiated and agreed to a stipulation to govern the conduct of the Co-Executrices and Co-Trustees and, to provide a systematic method for inventorying and appraising the personal property and automobiles owned by the Estate and Trusts. A copy of the Stipulation, which the parties agreed to on June 19, 2012, is attached hereto as Exhibit"C." 18. The Stipulation expressly provides that "any actions taken and decisions made on behalf of the Estate or Trusts shall require the unanimous consent of all the Parties." Id. at¶3. 19. The Stipulation likewise provides that "the Par�ies express their desire and intention to deal with each other with reasonableness, due diligence and in good faith in the administration of the Estate and Trusts, and to deal with each other similarly in such discussions and negotiations seeking resolution of issues raised or adrninistrative tasks to be conducted for the Estate and Trusts." 20. After Wendy agreed to continue the hearing and the parties agreed to all of the terms of the Stipulation, Mandy and Laurie refused to sign the Stipulation. Nonetheless, the parties have agreed to the Stipulation and have honored certain action items set forth in the Stipulation, and the requirement to act unanimously. However, motivated by their collective interests, Mandy and Laurie have deliberately failed to reach agreement as to the dispositic�n of the Disputed Assets, and the parties are at an impasse as to these issues. . 5 � � . FACTUAL BACKGROUNI� 21. The above Par.agraphs are incorporated herein by reference. 22. Mandy and Laurie have demonstrated, by their conduct and course of dealing since October 201 l, that they do not intend to work in good faith or to cooperate with Wendy on matters of Estate and Trust administration, specifically; the liquidation and distribution of the Disputed Assets, because they are motivated by their own self- interest. 23. The lack of cooperation and communication, together with growing animosity and hostility among the Co-Executrices and Co-Trustees, escalated ta the point of a physical altercation in February 2012, where Laurie assaulted Wendy while the sisters attempted to distribute personal property at the Criswell property. Laurie was ultimately found guilty of harassment by the Honorable Alfred Masland, following a bench trial. 24. As early as June 2012, Wendy, through counsel, recommended that the parties negotiate a global settlement of the maj or Disputed Assets, but Mandy and I,aurie inexplicably indicated that"settleinent negotiations are not appropriate now." 25. In January 2013, the parties proceeded to mediation to address distribution of the Disputed Assets, and other issues, since they were deadlocked and unable to move forward. 26. The mediation was unsuccessful. 27. In May 2013, the parties were able to �.ddress some minor, immediately pressing administration issues, such as appointment of a new bill payer for the Estate and Trusts, distribution of approximately $19,000 from a Bank of America account, and to agree to the sale of two Mercedes Benz automobiles owned by the Trusts. 28. However, the parties have bezn unable to reach a� type of agreement regarding administration or distribution of the Disputed Assets, and Mandy and Laurie have not 6 � , meaningfully responded to any requests for disposition of the assets made by Wendy since June 6, 2013. 29.. As set forth herein, thexe has been ongoing, long term disagreement regarding the Disputed Assets, and Court intervention is now necessary to move administration of the Estate and Trusts forward. Distribution of Cash and Marketable Securities 30. Collectively, the Estate and Trusts hold approximately $6,540,247 in cash and marketable securities. The cash and securities can be distributed immediately, in kind, to Wendy, Mandy and Laurie as equal co-beneficiaries. 31. Mandy received an advance distribution of $180,000 by Bernice J. Raab during Mrs. Raab's life, which must be returned in order to satisfy the requirements of the Will and Trusts, naming Mandy, Wendy and Laurie, as equal co-beneficiaries. 32. On June 6, 2013, Wendy, through counsel, requested that the parties agree to an immediate distribution of the cash and marketable securities. 33. Wendy set forth an itemization of the available cash and securities, along with a recommendation that $SOO,OaO be withheld as a contingency. This contingency amount was suggested by Donna Mullin, the accountant to the Estate and Trusts, and represented a reasonable estimate of fees and costs that the Estate and Trusts may incur going forward. 34. Wendy repeatedly requested that her sisters respond to her request for immediate distribution of the cash and securities. 35. Mandy and Laurie did not respund. 36. On June 19, 2013, Wendy again recommended an immedia�e distribution of the cash and securities and requested that if her sisters opposed this request, that they offer "a 7 � R counter proposal as to how that item shouid be handled." A copy of the June 19, 2013 email is attached hereto as Exhibit"D." 37. Mandy and Laurie did not respond to Wendy's proposal and have not offered a meaningful counter-proposal, only stating, thr.ough counsel, that they suggest a partial distribution of$150,000 without any justification for this minor distribution. 3 8. Mandy and Laurie are attempting to leverage their refusal to distribute the cash and securities to benefit themselves and their goal of purchasing Trust property below market value, namely, the New Jersey property, by withholding funds from Wendy to induce her to give up rights to the New Jersey property. 39. Mandy and Laurie's r�;fusal to authorize distribution of the cash and securities is motivated by self-interest and animosity towards Wendy, and therefore, is contrary to their fiduciary duties. See 20 Pa. C.S. §7772. 40. The cash and marketable securities are available for immediate distribution and Mandy and Laurie have not advanced any legitimate reason as to why these assets cannot be distributed to Wendy, Mandy and Laurie as equal co-beneficiaries of the Estate and Trusts. 41. A Limited Administrator Pro Tem and Limited Trustee Pro Tem should be appointed to marshal the cash and securities and make proper distribution of the same in a timely and efficient manner because the acting and appointed co-fiduciaries are deadlocked on this issue and Mandy and Laurie's capacity as beneficiaries is in direct conflict with their position as Trustees. Liquidation and Distribution of Real Propertv Located in Nesv Jersev and Florida 42. At present, the Trusts contain, or are the equitable beneficiaries of, two residential properties,the contents of those properties, and the contents removed from the Criswell property. 8 � � 43. The Florida property is locatec� at 19750 Beach Road, Apartment 506, Jupiter- Tequesta, Florida. 44. The New Jersey property is located at 337 Seabright Road, Ocean City, New Jersey. The New Jersev Property 45. The parties axe unable to agree to the distribution or sale of the New Jersey property. 46. Mandy and Laurie have previously offered to purchase the New Jersey property, but have offered to do so only at a price, `��hich is substantially under the current market value of the property, and does not benefit the Estate or Trusts, and would only serve to benefit Mandy and Laurie individually. 47. Mandy continues to want ownership of the New Jersey property, and because of this self interest, it is averred that Mandy is intentionally delaying vvinding up of the Estate and Trusts to induce Wendy to relinquish her interest in the New Jersey property. 48. Wendy also is interested in acquiring the New Jersey property and has requested that it be listed for s�le to the highest bidder. See Exhibit D. 49. Mandy and Laurie have failed to agree to list the New Jersey property for sale. 50. Bernice J. Raab died on July 26, 2011; the New Jersey property has never be�n listed for sale and the property has sat idle for nearly two years. 51. Mandy and Laurie's refusal to take steps to list the New Jersey property for sale, and otherwise acting in their own 5elf- interest to purchase this property below fair market value, is causing continued expenses and loss to the Estate and Trust and to Wendy as an equal co- beneficiary by having to continually maintain this substantial, and valuable Trust asset. 9 s � 52. Given the parties' inability to agree on sale or distribution of the New Jersey property, this asset should be marshaled and sold to the highest and best bidder since the acting co-fiduciaries are deadlocked on this issue, and Mandy and Laurie are in a position of conflicting interest between their capacity as beneficiaries and duties as Co-Trustees. The Florida Property 53. The Florida property costs approximately $40,000 a year to maintain. 54. Like the New Jersey property, the Florida property has not been listed for sale and has sat idle for nearly two years. 55. In February 2013, the parties confirmed selection of a realtor in Florida and, in June 2013, Wendy advised that she would secure a listing agreement for signature by the Co- Trustees. See Exhibit D. � 56. Thereafter; 1Vlandy and Laurie inexplicably, and without jus�ification, refused to move forward with listing t�e Florida property for sale. 57. It is believed, and therefore averred, that Mandy and Laurie's refusal to move forward with the sale of the Florida property is yet another part of their comprehensive scheme to delay administration, in an effort to achieve their own personal goal of obtaining the New Jersey property under fair market value. 58. There is no legitimate reason for the Estate and Trusts to continue to hold this real property and to expend substantial Trust assets to provide for its continued care and maintenance in the annual amount of$40,000. �9. Given the clear inability of the parties to cooperate and proceed with due ailigence with respect to the sale of the New Jersey property and Florida property, based in substantiai part on Mandy and Laurie's self-interest as beneficiaries, a Limited Administrator Pro 10 � l Tem and Limited Trustee Pro Tem shouid be appainted to marshal and sell these real properties for the highest and best price and make immediate distributic�n of the sale proceeds. Distribution of Personal P�ro�erty of the Estate and Trusts �0. The �riswell praperty, Florida property and New Jersey property can�ain or contained vaivable items of personal property, which were removed and transported by Mandy and Laurie, without the authorization or consent of Wendy. bl. On C�ctober 30, 2011, withaut notice to Wendy, Mandy and Laurie remaved 22 baxes of valuable personal property from the Criswell property to their personal residences. 62. On December 12, 2Q 11, without notice to Wendy, Laurie and Mandy flew to �~lorida and remaved valuable items of personal property from the Florida property, including, crystal, china, silverware, collectibles, oriental rugs, furniture, artwork, lamps, and Bernice J. Raab's clathing and shipped this personal property to their residences. 63. On �pril �, 2012, Mandy and Laurie commenced ano�her raid or� the Criswell property and hired mover� to remove substantial Estate and Trust property to their personal residences. _ 6�. The Octob�r 2�l 1, Decernber 2{�11 and Apri� 2C}12 raids were withaut notice to Wendy, and against the specific directian of Dor�na Mullin, tre fan�ily's attorney and the account��nt to the Estate and Trusts, who specifically instructed Mandy and Laurie not to rernove any persanal property from any real estate. Mandy and Laurie's actians necessitated �Vendy filing the above-referenced Emergency Peti�ion for Injunetive Relief. b5. It is believed, and therefore averred, that this personal property is currently lacated in starage sheds, as ag��eed upan by the parties in tl�e Stipulation. 5ee Exhibit C. 66. Also, as agreed upon in the Stipulation, the parti�s have each photograp�.ed, inventoried and cross-referenced to the appraisal the ite�ns af personal pr�perty taken fram the Il � + three residences. The parties have delivered these photographs and inventories to Donna Mullin, the estate/trusts accounta.nt. 67. The parties, however, remain unable to agree to an equitable distribution of the personal property or even agree upon a method for distribution. 68. The parties have been in-fi�hting over valuations and missing items of personal property. 69. Wendy has made multiple offers as to how the distribution of personal property can be handled, including private auction, or "round-robin" distribution. 70. Mandy and Laurie have refused to agre� to a timetable or procedure for this process. 71. Mandy and Laurie have distributed personal property to themselves and their children, in violation of their fiduciary duties to the Estate, Trusts, and one another as co- beneficiaries. 72. Mandy and Laurie have na intention of taking steps to distribute the personal property, resulting in waste and needless expense to the Estate and Trusts b;� having to store the personal property in rented storage facilities. 73. As evidence by the foregoing, civility and communication has broken-down between the fiduciaries with respect to the primary t�sks that must be completed to wind up Estate and Trust administration. 74. The lack of cooperation and communication has resulted in mismanagement, waste, excess expense and loss of the Estate and Trust property. PETITION FOR APPOIl'�TMENT OF LIMITED ADIVIINISTRATUR AND TRLISTEE PRO TEM 75. The above-paragraphs are incorporated herein by reference. 12 � , 76. The Pennsylvania Probate, �state and Fiduciary Code allows a co-fiduciary, at any time, to petition the Court for appointment of a temporary fiduciary when the acting fiduciaries are "in a position of conflicting interest or in any situation where his functioning as a fiduciary for a temporary period may not be in the best interests of the estate." 20 Pa. C.S. §§ 4301-4302 (emphasis added). , 77. Appointment of a temporary fiduciary is warranted where the acting fiduciaries are unable to cooperate resulting in mismanagement of Estate of Trust assets. See generally In re Estate of Martelli, 2012 Phila. Ct. Com. P1. LEXIS 318 (2012). 78. As set forth herein, it has been nearly two years since the death of�3ernice J. Raab and the bulk of the Estate and Trust assets (cash, marketable securities, real property and personal property) have not been sold, conveyed, or distributed because Mandy and Laurie will not agree t�the same or even engage in negotiations to conclude the Estate and Trusts. 79. Mandy and Laurie are in a position of conflicting interest between their duties as fiduciaries and their personal interest as beneficiaries of the Estate and Trusts. Further, they have demonstrated animosity and hostility to Wendy, demonstrating that they cannot protect her interests as a beneficiary. 80. Further, the inability of the Co-Executrices and Co-Trustees to agree on these items of Estate and Trust administration demonstrates that Mandy and Laurie are acting in their own self-interest and not in the interest of the Estate or T'rusts, and are therefore, clearly in a position of conflicting interest with that of the Estate and Trusts and their duties to one another as fiduciaries and co-beneficiaries. 13 . • 81. Mandy and Laurie, by re�eatedly thwarting Wendy's legitimate attempts to wind up the Estate and Trust administration, are not acting in the best interest of the Estate and Trusts and are violating their fiduciary duties. 82. Under these circumstances, appointment of a Limited Administrator Pro Tem and Limited Trustee Prom Tem is necessary pursua.nt ?0 Pa. C.S. § 4301 for the specific purpose of marshaling and selling the disputed Estate and Trust assets. 83. Ivo V. Otto, III, has advised Petitioner that he is willing to accept the position of Limited Administrator Prom Tem of the Estate of Bernice J. Raab and Limited Tr��stee Pro Tem Walter F. Raab Living Trust and Bernice J. Raab Living Trust. Ivo V. Otto, III, has extensive experience involving fiduciary matters and is qualified to serve as Limited Administrator and Trustee Pro Tem. � WHEREFORE, Petitioner, Wendy Robbins, respectfully requests that the Court grant the "Petition for Appointment of Ivo V. Otto, III, as Limited Administrator Pro Tem of the Estate of Bernice J. Raab and Limited Trustee Pro Tem of the Walter F. Raab Living Trust and Bernice J. Raab Living Trust Pursuant to 20 Pa. C.S.A. §4301" and direct the Register of Wills to issue to Ivo V. Otto, III Letters of Administra�ion as the Limited Administrator Pro Tem of the Estate of Bernice J. Raab and to appoint Ivo V. Otto, III, as Limited Trustee Pro Tem of the Walter F. Raab Living Trust and Bernice J. Raab Living Trust, and grant and direct Ivo V. Otto, III, to do the following specific and limited duti�s: 1. Marshal all cash and m�rketable securities currently on account at Dominick & Dominick, LLC in the current amount of$6,540,247 and distribute as follows: a. $2, 073,415 to Wendy Robbins; and b. $2, 073,415 to Laurie Ann Kucher; and 14 � ! c. $1,893,417 to Mandy Raab Carson. Any amounts remaining after these distributions should be for payment of claims against the Estate and Trusts and for fees and expe�ses incurred by the Estate and Trusts, including the fees and expenses of Ivo V. Otto, III. 2. Prepare for sale and list for sale the real property located at 19750 �each Road, Apartment 506, Jupiter-Tequesta, Florida and sell this real property for the highest and best price and thereafter make immediate distribution of the sale proceeds, less payment of any realtor's commission and expenses, in equal one-third (1/3) shares to Wendy Robbins, Laurie Ann Kucher and Mandy Raab Carson. 3. Prepare for sale and list far sale the real property located at 337 Seabright Road, Ocean City, New Jersey and sell this real property for the highest and best price and thereafter make immediate distribution of the sale proceeds, less payment of any realtor's commission and expenses, in equal one-third (1/3) shares to Wendy Robbins, Laurie Ann Kucher and Mar�dy Raab Carson. 4. Marshal and sell all personal property of the Estate and Trusts, inciuding family photographs (with the exception of the two Mercec�es Benz automobiles owned by the Estate) for the highest and best price and thereafter make immediate distribution of the sale proceeds, less payment of any auctioneers' commission and expenses, in equal one-third (1/3) shares to Wendy Robbins, Laurie Ann Kucher and Mandy Raab Carson. 15 i r Respectfully SLibmitted, : $ °��, , �: � Tho s A. French, Esquire Atta ey I.D. No. 39305 Jillian M. Golden, Esquire Attarney I.D. No. 20E510 RH(JADS & SINON LLP {�ne South Market Square, 12th Floar P.O. Box 1146 Harrisburg, PA 1710$-1146 {7I7} 233-5�31 Attorneys for Petitione�, Wendy Rol�bins I6 y ! VERIFICATION Wendy Robbins, as Co-Exe�cutrix of the Estate of Bernice J. R:aab and Ca-Trustee of the Walter F, Raab Living Trust and Bernice J. Ra�b Living Trust, deposes and says, subject to the penalties af 18 Pa. C,S. §4�04 relating to unsworn falsification ta authorities, t;hat she is authorized to rr�ake this verification and that the facts set farth in the fc�re�aing "Petition for Appointment of Ivo V, t)tta, III, as Limited Administratcrr Fra Tem af the Estate c�f Bernice J. R.aa.b and Limited Trustee Pro Tem of the Walter F. Raab Living Trust and Bernice J. Raab Living Trust Pursuant ta 20 Pa. �.S.A. §43C11"are true and carrect to the best c�f her knowledge, information and belief. . s� w �U'e y Robbins Date: "l�1`�t�r 3 $9308i1.I Y � CERTIFI+CATE �iF S�RVICE I hereby certify that or�this ����day of �, 2(}13, a true and carrect co ��� py of the foregoing document was served by means of nited States mail, first class,postage prepaid, upon the follawing: Neil E. H�ndershot, Esquire Serratelii, Schiffman& .Brown 2Q8Q Linglestown Road, Suite 2�1 Harrisburg, PA 1'7110-9693 Attot�ne,�s,f'or Mandy Raab �"a�son and Laurie Ann Kuche� c it i . , � , � . : 1� THE �C}URT OF C�33�JilrllC�N PLEAS t�F �� ��� ' : CUMBERLANIJ COUN�fY, PEI'�NSYLVAN(A , WA�.TEf� F. RRRB �,IV1NG TRU�T, . � BERNl�E J. RAA� l.�V�NG TRU��, : .�1-� 1� - i ,.���� � � and EST`AT� �F BERNICE ,1. RI�AB : Na. ���� �'�� ����:��.�. �� '.� � �" �' 1..�... �► �y :...-� �r• s w';,°, : �' :���„7 �J _ . '�-�; �r� � \ ; ORPHAt�S' CCC;1U#�T �`'�=�; # , . :. R':''!;� � � � . `'�..ti�"':r� K� 1 ,/.� PRELlMINARY DEGREE ''� :..; � ;� wr� � �� � � i��'�� ��:� A�1D NOW, this��day �f April, 2012, upon consideratian of the attached �mergency Petitic�n fc�r �njunctive �.elief, it is ORD�R�C� �c�d DE�R�ED th�t Mandy Raab C�rs�n and �aune An�t R. Kucher, �nd �II persons acting in cancert with them and�ar upon dire�#ion of them, are enjoined, pending hearing as set forth betow, from (1� remauing any persanal prc�pe�ty from the residences liste� in the Pe�tior�, �2} otherwise remc�vir�g or dissipatir�g any assets held in #he Trust, �n� {3} ca-min�ling �n� personal property of the esfiate. Any third party h�ving passession of�any property . remt�ved from any of the residences listed in the Petition shall irnmedE�tely return such praperty�o the re�idences or pta�� it into a stacage locatit�n which is not a+ccessible to Nlandy R�ab Carsan ar�.aurie Ann R, Kucher pending f�r�her C�rder of Court. iT I� FURTFIER ORDERED that a citati�n b� awar�ed, returnable forthwith, to Mandy Raab Carson �nd Laurie Ann R. Kucher, ta show cause �rhy they should not be �njoir�ed, pend�ng dispositic�n of this m�t�er, as fol�ows: (1} from remov"rn� any personal pro�perty from the�esidenc�� listed in the P�etitipn, (2} from ath�rwise rernc��rirtg ar dissipating any �ss�ts held ir� th�Trust,. r�tc�mab:l� at hearing as set for�h below, . x # *r`�`^' p'.,�.._ � �3} frv�m comingling any prop�rt}r of th� Estate c�r Trusts, ��� �rom fur�h�:r exerci�e t�f po�ers as ex�cutrixes vr trus��es �bscnt Order of Caur�; � t5} ardered tc� place irtto e$crow within Cumberiand C�runty, and without right of remaval abs�nt cansent of alf Trustees and beneficiaries �r Order of Court, any and all proper#y of the�state and the Trusts; and (�) prc�vide ta Petitiorter a complete ar�d a�curate inver►tory of ail �state and Trusts property in their possession, as well as#he foca#ians af a�! such prc�perty. Nearing on the �mergency C'etitior�for Injunctive Relief shall be held on l���A�► , th� � ' da of A ril �+�12 at 1����""revailin time in �''�... ._...� v r � � , � s , �� �ourtroom of the Cumberland County Courthouse, Hanov�r and High Streets, C�r�is�e Fennsyl�rania. . � r~�C�,�t.-��k1.url�.t,�c._ 'v�^�t.�` c.'�J�� `'•`�R��t�iC.�-• ch� Y,,,Q,�. . . l 'll+�w� ` �°���.���,t- �.�. k 1V � ✓b0�� o�'.U�.14�Cn, ��-�� � ��� � � � �� �Y TME COtJ T': ��-� , . � . � � � � � �c�mma Ple�a$ aud�ge IIII�I _..__— ... r � , .. :. s � . � .. w r r. �«. .t �. ., w� �w �. r. .. ' ' 'r r / � i , — _---- +� � f i M` � !N THE CUURT QF �OMMtJN PLEAS OF CUMBERLAND COUNTY', PENN�Y�.VANIA in �e: � : No. 21-12-3�8 . + "WAl.`TER F, RAfiQ LIVING TRUST : ORPH�N�' CGURT : � Ew����..�..��v���N��riW....���....�we�....�...�..�.�.�:�������rs���..raa:,. �..r�.�...,.�..���.r�—��.�e�.�����+...a�+n In Re: ; No. 21-12-399 BERNIGE J. RAAB L,IVING TRUST : aRPHAN�" COURT .�.�.�r.���.-......r..�-n..��.airaw..+��jr��w� �.r�a�..��..rarw..������raa�����.�....r.i��...����,�.+.r��...����r.������rr�+r...��. I n Re: : �10. 2�-11-842 ' ESTATE OF 6ERNICE J. Rra+,AB : ORPH,�NS' C{0►URT r��!iM����������+�wa+��rW/YIII7��rrrtiY����M��r��r�wYl��w����w�/�w�rr�������IIY'i r��r�����I�I������w�M��ii�MY Iv►����r�rY . ���( �i��YY��� • � Y } ' A►t�D NC�W, thi��day c�f N[ay, ��12, up�n considerat�on ��F'�t�t�oner`s I�tlotic�n for�Continuance and Approuai af Consolidatian, It is GIRDER�� and DECREED that said Motion is GRANTED. The heanng 5ch�du(ed for 1:30 p.m. c�n May 1 Q, 2012, in tf�e � above-�ptioned matteC� is continued get�er�lly. A further request to conduct a hearing in the�bove-captioned matt�rs shall �e initiat�d k�y the filing of a new petitian by Petitioner. The Orders issued by�he Caurt irr th��e matters an�lprit 3, 2f3�2, and April 17, 2412, to the eactent not specifically superseded by this Order, remain ir� ef�ect � pending further t��d�r o#Court. �.> c? ;�:;, ..�,.� �7 Z. ;t� �:ri -��• ... ""� r' �.. �""'Jc.M f� '^� ' ` 1 ���,' ; .� '„'. ' . �- f.�. •r.�,. • • '�'. r^:r ..�. z- �;,:' ,..,` '�- � C�'° .�• .-. "" ^_�i �:,,.,. , ��,, � � {� `.�''� r _ ,. .. � .. � r • r #'� . 1T 1S FURTHER ORDERED that the abo�re-captioned matters are hereby consolidated. The action dvcketed at No. 21-12-3�8, the action docketed at No. 2"I-1�- 399, and the action docketed at No. 2�-11•842 �re hereby CONSOLIDAT��? under Nr�. 2'[-11-�42. All furt�ierflings shali be under this action. Consolidation shall not p�ejudice �ny pre-exfsting rights af the pa�ties. T; � Thamas A. a �y . Judge, S�tting i Orpha�ns` Cr�urt Diwi�ion Distribution Lis# � . Alan R. Boynton, McNees l�alla�ce & (�urick �LG, 100 Pine St, PC� Box �'t6�, Harrisburg, PA 17'108 Neil E. Mendershot, Serrate[li, Schiffman & Brown, 2�80 Lir�gl�stown Rd., Ste. 20'1, Narrisburg, PA 17114-9693 . n��i�� ___—. t # IN TNE COURT t}F �C3MMt�N P�EAS C.�F CUMBER�ANQ CQUNT"Y, PE�INSYL.VAI�IA In Re: : No. 2�-12-39� 1NpLTER F. RAAB LIVING TRU�T : ORPHAN�' Ct�URT _________.�_____�________________________________________________________.�_____.._______.._____�_..---_M_�._ In Re: ; No. 2�-12-399 6ERNICE J. RAAB LIVING TRU�T : ORPHAN�' Ct�URT 1 n Re: : Na. 2'�-'l'�-842 ESTATE CJF BERIUICE J. RAAB : ORPHANS' Ct�tiRT STIPULATIO►N AND ORDER WNER�A�, Petitivner INendy Robbins a�d Re�panden�s Mandy Raab Cars�an and �aurie Ann R. Kucher{collectively, "#he Parties"} are sibling� and the daughters of Walter F. and Bernice J. Raab; and WNEREA�, upon their deaths, Walter and Bernice Raab passed substantially a11 Qf their assets to the Vi�alter F. Raab �iving Trust and the Bernice J. Raab Living Trus# {#ogether, „the Trusts"}; ar�d WNEREAS, the P�rties are the co-Trustees c�f the Trusts and egual co- bene�ciaries of the Trusts; and WNEREA�, the Parties are a��o co-executrix�s of the Will of Bernice J. Raab {yrthe Estate"}, the beneficiary af which is her Trust; and WNEREAS, #he Trusts c4ntain ar ar�the equitable beneficiaries of, inter alia, three residential properties and the contents of the€o#lowing three residen�es: �1} �73� Crisswell Place, �amp Hill, Cumbe�#and C�un#y, Pennsylvania {�he "Crisswell Real �state"}, {2� �9750 Beach Road, Apartment SQfi, .�u�iter-Tequesta, Fl�rida {�h� '"Florida 1 t t Reai Estate"); and (3) 337 Seabright Road, Ocean City, New Jersey (the "4cean City Real Esta#e"} (collectively, "the Real Estate"); and WHEREAS, the Trusts also contain or are the equitable bene�ciaries of, inter alia, all furnishings, motor vehicles, and personal property (excepting the personal property unanimously divided by the Parties at the finio weekend mee#ings attended by all of them in the Faff of 2011) located, as of July 26, 2011, at the Real Estate (the "Property"); and WHEREAS, on April 2, 2012, the above-captioned matters were initiated by the filing of an Emergency Petition for Injunctive Relief to Prevent Dissipation and Comingfing o�Assets ("Emergency Petition"); and WHEREAS, on April 3, 2012, the Court granted the Emergency Petition and scheduled a hearing for April 17, 2012, to consider a request for final decree; and WHEREAS, on April 4, 2012, Petitioner filed a Motion to Consolidate the three above-captioned matters; and WHEREAS, on April 11, 2012, Petitioner filed an Amended Petition for Injunctive Relief("Amended Petition") in the above-captioned matters; and WHEREAS, on April 16, 2012, Neil Hendershot, Esquire, en#ered his appearance in the abov�-captioned matters on behalf of Respondenfis, intending to respond to the Amended Petition on behalf of Respondents, who disagree with averments in both petitions and who would request contrary relief from the Court; and WHEREAS, on April 16, 201 Z, the Court continued the hearing to consider the Amended Petition; and WHEREAS, the hearing has been rescheduled for May 10, 2012; and WHEREAS, the Parties desire to discuss and negotiate the matters raised in the petitions and also al! other matters involving the administration of the Estate and Trusts, including tax returns; and WHEREAS, the Parties acknowledge and understand that they are fiduciaries of the Esta#e and the Trusts and that any and all Property taken or possessed by them is held by them in trust for the beneficiaries of the Estate and Trusts and that possession of any Property at this time does not reflect a right of ownership in such Property; and 2 � E WHEREAS, The Parties express their desire and intention to deal with each other with reasonableness, due diligence and in good faith in the administration of the Estate and the Trusts, and to deal with each other simiiarly in such discussions and negotiations seeking resolution of issues raised or administrative tasks to be conducted for the Estate and Trusts; and NOW, THEREFORE, the Parties, by their undersigned counsel, who have been authorized respectively to execute this Stipulation on their behalf, hereby agree as follows, and further make their joint stipulation and request for an �rder of Court, as follows, unless subsequently altered by subsequent written agreement of all Parties: 1. The issues raised in the Amended Petition and any response thereto by Respondents will be heard at a time and date to be determined by the Court. Respondents shal! not be required to respond to the Amended Petition until twenty days after notice is provided by Petitioner's counsel that settlement discussions have failed. 2. Pending further Order of Court, the Parties agree that, absent agreement of all three of them, they will not remove any property of any kind from the Real Estate : � or any storage units containing estate or Trusts property or leased on behalf of the estate or Trusts. No Party or their relatives shall use or inhabit any Real Estate for personal purposes. 3. Without waiving any rights under applicable law as to long-term fiduciary decision making, during the effective period of this S#ipulation, any actions taken and decisions made on behaif of the Estate or the Trusts shall require the unanimous consent of all the Parties. 4. Within fourteen (14) days of this Stipulation, each Party shall deliver to each other Party sworn written inventories, with descriptions and current locations of any Property taken from the Reai Estate on or after the date of death of the Decedent, that is, July 26, 2011, including such Property that each Party presently possesses or controls or which each Party gave or transferred to any third person since that date. To the extent that they exist, the parties shall deliver to each other any corresponding appraisal values and appraisal numbers for each item obtained to date. 5. The Parties shall segregate and safeguard any Property of the Estate or Trusts with their personal property or that of any other person or entity. 3 � t 6. All Property within a Party's possession or control shali be preserved by them as fiduciaries and none of them shall dispose of, transfer or otherwise dissipate any property of the Estate or Trusts. All Property shall be stored in off-site storage facilities located near the Party's primary residence in segregated units held for the benefit of the Estate or Trusts. 7. For purposes of administration of the Estate or Trusts, each Party shall have access (using keys or access codes} to each off-site storage facility rented by another Party or the esta#e containing some Property with at least 48 hours notice in advance to the other Parties. Entry shall be accomplished only in the presence of Donna Mullin or any other neutral third-party acceptable to the Party who rented that particular storage facility. No Party shall be excluded from access where such conditions are met. No property shall be removed without the consent of a!I Parties. 8. As soon as can reasonably be arranged, the Parties will make available to photographers selected by the undersigned counsel any and all Property possessed or controlled by them. Said photographer(s} shall be given access to photograph alf such Property upon reasonable notice to the Parties in possession or control. The photographer(s) shall photograph all Property and attempt to provide reasonable and detailed views of each item of Property. Copies of all photographs will be provided to all Parties. The costs of the photos shall be borne by the Estate. 9. The Parties shall execute sworn verifications that they have provided to the photographers access to all Property which they possess or control or which they otherwise have retrieved from any of the Real Estate on or after July�6. 10. Within fourteen (14) days of this Stipulation, each Party will provide to each other a!I photographs taken on or after July 26, 2011, by them, or by those under their direction or control, of any of the Property. 1'I. Within five (5) days of this Stipulation, Petitioner shall provide to Donna Mullin, Esq., copies of the photographs of Property taken previously at the Florida Real Estate. Ms. Mullin shall provide said photos to Respondents within ten (10) days foilowing provision to Petitioner of the written inventories and photographs identified in Paragraphs 4 and 10 herein. 4 , + 12. The vehicles previously lacated at the Crissweli Real Estate shall be stored at Sun Motors. Documentation regarding such storage shall be provided to alf parties upon the signing of this Stipulation. All keys sha11 be given to and retained by the proprietor thereof. The reasonable storage costs for such Property shall be borne by the Estate. � 13. The Estate shall pay for the cleaning and repair of the Crissweli Real Es#ate in preparation for closing. The ultimate responsibility for the cost of specific repair items shall be determined by further agreement or Order of Court. The Parties agree to cooperafie and undertake all actions necessary to ensure that closing for the safe of the Crisswelt Real Estate shall be consummated pursuant to the agreement of sale for#hat real estate. 14. Afl proceeds from the sale of the Crissweif Real Estate shall be added to the existing Estate or Trust accounts managed by the Estate's accountan#, Donna Mullen, CPA, for purposes of the administrations of the Estate and Trusts, subject to the limitations of Paragraph 3. 15. This Stipuiation, once executed by counsel and approved by the Court, shall be docketed in the record of this matter, which has been consolidated under the three above-referenced docket numbers. WHEREFORE, the Parties in the above-captioned action respectFully request this Honorable Court to approve the terms of this Stipulation as an Order ofi the Court. SERRATELLI, SCHIFFMAN & BR�WN, P.C. MCNEES WALLACE & NURICK LLC BY: BY: Neil E. Hendershot, Esq. Alan R. Boynton, Jr., Esq. 2080 Linglestown Rd., Ste 201 100 Pine Street Harrisburg, PA 1 71 1 0-9693 Harrisburg, PA 1 71 08-1 1 66 Dated: Dated: Attorneys for Respondents Attorneys for Petitioner 5 � 3 APPROVED: Date: PLACEY, J. 6 � � c Jillian Golden ' From: Thomas A. French Sent: Wednesday,June 19, 2013 1:27 PM To: Neil Hendershat Subject: FW: Raab: Ocean City NJ Property; distribution of cash and securities Neil, I take this opportunity to write to you regarding the many outstanding matters that need to be addressed by the Trustees/Executrices. Although we have addressed some of the day to day bill paying, asset liquidation and maintenance issues, your clients have not responded to our request to address some of the more significant remaining matters of estate administration that need to be addressed. I am writing once again in an effort to get a response from your clients or� these issues. On June 6, I wrote to you summarizing the issues you and I had discussed over the prior several days. Among these issues were 1) distribution of cash and securities in these estate/trusts that are unnecessary for estate administration; 2) agreement on a process for distribution or liquidation of items of personal property; 3) distribution of copies of family photos in Mandy's possession; 4) liquidation of the real estate assets; 5) reimbursement of fiduciary expenses and resolution of other disputed issues as outlined in my June 6 email. On June 7, you emailed me that you had "responded" to my June 6 email, (you told me this twice), but to date, no such response has been received. I sought to follow up on this with you, se�eeral times. On June 12, I emailed you regarding Donna Mullin's suggestion regarding distribution of estate cash and securities. She wrote to us both, advising us of the balance of these accounts ($6,540,247) and suggesting that all of these accounts should be distributed to the benefiiciaries, except for$500,000 which she stated would be sufficient to meet the remaining needs of the estate/trusts until they are finally adjudicated. I sent you a recommendation and request that your clients agree to distribution of these assets. (copy below). To date,your clients have made no response tA this request at all. I would like your clients to kindly respond to each of the following requests, on or before Monday.June 24: 1. Please authorize distribution of cash �nd securities held by the trusts and estate, less $500,000 as Donna recommends, to be made prior to June 30th: � Cash and in kind securities valued at $2, 073,415 each to Wendy and Laurie; Cash and in kind securities valued at $1,893,417 plus credit of$180,000 (forthe advance)to Mandy Total amount distributed $6,040,247 (plus Mandy's advance) 180,000 2. Please authorize entry into a listing agreernent for the real estate located in Fiorida (the executrices have all discussed that there is one realtor who is qualified to list this property and it is not anticipated that there will be disagreement on this point) so that it can �e sold at fair market�✓alue. � . � • ,, 3. Please authorize entry into a listing agreement for the real estate located in Ocean City. Both Mandy and Wendy have indicated that they wish to purchase this property at the right price, but there is disagreement among the Executrices as to its fair market value. Thus, it should be offered publicly and sold to � whomever makes the highest and best offer. 4. Please propose a process and prompt timetable for distributing all personal property to be agreed upon by all parties. Failing agreement on a process and�imetable, then please authorize entry into an agreement with a qualified auctioneer, who will auction off the items of personal property to the highest bidder at public auction. The three sisters will be permitted to bid on these items if they wish to do so. 5. Please ask Mandy to agree to have copies made of all photos of family (digitally)to be distributed to each of her sisters and notify us of her agreement to do so. 6. Please agree that each Executrix shall prepare a list of expenses for which they will seek;reimbursement for submission as claims against these estate/trusts. These can be resolved through further negotiation or pursuant to the usual Orphans' Court approval process, in the ordinary course. Kindly respond by�une 24, agreeing to the above, or in case of disagreement with any item, offering a counter proposal as to how that item should be handled. i:indly respond in writing. The Executrices have agreed that they shall act unanimously regarding these administration issues. The purpose of this email i$to determine which of the above i.tems the Executrices can agree upon unanimously, and which of them they cannot agree upon and are at an impasse. Thankyou To m . Thomas A. French RHOADS &SINON LLP ' One South Market Square � P.O.Box 1146 � Harrisburg, PA 17108-1146 T:(717)231-6625 � F:(717)238-8622 e-mail:tfrench@rhoads-sinon.com http:/f www.rhoadssinon.com/attorneys-Thomas-French-Litigatioro-Attorney.html From: Thomas A. French Sent: Wednesday, June 12, 2013 1:42 PM To: 'Neil Hendershot' � � �ubject: RE: Ra�b: Ocean City NJ Property; distribution of cash and securities Neil, I am responding to your below email. 1. Insurance: Wendy agrees to the inspector and payment as described in your email. 2. Pool: Wendy approved the pool restoration on 4/28 and again on 5/4.Although she agrees that estate funds may be used to pay these expenses, she does not waive her right to contend that your clients are ultimately responsible to pay for the restoration since their refusal to pay�or maintenance last year resulted in th� pool 2