HomeMy WebLinkAbout01-16-15 �� �
� ";In r�'the Ed�th c�; Rife Trust : IN THE COURT OF COMMON PLEAS
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h PE1`�TION FOR APPROVAL OF SETTLEMENT AGREEMENT
AND NOW COMES Petitioner, John W. Maxwell, a remainder beneficiary of the
Edith S. Rife Revocable Trust, by and through his attorneys, David A. Fitzsimons, Esq.,
and James D. Cameron, Esq., and respectfully represents as follows:
1. On March 8, 2011, Petitioner filed a Petition for Rule to Show Cause in the
above-captioned matter, asking the Court to order the Executor of the Estate of Charles J.
Rife to file an accounting of the administration of the Edith S. Rife Revocable Trust ("the
Trust") by Charles J. Rife ("Dr. Rife") during his lifetime.
2. The Court issued its Rule to Show Cause on March 13, 2011; and, on June 17,
2011, the Court issued a Decree directing the Executor to file an accounting of the
administration of the Trust by Dr. Rife within thirty (30) days.
3. The Executor filed a document entitled the Account of Fred H. Junkins ("the
Account") regarding Dr. Rife's administration of the Trust on March 27, 2013.
4. Petitioner filed Objections to the Account on July 19, 2013.
5. Steven A. Maxwell, Barry Maxwell, Douglas Maxwell, and Sherri R. Maxwell
also filed Objections to the Account on or about July 19, 2013.
6. Petitioner also fled a Notice of Claim against the Estate of Charles J. Rife, on
September 19, 2011, in the matter of the Estate of Charles J. Rife, deceased, pertaining to
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damages he intended to assert by means of objections to the Account for Dr. Rife's
administration of the Trust, once filed.
7. Fred H. Junkins, Executor of the Estate of Charles J. Rife, deceased, and the five
remainder beneficiaries of the Edith S. Rife Revocable Trust—John W. Maxwell, Steven
A. Maxwell, Barry Maxwell, Douglas Maxwell, and Sherri R Maxwell (collectively, "the
Maxwells")—have reached a,n agreement to resolve the issues raised in the Petition and the
Objections regarding the administration by Charles J. Rife as Trustee of the Edith S. Rife
Revocable Trust.
8. The parties have executed a Settlement Agreement, a copy of which is attached
hereto, identified as "Exhibit A" (Exhibit A, in turn, having its own exhibits).
9. Throughout this litigation, the Executor, Fred H. Junkins, has been reluctant to
resolve this dispute about the Trust by agreement without some opportunity being given to
the residual beneficiaries of the Estate of Charles J. Rife (other than the Maxwells) to
object to a settlement of the Trust litigation prior to payment of the settlement amount from
the Estate.
10. Paragraph 5 of tfie Settlement Agreement provides for the issuance of a rule to
show cause substantially the same as the draft Rule to Show Cause attached thereto as
Exhibit B — and corrected in this filing as a "Citation" but substantially the same in content
as the draft Rule, upon the residual beneficiaries of the Estate of Charles J. Rife (other than
the MaXwells), served by the Executor, meeting his insistence that the Court offer the other
residual beneficiaries of the Charles J. Rife Estate an opportunity to object to the terms of
the Settlement Agreement, prior to payment by the Executor pursuant to it.
11. At the same time, the Maxwells have steadfastly maintained that the residual
beneficiaries of the Estate of Charles J. Rife lack standing with regard to the Objections
made by the Maxwells in the Trust litigation as remainder Trust beneficiaries regarding
Charles J. Rife's administration of the Trust, a view the Maxwells believe the Court has
twice upheld.
12. Paragraph 6 of the Settlement Agreement provides that the M�wells reserve
the right to object to such standing, should any residual beneficiary of the Estate of Charles
J. Rife assert that sufficient cause exists such that the Court should not issue the Final
Decree contemplated in the Settlement Agreement.
13. At the same time, consistent with the request of counsel for the Executor and
the reservation of rights by the Maxwells described in the prior paragraph, the Maxwells
have agreed to inclusion of "In re Estate of Charles J. Rife, deceased" upon the agreed-
upon Citation and the agreed-upon Final Decree.
14. Michael T. Foerster, Esq., Senior Deputy Attorney General of the Office of
Attorney General of the Commonwealth of Pennsylvania, as parens patriae, has been
present in the Court during the recent stages of this litigation and was present for at least
one important negotiating session that lead to the execution of the Settlement Agreement.
15. A copy of a ?etter to James D. Cameron, Esq., by Senior Deputy Attorney
General Foerster, dated January 9, 2015, indicating his Office has no objection to the
Settlement Agreement is attached hereto, identified as "Exhibit B".
WHEREFORE, Peiitioner respectfully requests the Court to issue (for the
Executor) a Citation in the form attached as Exhibit B to the Settlement
Agreement, and to issue a Final Decree in the form attached as Exhibit A to the Settlement
Agreement.
Respectfully Submitted,
MARTSON LAW OFFICES
,:�
Byi
David A. Fitzsimons, Esquire
10 East High Street
Carlisle, PA 17013
(717) 243-3341
James D. Cameron
Attorney LD. No. 58998
1325 North Front Street
Harrisburg, PA 17102
(717) 236-3755
Attorneys for Petitioner,
John W. Maxwell
EXHIBIT "A"
In re the Edith S. Rife Trust : IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: ORPHANS' COURT DIVISION
: NO. 11-0325 ORPHANS' COURT
: NO. 10-1006 ORPHANS' COURT
: NO. 83-0773 ORPHANS' COURT
SETTLEMENT AGREEMENT
AND NOW COME Fred H. Junkins, Executor of the Estate of Charles J. Rife,
deceased ("the Executor"), party of the first part; John W. Maxwell, a remainder
beneficiary of the Edith S. Rife Revocable Trust, party of the second part; Steven A.
Maxwell, a remainder beneficiary of the Edith S. Rife Revocable Trust, party of the third
part; Barry Maxwell, a remainder beneficiary of the Edith S. Rife Revocable Trust, party
of the fourth part; Douglas Maxwell, a remainder beneficiary of the Edith S. Rife
Revocable Trust, party of the fifth part; and Sherri R. Maxwell, a remainder beneficiary of
the Edith S. Rife Revocable Trust, party of the sixth part.
WHEREAS, at the time of his death, Charles J. Rife ("Dr. Rife") was Trustee of the
Edith S. Rife Revocable Trust ("the Trust")�
,
WHEREAS, on March 8, 2011, John W. Maxwell filed a Petition for Rule to Show
Cause in the above-captioned matter, asking the Court to order the Executor to file an
accounting of the late Dr. Rife's administration of the Trust;
WHEREAS, the Court issued its Rule to Show Cause on March 13, 2011;
WHEREAS, on June 17, 2011, the Court issued a Decree directing the Executor to
file an accounting of Dr. Rife's administration of the Trust within thirty (30) days;
WHEREAS, the Executor filed, on March 29, 2013, a document entitled Account
of Fred H. Junkins ("the Account"), regarding Dr. Rife's administration of the Trust;
WHEREAS, John W. Maxwell filed Objections to the Account on July 19, 2013;
and whereas, Steven A. Maxwell, Barry Maxwell, Douglas Maxwell, and Sherri R.
Maxwell also filed Objections to the Account on or about July 19, 2013;
WHEREAS, John W. Maxwell had filed a Notice of Claim, on September 19,
2011, in the matter of the Estate of Charles J. Rife, deceased, pertaining to damages he
intended to assert by objections to the Account, once filed, in the Trust matter;
WHEREAS, the Executor and the five remainder beneficiaries of the Edith S. Rife
Revocable Trust—John W. Maxwell, Steven A. Maxwell, Barry Maxwell, Douglas
Maxwell, and Sherri R. Maxwell (collectively, "the Maxwells")—have reached an
agreement to resolve the issues raised in the Petition and the Objections regarding the
Edith S. Rife Trust, and dPsire that their agreement be reduced to writing;
NOW THEREFORE, intending to be legally bound, the parties hereby stipulate and
agree as follows:
1. The Estate of Charles J. Rife shall pay to James D. Cameron, Esq., for
distribution in accordance with a separate agreement among the Maxwells, the sum of Five
Hundred Thousand Dollars ($500,000.00), in settlement of the various claims of the five
remainder beneficiaries of the Edith S. Rife Revocable Trust against the decedent, as
Trustee.
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2. Counsel for Jolin W. Maxwell shall file a satisfaction piece with regard to the
Notice of Claim filed in the Estate of Dr. Rife, and shall file a Praecipe to discontinue, with
prejudice, the Objections of John W. Maxwell to the Account of Fred H. Junkins.
3. Counsel for Steven A. Maxwell, Barry Maxwell, Douglas Maxwell, and Sherri
R Maxwell shall file a Praecipe to discontinue, with prejudice, their Objections to the
Account of Fred H. Junkins.
4. This Settlement Agreement is contingent upon the issuance by the Court of an
order substantially the same as the draft Final Decree attached hereto, identified as
"Exhibit A".
5. In order to induce the Executor to enter into this Settlement Agreement, the
Maxwells consent to the issuance by the Court upon application by or for the Executor of a
rule to show cause substantially the same as the draft Rule to Show Cause attached hereto,
identified as "Exhibit B"--directed to the residual beneficiaries of the Estate of Charles J.
Rife (other than the Maxwells)--in arder to provide these residual beneficiaries an
opportunity to object to the proposed settlement prior to the issuance of the Final Decree
(Exhibit A) by the Court. It is contemplated that the Rule to Show Cause shall be served
by the Executor.
6. At the same time, John W. Maxwell, Steven A. Maxwell, Barry Maxwell,
Douglas Maxwell, and Sherri R Maxwell reserve the right to continue to assert, should
any residual beneficiary of the Estate of Charles J. Rife assert that sufficient cause exists
such that the court should not issue the Final Decree contemplated in the Settlement
Agreement, that these other residual beneficiaries of the Estate of Charles J. Rife (who are
3
not beneficiaries of the Trust)lack standing to object to this Settlement Agreement
regarding the Trust; this Settlement Agreement having been entered into by the Executor
for the deceased Trustee to settle the claims of the Maxwells as the five remainder
beneficiaries of the Trust, regarding a[leged breaches of fiduciary duty by Dr. Rife white
he was serving as Trustee of the Trust.
7. This settlement does not involve a concession of liability on the part of Chazles
J. Rife or on the part of the Executor of the Estate of Chazles J. Rife.
8. The payment agreed in Pazagraph 1 above will resolve any and all claims that
the Maxwells may have that could be connected in any way with anything that Charles J.
Rife did or failed to do as the Trustee of the Edith S. Rife Trust and any and all
consequencesthereof.
9. This Agreement may be signed in counter-parts, which shall have the same
effect as if all signatures appeared on a single page.
10. The parties agree that this instrument shall be governed by the laws of the
Commonwealth of Pennsylvania;and that this instrument shall be legally binding as an
agreement upon themselves, their heirs,representatives,and assigns.
IN WITNESS WHEREOF,intending to be legally bound,the parties hereunto set
their hands artd seals.
ESTATE OF CHARLES J. RIFE
�
����� BY �_(SEAL)
Wi ess Fred H. Junk'
, xecutor
Date: /o�
4
�i�.�°.� ,,.,-�
y � �����- �,����
Witness JO W. MAXWE L (SEAL)
D��e.� 2 �--
Witness (SEAL)
STEVEN A. MAXWELL
Date:
Witness (SEAL)
BARRY MAXWELL
Date:
Witness (SEAL)
DOUGLAS MAXWELL
Date:
Witness (SEAL)
SHERRI R. MAXWELL
Date:
5
(SEAL)
Witness JOHN W. MAXWELL
Date:
J � w
�'`� �- ''� (SEAL)
itnes STEVE . MAXWELL
Date: �'1- � � �i' �.?r�11 r�
` . __(SEAL)
Witness BARRY MAXWELL
Date:
(SEAL)
Witness DOUGLAS MAXWELL
Date:
(SEAL)
Witness SHERRI R. MAXWELL
Date:
5
(SEAL)
Witness JOHN W. MAXWELL
Date:
(SEAL)
Witness STEVEN A. MAXWELL
Date:
__... .�...._ �.--�—'` iY��G' SEAL
Jr� � �
Wrtness � BARRY AXW L
Date: Z� �i ,��f
(SEAL)
Witness DOUGLAS MAXWELL
Date:
(SEAL)
Witness SHERRI R. MAXWELL
Date:
5
(SEAL)
Witness JOHN W. MAXWELL
Date:
(SEAL)
Witness STEVEN A. MAXWELL
Date:
_ --__--__ (SEALI
Witness BARRY MAXWELL
Date:
�
� (SEAL)
�.
Wrtness D UG S MAXWE L
Date: Iz-a3'-2���
(SEAL)
Witness SHERRI R. MAXWELL
Date:
5 �
(SEAL)
Witness JOHN W. MAXWELL
Date:
(SEAL)
Witness STEVEN A. MAXWELL
Date:
_ _ _(SEAL)
Witness BARRY MAXWELL
Date:
(SEAL)
Witness DOUGLAS MAXWELL
Date:
�,��" � (SEAL)
Witness SHERRI R. MAXWELL
Date: ���� �3. 2�/5�
5
EXHIBIT A
6
In re the Edith S. Rife Trust : IN THE COURT OF COMMON PLEAS
In re Estate of Charles J. Rife, : CUMBERLAND COLJNTY, PENNSYLVANIA
deceased : ORPHANS' COURT DIVISION
: NO. 11-0325 ORPHANS' COURT
: NO. 10-1006 ORPHANS' COURT
: NO. 83-0773 ORPHANS' COURT
FINAL DECREE
AND NOW, this day of , 20 , upon agreement of
the parties, memorialized by their Settlement Agreement; taking notice of the letter of no
objection from the Office of Attorney General identified as Exhibit B to the Petition for
Approval of Settlement Agreement; and no sufficient cause why the Settlement Agreement
should not be approved having been shown by any residual beneficiary of the Estate of
Charles J. Rife in response to the Rule to Show Cause issued on ;
NOW THEREFORE, the Settlement Agreement executed by the parties, Fred H.
Junkins, Executor of the Estate of Charles J. Rife, deceased, of the one part, and John W.
Maxwell, Steven A. Maxwell, Barry Maxwell, Douglas Maxwell, and Sherri R. Maxwell,
the remainder beneficiaries of the Edith S. Rife Revocable Trust, of the other part, is
hereby approved, and the said parties are hereby directed to carry out the said Settlement
Agreement in accordance with its terms.
BY THE COURT:
� Albert H. Masland, Jr., J.
7
Distribution:
James D. Cameron, Esq.
1325 North Front Street
Harrisburg, PA 17102
Attorney for John W. Maxwell
David A. Fitzsimons, Esq.
MARTSON LAW OFFICES
10 East High Street
Carlisle, PA 17013
Attorney for John W. Maxwell
Craig A. Diehl, Esq.
3464 Trindle Road
Camp Hill, PA 17011
Attarney for Steven A. Maxwell, Barry Maxwell,
Douglas Maxwell, and Sherri R. Maxwell
Wayne F. Shade, Esq.
53 West Pomfret Street
Carlisle, PA 17013
Attorney for Fred H. Junkins, Executor
Murrel R. Walters, III, Esq..
54 East Main Street
Mechanicsburg, PA 17055
Attorney for Fred H. Junkins, Executor
Michael T. Foerster, Sr. Deputy Attorney General
Office of Attorney General
Charitable Trusts & Organzations Section
14`" Floor, Strawberry Square
Harrisburg, PA 17120
8
EXHIBIT B
9
In re the Edith S. Rife Trust : IN THE COURT OF COMMON PLEAS
In re Estate of Charles J. Rife, : CUMBERLAND COUNTY, PENNSYLVANIA
Deceased : ORPHANS' COURT DNISION
: NO. 11-0325 ORPHANS' COURT
: NO. 10-1006 ORPHANS' COURT
: NO. 83-0773 ORPHANS' COURT
RULE TO SHOW CAUSE
AND NOW, this day of , 2014, consistent with
paragraphs 5 and 6 of the Settlement Agreement entered into by John W. Maxwell, Steven
A. Maxwell, Barry Maxwell, Douglas Maxwell, Sherri R. Maxwell (collectively, "the
Maxwells") of the one part; and Fred H. Junkins, Executor of the Estate of Charles J. Rife,
of the other part; a Rule is hereby issued to the residual beneficiaries of the Estate of
Charles J. Rife, other than the Maxwells, to wit: Reformed Mennonite Church, Holy Spirit
Hospital, Pennsylvania Hospital, Harrisburg Hospital, Massachusetts Institute of
Technology, Harvard Medical School, Wills Eye Ex Residents Association,
Massachusettes Eye & Ear Ex Residents Association, Lehigh University, Messiah College,
Mechanicsburg Area Foundation, Elaine Rosato, Leslie Atherton, Doris J. Junkins, Linda
Niziolak, Jennifer Elyard, Donna Kunkel, Susan Heilig, Peggy Densham, and Destiny
Heilig; directing those named to show what cause, if any, they may have, that the Court
should not approve the Settlement Agreement made between the Maxwells, who are the
remainder beneficiaries of the Edith S. Rife Revocable Trust, on the one part, and the
Executor of the Estate of Charles J. Rife, deceased, on the other part, regarding allegations
of breach of fiduciary duty by the decedent, as Trustee of the Trust during his lifetime.
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RULE RETURNABLE within thirty (30) days of service, which shall be made by
the Executor, by regular, first class mail.
BY THE COURT:
Albert H. Masland, Jr., J.
Distribution: ,
James D. Cameron, Esq.
1325 North Front Street
Harrisburg, PA 17102
Attorney for John W. Maxwell
David A. Fitzsimons, Esq.
MARTSON LAW OFFICES
10 East High Street
Carlisle, PA 17013
Attorney for John W. Maxwell
Craig A. Diehl, Esq.
3464 Trindle Road
Camp Hill, PA 17011
Attorney for Steven A. Maxwell, Barry Maxwell,
Douglas Maxwell, and Sherri R. Maxwell
Wayne F. Shade, Esq.
53 West Pomfret Street
Carlisle, PA 17013
Attorney for Fred H. Junki�ns, Executor
Murrel R. Walters, III, Esq..
54 East Main Street
Mechanicsburg, PA 17055
Attorney for Fred H. Junl�ins, Executor
Michael T. Foerster, Sr. TJeputy Attorney General
Office of Attorney General
Charitable Trusts & Organzations Section
14th Floor, Strawberry Square
Harrisburg, PA 17120
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EXHIBIT "B"
i
COMMONWEALTH OF PENNSYWANIA
; OFFICE OF ATTORNEY GENERAL
KATHLEEN G. KANE Janu 9, 2015
ATTORNEY GENERAL �
Charitable Trusts and
Organizations Section
14�'Floor, Strawberry Square
Harrisburg,PA 17120
Telephone: (717) 783-2853
Facsimile: 717-787-1190
mfoerster@attorneygeneral.gov
James Duryea Cameron, Esq.
1325 North Front Street
Harrisburg,PA 17102
Re: Edith S. Rife Trust
No.21-11-0325/No.21-10-1006/No. 21-83-0773 Cumberland County
, Estate of Charles J. Rife,trustee
Dear Mr. Cameron:
This wiIl acknowledge receipt of your letter dated January 7, 2015, with signature pages
of the settlement agreement. I understand that these signature pages show agreement to the
settlement as previously detailed to me.
I have reviewed the terms of the settlement of claims against Dr. Rife's Estate, for his
administration of the Edith Rife Trust, and have no objections. Piease forward a copy of tYie
petition for approval, of this settlement,when it is filed.
Please be advised that the above review was conducted pursuant to the parens patriae
role of the office and has no bearing on any matter unrelated to that function. Thank you for
your time and attention to this matter.
Very truly yours,
ichael T. oerster
Senior Deputy Attorney General
Cc David A. Fitzsimons,Esq.
Murrel R. Walters, III, Esq.
Craig A. Diehl, Esq.
Wayne F. Shade, Esq.
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 for Approval of
Settlement Agreement was served this date by depositing same in the Post Office at
Carlisle, PA, first class mail, postage prepaid, addressed as follows:
Craig A. Diehl, Esquire
3464 Trindle Road
Camp Hill, PA 17011
(Attorney for Mr. Steven Maxwell,
Ms. Sherri Maxwell, Mr. Douglas Maxwell
and Mr. Barry Maxwell)
Michael T. Foerster, Sr. Deputy Attorney General
Office of Attorney General
Charitable Trusts & Organzations Section
14th Floor, Strawberry Square
Harrisburg, PA 17120
Wayne F. Shade, Esquire
53 West Pomfret Street
Carlisle, PA 17013
(Attorney for Fred H. Junkins, Executor)
Murrel R. Walters, III, Esquire.
54 East Main Street
Mechanicsburg, PA 17055
(Attorney for Fred H. Junkins, Executor)
MARTSON LAW OFFICES
Y
T 'cia D. kenroad
Ten East igh Street
Carlisle, PA 17013
(717) 243-3341
Dated: �U� pf ��J�