HomeMy WebLinkAbout08-30-89
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MR. COSTOPOULOS: Good afternoon, Your Honor.
THE COURT: Let's see, the onlY party that's
3 here, I guess, is Mr. Mumma. Mr. Martson, Mr. O'Connor, and
4 Mr. Frey, they are here. Do you wish to submit any factual
5 testimony today? Anything you want to put on the record,
6 Mr. Costopoulos?
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MR. COSTOPOULOS: If the Court deems it
8 necessary, Your Honor.
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THE COURT: I don't reallY know. I know
10 nothing about this issue. I never had a similar issue
11 before. If you feel that some factual testimony is
12 necessary -- I think what I'm gOing to do is list it for
13 special argument, and then counsel can brief it, and we can
14 decide it then.
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MR. COSTOPOULOS: I suggest we can do it in
16 phases. As the Court has indicated, counsel for the Estate
17 are here, specifically Bill Martson as local counsel and
18 Joseph O'Connor from Morgan, Lewis, and Bockius, and they
19 are here on behalf of the estate.
20 Also, Mr. Bob Frey is here on behalf of the
21 children as a guardian ad litem, and I, Bill Costopoulos, is
22 here on behalf of Bob Mumma. And the reason we're here,
23 Judge, is we did file a petition to revoke a disclaimer.
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THE COURT: I'm familiar with that.
MR. COSTOPOULOS: And I know the Court is.
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1 And on behalf of Bob Mumma at this point in time, our
2 position, our legal position, is that if Bob Mumma, at this
3 point in time, wants to revoke the disclaimer and put back
4 into effect the depositive intent of his father, he can do
5 that, and he doesn't have to present any testimony. He
6 doesn't have to present any reasons. He doesn't have to
7 present any evidence as to why, at this point in time, he's
8 changed his mind, although he has reasons.
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THE COURT: Why must yoU file a petition
10 then? Why didn't yOU just go down and file something saying
11 I withdraw my disclaimer, and then it's ended?
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MR. COSTOPOULOS: I think that would end it.
THE COURT: Why file a petition to do it if
14 you don't have to do it?
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MR. COSTOPOULOS: Well, procedurally --
THE COURT: Well, look, I'm not gOing --
MR. COSTOPOULOS: No, but I agree, and I
18 think that maybe what we should do is give further rise to
19 this issue because that's what we want to do, He wants to
20 revoke his disclaimer,
21 The Estate's position is -- we have it recorded --
22 they take no position as to whether he should be allowed to
23 or not, but Mr, Frey as guardian ad litem, for the record-,
24 has filed an objection, and we don't think his objection
25 should even be taken into consideration at this point,
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1 I mean, if there was a distribution of the estate
2 and something would have vested, then I could see where it
3 would be of concern to them; but at this point in time, Bob
4 Mumma wants to revoke his disclaimer, and what I'm
5 representing to the Court is we don't have to take any
6 testimony,
7 We're asking for a court order, but if you're
8 saying to the parties, Gentlemen, I don't think you need a
9 court order, just go do it
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THE COURT: I'm not saying that, Don't get
11 me wrong,
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MR, COSTOPOULOS: I know you're not, Judge,
13 but that's where we are, and maybe we should just leave it
14 at that for the record and ask for a ruling from this Court
15 on the petition and the pleadings as they presentlY exist,
16 And the Court can say one of several things,
17 procedurallY we're out of order, or the Court can say, yes,
18 I think I can issue a lawful order in this matter at this
19 time, and my order is we don't have to take any testimony,
20 He can revoke his disclaimer,
21 Or the Judge can say, Gentlemen, legally I think I
22 have to have a reason for the revocation, and in that
23 instance we'll set aside a special date, time, and place for
24 the taking of testimony so we, as the Petitioners, can give
25 you the reasons for it,
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1 THE COURT: I'd just like to have counsel
2 give me any law on this. This was entered pursuant ta a
3 section of what? The Internal Revenue Code permits a
4 disclaimer to be filed, Isn't that where it came from?
5 It didn't come from Pennsylvania Law, it came
6 under the Internal Revenue Code, I think; but do I
7 understand the Estate, you have no objection to this?
8 There's nothing as far as --
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MR. O'CONNOR: No, Your Honor, the Estate's
10 position is that this is between Bob and Bob's children. I
11 think the law is that once a disclaimer is filed, it's
12 irrevocable, and that's both under Pennsylvania Law and the
13 Internal Revenue Code. That's something, I guess, the Court
14 will want to decide,
15 The Estate takes the position that as executors
16 they have no interest reallY in whether Bob revokes his
17 disclaimer or not. The executrixes believe that the facts
18 alleged in Mr. Mumma's petition are mostly not true,
19 particularly the allegations or implications that my
20 partner, our client, in some way defrauded or induced Bob
21 through fraud to make his disclaimer.
22 I think it would be appropriate if there is a
23 full-fledged hearing and expenses involved, that any
24 expenses in connection with it be charged against Bob's
25 share of the estate or his children's share of the estate
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1 depending on the outcome, because the matter does not affect
2 the other Quarter of beneficial interest in the estate, the
3 three sisters,
4 I don't think that it would be appropriate for the
5 Estate to take a position except insofar as to state that we
6 don't think that the facts in the petition are true, and we
7 don't think they state cause of action and relief should be
8 granted,
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MR, COSTOPOULOS: Your Honor, for the record,
10 I want to make the fallowing known to the Court as to what
11 Mr, Mumma's position is. Joseph O'Connor has addressed the
12 Court, and with respect to this disclaimer, is holding
13 himself out as the attorney for the Estate; and if the
14 Estate is going to be heard, our position is that the Estate
15 cannot be represented by Morgan, Lewis, and Bockius on this
16 issue of the disclaimer,
17 Now, I know there was a ruling by you, Your Honor,
18 regarding a conflict of interest as to other aspects of this
19 Estate, but on this disclaimer, on this isolated issue, the
20 disclaimer, which we raised with our petition to revoke, it
21 was Art Klein of that firm that was representing Bob Mumma
22 in his individual capacity advising him on what was in the
23 best interest of his children as Art Klein believed it to be
24 at the time, and it's inappropriate now for that law firm to
25 come into this courtroom and say with respect to this
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1 disclaimer, we represent the Estate,
2 And, so -- but we might not have to get into that
3 aspect of it if this Court concludes that it doesn't have to
4 hear from anybody; that if he wonts to revoke his
5 discliamer, he can, and nobody has to be heard from for any
6 reason,
7 THE COURT: I'm here today to offer the chair
8 to anybody that wonts to testify, Nobody wonts to testify?
9 Then I'm going to decide it solely on briefs to be
10 submitted, That's the way it is, so yOU don't have to
11 testify, I don't core,
12 MR, COSTOPOULOS: I'm trying to save the
13 Court some time, I'm saying we don't have to testify, and
14 you can decide, without having to hear from anybody, in our
15 favor; but if the Court feels that the law is -- if the
16 Court determines that well, I have to have reasons in order
17 to grant this petition, then we're prepared to testify,
18 THE COURT: In any event --
19 MR, FREY: I want to testify, Your Honor, It
20 seems to me my clients are the ones that ore seriouslY
21 interested, and just to cavalierly imagine that YOU can
22 revoke a disclaimer because somebody has 0 change of mind,
23 has very serious impacts on these minor children,
24 THE COURT: Well, what I'm going to do, I'm
25 going to give counsel an opportunity to brief the issue if
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1 it con be revoked without any reason, then obviously the
2 fact that it might hurt the children isn't going to matter.
3 If you're talking about it hurting somebody, then we'll look
4 at it in a different light.
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I think what I'm going to do is. WhY don't YOU
6 gUYS come bock to chambers. We'll get a briefing schedule
7 set UP, and then based on that if it comes out that there
8 has to be factual testimony to support something, then we'll
9 set it UP; but os of this time, I don't know,
10 (Whereupon, the above proceeding concluded.)
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CERTIFICATION
I hereby certify that the proceedings are
contained fully and accurately in the notes taken by me on the
above cause and that this is a correct transcript of the same.
~lliJ\Q r He~d\e~
Lura F. Handl y
Official Court Reporter
The foregoing record of the proceedings on the
hearing of the within matter is hereby approved and directed to
be filed.
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