HomeMy WebLinkAbout05-3243
DAVIS PULMONARY ASSOCIATES, P.C.
and STEPHEN J. DAVIS, M.D.,
Plaintiffs
VS.
PENNSYLVANIA STATE BANK,
Defendant
TO THE PROTHONOTARY:
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND CO., PENNSYLVANIA
NO. 2005- 302 cj 3 C? .
Please issue a Writ of Summons in favor of the above-name Plaintiffs against the
above-named Defendant.
DATE: June 24, 2005
az- L_
Hubert X. Gilmer , Esquire
Broujos &?flroy, P.C.
an
c,\
U
c
ui T
7 i;]
DAVIS PULMONARY ASSOCIATES, P.C.
and STEPHEN J. DAVIS, M.D.,
Plaintiffs
VS.
PENNSYLVANIA STATE BANK,
2148 Market Street, Camp Hill, PA 17011
Defendant
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND CO., PENNSYLVANIA
: NO. 2005- 3,? 413
PRAECIPE
TO THE PROTHONOTARY:
Please issue a Writ of Summons in favor of the above-name Plaintiffs against the
above-named Defendant.
DATE: June 24, 2005
aIZ17-
uX. Cji roy, Esquire
Broujos & Gilroy, P.C.
4 North Hanover Street
Carlisle, PA 17013
(717) 2434-4574
ID #29943
Commonwealth of Pennsylvania
County of Cumberland
WRIT OF SUMMONS
DAVIS PULMONARY ASSOCIATES, P C
AND STEPHEN J. DAVIS, M D
Court of Common Pleas
Plaintiff
Vs.
No. 05-3243
In CivilAction-Law
PENNSYLVANIA STATE BANK
2148 MARKET STREET
CAMP HILL, PA 17011
Defendant
To PENNSYLVANIA STATE BANK, 2148 MARKET STREET, CAMP HILL,
PA 17011
You are hereby notified that DAVIS PULMONARY ASSOCIATES, P C
AND STEPHEN J DAVIS, M D the Plaintiff has / have commenced an action in Civil
Action-Law against you which you are required to defend or a default judgment may be
entered against you.
(SEAL)
CURTIS R. LONG
Prothonotary
Date June 27, 2005 By c4x. J.
Deputy
Attorney:
Name: HUBERT X. GILROY, ESQUIRE
Address: BROUJOS & GILROY, P C
4 NORTH HANOVER STREET
CARLISLE, PA 17013
Attorney for: Plaintiff
Telephone: (717) 243-4574
Supreme Court ID No. 29943
DAVIS PULMONARY ASSOCIATES, PC
and STEPHEN J. DAVIS, MD
Plaintiffs
V.
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
No. 05-3243
PENNSYLVANIA STATE BANK, CIVIL ACTION -LAW
Defendant
PRAECIPE TO FILE COMPLAINT
TO THE PROTHONOTARY:
Please enter a Rule upon Plaintiff to file a Complaint within 20 days hereof or suffer the
entry of a Judgment of Non Pros.
Dated: August 4, 2005
By <zift KO 4'JQW CAM
J voboda McMaster, Esqu re # 84400
1 97 'ommercial Avenue
Ea etersburg, PA 17520-0038
(717) 735-4908
Attorney for Defendant
RULE TO FILE COMPLAINT
AND NOW, this Y ay of August, 2005, a Rule is hereby granted upon Plaintiff to file a
Complaint herein within 20 days after service hereof or suffer the entry of a Judgment of Non
Pros.
. O
Prothonotary
CERTIFICATE OF SERVICE
I, Jean Svoboda McMaster, Esquire, Vice President and General Counsel for Sterling
Financial Corporation, hereby certify that I served a true and correct copy of the foregoing
Praecipe and Rule to File Complaint on this date by depositing a copy of the same in the
possession of the United States mail, first-class, postage prepaid, addressed as follows:
Hubert X. Gilroy, Esquire
BROUJOS & GILROY PC
4 North Hanover Street
Carlisle, PA 17013
STERLING FINANCIAL CORPORATION
Dated: August 4, 2005
By <,-IM VA M f.?gk,
Jr voboda McMaster, Esquire # 84400
V97
East Commercial Avenue
Petersburg, , PA 17520-0038
(717) 735-4908
`Y CY,
Lin
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
DAVIS PULMONARY ASSOCIATES, P.C.
and STEPHEN J. DAVIS, M.D.,
Plaintiffs
DOCKET NO. 05 - 3243
V.
PENNSYLVANIA STATE BANK,
Defendant
CIVIL ACTION - LAW & EQUITY
NOTICE TO DEFEND
You have been sued in Court. If you wish to defend against the claims set forth in the
following pages, you must take action within (20) days after this complaint and notice are
served, by entering a written appearance personally or by attorney and filing in writing with
the Court your defenses or objections to the claims set forth against you. You are warned that
if you fail to do so the case may proceed without you and a judgment may be entered against
you by the Court without further notice for any money claimed in the complaint or for any
other claim or relief requested by the Plaintiff. You may lose money or property or other
rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF
YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO
OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT
WHERE YOU CAN GET LEGAL HELP.
Cumberland County Bar Association
32 South Bedford Street
Carlisle, Pennsylvania
717-249-3166
(-?) _ 09?
Date
Hubert X. Gilroy, E uire
Supreme Court I. No. 29943
Broujos & Gilroy, P.C.
4 North Hanover Street
Carlisle, PA 17013
(717) 243-41574
(Attorney for Plaintiffs)
1
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
DAVIS PULMONARY ASSOCIATES, P.C.
and STEPHEN J. DAVIS, M.D., DOCKET NO. 05 - 3243
Plaintiffs
V.
. CIVIL ACTION - LAW & EQUITY
PENNSYLVANIA STATE BANK,
Defendant
COMPLAINT
Plaintiffs, Davis Pulmonary Associates, P.C. and Stephen J. Davis, M.D., by and
through their attorneys, Broujos & Gilroy, P.C. aver as follows:
1. Plaintiff is Davis Pulmonary Associates, P.C., a professional corporation duly
organized and existing under the laws of the Commonwealth of Pennsylvania in the
profession of operating a medical practice having a principal place of business at 1863
Center Street, Camp Hill, Cumberland County, PA 17011 (hereinafter, "Pulmonary
Associates").
2. Plaintiff is Stephen J. Davis, M.D., an adult individual having a business
address of Davis Pulmonary Associates, P.C., 863 Center Street, Camp Hill, Cumberland
County, PA 17011 (hereinafter, "Davis").
3. Defendant is Pennsylvania State Bank, a Pennsylvania financial institution
organized and existing under the laws of the Commonwealth of Pennsylvania having a
principal place of business at 2148 Market Street, Camp Hill, Cumberland County, PA
17011 (hereinafter, the "Bank").
4. Davis is the principal physician, shareholder, director and officer of
Pulmonary Associates.
5. For all times pertinent to this cause of action, Pulmonary Associates held,
inter alia, a checking account bearing account number 15109440 (hereinafter the
"Account") with the Bank.
6. For a period of time until December 5, 2002, Michelle A. Holtzapple
(hereinafter, "Holtzapple"), was an employee of Pulmonary Associates and was authorized
to sign checks, as drawer/maker, which were drawn against: the Account.
On December 5, 2002, Davis informed the Bank that, upon the advice of
Pulmonary Associates' accountant due to concerns of inappropriate expenditures from the
Account, no one other than Davis would be thereafter authorized to sign checks, as
drawer/maker, which were drawn against the Account.
8. On December 5, 2002, Davis specifically informed the Bank that Holtzapple
was no longer authorized to sign checks, as drawer/maker, which were drawn against the
Account, and that the Bank was not to accept any checks against the Account signed by
Holtzapple as drawer/maker and that Holtzapple was authorized only to transfer funds
between Pulmonary Associates' accounts and to obtain information about said accounts.
9. The Bank assured, promised, represented and warranted to Davis that no
checks thereafter signed by Holtzapple, as drawer/maker, drawn against the Account
would be honored by the Bank.
10. The Bank prepared a written document evidencing Davis's directive and the
Bank's agreement, which the Bank asked Davis to execute on behalf of Pulmonary
Associates. A true and correct copy of said document is attached hereto, marked as Exhibit
"A", and it is incorporated herein by reference.
11. Despite the Bank's assurances, representations and promises to not accept
any checks drawn against the Account and signed by anyone other than Davis as
drawer/maker, unbeknownst to Plaintiffs, the Bank continued to honor checks drawn
against the Account which were signed by Holtzapple, as drawer/maker, after December 5,
2002. A list of said checks are as follows (hereinafter the "Checks"):
Date Number Amount
277an-03 3248 $2,500.00
13-Feb-03 3275 $3,360.80
14-Mar-03 3318 $3,000.00
02-Apr-03 3356 $3,000.00
09-May-03 3404 $5,500.00
15-May-03 3425 $500.00
30-May-03 3451 $5,000.00
12-Jun-03 3453 $2,000.00
10-Jul-03 3501 $5,500.00
10-Jul-03 3502 $2,000.00
11-Aug-03 3558 $5,500.00
11-Aug-03 3559 $2,500.00
30-Sep-03 3646 $5,000.00
30-Sep-03 3647 $2,000.00
28-Oct-03 3662 $2,000.00
03-Nov-03 3691 $2,000.00
11-Dec-03 3741 $1,000.00
11-Dec-03 3742 $1,000.00
09-Jan-04 3786 $1,000.00
14-Jan-04 3805 $4,500.00
264an-04 3806 $1,444.78
29-Jan-04 3825 $1,000.00
30-Jan-04 3827 $3,000.00
26-Feb-04 3866 $900.00
27-Feb-04 3865 $4,000.00
30-Mar-04 3939 $4,000.00
15-Apr-04 3959 $1,000.00
11-Jun-04 4031 $5,000.00
14-Jun-04 4032 $3,000.00
15-Jul-04 4101 $3,000.00
15-Jul-04 4100 $5,000.00
13-Aug-04 4127 $3,000.00
13-Aug-04 4126 $5,150.00
27-Aug-04 4142 $5,100.00
15-Sep-04 4182 $4,800.00
01-Oct-04 4205 $5,490.00
28-Oct-04 4254 $3,549.00
28-Oct-04 4255 $2,500.00
29-Nov-04 4282 $5,150.00
10-Jan-05 4347 $6,750.00
4
24-Feb-05 4409 $6,000.00
TOTAL $137,694.58
12. The Checks were not properly payable by the Bank.
13. The Bank was placed on specific notice to not. honor checks signed by
Holtzapple, as drawer/maker, however, in spite of such notice by Davis, the Bank honored
the Checks anyway.
14. Despite the fact that the Checks were not properly payable, contrary to
Davis's explicit instructions to the Bank to not pay such checks, in breach of the Bank's
agreement and duty not to do so, and contrary to the Bank's assurances, promises,
representations and warranties that the Bank would not do so, the Bank paid the Checks to
Holtzapple.
15. Apparently, the Bank completely disregarded Davis's directive and never
intercepted any check signed by Holtzapple as drawer/maker after December 5, 2002.
16. By its actions, the Bank allowed Holtzapple to convert funds of Pulmonary
Associates to her own illegal use by Holtzapple's drawing the Checks against the Account,
endorsing the Checks and accepting the proceeds therefrom, while not being entitled to do
so.
17. On or about March 18, 2005, Davis discovered that Holtzapple was
continuing to sign checks, as drawer/maker, against the Account, at which time, Davis
immediately notified the Bank of Holtzapple's actions.
18. Davis stopped payment on check number 4434, which was signed by
Holtzapple as drawer/maker, dated March 15, 2005 and drawn against the Account in the
amount of $4,350.57.
19. All other checks signed by Holtzapple as drawer/maker after December 5,
2002 and drawn against the Account as noted in Paragraph 11, supra, were honored by the
Bank and paid to Holtzapple, contrary to the Bank's obligation not to do so.
20. Plaintiffs demanded repayment of the $137,694.58 improperly paid by the
Bank to Holtzapple, however, the Bank repaid Davis only the sum of $6,000.00 for said
check number 4409, claiming that Plaintiffs had only thirty (30) days after the statement
date for the Account to bring such information to the attention of the Bank, otherwise, the
Bank claimed that Plaintiffs waived any claims against the Bank for improper payment of
a check.
21. Plaintiffs were not informed by the Bank that Davis should monitor
statements for the Account for improper payment of checks drawn against the account by
Holtzapple; to the contrary, on December 5, 2002, the Bank assured Davis that the Bank
would see that no checks against the Account would be honored which were signed by
anyone other than Davis as drawer/maker, specifically, by 111oltzapple.
22. Plaintiffs reasonably and foreseeably relied upon the Bank's assurances,
promises, representations, and warranties that the Bank would ensure that no checks
signed by Hotlzapple as drawer/maker against the Account would be honored and paid
after December 5, 2002.
23. At all times after December 5, 2002, the Bank was obligated to Plaintiffs to
honor only checks against the Account which were signed by Davis as drawer/maker and to
not pay checks signed by Holtzapple as drawer/maker.
24. Reasonably and foreseeably relying upon the Bank's representations, Davis
did not scrutinize bank statements for the Account.
25. The Bank's actions in honoring and paying the Checks were committed in
the absence of ordinary care and good faith, and were contrary to reasonable and
acceptable commercial practices.
26. The Bank's actions in honoring and paying the Checks were reckless,
outrageous and committed with absolutely no regard for Plaintiffs' rights and financial
welfare.
27. The Bank's actions in honoring and paying the Checks were committed in
bad faith and with no legal justification or defense whatsoever.
28. The Bank's refusal to reimburse Plaintiffs for the funds paid from the
Account is without privilege or legal justification and has caused Plaintiffs loss of use of
said funds, interest thereon, and significant attorney's fees and costs incurred in seeking
redress through the filing and prosecution of the instant action.
29. The Bank is liable to Plaintiffs and owes Plaintiffs the sum of $131,694.58 in
funds paid by the Bank from the Account, plus interest Plaintiff would have earned on the
funds, for the Checks signed by Holtzapple as drawer/maker and improperly honored after
December 5, 2002 and which have not been reimbursed by the Bank.
30. The amount sought by Plaintiffs exceeds $25,000.00, the amount requiring
compulsory arbitration in Cumberland County.
COUNT I - BREACH OF EXPRESS CONTRACT - COMMON LAW
31. Paragraphs 1 through 30, above, are incorporated herein by reference as
though textually set forth at length.
32. On December 5, 2002, the Bank entered into an enforceable agreement with
Davis and Pulmonary Associates, evidenced by Exhibit "A" hereto, that the Bank would
not honor any check signed by anyone other than Davis, as drawer/maker, and that the
Bank would specifically dishonor any check signed by Holtzapple as drawer/maker
(hereinafter "Agreement").
33. The Bank breached the Agreement each and every time the Bank honored a
check signed by Holtzapple as drawer/maker after December 5, 2002, some 41 times as
more specifically noted in Paragraph 11, above, which is incorporated herein by reference.
34. As a direct result of the Bank's aforesaid breaches of the Agreement,
Plaintiffs have incurred damages in the nature of the loss of a significant amount of
Pulmonary Associates' funds, in the amount of $131,694.58, as well as interest on the funds.
WHEREFORE, Plaintiffs respectfully request your Honorable Court direct
judgment be entered in favor of Plaintiffs and against Defendant in the amount of
$131,694.58, plus pre and post judgment interest as allowed by law, costs of suit, and any
other relief deemed just by the Court.
COUNT II - BREACH OF IMPLIED CONTRACT - COMMON LAW
35. Paragraphs 1 through 34, above, are incorporated herein by reference as
though textually set forth at length.
36. Every contract imposes upon the parties an implied duty of good faith and
fair dealing.
37. The Bank breached its duty of good faith and fair dealing to Plaintiffs by its
actions.
38. As a direct result of the Bank's breach of its duty of good faith and fair
dealing, Plaintiffs have incurred damages in the nature of the loss of a significant amount
of Pulmonary Associates' funds, in the amount of $131,694.58, as well as interest on the
funds.
WHEREFORE, Plaintiffs respectfully request your :Honorable Court direct
judgment be entered in favor of Plaintiffs and against Defendant in the amount of
$131,694.58, plus pre and post judgment interest as allowed by law, costs of suit, and any
other relief deemed just by the Court.
COUNT III - BREACH OF DEPOSIT AGREEMENT
PURSUANT TO THE U.C.C. (13 Pa.C.S. 4 1101, et sea.)
(in the alternate)
39. Paragraphs 1 through 38, above, are incorporated herein by reference as
though textually set forth at length.
40. On December 5, 2002, the Bank and Plaintiffs modified the parties deposit
agreement, as evidenced by Exhibit "A" hereto, that the Bank would not honor any check
signed by anyone other than Davis, as drawer/maker, and that the Bank would specifically
dishonor any check signed by Holtzapple as drawer/maker.
41. The Bank breached its deposit agreement with Plaintiffs each and every time
the Bank honored a check signed by Holtzapple as drawer/maker after December 5, 2002,
some 41 times as more specifically noted in Paragraph 11, above, which is incorporated
herein by reference.
42. As a direct result of the Bank's aforesaid breaches of the deposit agreement,
Plaintiffs have incurred damages in the nature of the loss of a significant amount of
Pulmonary Associates' funds, in the amount of $131,694.58, as well as interest on the funds.
WHEREFORE, Plaintiffs respectfully request your Honorable Court direct
judgment be entered in favor of Plaintiffs and against Defendant in the amount of
$131,694.58, plus pre and post judgment interest as allowed by law, costs of suit, and any
other relief deemed just by the Court.
COUNT IV - CONVERSION - PURSUANT TO THE U.C.C. (13 Pa.C.S. 4 1101, et seq.)
(in the alternate)
43. Paragraphs 1 through 42, above, are incorporated herein by reference as
though textually set forth at length.
44. The Bank converted the property of Pulmonary Associates when the Bank
made payment on the Checks as noted in Paragraph 11, supra, as Holtzapple was not an
authorized signatory on the Account and was not entitled to endorse said checks, therefore,
the Checks were not properly payable.
45. When the Bank paid funds from the Account: on checks signed by Holtzapple
after December 5, 2002, it allowed Holtzapple to misappropriate and dissipate Plaintiffs'
funds.
46. As a direct result of the Bank's payment of the Checks to Holtzapple,
Plaintiffs have been deprived of property and incurred damages in the nature of the loss of
a significant amount of Pulmonary Associates' funds, in the amount of $131,694.58, as well
as interest Plaintiffs would have earned on the funds.
47. The Bank converted Plaintiffs' property with no legal justification or
privilege to do so.
48. The Bank's refusal to reimburse Plaintiffs for the funds paid from the
Account is without privilege or legal justification and have caused Plaintiffs loss of use of
said funds, interest thereon, and significant attorney's fees and costs incurred in seeking
redress through the filing and prosecution of the instant action.
10
WHEREFORE, Plaintiffs respectfully request your ]Honorable Court direct
judgment be entered in favor of Plaintiffs and against Defendant in the amount of
$131,694.58, plus pre and post judgment interest as allowed by law, costs of suit, attorney's
fees as allowed by law, and any other relief deemed just by the Court.
COUNT V - CONVERSION - COMMON LAW
(in the alternate)
49. Paragraphs 1 through 48, above, are incorporated herein by reference as
though textually set forth at length.
50. The Bank converted Plaintiffs' property with no legal justification or
privilege to do so.
WHEREFORE, Plaintiffs respectfully request your Honorable Court direct
judgment be entered in favor of Plaintiffs and against Defendant in the amount of
$131,694.58, plus pre and post judgment interest as allowed by law, costs of suit, attorney's
fees as allowed by law, and any other relief deemed just by the Court.
COUNT VI - PROMISSORY ESTOPPEL
(in the alternate)
51. Paragraphs 1 through 50, above, are incorporated herein by reference as
though textually set forth at length.
52. On December 5, 2002, the Bank promised and represented to Davis that the
Bank would not honor any check signed by Holtzapple as drawer/maker, which were
drawn on the Account.
53. Davis relied upon the Bank's said promises and representations, and
expected that no checks would be honored which were signed by anyone other than Davis,
as drawer/maker, especially Holtzapple.
11
54. Relying on the Bank's representations, Davis did not scrutinize bank
statements for the Account.
55. Plaintiffs' reliance upon the Bank's promises and representations was
reasonable and foreseeable.
56. As a direct and proximate result of Davis's reliance upon the Bank's said
representations, Davis was harmed and suffered significant damages, as Holtzapple
illegally drew checks against the Account which were illegally and improperly honored by
the Bank, causing a misappropriation of Plaintiffs' funds in the amount of $131,694.58,
plus interest that Plaintiffs would have earned on the funds.
WHEREFORE, Plaintiffs respectfully request your Honorable Court direct
judgment be entered in favor of Plaintiffs and against Defendant in the amount of
$131,694.58, plus pre and post judgment interest as allowed by law, costs of suit, and any
other relief deemed just by the Court.
COUNT VII - BREACH OF FIDUCIARY DUTY
(in the alternate)
57. Paragraphs 1 through 56, above, are incorporated herein by reference as
though textually set forth at length.
58. The Bank was Plaintiffs' fiduciary, as agent for Plaintiffs, as to the Account
and the funds held therein.
59. As Plaintiffs' fiduciary, the Bank was obligated to properly care for and
protect Plaintiffs' funds, paying only checks which were properly payable and, specifically
but not limited to, not paying checks signed by Holtzapple as drawer/maker after
December 5, 2002.
12
60. The Bank breached its fiduciary duty to Plaintiffs by paying the checks more
fully described at Paragraph 11, supra, which is incorporated herein by reference as
though textually set forth at length.
61. The Bank's actions were committed, at minimum, negligently, with a lack of
ordinary care, contrary to generally accepted commercial practices and in bad faith.
62. As a direct and proximate result of the Bank's breach of its fiduciary duty,
Plaintiffs have incurred damages in the nature of the loss of a significant amount of
Pulmonary Associates' funds, in the amount of $131,694.58., as well as interest Plaintiffs
would have earned on the funds.
63. The Bank is liable to Plaintiffs for said breach of its fiduciary duty.
WHEREFORE, Plaintiffs respectfully request your Honorable Court direct
judgment be entered in favor of Plaintiffs and against Defendant in the amount of
$131,694.58, plus pre and post judgment interest as allowed by law, costs of suit, and any
other relief deemed just by the Court.
COUNT VIII - NEGLIGENCE
(in the alternate)
64. Paragraphs 1 through 63, above, are incorporated herein by reference as
though textually set forth at length.
65. The Bank had a legally recognized duty to properly care for Plaintiffs' funds
and to only honor checks which were properly payable.
66. After December 5, 2002, the Bank assumed and accepted a duty to not pay
checks signed by Holtzapple as drawer/maker which were drawn against the Account.
67. The Bank breached its said duties to Plaintiffs by paying checks from the
Account which were not properly payable, which checks are more specifically described in
13
Paragraph 11, supra, which is incorporated herein by reference as though textually set
forth at length.
68. The Bank's actions were committed, at minimum, negligently, with a lack of
ordinary care, contrary to generally accepted commercial practices and in bad faith.
69. As a direct and proximate result of the Bank's breach of its said duties,
Plaintiffs have incurred damages of the loss of a significant amount of Pulmonary
Associates' funds, in the amount of $131,694.58, as well as interest Plaintiffs would have
earned on the funds.
70. The Bank is liable to Plaintiffs for said damages.
WHEREFORE, Plaintiffs respectfully request your Honorable Court direct
judgment be entered in favor of Plaintiffs and against Defendant in the amount of
$131,694.58, plus pre and post judgment interest as allowed by law, costs of suit, and any
other relief deemed just by the Court.
COUNT IX - CONSTRUCTIVE TRUST
(in the alternate)
71. Paragraphs 1 through 72, above, are incorporated herein by reference as
though textually set forth at length.
73. In the event that it is judicially determined tb at Plaintiffs have no cognizable
or actionable cause as averred above, Plaintiffs will have no full and adequate remedy at
law.
74. The Bank held Plaintiffs' funds in a constructive trust for Plaintiffs' benefit.
75. As constructive trustee, Bank was required to pay funds from the Account
only on checks drawn by Davis after December 5, 2002.
14
76. The Bank breached its duty as constructive trustee by honoring checks
against, and paying funds from, the Account which were drawn by Holtzapple, as
drawer/maker, as noted above and more specifically noted in Paragraph 11, supra, which is
incorporated herein by reference as though textually set forth at length.
77. Plaintiffs have been directly and proximately harmed by the Bank's
improper actions as constructive trustee, as funds which should have been applied to
Plaintiffs' use and benefit have been improperly paid to Holtzapple.
78. The Bank is liable to Plaintiffs for the Bank's breach of the Bank's duties
and obligations as constructive trustee.
79. Plaintiffs come to your Honorable and Equitable Court with clean hands.
WHEREFORE, Plaintiffs respectfully request your Equitable Court direct
judgment be entered in favor of Plaintiffs and against Defendant in the amount of
$131,694.58, plus pre and post judgment interest as allowed by law, costs of suit, and any
other relief deemed equitable by the Court.
Respectfully Submitted,
BROUJOS & GILROY, P.C.
c/-C?) -0f
Date
By: Hu ert Gil Esquire
Supreme C rt I.D. No. 29943
4 North nover Street
Carlisle, PA 17013
(717) 2434574
(Attorney for Plaintiffs)
15
80d G68b SEL LTL:W0113
,RO'd -1H10l
AHVKOW'llld SIAVU:O.I ZE:TT GO-ZT-'b0
Pepriosy,vania State Bank Prepared By: Date:
Completed By Date:
Account Number 1 Account Number 2 New Ac?cWtt or other Related Accounts
C) ?) ainteria'n
(
(J dr
-+
I iodividual Account I. ) YA'Iransfcr To Minors Act ] ] Note Pruptict., iliip I (kganivstiun Not For Profit
( ] Joiw Account Wall Serv-,iihip f 1 Fs to AcrAunt 1 Parbmrshi lr j ] Onv't / Public Fund,
f ] Joint TENEN I' (IIUSUand r with nnly) I f IRA I SZP II=tc I or Prnfn 1 Other
I ] In trust For
Account TI[Ie A. It Is Tu Appear On Staltamenl
Name Line 1: Din ? )I A i\? (\a , S LC- (.4
iNerne Linz 2:
Name Line 3=
Primary Address - Lute 1: secondary Address - Line 1:
Address Line 2: Address Line 2:
City_ ?\ \ State: P? 7rp: I I? City+: State 717
SSN / ERv_ _ ' a `I f I
`3 'Type: ff blantc) SSN / BTN_ -fype: t? or blank)
Horne Phone: (. ) Home -Phone.-( )
Gr?
$uSinCSS Phone: EXT #
l?
BnsilleSS Phone: ( ) E)Cr #
Birds Date: M F O (cimlc one) EuthDate: M F O (circle one)
Financial Ccater/1 C; i Offcc j ?I.t (
`?•? Employee: Y Finsncia Center 019icer: Employee: Y N
Occupation/ Employer: Occupation+Emp]Dyer:
Identification Type, Number and Expiration IdcndScatiort Type, Ntianber and Expiration
Fax #: { ) Celhdar #: ( ) Fax a: ( ) Cellular #: ( )
E-Mail Address: -1 1;-Mail Address:
By signing below I certify under penalties of perjury the statements checked arc corrael. The undersigned a;9ec(s) to the terms stated on the front of the
form and acknowledge(s) receipt or at least one copy on the date siased.
?.. ( r+n
. 1 /91,? w •? _ /"))
mo AXPAYER LD.NUM$HR- Undapenalties ofperjury, lcertify that the
number provided on this form is true, correct and complete.
/?
+ tl „?? Lt?l! j?
tif-.- tif
th
t
T
U
l
i
f
I
y
perjury.
cer
a
ax-
t
es o
a
nder pena
[ ] NUMBER Rq- QESTGD-
Signature Title Date payer I. D. Number !tag not been issued to me, and that I mailcd m
delivered an application for a number to the appropriate IRS or Social
security Administration Office (or ( intend to malt or deliveran apphur;on
Signature Title Datc in the near future). I understand that if 1 do not provide a number to the
bank witlt:n 60 days, the bank i5 required to withhold 20 percent ofall
1 reportable payments thereafter made to me until I provide a number.
Signature Title Date [ CKUP'WITHHOLDING- I am not subiect. to backup withholding, either
because I have not been notified that I am subject to backup withholding as
a result of a feiltu to report any interest J dividends, Or the Internal KtrAciuc
Signature Title Patc Service has notified me that I am no longer subject to backup Widl]lolding.
[ ] EXEMPT RECTIENT- 1 am an exempted recipient under the Intcmal
Revenue Service regulations,
Signature Title Date i l9ISCLOSURE STATEMENT -I acknowledge receiving a copy of the
!
account terms and toadipons distlosum
Number of Signatures Required for Withdrawal:
CIF Level IMestsages (To Be Displayed On All Accounts) Contact Cheat Systems Now - lleri& on Back!
EX irafion:
(h,CLL)J? EXHIIBIT
I
, ^4, -4- it 8 H f`--.
8G_1'd SEot S-1L LTL -lHIUNHNIil nN
SBEZ-FT-6dH
IN THE COURT OF COMMON ]PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
DAVIS PULMONARY ASSOCIATES, P.C.
and STEPHEN J. DAVIS, M.D.,
Plaintiffs
DOCKET NO. 05 - 3243
V.
PENNSYLVANIA STATE BANK,
Defendant
CIVIL ACTION - LAW & EQUITY
VERIFICATION
I am Stephen J. Davis, M.D., president of Davis Pulmonary Associates, P.C., and I
am authorized to sign this verification on behalf of the corporation. I am also an individual
plaintiff in this action. The words of the foregoing Complaint and the legal conclusions
contained in the document are those of my attorney and not mine, however, the Complaint
is based upon information that I have provided to my attorney or that my attorney has
found upon reasonable investigation and provided to me. The facts averred in the
foregoing Complaint are true and correct to the best of my knowledge, information and
belief, and I understand that this verification is made subject to 18 Pa.C.S. § 4904 relating
to unsworn falsification to authorities.
Q-a-05
Date
94p#0 j3a* 1)
Stephe J. Davis, M.D.
16
IN THE COURT OF COMMON ]PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
DAVIS PULMONARY ASSOCIATES, P.C.
and STEPHEN J. DAVIS, M.D.,
Plaintiffs
V.
PENNSYLVANIA STATE BANK,
Defendant
DOCKET NO. 05 - 3243
CIVIL ACTION - LAW & EQUITY
CERTIFICATE OF SERVICE
I hereby certify that, on this date, I have served a true and correct copy of the
foregoing Complaint upon the following and in the manner specified, which service satisfies
Pa.R.C.P. 440:
UNITED STATES FIRST CLASS MAIL POSTAGE PREPAID TO:
Jean Svoboda, Vice President and General Counsel
Sterling Financial Corporation
1097 Commercial Avenue
P.O. Box 38
Mail Code: 294-953
East Petersburg, PA 17520
(Attorney for Defendant)
Date
al'
Hubert X. Gilroy squire
Supreme Cour .D. No. 29943
Broujos & Gi oy, P.C.
4 North Hanover Street
Carlisle, :PA 17013
(717) 243-4574
(Attorney for Plaintiffs)
17
r., ca
.a
l
?n
N7 })
W
44%
Davis Pulmonary Associates
vs Caac No. 2005-3243
Pennsvlvania State Bank
Statement of Intention to Proceed
To the Court:
Davis Pulmonary Associates intends to pl=4 wi t the above owed matter.
Print NameAnthony P. Tabasso Sign Name
Randolph C. Reliford
Date: 10/23/08 AttomeyforDayis Pulmonary Associates
Upli matary Comment
The Supreme Court of Pennsylvania has promulgated new Rule of Civil Procedure 230.2 governing the twmination of
inactive uses and amended Rule of Judicial Administration 1901. Two aspects of the recommendation merit
comment.
L Rule of dvil Procedure
New Rule of Civil Procedure 230.2 has been promulgated to govern the termination of inactive awes within the
scope of the Pennsylvania Rules of Civil Proeedum The termination of these cases for inactivity was previously
governed by Rule of Judicial Administration 1901 and local rules promulgated pursuant to it. New Rule 230.2 is
tailored to the needs of civil actions. It provides a complete procedure and a uniform statewide practice, preempting
local rules.
'T'his rule was promulgated in response to the decision of the Supreme Court in Shop v. Eagle, 551 Pa. 360,710 A.2d
1104 (1998) in which the court held that "prejudice to the defeendant as a result of delay in prosecution is required
before a case may be dismissed punauant to local rules implementing Rule of Judicial Adnizinist ation 1901."
Rule of Judicial Administration 1901(b) has been amended to accommodate the new rule of civil procedure. The
general policy of the prompt disposition of nutters set forth in subdivision (a) of that rule continues to be applicable.
11 Inacdve Crier
The purpose of Rule 230.2 is to eliminate inactive cases from the judicial system, The process is initiated by the
court. After giving notice of intent to terminate an action for inactivity, the course of the procedure is with the parties.
If the parties do not wish to pursue the cane, they will take no action and "the Prothonotary shall enter an order as of
course terminating the matter with prejudice for ikilum to prosecute." If a party wishes to pursue the nutter, he or she
will, file a notice of intention to proceed and the action shall continue,
a. Where the action has bean terminated
If the action is terminated when a party believes that it should not have been terminated, that party may proceed
under Rule230(d) for relief from the order of termination. An example of such an occurrence might be the termination
of a viable action when the aggrieved party did not receive the notice of intent to terminate and thin did not timely file
the notice of intention to proceed.
The timing of the filing of the petition to reinstate the action is important. If the petition is filed within thirty days of
the entry of the order of termination on the docket, subdivision (d)(2) provides that the court must grant the petition and
reinstate the action. If the petition is filed later than the thirty-day period, subdivision (d)(3) requires that the plaintiff
must make a show in to the court that the petition was promptly filed and that there is a reasonable explanation or
legitimate excuse both for the failure to file the notice of intention to proceed prior to the entry of the order of
termination on the docket and for the failure to file the petition within the thirty-day period under subdivision (dx2).
B. Where jAe action has not been terminated
An action which has not bear tenrnated but which continues upon the filing of a notice of Intention to proceed may
have been the subject of inordinate delay. In such an instance, the aggrieved party may pursue the remedy of a
common law non pros which exits independently of termination under Rule 230.2.
O
, Q
LT
: X-
.
P --4 F
-ra
CO
1D. avid D. Bueff
Trothonotary
KirkS. Sohonage, ESQ„
Sohicitor
0
v
Renee X Simpson
I" Deputy Prothonotary
z?
r
o;
Irene E. Morrow
2"d Deputy Prothonotary
Office of the Prothonotary
Cum6erfand County, Pennsylvania
OS- 3Zq.3 CIVILTERM
ORDER OF TERMINATION OF COURT CASES
AND NOW THIN 25T" DAY OF OCTOBER, 2011, AFTER MAILING NOTICE OF
INTENTION TO PROCEED AND RECEIVING NO RESPONSE - THE ABOVE
CASE IS HEREBY TERMINATED WITH PREJUDICE IN ACCORDANCE WITH PA
R.C.P 230.2
BY THE COURT,
DAVID D. BUELL
PROTHONOTARY
One Courthouse Square 9 Suite 100 • Carhs(e, PN 17013 • (717) 240-6195 9 Fa.X (717) 240-6573