HomeMy WebLinkAbout12-19-05 (2)
REV.1500 EX (6-00)
REV-1500
'*' COMMONWEALTH OF
PENNSYLVANIA
. DEPARTMENT OF REVENUE
DEPT. 280601
HARRISBURG, PA 17128-0601
W
I-
lI:~(/)
uO::lI:
wl1.U
zOO
uO::..J
I1.m
11.
<I:
INHERITANCE TAX RETURN
RESIDENT DECEDENT
J-
Z
W
C
W
o
W
C
DECEDENTS NAME (LAST, FIRST, AND MIDDLE INITIAL)
JOHN R. DRUSCHEL
FILE NUMBER
21 05
0777
DATE OF DEATH (MM-DD-YEAR)
08/19/2005
DATE OF BIRTH (MM-DD-YEAR)
03/09/1954
COUNTY CODE YEAR
NUMBER
(IF APPLICABLE) SURVIVING SPOUSE'S NAME (LAST, FIRST, AND MIDDLE INITIAL)
DRUSCHEL, JANICE J.
[!] 1. Original Return
o 4. Limited Estate
o 6. Decedent Died Testate (Attach copy of Will)
o 9. Litigation Proceeds Received
o 2. Supplemental Return
o 4a. Future Interest Compromise (date of death after 12-12-82)
o 7. Decedent Maintained a Living Trust (Attach copy of Trusl)
o 10. Spousal Poverty Credit (dale of death between 12-31-91 and 1-1-95)
SOCIAL SECURITY NUMBER
177-46-2001
THIS RETURN MUST BE FILED IN DUPLICATE WITH THE
REGISTER OF WILLS
o 3. Remainder Return (dale of dealh prior 1012-13-82)
o 5. Federal Estate Tax Return Required
8. Total Number of Safe Deposit Boxes
o 11. Election to tax under Sec. 9113(A) (Attach Sch 0)
I-
Z
W
C
Z
o
11.
(/)
W
0::
0::
o
U
NAME
ROBERT C. MAY
FIRM NAME (ff Applicable)
THE LAW FIRM OF MAY & MAY, P.C.
TELEPHONE NUMBER
(717) 612-0102
COMPLETE MAILING ADDRESS
4330 CARLISLE PIKE, CAMP HILL PA 17011
0.00 x.O~ (15) 0.00
0.00 x.O~ (16) 0.00
0.00 x .12 (17) 0.00
0.00 x .15 (18) 0.00
(19) 0.00
0.00
0.00
0.00
0.00
0.00
z
o
~
..J
:::J
~
D-
c:(
o
w
a::
1. Real Estate (Schedule A)
2. Stocks and Bonds (Schedule B)
3. Closely Held Corporation, Partnership or Sole-Proprietorship
4. Mortgages & Notes Receivable (Schedule D)
5. Cash, Bank Deposits & Miscellaneous Personal Property
(Schedule E)
6. Jointly Owned Property (Schedule F)
o Separate Billing Requested
7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property
(Schedule G or L)
(1)
(2)
(3)
(4)
(5)
\_::J
....--"1'1
0.00
., .i
';'1
(6)
(7)
8. Total Gross Assets (total Lines 1-7)
9. Funeral Expenses & Administrative Costs (Schedule H)
10. Debts of Decedent, Mortgage Liabilities, & Liens (Schedule I)
11. Total Deductions (total Lines 9 & 10)
12. Net Value of Estate (Line 8 minus Line 11)
13. Charitable and Governmental Bequests/See 9113 Trusts for which an election to tax has not been
made (Schedule J)
(9)
(10)
14. Net Value Subject to Tax (Line 12 minus Line 13)
SEE INSTRUCTIONS ON REVERSE SIDE FOR APPLICABLE RATES
z
o
~
~
:::J
D-
:!E
o
o
~
15. Amount of Line 14 taxable at the spousal tax
rate, or transfers under Sec. 9116 (a)(1.2)
16. Amount of Line 14 taxable at lineal rate
17. Amount of Line 14 taxable at sibling rate
18. Amount of Line 14 taxable at collateral rate
19. Tax Due
20.0
CHECK HERE IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT
0.00
(8)
10,077.76
0.00
0.00
(11)
(12)
(13)
10,077.76
-10,077.76
0.00
(14)
0.00
')
P
f":.
Decedent's Complete Address:
STREET ADDRESS
3901 Chestnut Street
CITY Camp Hill I STATEpA I ZIP 17011
Tax Payments and Credits:
1. Tax Due (Page 1 Line 19)
2. Credits/Payments
A. Spousal Poverty Credit
B. Prior Payments
C. Discount
(1)
0.00
0.00
0.00
0.00
Total Credits (A + B + C ) (2)
0.00
3. InteresUPenally if applicable
D. Interest
E. Penalty
0.00
0.00
A. Enter the interest on the tax due.
(5A)
0.00
0.00
0.00
0.00
0.00
TotallnteresUPenally ( D + E ) (3)
4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT.
Check box on Page 1 Line 20 to request a refund (4)
5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (5)
B. Enter the total of Line 5 + 5A. This is the BALANCE DUE. (5B)
Make Check Payable to: REGISTER OF WILLS, AGENT
PLEASE ANSWER THE FOllOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRIATE BLOCKS
1. Did decedent make a transfer and: Yes No
a. retain the use or income of the property transferred;.......................................................................................... 0 [i]
b. retain the right to designate who shall use the property transferred or its income; ............................................ 0 [i]
c. retain a reversionary interest; or.......................................................................................................................... 0 [i]
d. receive the promise for life of either payments, benefits or care? ...................................................................... 0 [iJ
2. If death occurred after December 12, 1982, did decedent transfer property within one year of death
without receiving adequate consideration? .............................................................................................................. 0 [i]
3. Did decedent own an "in trust for" or payable upon death bank account or security at his or her death? .............. 0 ~
4. Did decedent own an Individual Retirement Account, annuity, or other non-probate property which
contains a beneficiary designation? ........................................................................................................................ 0 ~
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN.
Under penalties of pe~ury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete.
Declaration of preparer other than the personal representative is based on all information of which preparer has any knowledge.
ADDRESS
DATE
/ L / J 2 J 2-~S
.
PA
DATE
12/12/ ?o<.--~~
. I
For dates of death on or after July 1, 1994 and before January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 3%
[72 P.S. 99116 (a) (1.1) (i)].
For dates of death on or after January 1, 1995, the tax rate imposed on the net value of transfers to or for the use of the surviving spouse is 0% [72 P.S. 99116 (a) (1.1) (ii)).
The statute does not exemot a transfer to a surviving spouse from tax, and the statutory requirements for disclosure of assets and filing a tax return are still applicable even if
the surviving spouse is the only beneficiary.
For dates of death on or after July 1, 2000:
The tax rate imposed on the net value of transfers from a deceased child twenly-one years of age or younger at death to or for the use of a natural parent, an adoptive parent,
or a stepparent of the child is 0% [72 P.S. 99116(a)(1.2)].
The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneficiaries is 4.5%, except as noted in 72 P.S. 99116(1.2) [72 P.S. 99116(a)(1)].
The tax rate imposed on the net value of transfers to or for the use of the decedent's siblings is 12% [72 P.S. 99116(a)(1.3)). A sibling is defined, under Section 9102, as an
individual who has at least one parent in common with the decedent, whether by blood or adoption.
REV-1504 EX+ (6-98*
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE C
CLOSELY-HELD CORPORATION,
PARTNERSHIP OR
SOLE-PROPRIETORSHIP
ESTATE OF
John R. Druschel
FILE NUMBER
21-05-0777
Schedule C-1 or C-2 (including all supporting information) must be attached for each closely-held corporation/partnership interest of the decedent, other than a
sole-proprietorship. See instructions for the supporting information to be submitted for sole-proprietorships.
ITEM NUMBER
NUMBER DESCRIPTION
1. John R. Oruschel & Associates, LLC, a Pennsylvania limited Liability Company
VALUE AT DATE
OF DEATH
0.00
TOTAL (Also enter on line 3, Recapitulation) $
(If more space is needed, insert additional sheets of the same size)
0.00
REV-1505 EX+ (6-9W
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE C-'
CLOSELY-HELD CORPORATE
STOCK INFORMATION REPORT
ESTATE OF
John R. Druschel
FILE NUMBER
21-05-0777
1. Name of Corporation John R. Druschel & Associates. LLC
Address 3901 Chestnut Street
City Camp Hill
2. Federal Employer I.D. Number 02-0698686
3. Type of Business IV administration to nursing home patients
State~ Zip Code 17011
State of Incorporation Pennsylvania
Date of Incorporation OS/21/03
Total Number of Shareholders One (1)
Business Reporting Year Cal.
Product/Service administration of IV's to nursing home patients
4.
Common Votin
1000
none
1000 $
$
0.00
Preferred
Provide all rights and restrictions pretaining to each class of stock.
5. Was the decedent employed by the Corporation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. III Yes 0 No
If yes, Position President & CEO Annual Salary $ 16,00000 lime Devoted to Business
100%
6. Was the Corporation indebted to the decedent? ................................. 0 Yes !l No
If yes, provide amount of indebtedness $
7. Was there life insurance payable to the corporation upon the death of the decedent? .. . .. 0 Yes JlI No
If yes, Cash Surrender Value $ Net proceeds payable $
Owner of the policy
8. Did the decedent sell or transfer stock in this company within one year prior to death or within two years
if the date of death was prior to 12-31-82?
o Yes IJ No If yes, 0 Transfer 0 Sale Number of Shares
Transferee or Purchaser Consideration $ Date
Attach a separate sheet for additional transfers and/or sales.
9. Was there a written shareholder's agreement in effect at the time of the decedenfs death? ....0 Yes IXI No
If yes, provide a copy of the agreement.
1 O. Was the decedent's stock sold? .................................................. 0 Yes iI No
If yes, provide a copy of the agreement of sale, etc.
11. Was the corporation dissolved or liquidated after the decedent's death? ................... 0 Yes iii No
If yes, provide a breakdown of distributions received by the estate, including dates and amounts received.
12. Did the corporation have an interest in other corporations or partnerships? . . . . . . . . . . . .. 0 Yes III No
If yes, report the necessary information on a separate sheet, including a Schedule C-1 or C-2 for each interest.
THE FOLLOWING INFORMATION MUST BE SUBMITTED WITH THIS SCHEDULE
A. Detailed calculations used in the valuation of the decedent's stock.
B. Complete copies of financial statements or Federal Corporate Income Tax retums (Form 1120) for the year of death and 4 preceding years.
C. If the corporation owned real estate, submit a list showing the complete address/es and estimated fair market value/so If real estate appraisals have
been secured, attach copies.
D. List of principal stockholders at the date of death, number of shares held and their relationship to the decedent.
E. List of officers, their salaries, bonuses and any other benefits received from the corporation.
F. Statement of dividends paid each year. List those declared and unpaid.
G. Any other information relating to the valuation of the decedent's stock.
(If more space is needed, insert additional sheets of the same size)
Schedule C-1 Attachment to Inheritance Tax Return of John R. Druschel, 21-05-0777
A. The value of decedent's stock is calculated with reference to the income statement for the
period ending November 30, 2005, and the balance sheet as of November 30, 2005, copies of
which are attached hereto, as follows:
1. Operating Loss of $21 ,203 YTD showing no value based on a multiple of earnings.
2. Negative Book Value of$90,255 as of 11/30105, showing no value based on a
multiple of book value.
3. The Company has no revenues, no operations, no assets, no employees, no
independent contractors and no activity of any sort aside from ongoing litigation. See G below
for a discussion of the ongoing litigation.
B. All Federal Corporate Income Tax Returns are attached for this company from its inception in
2003 as a corporation.
C. No real estate was owned by the company.
D. Decedent was the only stockholder in the company.
E. Decedent was the only officer in the company. For 2005, he received a salary at the annual
rate of $16,000 without any benefits or bonuses, except for the reimbursement of business
expenses shown on the income statement. As of his death on August 19,2005, he had collected
$11,900 in salary.
F. No dividends were declared or paid for 2005. For 2004, a dividend of$109,962 was declared
and paid. For 2003 no dividends were declared or paid.
G. The Company filed a claim against the independent contractor to whom an $84,850 account
payable is owed on the basis that the independent contractor tortiously interfered with and took
business from the Company while the decedent was living. This was the Company's largest
customer. Upon the transfer of the Company's Membership Interests to the sole heir to the
Estate, the decedents wife, the costs of this lawsuit, will also fall upon the decedent's wife. The
potential value of this litigation is the only asset of the Company. The Pleadings in this litigation
are attached hereto.
John R. Druschel & Associates, LLC
Financial Statements
For the Period Ended November 30,2005
(Unaudited/Interim)
Financial Statement-Druschel
11/30/05
Carey Associates, Inc.
Accounting & Tax Services
November 30, 2005
Estate of John R. Druschel
3901 Chestnut Street
Camp Hill, P A 17001
To whomever it may concern:
Attached is the Balance Sheet as of November 30, 2005 for John R. Druschel &
Associates, LLC and the related Statement of Income and Retained Earnings for the year
then ended. These statements were prepared based upon information submitted by you to
our office.
If you have any questions regarding these statements, please contact our office. Thank
you very much for your business.
Sincerely,
CAREY ASSOCIATES, INC.
l#AJ/
Skyler Daugherty, Accounting & Tax Manager
Carey Associates, Inc.
542 Bridge Street New Cumberland, PA 17070
Phone (717) 774-4382 Fax (717) 774-4928
John R. Druschel & Associates, LLC
Statement of Income and Retained Earnings
For the Period Ended November 30, 2005
Revenue:
Gross Sales less Discounts & Allowances
$341,082
Total Revenue
$341,082
Direct Job Costs:
Contracted Services
Job Materials
$234,581
$3,250
Total Direct Job Costs
$237,831
Gross Profit
Total Operating Expenses, See Schedule
Net Income (Loss) From Operations
Other (Income) & Expenses:
Interest Income
Interest Expense
$0
$0
Total Other (Income) & Expenses
Net Income (Loss)
Beginning Retained Earnings
Distributions to Shareholders
Ending Retained Earnings
Financial Statement-Druschel
$103,252
$124,455
($21,203)
$0
($21,203)
$15,798
$0
($5,405)
11/30/05
John R. Druschel & Associates, LLC
Schedule of Operating Expenses
For the Period Ended November 30, 2005
Compensation of Officer1s
Salaries-Operations
Payroll Taxes-G&A
Administrative Services
Professional Development
Advertising
Vehicle Expense
Dues & Subscriptions
Licence
Insurance
Office Supplies & Expense
Equipment
Postage & Delivery
Legal & Professional Fees
Payroll Service Fees
Telephone
Meals & Entertainment
Depreciation (Estimated)
Amortization (Estimated)
Total Operating Expenses
Financial Statement-Druschel
$11,900
$56,982
$5,269
$1,320
$1,277
$1,675
$22,902
$275
$75
$2,696
$83
$1,080
$30
$5,933
$773
$4,211
$7,973
$0
$0
$124,455
11/30/05
John R. Druschel & Associates, LLC
Balance Sheet
As of November 30, 2005
Assets
Current Assets:
Cash in Bank and On Hand
Accouts Receivable
($5,405)
$0
Total Current Assets
($5,405)
Fixed Assets:
Depreciable Assets
Accumulated Depreciation
$11,064
($11,064)
Total Fixed Assets
$0
Other Assets:
Software
Accumulated Amortization
$0
$0
Total Other Assets
$0
Total Assets
($5,405)
Financial Statement-Druschel
11/30/05
John R. Druschel & Associates, LLC
Balance Sheet
As of November 30, 2005
Liabilities & Stockholders' Equity
Current Liabilities:
Accounts Payable
$84,850
Total Current Liabilities
$84,850
Long- Term Liabilities:
Loans Payable
$0
Total Long-Term Liabilities
Total Liabilities
Stockholders' Equity:
Paid-in Capital
Retained Earnings
$0
($90,255)
Total Stockholders' Equity
Total Liabilities & Stockholders' Equity
Financial Statement-Druschel
$0
$84,850
($90,255)
($5,405)
11/30/05
For calendar e.ar 2004. or tax
A Eff.c1~ dIlla 01
S .tecl.l<ln
u.s. Income Tax Return for an 5 Corporation
.. Do not tile this fonn "l'll~ss the corporation h,!s timely filed
FOml 2553lO Alect to be an S corporation.
.. SEIO sepl'lrate instnlctions.
2004, and endin
OMS No. 1545.0130
Form 11205
Del'3rtrrJon( ~ \ha T","""'Y
Intern..1 R~nua Servl~
2004
C E:mpl~r k1.r1lificalion nLllllb.r
Use the
IRS
label.
Other-
. B Bu,ln."" cod. n....."'" wise, 3901 Chestnut Street
(~. l""-'ItLlCllon3l print or City or town. $Iola. and ZIP GOd<: J;: Tolalassets ($aa instructions)
541990 type. PA 17011 $ 100 798.
F Ch~ck llpplicable boxes: (1) Initial reMn (2) Final return (3) Narne change (4) Address change (!S) 0 Amended return
G Enter number of shareholders in the corporation at end of t/'Ie tax year. . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . . , . . 100- 1
Caution: Include en trade or business income and ex nse$ on lines la throu h 21. See t/'le instructions for more information.
18 Gro~5 l'P.Cl!ipts Dr sales .. 438 , 721. b less returns and allowances. . C 8al ~ 1 c
2 Co~t of goods sold (Schedule A. line 8) ..............,.,..........,................,................. 2
3 Gross profit. Subtract line 2 from line 1<;..... ......... ... .... ....., . .. , ...... ... .. ... .. ... . .... .. . . ,.. 3
4 Net gain (loss) from Form 4797. Part II. line 17 (attach Form 4797)........... _.............. ........... 4
S Other income (loss) (attach $chedute) . . . . . .. .. .. . . .. . .. . . . .. . . , . . . .. .. . . . .. . .. . . . . . . . . .. .. , , .. . . . . . , . 5
G Total income OS$. Add lines 3 throu h 5 ........................................... _ . . . . . . . . , ,'. .. ~ 6
o 7 Compensation of officers. . . . . . . . . . . . . . . . . . . , . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . , . . . . . . . 7
E 8 S8lari~s and wages (less employment credits) '. . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . , , . . . . . . . . . 8
[) 9 Repairs and maintenance ................. . . , . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , , , , . . . . . 9
g 10 Bad debts ,...,.....................,..............."............................................. 10
T 11 Rents. . . . . . . .. , . . . , . . . . . . . . . . . . . . . . . , . . . . _ . . . . . .... , , . . . . . . . . . . . . . . , . . . . . . . . .. . . . . . . . . . , . , . . . . . . .. 11
6 12 TDlCes and licenses. . . . . . . . ... . . . . .. . . . . . . . . . . . . . . ... . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12
N HI Interest. . .. . . .. .. . . . . . . . . ... . . . , . . . . . . . . . . .. . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . _ 13
S 14a Depreciation (attClch Fon'lf4sfi2) ......................................... 14a
b Dopreciation claimed .ot'! SchEldule A and elsewhere on return. . . . . , . . . . . . . .. 14b
C Subtract line 14b from line 14<1 ..................., , . . . . . . . . . . . . . . . . , . . . . . . . . . , . . . . . . . . . . . . . , . . . . . . .. 14c
I 1S Depletion (Do not !fcduct oil and ga$ depletion.) . .. .. . .. .. .. .. . .. .. .. .. . .. . . . , . . . , . . .. . . . .. . .. . . . .. ... 15
fII
~ 16 Advertising ....................................................,..................,................ 16
'R 11 Pension. profit.sharing, etc. plans ..............,............ _ . . . . . . , . , . . . . . . . . . . . . . . . . . . . . . , . . . . . . .. 11
.g 18 Employee benefit programs .....,..,.............,...,.,..................."....,.................. 18
T
6 19 Other deductions (attach schedule) .....,. ... . S1MT. .. . . . .. . . . . .. . . . . . . . . . . . . . . . , . , . . , . . . . . . . . . . . . . .. 19
N 20 Tobl deductions. Add the amounts shown in t/'Ie far right column for lines 7 Ihrough 19 . . . . . . . . . . . . . . .. ~ 20
s 21 Ordlna business income loss. Subtract line 20 from line 6 .......,.,.,..................... , , , . . . . .. 21
T 22 Tll~ a Excess net passive income llIx (~tt8ch scher/ute) . . . . . . . . . , . . , , . . . . . . . . . . . . . . ,. 22 ~
A
X b TalC from SChedule D (Form 11205) .. .. .. .. . . .. .. . .. .. . .. . .. , , . . .. .. . .. ... 22 b
c Add lines Z2~ and 22b (see instructions for additional laxil$) ...................,.......................,.".......
~ Z3 P~ymen!s: 1I20D4 estimated tax payments and amount applied from 2003 return ........,.. 23 ill
o b Tax deposited with Form 7004 .. . . . . . , . . . . . . .. . .. . . . . . . . . . . . , . . . . . . . . . . . .. 23b
P c Credit for Federal tax paid on fuels (attach Form 4136) ............... .. . . .. 23c
A d Add lines 23a through 23c . . .. .. . .. .. .. .. . .. . , . .. . . . .. .. .. . .. . .. . " .. . .. .. .. . .. .. .. .. .. . .. , , .. . . .. ... 23 d
~ 24 EsUm3tcd tax penalty (see instrLICtions). Check if Form 2220 is attached .. . . . . , .. . . . . . . . . . . . , . .. ... 0 24
E 2S TalC due. If line 23d is smaller than the total of lines 22c and 24, enter amount owed . . . , . . . . . . . . . . . . . , , .. 2S
~ 2G Ollcrpaymcnt. If line 23d is larger than the total of lines 22c and 24. enter iilmount overpaid ........,..... 26
S '2.7 Enter amount of line 26 ou want: Credited to 200S estimated tax .. ... Rerunded ~ 27
0:1. 01/04
John R. DrU$chel & Associates, LLC
Number. slrael. and room or sufle DO. (If.. P.O. box. SG~ in.lruction::;.)
02-0698686
D Claw in""porated
OS/21/03
I
N
C
o
M
E
438 721.
172, 862 .
265 859.
7 365.
s
l;
E
77 164.
155 897.
109 962.
Sign
Here
h""" c..minad aIls relu"" inclll<ling """Oo'llpanying schcdulc~ nnd .'.Iaments. and to I~ but 01 my knowlodg<: and
.r;>1ion of prep..,a. (Olller than ta,pi1Y<'r) is based on ,,11 inl""""'lion ", whiCh preparer has any krlowledge.
~~::: ::~~~~~ ~:l~~
(see tnSlrUoti~)?
Yes
.,.. President
Tnle
Prcpnrer'to
.Ignnlv<c
.,..
Pr~parer'S 55N or PTlN
No
Paid
Preparer's
Us!:! Only
Firm', name
~n:~:y8d). .,..
~~.nd New Cumberland PA 17070
For Privacy Act aml1>aperwork Reduction-Aa Notice,.seethcseparate in!:tnJctions;
189-IJ6-7069
ErN 25-1819849
BAA
Phon! no, ( 717
SPSAOl12 .08/04104--
774-4382
Form 1'1205 (2004)
l ~ p':'(
c l...,.,y'
x .'-i.... 11
John R. Druschel & Associates, LLC
Cost of Goods Sold (see instructions
1 Inventory at beginr'ling of year - . . . . . . , , . . . . . . . , . . . . . . . , . . . . . . . . . . , . . . . . . . . . . . . - . . , , , . . . . . . . , . , . . . . . . . . . . .
:2 Purchases". . . . . . .. . . . . . . , . , , . . . . . . . , . . . . . . , . . . . . . . . . . . . . " . . . . . , . . . . . , , , , - . . .. , . , . . . . . . . . . , . . .. . . , . . .
3 Cost of labor ....".,......,........",............... -........ . ,.." .'. ..... , . ... .. "... .. - -.., " .. . ...
4 Additional scction 263A costs (attach schedule) ..",............... - . . . .. .. . . .. , , . -- - . .. . , .. . . . . . . ... . . . ..
S Other costs (attach schedule) .....~.. 5LMJ: . . . . . . . , . . . . . . . . . , . . . . . . . . . . . . . . . . , . . . . . . . . . . . , , . . - . . . ... . . . . .
G To'b:d. Add lines 1 through 5 , . . . . . . . . . , , . . . . . . . . , , , , - . . . . . . . . . . . . . . . . . , . . . . . . . , , . . . . . . . . . , . . . . . . . - . . . . . . .
7 Inventory at er'ld of year ".,........,.. - . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . , , . . - - . . . . , , , . . . . . . . , , . . . . .
8 CO$t of goodS sold. Subtract line 7 from line 6. Er'lter here and on page 1, line 2 . , . , . . . . . . . . . . . , , . . . - . . , . , . .
9111 Check all melhods used for valuing closing inventory; ,
(f) ~ Cost as described in Regulations section 1.471-3 '
(Ii) Lower of cost or market as described in Regulations section 1.4714
(ill) Other (specify method used and attach explanation) .. _ ._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
b Cheek it there was a writedown of Sl.Jbnormal goocls as describecl in Regulations section 1.471 -2(c) ..,.............................. ... 8
c Check If the LIFO inver'ltory method was adopted this tax year for any goodS (if checked, attach Form 970) ........... - - - - . . , . . . . . " ...
d :~~~~t~~~~~~~~~2' u~d~~oL1F"g~ ~,s~~ ~~~ ~~~~ ~. ~~~~ '. ~~.t~~ .~~~~~~~~~~ .(~~, ~~~~~~~) ~~ .~I~~~~~. . . . _ _ . . . , . . . W
e If property Is produced or acquired for resale, do the rules of Section 263A apply 10 the corporation? . . _ .. . . , , . . . . .. .. U Yes 1&)' No
f ~~s c~~e a~~v~~~ong~ \~ ~~t;~~~r:c~ ~~a~~~~o;o:t: .~r v~~~ti?~~. ~~~.~~ ~.~~~i.~g . . . _ . . . , . , . . . . . . . . . . . , . . . . . . _ . .
I :Ill' du ~ Other Information (see instructions)
1 Chl:c~ melhQd of accaunting: (a) Cash (b) X Accrual (c) 0 Other (specify) .. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
2: See the instructions and enter the:
(II) 8u~lness actJvi~" .tI~~tc~L..$~f.v_iS~~ _ _ _ _ _ _. (b) PrijduCl or service . "'11~Q.i_C2~ ...?~f.'Li.s:~:t. _ _ _ _ _ _
.3 At the end of the lax year, did the corporation oW\'\, directly or indireclly, 50% or mOre of the voting stock of a domestic:
corporation? (For rules of attribution, see section 267(c).) If 'Yes,' attach a schedule showing: (a) name, address,
and omployer identification ~mber and (b) percentage OWr'led . . . . . . . . . . . , . . . . . . . . .. . . . . . , . . . . . . _ . . . . , . , . . . . . . . . . . . . . , . ,
4 Was Ihe corporation a member of a controlled group subject to the provisions of section 1561? . , "..... .. . ... , . , . ........,
S Check this box if the corporation has filed or is required to file Form 8264. Application for Registration
Of a TalC Sheller, , , , . . . . . . . . . . . . . .. . , . . . . . . . . _. . . . _ . , , , . , . . . . . . . . . . . , , . . . . . . . . . . . . . . . .. . . . . . . .. . . .. . , , . . . . . . . .. ....
6 Check this box if Ihe corporation issued publicly offered debt instruments with original issue discount .,.. _ . . . .
If checked. the corporation may have to tile Form 8281. Ir'lformalion Return for Publicly Offered Original Issue
Oil.count Instruments.
7 If the corporation: (a) was a C corporation before it ele1:ted to be an S corporiltion or the corporation acquired
an Dsset wilh a basis determined by reference to its bOlSis (or the basis of any other property) in the hands of a
C corporation and (b) has net unrealized built-in gain (defined in seClion 1374(d)(l)) in excess of the net
reco~nlz.cd built. in gain from prior years, enter the net unrealized built-in gain reduced by net recognized
built. In Qain from prior years. . . . . . . . . . . . . , , . , , , . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . , , . , . . , . .. .. ~ $
B CheCk"\t)iS box if the corporation had accumulated earnings and profits at the close of lhe tax year ..:-.~.~.~,:-.:-::-.:-:;' TI
9 Arc the corpor~tio~'s to,lal receipts (see instructions) for the talC year and its total assets at the end of the tax year less
Ih<ln $250,000, If Yes. the corporallon is not reqUired to complete Schedules Land M.l ......,.",...... _.,. ,. ,. . . '.. .. ..
Notl!: If the corporCJtion had assets Of operated a business in a foreign country or U.S. possession, it may be requiret;l to attach
SchNultf N 'Fonn 7120, Forei n 0 rations of U.S. Cor. orations, to this return. See Schedule N for deteJUs_
S~ 'd' Shareholders' Shares of Income Deductions Credits etc
Shareholders' Pro Rata Share Items
Ordinary business income (loss) (page 1. line 21) .... .........., , ... . ... ..... . .... .. , .. . . .. . . .. .. . , ...
2 Net rental real estate income (loss) (attach Form 8825) . . . . . . , , , , . , . . . . . . . . . . . . . . , , . . . . . . . . _ . . . , . , , . . . .
3n Other gross rental income (loss) . . . . . . . . ., ............... ,. . . . . . . . . . . . , 3 a
b Expcnse~ from other <enlal activities (JttIJ~h schedule) . .. . .. . . . . . . . . , . . . . . .. . . . . . . ' . .. 3 b
c Other net rental income (loss). $ubtraclline 3b from line 3a ........,.................",........ _ . . . . .
4 Interest income ,.... _ . . . . . _ . . , . . , . . . . . . . . . . . . . . . , , . . . . . . . . . . . . . , , , . . . . . . . . . . . . . . . , . , . . . . . . . _ . . , . . . .
5 OivideJ'lds: a Ordinary dividends.. . . . . . . . . , . . . . . . . _ _ . . . .. . , . , , , . . . .. . . . . . . . . , . . , . . . . . . . . . . , . . . . . . . .
b Qualified dividends ... . .. .. . . .. . .. . . .. .. . .. .. . , " . . . .. . . ..I 5 bl
G RoyAlties. . . . . . . . . . . , , , . . . . _ . . . . . . . . , . . . , . . . . . . . . . . . . . . , . . . . , . . . . . . . , . . , . . . . . . . . . . . . . . . , . . . . . . . . . . ,
7 Net short. term capital gain (loss) ."..............".,...........""................,........."....
Sill Net long.term capital gain (Joss) . ...... ... ... .... . , , ......... . . .. _ , . ... ... . '" . . ... .. . . . .. . .. . . .. ....
b Collectibles (28%) gain (loss) ......,.................... '... .. . .. .." ' . . . 8b
c Unrecllpturcd section 1250 gain (atta~" scherMe). . . .. . . . .. . . , . . . .. . .. . . . . . .. . , . . .. . . S c
9 Net section 1231 gain (loss) (attach Form 4797) .... _......... _...... ..............,'. ..,.. _ _..
, 0 Other income loss attach schedule .......... _ _ _ . . . . . , , . . . _ . . . . . . , , . . . . . . . _ . _ _ . . . . , . _ . . . . . . . . . , , . . .
02-0698686
I
N
C
o
M
E:
~
S
S)
SPSA0112 08lil'l/04
1
2
3
4
5
G
7
8
Pol e2
169,431.
3 431.
J.72 862.
172,862.
Total amount
109 962.
Form 11205 (2004)
FONTd120S .
02-0698686
Tctal amount
7 549.
Pa e3
Deduc-
tiOn1il
Credits
and
Credit
Rec:ilp-
tul'C!
Foreign
Tran~.
actions
Alterna-
tive
Mlnl-
mum
Tax
(AMt)
Item!;
Item!;
Affec.
tlng
Share-
hGld~r
Basis
Other
Inform-
ation
BAA
John R. Oruschel & Associates, LLC
Shareholders' Pro Rata Share Iterns (continued)
11 Section 179 deduction (attach Ferro 4562) .. . .. .. . . .. . .. , . . . .. . . . . .. " . . .. . . .. .. . . . .. , , . . . . . .
12 a Contributions, .. . .. . . , . . . , . . . .. . . - . .. . , . , . . . . . . .. . . . . , , .. . . . . . . - , . , . . . .. . .. . . . , . . . , , . . . . . . -
b Deductions related to portfolio income (attach schedule) . . .. . . .. .. . . . , . .. .. .. .. . .. . . .. . .. . . . ..
c Investment interest expense. , . . . . . . . . . . . , . , , , . . . . . . . . . . , . . . , , . - . . . . . , . , . . . . . . . . . . . . . . . . . - . .
d Section 59(e)(2) expenditures (1) Type .... _ _ _ _ _ _ _ _ ~ _ _ _ _ _ _ _ _ _ . (2) Amount ....
e Other deductions attach $chedule ..,.,... . . . . . . . . . . , , . . . . . _ . . . . , . . . . . . . . . . . . . . . . . . . . - . . . . .
13a Low-income hO\JSing credit (section 42(j){5)}.,.....................,.... .... ........,.'..... .
b Low-income hoUSing credit (other) ..............".... ~ . . . . , .. . _.. _ . , .. ... . .. .. .. . . .. . . .. . , .
c Qualified rehabilitation expendilur11$ (rental real estate) (sttach Form 3468).. , . . _ . . . _ . . . . . . . . , . . . . . . . . . . , : . , . . .
d Other rental real estate credits ........................",.........",...'...........,......
c Other rent;)1 credits . _ , . . . . . . . . . . - . . . . . . . , . . . . . . . . . . . . . . . . . . . . - . . . . . . , . . . . . . : . . . . . . , , . . . . . . .
f Credit for alcohol used as fl.le! (attar:h Form 6478) ......"..........",........ _ . . . . . , , . . . . . .
Other credits and credit reel lure <act schedvle ...............................,..............,......_
14a Name of countty or U.S. pOS$e$$ion -...... ... _ _ _ _ ~ _ _ _ _ __
b Gross income from all sources ..,...................,....... _ . . . . , . . , . . . . . . . _ . . . . , . . . . . . . _ .
c Gross income sourced at sharel'tolder level ....,......................... _ .. .. .. . .. .. . . . . .. , .
Foreign gross income sourced at corporQte level:
d Passive ..........,.....,..............................,.,.............,........ _ . . . _ . . . . ,
e Listed categories (attach schedr,Jle) .............................,.............,............_
f Qcnerallimitation .............................'. _ . . . . . . . . . . . . . . . . . , . . . . . . . . . . _ . . . . . . . . , . . , .
Oedl.Jf:tions allocated Brtd epportioned at shareholder level:
g Interest expense ..............,..',........ _ . , , , . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . , . , . . . .
11 Other. .. .. . . .. . .. , . .. . . .. .. . .. .. .. , . , . . . " . .. .. .. . . .. . . .. , . .. . . .. . .. .. . . .. , .. . .. .. .. .. . .. .
DedlJctlon$ allocated and apportioned at corporate level to foreign SOl/rce income:
i Passive .....".................,...............,.,.,.,..............,....,...............
J Listed categories ~ch schroule) ........................,...................,.,..........
k General limitation ...".... _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . _ . . . , . . . . . .
Other Informafidn:
I Foreion taxes pGlid . . . . . - . . . . - . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . _ . . . . . . . . . , . , . , . , . . . . . . . . . . .. 141
mForeign taxes accrued......... -. ..... ...... ..... . '" _.....".,.... " ...........".. ... .... 14m
n Reduction in tOlxes available for credit
attach schedu(e ..,..................... -..... _. ......,..., ............................... 140
15 il Posl-19B6 depreciation adjustment ...... - .. .. .. .. . .. . .. .. .. . .. .. .. . .. . " , .. .. .. . .. .. . . .. ... 15a
b Adjusted gain or 10$$ ....... - . . . . - . . . . . . . . . . . . . . . . . . . . . . . . , , . _ . . . . . . . . . . . . . . . . , . . . . . . . . . . " 15 b
c Depletion (ather than oil and gas)................................... "..,.,...............,. lSc
..~ Oil. gas, and geothermal properties - g.rO$s income ......................... _.. . ... ..... . ... lSd
e 0/1, gas, and geothermal properties - deductions...,...... _......... ... .. . ...... ... ... ...... 15c
f Other AMT items (attach schedule ..................."................."..,,,............ 1Sf
16a Tax.exempt interest inCOlTIe ................... ................ ....... ... ....... ..' ..., ..... 1611
b Other t~X-~Xl\>mpt inr.nmp. .. . . . . . . . . . . .. - " . . . . . . . . . . . . . . . . .. . . . . . , , . , . . . . . . _ . . . _ . . . . . . . . . .. 16 b
c Nondeductible ex~nses ................ - .. .. . .. .. . .. . .. . . . . .. . .. .. .. . .. .. . .. .. . .. .. . . . . . .. '6c
d Property distributions ...................................... _ , . , . . . . . . . .. .. . . .. .. . . . . . , .. . .. 1 (; d
e Re a rnent of loans from shareholders. .. .. .. .. .. . . , . . . .. . .. . . .. .. . , .. .. . " , . .. .. .. .. . . . . ." 16e
17a Investment income...................,...,.............,.",.... _... _.... . _,....,......... 17011
b Investment expenses.. .., ........ . -.. ........,............. .. '" ., .. . , '" ....... .......... 17b
e Dividend distributions paid from accumulated earnings and profits .. . . . . . _ . _ . . . . . . . . . . . . . . . . . .. '7 e
d Other items and amounts
(DttOlCh schedule) . . . . , . , , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , , . . . . . . . . . . . . . . . . . , . . . . . . _ . . . . . ,
t'llncomeJloss rec,,"ciUatJon. (Required only if Schedule M-l must be completed.)
Combine the amounts on lines 1 through lOin the far right column, From the result. subtract
the sum of the amounts on lines 11 throu h 12e and lil'le$ 141 or 14m, .....hichever a lies,.......
11
12 ill
12b
12c
12d
12e
138
13b
13c
13d
13e
13f
13
SPSAO 134 0 I lOSIOS
o.
o.
1,615.
85 000.
o.
102 413.
Form 1120S (2004)
PaQe 4
, Ca:;h"".,....,."........ ,.., ......, ',' ".
2a Tr.;lde notes and accounts receivable ..',....
b Les~ allowanl;e lor bad debts """,.",.",
3 Inventories,.,.,."" . , . , . . , . , , . . . . . . . . . . , .
4 U.S. Ilovernment obligations.,. ......,......
5 T;}x'Bx~mpt sacuritie!> .,..,.,.. , . . . , , ' . . , . , .
6 Other current assets (attach seheIMe). . . . . , , . . ' . , . . ,
7 Loans to shareholders " , , , . . . . . . . , . . . . . , . . .
a Mort!;l<Jge and real estatE! loans. . . . , . . . . . , , . ,
9 O\h~( Investment; (attach scheduJIl) .......,.,...,.. -'
10a Sulldtn(ls and other depreciable ass.ets., .....
b L.e5s accumulated depreciation, , . . . , . . , . , . . .
11 a DepletlllJle assets ..,..,.,.'.....,....,.....
b LS!$.' accumulated depletion. . . . . .. . .. , , . . . . .
12 Land (net of any amortization) .,.,..,.....'.
1311ln13ngible <lssets (amortizable only) .,."..,.
b I.I!:S~ accl.lrtll.lJated amortization, , . , , , . , . , . . , .
14 Other assets (tJttach schedule) . "..." ." ., ,
15 TatallllssctS.,....,......,.................
Ullbilities and Shareholders' Equity
16 Accounts payable ..........,...............
17 Mo~a\lC~1 noms, bands payable in less than 1 year ..,.
1 B Other curr~t liabilities (atta~.~ sch) ..,...,..,......
1 9 Loan~ from shareholders ,~........,......
20 Mcrtgn~, notes, bonds payable in 1 year or ll1Qr~ ...,.
Z1 Othp.r liabilities (:tfr.Jch $ClJedulej ...,..............
22 Co:Jpil<:l1 stock .,.""........".",."...,..
23 Mdlf.ionaJ paid-in capital ...................
24 Retained eamlng~ , , . . . . . . . , . . . . . . , . . . . . . . . .
2S Adjustments III SMrelloldelS' equily (lilt $&h) . . . . . . . . . .
26 Less cost of treasury stock. . . . . , - . . , . . . , . . , .
27 Totalllebflltres and shareholders' e ui . , . . . ,
, . 'ieoWeW . Reconciliation of Income (Loss) er Books With Income Loss
1 N~linoome (loss) per books................ 100 798.
2 Jnccm~ in~ded on Schedule K. lines 1, 2. 3c, 4, Sa, S, 7,
8a, 9, end 10. Ilot recorded on books this year (itemize):
15,798.
IS 798.
15 798.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6, Deductions included on Sehedule 1\. hnes 1 through
3 Expense:; rtcordcd on book:; this year not included on 12, and 141 or (14m), not charged against book
Schedule K, IInc~ 1 through 12, & 141 or (14m) (itllmizer. income this year (itemize):
a Depreciation ....... $_ _ _ _ _ _ _ _ _ _ _ a_De_p_reC_i3_tio_n_.._. ._$_- __ _- _-_- _- _-_-_- _- _-~
12 Travel Dnd entertainment. $ _ _ _ _ _ _ ) L t2,1) .:.
______________________ 1615.7 Add lines 5 and 6 ......................
4 Add lines] thre h3....................... 102 413. 8 Incorne(loss}(Schedule In 17e),ln4lessln7 .. 102,413.
Analysis of Accumulated Adjustments Account, Other A~ustments Account, and
Shareholders' Undistributed Taxable Income Previous I)' Taxed (see instructions)
(a) Accumulated ,(b) Other cmb~~J1~~~~f~;n~~~~-
adjustments a\;count adll,lSlmenls account previDusl taxed
1 B..IClncc Dt beginning of tax year . . , . , , , , , ' , . , , , , , , . . . . . . . , . , . . . , . .
2 Ordinaty Income from page 1. line 21 ,.....,.....,..,..,.........,
3 Other addition:; . . , , .. , ' .. .. .. .. . .. .. .. . .. .. . . . ' , , . . . .. .. .. .. . .. ..
4 L.oss from page 1, line 21 , . , . , . . . , ' . . , , . . , . . . , . . . , . . . . . . , , . , . . , , ' .
S Other reductions. . . . . . . . . . . . .". , S1MT. , ' , . . ' . . . . . . . . . , . . , . . . . . . . . ,
'" Combine lines 1 through 5 . . . . . . . . , . . , . . . . . . . . , , , , . , . . . . , , , . , . . . . ,
7-Dlstrlbutlons other-than-dividencldistfibutions-.-,-;.. . '''.0; . , , ", -.' ~,
a BalMce at end of tax ear. Subtract line 7 from line 6 "...",...",
109/ 962. ~
9 164.
100,798.
.. 8 5 eotl;
15 798.
0-.-
o.
0;
O.
Form 1120S (2004)
SPSAOlJ4 01105105
F.'orm 1120 u.s. Corporation Income Tax Return
Clt'~r1mcr>l at 1lI~ T"'ll:i~ry For clIlendar year 2003 or tax year beginning M a y 2 1 ,2003, ending 0 e c 3 1 , 2 0 0 3.
I"t~"'ttl RO'IP.lIlle S"rvice "Instructions are se 3rate. See' instroetions for Pa erwork Reduction Act Notie&.
A Check If II: r>4ame B ~...ld"ntificatlon hurnHt
1 Co<1:/Olldate/l "'turn 0 U J '- R 0 ~........ 1 A
(m!l\chf'arm851) ,.. selRS 0111. I\b'.H:: & sscc1ates lie 02 -0698686
2 Pl'IfoOnr)1 ~inQ o'abeh I.. Number, ~tr.:.t, al1ll tllbm 0< suite .lumber (If a ".0. Ila.. see Instn.;tions,) C Oate lncorpQr~l8d
C>(lr'loorw 0 t erwlsCl,
SW'l!tlll .. . . .. print or 3 9 Ole l'e stnJt S tre e t 0 5 12 110 3
3 P~rtll>nJ:" IP!'oli~e carp fvpe C'
(110. den;",<1 '" Reps "'I' IIy or town Sial<: ZIP Code D T,*,,' assets {see in5lruCllOMl
Hctlon 1.....1.3{(} -
~aD fnr.tr"Ut:tlon:;) . I . ,
E Check a licable boxes: Final retlJlTI (3) $
1 a Gros~ ~ipts or sales 2 11,10 2. b Less returns & aJlQwances . c BalanCll, . '" , c
2 Cost of goods sold (Schedule A, line 8) - . . . . . . . . . . . . . . . . . . . . . . . . . . , , , . . . . . . . . . . . . , . . . . . . . _ . . . . . . . . . . 2
:3 Gross profit. Subtraclline 2 from line 1 c . . .. .. .. . . . .. . . . . .. . . . . .. .. .. . . .. .. . . . . . .. .. . . .. . . .. . .. . . . .. 3
4 Dividends (Schedule C. line 19) . . .. . . . . , .. _ . . . . . . " , , . .. . . . '" . .. . . . . . . . _ . . . , . .. . . . . . . . . .. , . , . . . . . . 4
5 Interest.... , . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . _ . . . . . . . . . . . ., . . _ . . . . . . . . . . . . . . . . 5
5 Gross rents ...,.............,..... - . . . - . . . , , . , . . . . . . . . . . , . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Gross royalties ......,.................,......................................,................... 7
a Cepital gain net income {attach Schedule D (Form 1120)) . . .. . . . . . . .. . .. .. .. . .. . . .. . .. . .. .. . . . .. . . . .. B
9 Net gain or (loss) from Form 4797. Part II, line 18 (attach Form 4797) ........"...................... 9
10 Other Ina:om~ (see instructions - attach schedule) . .. . .. . .. . . . .. .. . . " . . .. . ........ . . .. , . . . . . .. . . .. . _ .. .. .. ... 10
" Tot:.1 iJ)l;ome. Add lines 3 throu h 10 .......,.............................."..................,. II- 1"1
12 Compensation of officers (Schedule E. line 4) . . . .. .. . . .. . .. . " . . " .... . .. _ . . . . , , .. , , .. . . . .. .. . .. . . .. 12
D" 13 Salaries and wages (less employment credits) ...................................,..,.... _ . . . . . . . . . _ 13
g ~ ~~ ~~~a~~~~n~. ~~~t~~~~~~. : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :: : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :: ~:
g ~ 16 Rents....................,..................,.,..................,............................... 16
T ~ 17 Taxes and licenses.. . . ..,.....,. .... ..........,....... _............,.................,.,.,....... 17
b I 18 Interest..............,.............................................,...................,......... 18
N T 19 Charitable contributions (see Instructions for 10% limitation) ..........,........................,...,. 19
S 0 20 Depreciation (i1lttach Form 4562) . .. .. . .. ..... .. .. .. . .. .. .. .. .. .. _ .... .. .\ 20 I 3 ,5 15 .
5 ~ 21 Less depreciation claimed on Schedule A and elsewhere on rerum ........ f'21'al 21 b
~ 0 '-2 Depletion .........."."..,....,................,.......................,.....,.,................ 22
I N 23 Advertising.... . . . . . . . . . . . . , . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . , , . . . . . , . . . . . . .'. 23
~ ~ 24 Pension. profit-sharing, etc. plans. . . . . . . . . . . . . . . . . . . . . . . . . , . . . . , . . . . . . . .. . . . . .. . . . . . , . , . . . , . , . . . . .. 24
~ ~ 2S E:mployee benefit programs ..........,.,..........................,........................,...". 25
1,1 c Z6 Other deductions (altach schedule) _ .See. Olhet.OeductiofJs.Statemflflt. . . .. .. . . . . . .. . . . . . . . . . . . . . . _ . .. . . . . . _ .. 26
~ T 2'1 Total dedu<;tions. Add lines 12 through 26..... :............ ............. ......... .. ....... ........ ~ 27
b ~ 2:8 T~Qb'e ,"COme before net operating loss deduction and spetial deductions. Subtract line 27 from line 11 ,.,., . . . . . . . . . . . . . .. 28
~ :; ~9 Le$s: it Net operating 1055 (NOL) deduction (see instructions) . . . . . . . . . . . . . . . . . . . . .. 29 a
b S ecial deductions Schedule C. line 20) , , . . . . . . . . . . . . . . . . . . . .. 29 b
30 Taxable income. Subtract line 29c from line 28 ...........,..............................,...,......
31 Total tax (Schedule J, line 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . ,. . . . . . . . . . . . . . . . . . . . .
32 PlIyrtlents: a ~~~~~n: . . . . . .. 32 a
b 2003 eslimat~d tax payml!!nts ...... 32b
c Less 2003 refund applied for on FQrJII 44G6 " 32 c d Ball>
e Tal( deposited with Form 7004'.. .. .. . .. . .. .. . . . . .. . . . .. .. .. _ . . .. . . .. .. , .
f Credit for tax paid on undistributed capital gtilins (attach Form 2439) , . . . . . .
9 Credit for federal tal<. on tl,Jels (attach Form 4136). See instructions.... _." 329 32 h
33 E.$tlmated tax penalty (see mstructions). Check if Form 2220 is attachod . . . . , . . . . . . . . . . . . . . . , '" 33
34 Tax due. If hne 32h is smaller than the total of lines 31 and 33. enter amount owed, .. . . . . , . . , , . . . . . . .. 34
35 Overpayment. If line 3 is larger than the total of lines 31 and 33. enter tilmOl.lnt overpaid .,...,....... as
36 Ent~r amount of line 35 we Credited to 2004 mimatlld tax . . . . . . . . . . ... Refunded" 3S
unc~r naltles 01 ~,jury. I 18... t II nline<llhi. '~"'n. indudi"9 ~=mp.,nyi"9 ochodul... ~n<;f lll;\_r.nl:o. .110 to 1hl: ~ of mv kllQW18<l1le
Sign /)00; n Ii b..... Cll,rKl. 8. I let '18.. liOlI 01 llI.tllsret (O/he, In..n xpoyer) IG hi:l!;ed an on information 01 whid> prop;lrct h.'l.l' iItly knowledQe.
Here .. .. Pre sid e nt
TiUe
BAA
I
N
C
o
M
E
T
A
X
A
N
D
F>
A
Y
M
E
N
T
S
Pr"p;l'''r'~ SS/oj 0< PilN
J8 9 -4 6 -7 0 6 9
E1N 57 -117 6 0 0 3
Paid
Preparer's
Use Only
~%,,~~'s ..
Flrm's Name
(0' )'OUtS il
'O".ompl~<l).
Bddress. 8nd
l1f"CO<le
.. 542
New
11\
17070
1"110"~ No.
CPCA0212 08129103
.~sh-
OMB No. 154S~12i
2003
1,987.
211.102 .
211.102.
211102.
8,075.
1500.
964.
3.515 .
197048.
211102.
o.
o.
Mal' ltI9 IRS a~... lhis
relum with IIl9 p"'P".....
shown belOW? {S89 i...I)'
X Ye:$ No
Form 1120 (2003)
F~rm 1120 (2003 J 0 m R - 0 rusd"e \& A S!O cia tE! s.. LLC 02 -069868, 6 POI e 2
Cost of Goods Sold see instructions
. 1 Inventory at beQinning of year.. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Purchases............................. . . . .. .. .. .. . .. .. . . . . . . . .. .. . . .. .. .. .. . . . . . . . .. . . . . . .. . . .. .. . . . . . 2
3 Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . , . . . . . . . . . , . . . . . , . . . . . . . . . . . . . . . . . . . . . . . , . . . 3,
4 Additional Section 263A COsts (altac:h schedule) . . . . . . . . . . . . , . . . . . . . . , . , . . . . . . . . . , . . . . , . . . . . . . . . . . . . , , . . . . . . . . . . . , . . 4
5 Other costs (attach schedule) ...................,.............,.................,.,....".....,...."... 5
6 Total. Add lines 1 through 5 , . . . . . . ,. . ,. .. . . . . .' . ., , . . . .. . . . .. . . . . .. ., . . . . . . , . . . . . . . . . . . , . . . . . . . . . . . . . , . , 6
7 Inventory al end of year .....,..,.......,..............................,.............................,.. 7
a Co!:t of goods sold. Svbtract line 7 from line 6. Enter Mre and on line 2, page 1 :........................... 8
911 Check. all methDd~ used tor valuing closing inventory: .
(I) B Cost as described in Regulations sedion 1.471-3
(il) Lower of cost or market as described in Regulations section 1.471,4
(Iii) Other (specify metl10d used and allllch explanation.) ....... ...
b Check If there was a writedown of subnormal goods as describ;d~n-~;uj;tk,;' -s;ctio~ ~.~i.2(; ~.~.~.~.~.~.~.~.~.~ .~.~.~.~;: -8- - --
e Check if the UFO inventory method was adopted this tall year for any goods (if checked. attach Form 970) . ..........,...,'.. '"'
d ~o~~~:~ ui::~~~O ~~~~~~, ~~~. ~~~ :~~ ~~i.~ ~~ .~~~~'. ~~~~ :.~r~.~~~~~ .(~~ .~~.~~~~S? ~~ :~~~i,~~ .i~~~.t~:. . . . t 9d I
ll! If property is produced or acq",ired for resale, do the rules of section 263A apply to the corporation? .,...."........... 0 Yes [J No
f ~~~~~~;:~fc Ch?"~~~~.~~~~~n~~gl~::g~~~~'. ~~~'. ~~.~~I,~at~~~.~~~. ~:.e.~i~g. ~~.~.....,',.....,..,............ Yes NQ
Dividends and Special Deductions (a) Dividends (b) Percentage (C) Special deductions
(sec InstrlJClJons) received . (8) X (b)
1 Dividends from less.than.20%,oWlled domestic corpQrahons that are
subject to the 70% dcdUt;tion (other than debt.financed stock) ".....
2 Dividends from 20%.or.more.owned domestic corporations that are
!pub)cct to the 80% deduction (other than debt. financed stock) .......
3 Olvidands en debt.financed stock of domesbc and foreign corporations (sedion 246.4.) ,
4 Dividend~ on certain prel~rred stock of less.tI1an-20%.ownBd public lItililies ..,.....
S DIvIdends on C9tlain preferred srock of 2O%.or.more-OWI1Ild public utilifies . . . . , . . . .
Ei Dividends from less.than-20%-owned foreign corporations
and Certain FSCs that are subject to the 70% deduction. . . . , . . . . . . , .
70
80
42
48
70
7 Dividends. from 20%.or.more.owned foreign corporations
and certain FSCs that are subiect to the gO% deduction. . . . , ., . . . . , .
8 Dividends from wholly owned foreign subsidiaries subject \0 the
100% deduction (seClion 245(b)) . . . . . . . . . . . . . . , . , , . , . , . . . . . . . , . . . .
9 Total. Add lines 1 through B. See instructions for limitation .......'..
10 Dividend; from domestic Co(por~tiQn$ received ~y a $I1'Iall business investment
company operating under tho Small Business ltwestrnent Act of 1958 . . . . . . . , . . . . . .
11 Dividends from ccrt:lin FSCs that are s~biect III the 100% deduction (see 245(0)(1)). ,.
1% Dlvldcnd~ "'01'1'I affiliated group members subject to the 100%
deduction (section 243(a)(3)) .,.,'.,.,....,...,.,.............".,
other dividends from fOrelpn corporations not mcluded on lines 3, 6, 7, 8, Dr 11 ..". .
lnmmo from controlled foreign corporations under subpart F (attach Form(s) 5471) '"
FOfcllln dlllldend gross.up (section 78) .........................."
le.DISC and former DISC dividends not included on lines I, 2. or 3 (section 246(d}) , . .
Other dillidends . . . . , . . . . . , . . , . . , , . , , , . . . . . . , , . . . . . . . . . . . , . . , . . , . ,
OedllCtion for dividends paid on certlin preferred stock of public utihliu . , . . , . . . . . .
T~t<ll clividends. Add lines 1 through 17. Enter here llnd on line 4, page 1 . . . . . . . . ..
Tot.,1 s ecial deductions. Add lines 9,10,11,12, and 18. Enter here and on line.29b a e 1 ................... ~
. t!:. dl'i'i~Ef Compensation of Officers (see instructions for line 12)
Noto' Complete Schedule E only ifrotal receipts (line la plus lines 4 through 10 on page 1) are $500.000 or more.
80
100
1 (II) (b) \C:) Percent of Percent of corpor:lfian stock awned (I) Amount of
ime devoted
Name of officer Social securily numb9r to bU$ir\E!ss (d) Common (e) Preferred compensation
% % %
% % %
% % %
% % %
% % %
2 Total compensation of officers . . . , . . . . . . . . . . . , , . . , . , . . . . . . . . , . . . . . . . . . . . . . . , . . . . . . . . . , . . . , . . . . , . . , . . . . . . . . . . . .
3 Compensation of officers claimed on Schedule A and elsewhere on return. . . . . . . . . , , . . . , . . . . . . . . . . . . . . , . . , . . . . . . .
4 Subtract lir'le 3 from line ?. Enter the rt!l$\,Ilt herlll and on line 12. DlIoe 1 .......rl...' .... ....,.......... ...........
-- _.._--'-'_,,_~------- .. --
Cl'CA0212 ll8I2i1ll3
Form 1120 (2003'
J 0 tn R . D ru;cre 1 & A sso cia te s lLC
Tax Com utation (see instructions
Check if lhe corporation is a member of a controlled group (see sections 1561 and 1563)... _.... .... . ~
Important: Members of a controlled group. see instructions.
2 a If lhe box on line 1 is cheeked, enler the Corporation's share of the $50,000, $25.000, & $9,925.000 taxable income brackets (in tllat Diller):
(1) $ (2) $ (3) $
b Entcr the corporation's share of: <1> Additional 5% tax (OIl! more than $11,750) ..,....., $
(Z) Addilionel3'Yo tl\~ (nM mort! than $100,000) ........ $
3 Income tme. Check if Q qualified personal service corporation under settion 448(d)(2)
(3eEl instrUClions) . . , , , . . . . . . - . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . , . . . . . . . , . . . . . . . . . , . , . . . . . . . . . . . . .. 0
4 Alternative minimum tax (aUQch Form 4626) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . , , . . . . . . . . .
S Add lines 3 and 4 ........,...........,.......................................,......................,..
6a Foreign tax credit (attQch Form 1lIB) ... .................".. ..... ." , ,.... ... 6 a
b Posscssions tax credit (attach Form 5735) .. . . . . . . . . . . . , . . . . . . . . . . . . . . . _ _ . . . . . 6 b
c Check: 0 Nonconventional soun:e fuel credit 0 QEV credit (attach Form 8834) .......",. 6 c
d General business credit. Check box(es) and indicate which forms are attached.
o Form 3800 0 Formes) (specify) . ... _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . 6d
e Credit for prior yeGlr minimum talC (attach Form BB27) .........,................ 6 Q
f Quelified zona academy bond credit (attach Form SS60) .., . . . . , . . . . . . . . . . . . . . . . 6 r
7 Total credit$. Add lines 6a through 6f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . , . . . . . . . . . . , . , . . . . . _ . . . . . . , , . . . . . .
a Subtract line 7 from line 5 .......... _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . .
9 Personal holding company tax (attach Schedule PH <Form 1120)) , .. .. .. ... .. . " . .. . . . .. . .. . .. .. . .. . .. . .. . .
10 Other taxes. Check if from: B Form 4255 B Form 8611 0 Form 8697
Form 8866 Other (attach schedule) . . . . . . . . , , . . . . . . . . . . . , . . . . . .
11 TotllltlllC. Add lines 8 throu h 10, Enter here 9nd on line 31, a e 1 ........................................
aieCliI " fl 'Other Information (see instructiofl$)
1 Check method of Qccol.mting:
~B~r~speCdY~~~::~____ __ _ ___ ___
2 Sce the instructions and enler the:
a Business activity code no." 5 4 19 9 0
b Bus.lnC!$s actiVity ... M 8) Ie A-LSlRv Its - - - -
c Ptoduct or service" - M1rr:[t'A 1 5 ERV-IC 5- --
.3 At the end of the tax year ~ dTlihe corporatiOn own, - -
dircctly or indirectly, 50% or more of the voting stock
of Gl domestic corporation? (For rules of attribution,
see sccllon 267(c).) ......... ........................
If 'Yes; allach a schedule showing: (a) name
lilnd employer identificOlti01"i number (EIN), (b)
PetcenlBge owned, and (c) tallable income or
(loss) before NOL and special deductIOns of such
corPQrIltlon for the tax year ending with or within
your tal( yeef.
4 Is the corporation a subsidiary in an affiliated group
or Ii parent-SUbsidiary controlled group? ..............
If 'Ycs,' cnter name and EIN of the parent corporation
..
02 -0 698686
Pa e3
7 At any time during the tax year, did anI? foreign person
own, directly or indirectly, at least 25% of (a) the total
voting power of all classes of stock of the cotpotation
entitled to vote or (b) the total "alue of all classes of
stock of the corporation? ........,.,.... _ . . . . . . . . . , . . . . . . . .
If 'Yes; enter: (a) Percentage owned ........ .. _ _ _ _ _ _
ar.d (b) Owner's country" _ _ _ _ _ _ _ _ _ _ _ _ _ ~ _
!:: The corporation may have to file Form 5472,
Information Return of a 25% Foreign-Owned U.S,
Corllotation or a Foreign Corporation Engaged in
a U.S. Trade or Business. Enter number of
Forms 5472 attached. . . . . . . . . . . . . . . . . . . .. ,.. _ _ ~ _ _ _ _ _
8 Check this bOll: if the corporation issued publicly offered'
debt instruments with original issue discount. . ., . .... 0
If checked, the corporation may have to file Form 8281,
Information Return for Publicly Offered Original Issue
Discount Instruments.
9. Enter the amount of lax-exempt interest received Or
accrued during the tax year ...... $ _ _ _ _ _ _ _ _ _ _ _
10 Enter the number of shareholders at the end of the tax year
(if '75 or fewer) , , . , , , . . . . . . . . . . . - . . . . . . . . . . . . . . ,. ~ _ _ _ _
11 If lhe corporation has an NOL fat the tax year and is elec~
to forego the carryback period, check here . . . . . . . .... U
If the ~orpDration is filing a consolidated return, the statement required by
T&m~rary Regulations section 1.i 502-21(bX3)(i) or (ii) must be attached or
lhi! election will nM be valid.
12 Enter the available NOL carryOv<i!r from prior tax years
(Do not reduce it by any deduction on line 29&.)
6 Durln(:l this tax year. did the corporation pay dividends .. $
(othcr than stock dividends and distributions in - - - - - - -
excnongc tor !lIOCk) in excess of the corporation's Ate the corpO"ralion7s total receipts (line 101 piUS lines 4
curr~nt'an<.l accumulated earnings and profils? (See through 10 on page 1) for the tax year and its totial assets
sections 301 and 316.) .........................,.... at the end of the tax year less than $250.0001 . . .. .. .. . . . . . ..
If 'Yes: rile Form 5452. Corporate Report of If 'Yes; the corporztion is not required to complete
Nondlvldend Distributions. Schedules L. M-l. and M-,2 on page 4. Instead, enter the
If \his is Il consolidated relUTn, answer here for the total amount of cash distributions and the book value of
parent corporation Clnd on FQnn 851, Affiliations property distributions (other than CQSh) made during the
Schedule, for each subSidiary. tax year. ~ S _ _ _ _ _ _ _ _ _~..; _ _ _ _ _ _ _ _ __
Note: If tl'll/! corportltion, at any time during the fax year, had asSQ(s or o,:>erated a business in a foreign !::ol.lntry or U.S. possession, it may be
re"l,J/~ to tJtttJch Schedule N (Form 7120), Foreign Operations of U.S. Corportiltions, to this return. See Schaal/Ie N for r:ietails.
eM .CPCA0234 .1~'OIIQJ . Form 1 120.(2003)
5 Atthe end-ofth"e-tax year~ did-aii';;lndiV'iiJl.lal,-part- --
nCr!\llip. corporation. estate or trust O""''l, directly or
indlrcctlt. 50% or more of the corporation's voting
:;lock? (l"or rules of attribution. see section 267(c).) .. . .
If 'Yes.' attach a schedule showing name and
identifying numbet. (Do not include any information
&Iteecfy entered in 4 above.)
Enter % oWMd" _ _ _199.:..0_0. See Ques 5 Stmt
Form 1120 (2003) JotnR.DlUi&el& Associates,LLC 02-0698686 .
ration Is nol '~Qui'ed to cOff1/)/ete Sr::h~du{es L. M. Tend M.2 If Ovestion 13 017 Schedule K is answered 'Yes. '
Balance Sheets er Books Beginning of tax year End of tax year
Assets (a) (b)
1 Ca:ih.. . . . . . . .. . , , . , .. . . , . . . . . . .. . . .. . .. .. ,
2a Tr;';lde notes <ind accounts receivable.,. .... .
b Less allowance for bad debts ..............,
3 Inventories. . . . . . . . . . . . . . . . . . , . . . . . . . , . , . . .
4 u.s. !lovcrnment oblioatioliS ................
5 Tax.exempt securities (see instructions) .....
6 Olher curront assets (attadl scll!<lule) . . . . . . . . . . . . . . . .
1 LOllns 10 shareholders ... . . . . . . . . . . , . ' . . . . . .
8 Mortqa~c ~nd real estate loans . . . . . . . . . . . . . .
9 Other il1Vestrnents (attach schedule) ................
lOa Buildings and olher depreciable assets.. .....
b Less aCcumulated depreciation, . . . . . . . . . . . . .
, , a DeplE>table <isseis . . . . . . . . . . . . . . . . . . . . . . . . . .
bLess l:ICcvr'!'lvl<.'lted depletion . . . . . . . . . . . . . . . . .
12 Land (net of any amortization) ..............
l3a Intmgible assets (amortizable only) ......... .. ,"-'" !.
b LCi>:> accumulated llmorti7.alion . . . . . . . . . . . . . .
14 O\'tIp.r assets (Attach schedule) ....................
1S Tolol assets ...............................
Uabilitics and Shareholders' Equily
16 Accounts payable ..........................
17 MolillallCS, noms, bond $ payable in less than 1 year ....
16 Other curr$nt Iiabiliti$$ <atta~h seh) ................
19 Loans from $hpreholders ...................
20 Mor1lla!lDs, noles, bond$ payable in 1 year or more .....
21 Oth~r Habltlties (attach selledule) ..................
n Capital stock: a Preferred stock. . . . . . . . . . . .
b Common stock ............
Additional paid.in capilal ...................
R~ln"~d ~;\"""9to - Approp (:Ill tell) . . . . . . . . . . . . . . . .
Retained earnings - Unappropri2ted ........
,!\dlmn! tQ ~hnrehal,*,r:;' CQuilY (;\II~) .. . . . . . . . . . . . . .
La:;'$ cost of treasury stock.. .. . . .. . . .. . .. .. .
Page 4
1,987.
. ,
1.987.
" .~
o.
1,987.
S Expenses recorded on books this year 1701
deducted on this return (itemize):
a Depreciation ....... $ _ _ _ _ _ _ _ _ _ _ _
b Cl1arltabla contributions . $ _ _ _ _ _ _ _ _ _ _ _
c Trnvol & entertainment. . $_ _ _ _ _ _ _ _ _ _ _
o.
1
2
:3
-----------------------
CI"CA0234 1 2/Q8IG3
o.
-..---------.---.-.----.-----------
Form 1120 {2003)
4 Add lines 1, 2, and 3
John R. Druschel and Associates, LLC,
Plaintiff
: IN THE COURT OF COMMON PLEAS
:OFCUMBERLANDCOUNTY
vs
: DOCKET NO. 05-3496
Deana Davis, David Furline, and
The IV League, LLC,
Defendant
: JURY TRIAL REQUESTED
: CIVIL ACTION AT LA W
NOTICE
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 twenty (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 LA WYER AT ONCE. IF YOU DO NOT
HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW.
THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A
LA WYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO
PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER
LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE.
CUMBERLAND COUNTY BAR ASSOCIATION
32 SOUTH BEDFORD STREET
CARLISLE, PA 17013-330~
(717) 249-3166
c:. r--.:J
C:"";"1 C)
r.:..::-i -n
c.J-.
{~"-"" ~
c-: ill ' I
,
,,",) " .
,.-1
-..i c)
"
-~ ~ - , .
~-)
>--) . :.i
f'..) ~
..., - --
-~ c:) .<
John R. Druschel and Associates, LLC,
Plaintiff
: IN THE COURT OF COMMON PLEAS
: OF CUMBERLAND COUNTY
vs
: DOCKET NO. 05-3496
Deana Davis, David Furline, and
The IV League, LLC,
Defendant
: JURY TRIAL REQUESTED
: CIVIL ACTION AT LAW
AMENDED COMPLAINT
AND NOW, comes the Plaintiff, John R. Druschel and Associates, LLC, by and through
their attorney, Mark K. Emery, Esquire, and files this Amended Complaint as follows:
1. John R. Druschel and Associates, LLC, ("Plaintiffs") is Pennsylvania Limited Liability
Company with an address for transacting business at 3901 Chestnut Street, Camp Hill,
Pennsylvania 17011.
2. Defendant Deana Davis ("Davis") is an adult individual with a current residence of 524
Chaparral Drive, Cranberry Township, Pa. 16066..
3. David Furline ("Furline") is and adult individual with a current address of2607 Wyncote
Road, Bethel Park, Pa. 15102.
4. Upon information and belief, The IV League, LLC, is a Pennsylvania Limited Liability
Company with a current address for conducting business of 524 Chaparral Drive,
Cranberry Township, Pa. 16066.
5. Plaintiff is in the business of providing pharmacy supply companies with nurse staffing
and nurse availability for intravenous medical services.
1
6. As part of Plaintiff's business, it subcontracted with Defendants Davis and Furline to
provide services to Plaintiff's clientele.
7. Plaintiff and Defendants Davis and Furline entered into a related business relationship
where as Davis and Furline would act as independent contractors to provide nursing
services to Plaintiffs' clientele.
8. No written contract was entered into between the parties, nor were there any specific
terms as to when payment would be made for services provided by Davis and Furline.
9. It was the agreement of the parties that Davis and Furline would receive payment for their
services subsequent to when Plaintiff received payment from the pharmacy supply
servIce.
10. Upon information and belief, Davis and Furline created The IV League, LLC in or about
August, 2004, and since such time the have operated under such entity.
11. Based partially upon late payments from the various general pharmacy supply companies,
payments from Plaintiff to Defendants became in arrears.
12. In or about June 2005, Plaintiff and Defendants entered into an agreement where Plaintiff
would make payment to Defendants of all outstanding balances due on or before June 30,
2005.
13. Unbeknownst to Plaintiff, on June 16,2005 Defendants contacted at least one of the
Plaintiff's clients, OmniCare Pharmacy Services of Pennsylvania, stating to OmniCare
that Plaintiff was not making payments to them, and that if payment was not made by
June 30th Defendants would cease all further services.
14. The intent of such contact was not to advise Omni Care of the potential loss of services,
2
but rather to attempt to usurp the contractual relationship between Plaintiff and Omni
Care.
15. Defendants did usurp the existing contract between Plaintiff and OmniCare, and have
now commenced providing services directly to OmniCare and direct interference with the
contractual relationship between Plaintiff and OmniCare.
16. Defendants action was calculated to create a distrust and concern on the part of Omni
Care in order to induce Omni Care to terminate its' contract with Plaintiff and reestablish
such contract with Defendants.
17. In or about June 2005, Defendant Furline, while providing services as a subcontractor of
Plaintiff, advised a nursing home that the general pharmaceutical supplier, Millennium
Pharmacy Services, was not making payment when due.
18. Furline's comments were meant to induce the nursing home to contract directly with the
IV League, rather than using Millennium Pharmacy Services.
19. Millennium Pharmacy Services utilizes Plaintiff to provided such services.
20. Furline's comments were made in his individual capacity, as well as in his capacity as a
representative and member of The IV League.
21. Defendant's conduct was meant to induce Millennium Pharmacy Services and or the
nursing home to contract directly with Defendants rather than through Plaintiff.
22. Due to Defendant's actions, Millennium Pharmacy Services has canceled its contract with
Plaintiff and now contracts directly with Defendants.
3
COUNT I
TORTIOUS INTERFERENCE WITH BUSINESS RELATIONSHIP
23. Paragraphs 1 through 22 are incorporated fully herein by reference.
24. Plaintiff possessed a current contractual relationship with both OmniCare and
Millennium.
25. Defendant's actions were neither privileged nor justified, and were done with specific
purpose or intent to harm Plaintiff by usurping the contract Plaintiff held with such
entities in order to obtain the contract directly.
26. Plaintiff has suffered actual damages through the loss of the contracts with OmniCare and
Millennium and the profits that are generated through such contracts.
WHEREFORE, Plaintiff respectfully requests this Honorable Court enter judgement for it
and against Defendants jointly and severally and award all further relief allowed by law.
Respectfully submitted,
LA W OFFICES OF MARK K. EMERY
By:
.-;7~~ ~
~.;/.? /T ~J.......~---:;;7
Mark K. Emery, Esquir~
Supreme Court I.D. No. 72787
410 North Second Street
Harrisburg, PA 17101
(717) 238-9883
Attorney for Plaintiff
DA TE: July 26, 2005
4
VeRJFICATION
I, John R. Druschel. on behalf of John R. Druschel & Aseoclates. LLC.
hereby verify that I have read tl'l& foregoing Complaint and that the Information
contained therein is true and correct to the bel!.1 of my knowledge, information
and belief. I understand that false statements nerein are subject to the penalties
of 18 Pa.C.S. 94004 relating to unsworn falsification to authorities.
~^~~
bh R. Druschet, Manager
t
\j
DATE:
7-1/~(/r-
JOHN R. DRUSCHEL AND
ASSOCIATES, LLC,
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
Plaintiff
DOCKET NO: 05-3496
vs.
JURY TRIAL REQUESTED
DEANA DAVIS, DAVID FURLINE,
AND THE IV LEAGUE, LLC,
CIVIL ACTION AT LAW
Defendants
NOTICE TO PLEAD
()
C
-9
<.
",,:r
~-n f';
. "
~Z i~.
cn~;~';
~2L
~~l
~
r-->
=
=
c-~
:P"
c:::
GJ
TO:
John R. Druschel and Associates, LLC
-0
---
.......~-
~
.-1
:I:-n
rnp
-om
..od
_.I.... "1
00
:;:'11 -r:-~
(5-:.1.1
"., ( )
grn
>':
~
(J1
-
..
and
w
r,.j
Mark K. Emery, Esquire (Attorney for Plaintiff and Counterclaim Defendant)
You are hereby notified to file a written response to the enclosed Defendants' New
Matter and Counterclaim Plaintiff s Counterclaim within twenty (20) days from service hereof or
a judgment may be entered against you.
SNELBAKER & BRENNEMAN, P.C.
1 'c copy FROM REcd't1iO ~ Esquire
l~! TB: .. ny WMraof. I hare unto sM "'Y hM\O 44 West Main Street
,j t e seal of S(ild Coo ;U Cart&sIe. PI.. !: P.O. Box 318
I ni . ,- .d .. ~ ('lO Mechanicsburg, P A 17055-0318
(717) 697-8528
Attorneys for Defendants and Counterclaim Plaintiff
LAW OFFICES
JOHN R. DRUSCHEL AND
ASSOCIATES, LLC,
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
Plaintiff
DOCKET NO: 05-3496
vs.
JURY TRIAL REQUESTED
DEANA DAVIS, DAVID FURLINE,
AND THE IV LEAGUE LLC
CIVIL ACTION AT LAW
Defendants
DEFENDANTS' ANSWER TO AMENDED
COMPLAINT WITH NEW MATTER AND COUNTERCLAIM
ANSWER
AND NOW, come the Defendants by their attorneys, Snelbaker & Brenneman, P.c., and
respond to the Plaintiffs Amended Complaint as follows:
1. Admitted.
2. All averments in paragraph 2 are admitted except the status of Deana Davis as a
defendant. For the reasons hereinafter set forth, it is denied that Deana Davis has been properly
named as a defendant, said averment being scandalous and impertinent and should be stricken.
3. The averments in paragraph 3 are admitted as stated. If Plaintiff intends by such
identification to characterize David Furline as a defendant, it is denied for all the reasons set
forth hereinbelow, that he has been properly named as a defendant, said averment being
scandalous and impertinent and should be stricken.
4. Admitted.
5. Admitted.
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.C.
6. Admitted except to the characterization of Davis and Furline being defendants.
For all the reasons set forth hereinbelow, it is denied that Davis and Furline have been properly
named as defendants, said averment being scandalous and impertinent and should be stricken.
7. Admitted except to the characterization of Davis and Furline being defendants.
For all the reasons set forth hereinbelow, it is denied that Davis and Furline have been properly
named as defendants, said averment being scandalous and impertinent and should be stricken.
8. It is admitted that no written contract was made by the parties. It is denied that
there were no specific terms as to when payments would be made to Davis and Furline. On the
contrary, on Plaintiffs proposal, the parties agreed that Plaintiff would pay for the services two
(2) times per month in full.
9. It is admitted that only for payment timing and cash flow purposes, it was agreed
that Plaintiff would pay Davis and Furline for their services after Plaintiff received payment from
the pharmacy supply service, but it is denied that Plaintiffs liability to Davis and Furline was
conditioned on Plaintiffs receipt of payment from such pharmacy supply service. On the
contrary, Plaintiff was obligated to pay Davis and Furline for their services regardless of
Plaintiff's recovery of monies from the pharmacy service. By way of further response, it is
averred that on Plaintiff's proposal, the parties agreed that such payments would be made two (2)
times per month in full.
10. Admitted. By way of further response, it is averred that contemporaneously with
the formation of The IV League LLC the parties mutually cancelled Davis' and Furline's
relationship as individuals and substituted said new limited liability company for said
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.C.
individuals, all other terms of their contract remaining the same.
2
11. It is admitted that payments from Plaintiff to The IV League LLC became in
arrears. After reasonable investigation, Defendants are without knowledge or information
sufficient to form a belief as to the truth of the averment that said arrearage situation was based
partially upon late payments from various general pharmacy supply companies and, therefore, it
is deemed to be denied pursuant to Pa. R.C.P. 1029 (c), proof of which is demanded at the trial of
the case, if relevant. By way of further response, it is averred that Plaintiff breached the parties'
contract by failing to pay for the Defendant's services in full.
12. It is denied that the parties entered into the agreement as alleged in paragraph] 2.
On the contrary, it is averred that Plaintiff unilaterally promised payment of all outstanding
balances by June 30, 2005, which promise Plaintiff failed to keep.
] 3. It is denied that Defendants made the contact as alleged. On the contrary, it is
averred that The IV League LLC made such contact, the substantive content of the contact being
as contained in paragraph 13. It is denied that said contact was made "unbeknownst to Plaintiff'.
On the contrary, it is averred that after numerous unsuccessful attempts to obtain payment from
Plaintiff, Defendant The IV League LLC contemporaneously with its contact with OmniCare
Pharmacy of Pennsylvania ("OmniCare"), gave notice to Plaintiff containing the same content.
14. It is denied that the intent of the contact with OmniCare was an attempt to usurp
the contractual relationship between Plaintiff and OmniCare. On the contrary, the sole purpose
and intent of such contact was to advise OmniCare of The IV League LLC's intent to discontinue
its services in a good faith effort to discharge its ethical responsibility to OmniCare and Plaintiff
in order that other services could be arranged for OmniCare's clients in a timely manner.
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.C.
15.
It is denied that the Defendants usurped any contract between OmniCare and
Plaintiff or interfered with any such contractual relationship. On the contrary, for reasons
3
beyond Defendants' actual knowledge, OmniCare and Plaintiff terminated their business
relationship whereupon OmniCare agreed to have The IV League LLC perform the required
services. It is denied that Davis and Furline individually have a contractual relationship with
OmniCare. On the contrary, only The IV League LLC has provided services for/to OmniCare.
16. It is denied that Defendants' action was calculated to create a distrust and concern
in order to induce OmniCare to terminate its contract with Plaintiff and reestablish such contract
with Defendants. On the contrary, it was The IV League LLC's action to advise OmniCare of its
intention to discontinue its services in a good faith effort to discharge its ethical responsibility to
OmniCare and Plaintiff in order that other services could be arranged for OmniCare's clients 111 a
timely manner.
17. It is denied that Furline was a subcontractor of Plaintiff in June 2005. On the
contrary, as averred in paragraph 10 above, The IV League LLC became the subcontractor of
Plaintiff in August 2004. It is further denied that Furline made the alleged statements for any
improper purpose. On the contrary, and again as averred hereinabove, The IV League LLC via
Furline gave good faith notice to one of its service recipients that it would be terminating its
services because The IV League LLC was not being paid by Plaintiff who blamed the non-
payment on Millenniums' failure to pay Plaintiff.
18. It is denied that Furline's comments were made to induce the nursing home to
deal directly with The IV League LLC rather than Millennium. On the contrary, The IV League
LLC's comments via Furline were made to give timely notice to the nursing home to obtain
substitute services upon The IV League LLC's discontinuance of service through Plaintiff.
LAW OFFICES
SNELBAKER IX
BRENNEMAN. P.C.
19.
After reasonable investigation, Defendants are without knowledge or information
sufficient to form a belief that "Millennium Pharmacy Services utilizes Plaintiff to provided [sic J
4
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.C.
such services" and, therefore, the same is deemed to be denied pursuant to Pa. R.C.P. 1029 (c),
proof of which is demanded at the trial of the case, if relevant.
20. It is denied that Furline's comments were made in his individual capacity. On the
contrary, such comments were made solely as a member or representative of The IV League
LLC.
21. It is denied that Defendants' conduct was meant to induce Millennium Pharmacy
Services and/or the nursing home to contract directly with Defendants rather than through
Plaintiff. On the contrary, as averred above, it was The IV League LLC's good faith purpose to
infOlm the nursing home of The IV League LLC's impending termination of services in order for
the home to arrange for substitute services.
22. After reasonable investigation, Defendants are without knowledge or information
sufficient to form a belief as to the truth of the averments that Millennium Pharmacy Services
cancelled its contract with Plaintiff, and, if true, that such cancellation was "due to defendants'
actions" and, therefore, the same are deemed to be denied pursuant to Pa. R.C.P. ] 029 (c), proof
of which is demanded at the trial of the case, if relevant. It is denied that Millennium Pharmacy
Services now contracts directly with Defendants. On the contrary, none of the persons/entities
identified as a Defendant herein has any contractual relationship with Millennium Pharmacy
Services.
5
COUNTl
23. The responses contained in paragraphs I through 22 hereinabove are incorporated
herein by reference thereto as though fully set forth herein.
24. The content of paragraph 24 is a series of conclusions of law to which no
response is required and, therefore, are deemed to be denied. To the extent that said content is
determined to be factual, Defendants, after reasonable investigation, are without knowledge or
information sufficient to form a belief as to the truth of the statements and, therefore, are deemed
to be denied pursuant to Pa. R.C.P. 1029 (c), proof of which is demanded at the trial of the case.
if relevant.
25. The content of paragraph 25 is a series of conclusions of law to which no
response is required and, therefore, are deemed to be denied. It is specifically denied that
Defendants' alleged actions were not performed to harm Plaintiff nor to usurp contracts in order
to obtain the contracts for the account of The IV League LLC or anyone else. On the contrary, it
was Defendants' purpose to alert interested persons/entities of the discontinuance of The IV
League LLC's services because of Plaintiffs defalcation in properly paying The IV League LLC
in order that such persons/entities could make arrangements for substitute services in a timely
manner.
26. After reasonable investigation, Defendants are without knowledge or information
sufficient to form a belief as to the truth of the averments that Plaintiff has suffered actual
damages and/or profits generated through the alleged loss of contracts with OmniCare and
LAW OFFICES
SNELBAKER &
BRENNEMAN, P.C.
Millennium and, therefore, said averments are deemed to be denied pursuant to Pa. R.C.P. 1029
(c), proof of which is demanded at the trial of the case, if relevant.
6
WHEREFORE, Defendants request the Court to dismiss Plaintiff's Complaint and enter
judgment in favor of Defendants and against Plaintiff.
NEW MATTER
By way of further response and defense, Defendants aver the following New Matter:
27. No contract exists whereby any Defendant is restricted or prevented from
competing with Plaintiff.
28. Under the original contractual terms, Davis and Furline, as individuals, were
separate subcontractors of and with Plaintiff.
29. Upon the formation of The IV League LLC on or about August 20, 2004, and by
agreement of all parties, Davis and Furline as individuals ceased being subcontractors of and
with Plaintiff, and The IV League LLC became the sole subcontractor in substitution for said
individuals.
30. Plaintiff as improperly joined David and Furline as defendants.
31. Plaintiff and Defendant The IV League LLC agreed (as did the previous
individual subcontractors) that Plaintiff would pay The IV League LLC for its services in full
two (2) times per month pursuant to billings from The IV League LLC.
32. Attached hereto marked "Exhibit A" and incorporated herein by reference thereto
is a tabulation of amounts billed by The IV League LLC for services rendered to OmniCare and
Plaintiff s payments on account thereof.
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.C.
33. Beginning in September of 2004, Plaintiff began to fail to pay two (2) times per
month as agreed and failed to remit payment in full at any time thereafter.
34. Plaintiff's last payment to The IV League LLC was on May 25, 2005.
7
35. The unpaid balance owing by Plaintiffto The IV League LLC on the OmniCare
account is $74,045.00.
36. Attached hereto marked "Exhibit B" and incorporated herein by reference thereto
is a tabulation of amounts billed by The IV League LLC to Plaintiff for services rendered to
Millennium and Plaintiff's payments on account thereof.
37. Beginning in February 2005, Plaintiff began to fail to pay two (2) times per month
as agreed and failed to remit payment in full at any time thereafter.
38. Plaintiff's last payment to The IV League LLC was on June 30, 2005.
39. The unpaid balance owing by Plaintiff to The IV League LLC on the Millennium
account is $10,805.00.
40. Upon information and belief, it is averred that OmniCare and Millennium paid
Plaintiff for all amounts billed to Plaintiff as shown on Exhibits A and B.
41. Before making the contacts averred in paragraphs 42 and 43 hereinbelow, The IV
League LLC made repeated efforts to discuss with Plaintiff the Plaintiff's defaults, leaving
numerous telephone messages, to which Plaintiff made no responses thereby indicating its
intention to not pay The IV League LLC in breach of the parties' agreement.
42. The IV League LLC's contact with OmniCare in June 2005 was for the sole
urpose of informing OmniCare that The IV League LLC was intending to terminate its services
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.c.
o OmniCare clients in order that OmniCare could make timely arrangements for substitute
43. The IV League LLC's contacts with a nursing home client of Millennium in July
005 was for the sole purpose of informing the nursing home that The IV League LLC was
8
LAW OFFICES
SNELBAKER &
BRENNEMAN, p,c.
intending to terminate its services in order that said nursing home could make timely
arrangements for substitute services.
44. In making the contacts averred in paragraphs 42 and 43 above, The IV League
LLC was motivated solely by moral and/or ethical concern for the medical welfare of the
patients otherwise anticipated to be served.
45. Upon information and belief, it is averred that Plaintiff voluntarily cancelled its
contract with OmniCare for those customers served by The IV League LLC.
46. All of Defendants' conduct was privileged and justified.
47. Plaintiffs Amended Complaint fails to set forth any claim or cause of action upon
which relief may be granted.
48. Plaintiff s Amended Complaint should be stricken for failure to comply with Pa.
R.C.P. 1021 (c).
WHEREFORE, Defendants request the Court to dismiss Plaintiffs Complaint and
enter judgment in favor of Defendants and against Plaintiff.
COUNTERCLAIM
THE IV LEAGUE LLC V. JOHN R. DRUSCHEL AND ASSOCIATES, L.L.c.
COUNT I - CONTRACT
49. The Counterclaim Plaintiff herein is IV League LLC, a Pennsylvania limited
liability company, having its principal office and place of business at 524 Chaparral Drive,
Cranberry Township, Pennsylvania 16066.
9
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.C.
II
50. The Counterclaim Defendant herein is John R. Druschel and Associates, L.L.c., a
Pennsylvania limited liability company having its principal place of business at 3901 Chestnut
Street, Camp Hill (Hampden Township), Cumberland County, Pennsylvania 17011.
51. Counterclaim Plaintiff is in the business of inserting intravenous catheters in
patients in nursing homes.
52. Counterclaim Defendant is also in the business of inserting intravenous catheters
in patients in nursing homes.
53. On or about August 20, 2004, the parties hereto entered into an oral contract
whereby Counterclaim Plaintiff agreed to perform intravenous catheterization services to various
nursing homes or other similar facilities in western Pennsylvania on behalf of Counterclaim
Defendant, the relevant terms of which were/are as follows:
A. Counterclaim Plaintiff would provide its services as a subcontractor
(independent contractor) to Counterclaim Defendant.
B. Counterclaim Defendant promised to pay to Counterclaim Plaintiff for
said services on a unit basis fee per procedure as follows:
Procedure/Service
Midline Catheter
Midline Catheter
Basic IV
PICC Line
Advance Visit
Fee per Procedure
$120.00 for first 100 per calendar month
$115.00 for next 100 (101-200) per calendar month
$75.00
$285.00
$150.00
The amount due to be determined from Counterclaim Plaintiff s submission of itemized
billings therefor to Counterclaim Defendant two (2) times per month. Payment in full
was to be made by Counterclaim Defendant for each such billing two (2) times per
month.
10
54. Counterclaim Plaintiffs first services were for patients of Omnicare Pharmacy
Services of Pennsylvania ("Omnicare") (a client of Counterclaim Defendant).
55. In keeping with the parties' contract aforesaid, Counterclaim Plaintiff submitted
its periodic billings to Counterclaim Defendant for services to OmniCare patients as set forth in
detail under the headings of "Billing Date" and Billing Amount" on the attached statement of
account marked "Exhibit A" and incorporated herein by reference thereto. Counterclaim
Defendant paid the amounts shown on Exhibit A under the headings of "Payment Date" and
"Payment Amount".
56. As charted on Exhibit A, Counterclaim Defendant neglected and failed to pay
Counterclaim Plaintiff in accordance with the parties' contract as aforesaid, leaving an unpaid
balance of $74,045.00 due Counterclaim Plaintiff.
57. Commencing on or about February 1,2005, at Counterclaim Defendant's rc:quest,
the parties agreed to expand the services of Counterclaim Plaintiff to include facilities served by
Millennium Pharmacy Services ("Millennium") (another client of Counterclaim Defendant) on
the same general terms as the parties' original contract aforesaid, but using the following fee
rates per procedure:
Procedure/Service
Midline Catheter
Basic IV
PICC Line
Advance Visit
Fee per Procedure
$150.00
$100.00
$285.00
$150.00
58. In keeping with the parties' contract aforesaid, Counterclaim Plaintiff submitted
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.C.
its periodic billings to Counterclaim Defendant for services to Millennium patients as set forth in
detail under the headings of "Billing Date" and "Billing Amount" on the attached statement of
account marked "Exhibit B" and incorporated herein by reference thereto. Counterclaim
11
Defendant paid the amounts shown on Exhibit B under the headings of "Payment Date" and
"Payment Amount".
59. As charted on Exhibit B, Counterclaim Defendant neglected and failed to pay
Counterclaim Plaintiff in accordance with the parties' contract as aforesaid, leaving an unpaid
balance of $1 0,805.00 due Counterclaim Plaintiff.
60. Counterclaim Plaintiff has demanded payment from Counterclaim Defendant,
which Counterclaim Defendant has failed and refused to pay.
61. The amount due Counterclaim Plaintiff is the sum of the "Unpaid Balances" from
Exhibit A and Exhibit B, in the total amount of $84,850.00.
WHEREFORE, Counterclaim Plaintiff demands judgment against Counterclaim
Defendant in the amount of $84,850.00 plus interest and the costs of this action. The damages
claimed by Counterclaim Plaintiff exceed the amount established by this Court for compulsory
arbitration.
AL TERNA TIVE: COUNT II - QUANTUM MERUIT
In the event it is determined that no express contractual basis existed in fact or law as
alleged in Count I above, Counterclaim Plaintiff avers in the alternative as follows:
62. The averments contained in paragraphs 49 through 61 hereinabove are
incorporated herein as though set forth at length hereinbelow.
63. Counterclaim Defendant accepted Counterclaim Plaintiff s services and work.
64. Counterclaim Plaintiffs services and work fulfilled Counterclaim Defendant's
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.c.
obligations to OmniCare and Millennium.
12
65. The fair market value of Counterclaim Plaintiff s services and work performed at
Counterclaim Defendant's request are the values set forth in paragraphs 53 and 57 hereinabove
and as totaled on Exhibit A and Exhibit B attached hereto, all of which are incorporated herein
by reference thereto.
66. Counterclaim Defendant has failed and refused to pay the fair market value of
said services and work performed by Counterclaim Plaintiff as aforesaid.
67. It is unjust and unfair for Counterclaim Defendant to receive, use and consume
the values of Counterclaim Plaintiffs services and work without full payment therefor.
WHEREFORE, Counterclaim Plaintiff demands judgment against Counterclaim
Defendant in the amount of$84.850.00 plus interest and the costs of this action. The damages
claimed by Counterclaim Plaintiff exceed the amount established by this COUl1 for compulsory
arbitration.
SNELBAKER & BRENNEMAN, P.C.
By
&~SqUire
Pa. Supreme Ct. J.D. #: 06355
44 West Main Street
P.O. Box 318
Mechanicsburg, P A 17055-0318
(717) 697-8528
Attorneys for Defendants and Counterclaim Plaintiff
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.C.
13
BILLING BILLING PAYMENT PAYMENT UNPAID
DATE AMOUNT DATE AMOUNT BALANCE
9/1/04 - 9/15/04 9,965.00 9,965.00
9/16/04 - 9/30/04 8,020.00 17,985.00
10/1/04 - 10/15/04 11,910.00 29,895.00
10/15/04 8,000.00 21,895.00
10/16/04 - 10/31/04 12,000.00 33,895.00
10/26/04 1,965.00 31,930.00
1 0/30/04 8,020.00 23,910.00
11/1/04 -11/15/04 9,070.00 32,980.00
11 /1 5/04 12,000.00 20,980.00
11/16/04 - 11/30/04 12,695.00 33,675.00
12/1/04 - 12/15/04 12,290.00 45,965.00
12/17/04 11,910.00 34,055.00
12/16/04- 12/31/04 16,695.00 50,750.00
1/1/05 - 1/15/05 13,805.00 64,555.00
1/8/05 9,070.00 55,485.00
1/16/05 - 1/31/05 13,925.00 69,410.00
1/25/05 12,695.00 56,715.00
2/1/05 - 2/15/05 15,980.00 72,695.00
2/16/05 - 2/28/05 13,670.00 86,365.00
2/16/05 12,290.00 74,075.00
3/1/05 - 3/15/05 11,715.00 85,790.00
3/16/05 - 3/31/05 11,405.00 97,195.00
3/17/05 18,000.00 79,195.00
4/1/05 - 4/15/05 13,315.00 92,510.00
4/11/05 27,000.00 65,510.00
4/14/05 10,760.00 54,750.00
4/16/05 - 4/30/05 12,175.00 66,925.00
5/1/05 - 5/10/05 6,445.00 73,370.00
5/11/05 - 5/20/05 6,655.00 80,025.00
5/12/05 13,315.00 66,710.00
5/21/05 - 5/31/05 7,310.00 74,020.00
5/25/05 13,670.00 60,350.00
6/1/05 - 6/10/05 6,735.00 67,085.00
6/11/05 - 6/20/05 6,960.00 74,045.00
TOTALS 232,740.00 158,695.00 74,045.00
EXHIEIT A
BILLING BILLING PAYMENT PAYMENT UNPAID
DATE AMOUNT DATE AMOUNT BALANCE
2/1/05 - 2/15/05 1,600.00 1,600.00
2/16/05 - 2/28/05 1,100.00 2,700.00
3/1/05 - 3/15/05 1,800.00 4,500.00
3/16/05 - 3/31/05 3,250.00 7,750.00
4/1/05 - 4/15/05 1,950.00 9,700.00
4/5/05 1,525.00 8,175.00
4/14/05 1,800.00 6,375.00
4/16/05 - 4/30/05 3,075.00 9,450.00
4/28/05 1,175.00 8,275.00
5/1/05 - 5/15/05 1,950.00 10,225.00
5/10/05 3,880.00 6,345.00
5/16/05 - 5/31/05 2,300.00 8,645.00
5/22/05 640.00 8,005.00
6/1/05 - 6/15/05 3,250.00 11,255.00
6/13/05 3,000.00 8,255.00
6/16/05 - 6/30/05 2,750.00 11,005.00
6/30/05 2,500.00 8,505.00
7/1/05 - 7/11/05 2,30000 10,805.00
TOTALS 25,325.00 14,520.00 10,805.00
EXHIBIT B
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.C.
VERIFICATION
I, Deana Davis, do hereby verify as follows: that I am a named Defendant in the
foregoing Answer with New Matter and Counterclaim; that the facts contained in said document
within my personal knowledge are true and correct; that the facts contained in said document not
within my personal knowledge, I believe them to be true and correct based upon the information
of others; and that I understand that any false statements made herein are subject to the penalties
of 18 P A c.s. 94904 relating to unsworn falsification to authorities.
~Jl>
Deana Davis
Dated: August /.5 , 2005
LAW OFFICES
SNEL8AKER &
BRENNEMAN. P.C.
VERIFICATION
I, David Furline, do hereby verify as follows: that I am a named Defendant in the
foregoing Answer with New Matter and Counterclaim; that the facts contained in said document
within my personal knowledge are true and correct; that the facts contained in said document not
within my personal knowledge, I believe them to be true and correct based upon the information
of others; and that I understand that any false statements made herein are subject to the penalties
of 18 P A c.s. S4904 relating to unsworn falsification to authorities.
(jJewJ~
David Furline
Dated; August / S ' 2005
LAW OFFICES
SNELBAKER &
BRENNEMAN, P.C.
VERIFICATION
I, Deana Davis, do hereby verify as follows: that I am a member of The IV League, LLC,
a limited liability company, which company is a Defendant and the Counterclaim Plaintiff in the
foregoing Answer with New Matter and Counterclaim; that I am authorized to make this
verification on behalf of said Defendant and Counterclaim Plaintiff; that the facts contained in
said document within my personal knowledge are true and correct; that the facts contained in
said document not within my personal knowledge, I believe them to be true and correct based
upon the information of others; and that I understand that any false statements made herein are
subject to the penalties of 18 P A C.S. S4904 relating to unsworn f::,lsificatwn to authorities.
~~ (j~)
Deana Davis
Dated: August / S' , 2005
CERTIFICA TE OF SERVICE
I hereby certify that I am this date serving a true and correct copy of the within
Defendants' Answer to Amended Complaint with New Matter and Counterclaim by sending the
same by first-class mail, postage paid, to the attorney for Plaintiff addressed as follows:
Mark K. Emery, Esquire
Law Offices of Mark K. Emery
410 North Second Street
Harrisburg, P A 171 0 1
R ard C. Snelbaker, Esquire
Snelbaker & Brenneman, P.c.
44 West Main Street
P.O. Box 318
Mechanicsburg, P A 17055-0318
Attorneys for Defendants
Dated: August 15, 2005
LAW OFFICES
SNELBAKER &
BRENNEMAN. P.c.
-'
John R. Druschel and Associates, LLC,
Plaintiff
: IN THE COURT OF COMIvl0N PLEA$
: OF CUMBERLAND COUNTY ..
r-->
C':;:"!
(=.:.
-;':..1'1
vs _
: DOCKET NO. 05-3496
Deana Davis, David Furline, and
The IV League, LLC,
Defendants
: JURY TRIAL REQUESTED
: CIVIL ACTION AT LAW
,
--{
PLAINTIFF'S ANSWER TO NEW MATTER AND COUNTERCLAIMS
AND NOW, comes the Plaintiff, by and through its attorney, mark K Emery, Esquire, and
files this Answer to New Matter and Counterclaims, as follows:
27. Admitted. It is admitted that no written contract exists which includes a restricted
covenant. Lack of a written contract including such a restricted covenant does not vitiate
Plaintiff's rights at common law to protect the contractual relationship between it and its
clientele.
28. Admitted.
29. Admitted.
30. Denied as a legal conclusion.
31. Denied. It is specifically denied that Plaintiff agreed to pay any Defendant two times per
month pursuant to billings from Defendants.
32. Denied. Paragraph 32 refers to a writing which speaks for itself and is therefore denied.
:3:3. Denied. It is denied that the parties agreed that payments would be made two times per
month. Therefore, Plaintiff was not required to make payments on such terms.
'l
~f1
c='
r
--<
(~1 ~~
-:-:: ]2~
N
. ,
:-:-""*"l
, ,.
c=
;"-)
:-;:1
.<
(,... ;
34. Admitted. It is admitted that the last payment on the Omni Care account was made on
May 25, 2005. By way of further response Plaintiff and the Defendants had an agreement
in which Defendants agreed and acknowledged that they would be paid in full by June 30,
2005. Prior to the date such payment was going to made Defendants tortuously interfered
with Plaintiff s contractual relationships and therefore forfeited their right to such
payment.
35. Denied as a conclusion of law.
36. Denied. Paragraph 36 refers to a writing which speaks for itself and is therefore denied.
37. Denied. It is denied that the parties agreed that Defendant would be paid two times per
month.
38. Admitted.
39. Denied as a conclusion oflaw.
40. Admitted. It is admitted that Omni Care and Millennium eventually made payments to
Plaintiff for all amounts that Defendants invoiced. The full payments were made after
June 30,2005.
41. Denied. It is specifically denied that Defendants made attempts to discuss the payments
due them. It is further specifically denied that Plaintiff provided no response. On the
contrary, Plaintiff and Defendants had reached an agreement where Defendants would be
paid in full by June 30, 2005, and Defendants accepted such terms.
42. Denied. Upon information and belief Defendants' contact with Omni Care in June 2005
was for the sole purpose of attempting to usurp Plaintiff's contract with Ornni Care. By
way of further response, Defendants had no contractual relationship with Omni Care or
the treatment facilities. There is no reason to make any such contacts or for Defendants to
believe that either Plaintiff or Ornni Care, had not, and/or would not, have in place
substitute services. Further, Plaintiff was the actual provider of the services' to the
treatment facilities, not Defendants, and therefore Defendants' refusal to provide services
after June 2005 would have had no impact on the treatment services as Plaintiff would
have none the less provided such services had Defendants refused to do so.
43. Denied. Upon information and belief Defendants' contact with Millennium in June 2005
was for the sole purpose of attempting to usurp Plaintiff's contract with Millennium. By
way of further response, Defendants had no contractual relationship with Millennium or
the treatment facilities. There is no reason to make any such contacts or for Defendants to
believe that either Plaintiff or Millennium had not, and/or would not, have in place
substitute services. Further, Plaintiff was the actual provider of the services to the
treatment facilities, not Defendants, and therefore Defendants' refusal to provide services
after June 2005 would have had no impact on the treatment services as Plaintiff would
have none the less provided such services had Defendants refused to do so.
44. Denied. It is specifically denied that Defendants motivation was for moral and/or ethical
concerns. Such self-serving statements attempt to obscure the fact that there'would have
been no break in treatment or services had Defendants refused to provide services after
June 2005 as either Plaintiff and/or Millennium and/or Omni Care would have been able to
provide such services on their own.
45. Denied.
46. Denied as a conclusion oflaw.
47. Denied as a conclusion oflaw.
48. Denied as a conclusion oflaw. By way of further response, such argument may be raised
solely by preliminary objections, which Defendants have not done, and therefore such
claim is waived.
COUNTERCLAIM
THE IV LEAGUE LLC v. JOHN R. DRUSCHEL AND ASSOCIATES. LLC
COUNT I
CASH CONTRACTS
49. Admitted upon infonnation and belief
50. Admitted.
51. Admitted.
52. Admitted.
53. Admitted.
a. Admitted
b. Admitted in part, denied in part. It is admitted that the fee per procedure is correct.
It is specifically denied that Counterclaim Plaintiffs were going to be paid two times per
month.
54. Admitted.
55. Admitted. It is admitted that Counterclaim Plaintiffs submitted periodic billings for ..
services to Omni Care and Counterclaim Defendant made payments when Omni Care paid
for the invoices submitted by Counterclaim Plaintiff
56. Denied. Paragraph 56 is denied to the extent that it refers an Exhibit "A" as such exhibit
is a writing which speaks for itself and it is therefore denied.
57. Denied. Paragraph 57 refers to a writing which speaks for itself and is therefore denied.
By way of further response, it is specifically denied that the parties agreed that
Counterclaim Plaintiff would be paid two times per month.
58. Admitted. It is admitted that Counterclaim Plaintiffs submitted periodic billings for
services to Millennium and Counterclaim Defendant made payments when Omni Care paid
for the invoices submitted by Counterclaim Plaintiff
59. Denied as a conclusion oflaw.
60. Denied. It is specifically denied that Counterclaim Defendant refused to pay. On the
contrary, the parties entered an agreement where Counterclaim Plaintiffs agreed to accept
payment in full by June 30, 2005. Prior to such date Counterclaim Plaintiffs tortuously
interfered with Counterclaim Defendant's contractual rights with Omni Care and
Millennium and therefore forfeited right to payment.
61. Denied as a conclusion oflaw.
WHEREFORE, Counterclaim Defendant respectfully requests this Honorable Court enter
judgement for it and against Counterclaim Plaintiffs.
COUNT II
QUANTUM MERillT
62. Paragraphs 27 through 61 are incorporated fully herein by reference.
63. Admitted.
64. Admitted.
65. Admitted.
66. Denied as conclusion of law. By way of further response, it is specifically denied that
Counterclaim Defendants failure to pay is unjust and unfair, as the amount allegedly due is
far less than the damages sustained by Counterclaim Defendant for counterclaim Plaintiff's
tortious acts.
WHEREFORE, Counter Claim Defendant respectfully requests this Honorable Court
enter judgement for, in and against Counter Claim Plaintiffs.
Respectfully submitted,
LAW OFFICES OFMARKK. ENlERY
DATE: 10-7-0 l)
By: ~~:7/ ~~
Mark K. Emery, EsqUIre .
Supreme Court I.D. No. 72787
410 North Second Street
Harrisburg, P A 17101
(717) 238-9883
Attorney for Plaintiff
VERI FICA TION
I, Janice Druschel, as the personal representative of the Estate of John R.
Drushel, hereby verify that I have read the foregoing Answer to New Matter and
Counterclaims and that the information contained therein is true and correct to
the best of my knowledge, information and belief. I understand that false
statements herein are subject to the penalties of 18 Pa. C. S. S 4904 relating to
unsworn falsification to authorities.
~;4U./'J-/ Jj- UJA":../J.._LJ.
Janice Druschel
DATE: /0- 7 .o~
CERTIFICA TE OF SERVICE
AND NOW, I, Mark K. Emery, Esquire do hereby certify that Plaintiff's Answer
-
to New Matter and Counterclaims was served upon Defendants on October 7,2005 by
mailing a true and correct copy via United States fIrst class mail, addressed as follows:
Richard e. Snelbaker, Esquire
SneIbaker & Brenneman, P.e.
44 West Main Street
P.O. Box 318
Mechanicsburg, P A 17055-0318
Respectfully submitted,
LAW OFFICES OF MARK K. EMERY
By:
~~
Mark K. Emery, Esquire
Supreme Court LD. No. 72787
410 North Second Street
Harrisburg, PAl 71 0 1
(717) 238-9883
Attorney for Plaintiff
-
REV-1511 EX+ (12-99)*
COMMONWEALTH OF PENNSYLVANIA
INHERITANCE TAX RETURN
RESIDENT DECEDENT
SCHEDULE H
FUNERAL EXPENSES &
ADMINISTRATIVE COSTS
ESTATE OF
JOHN R. ORUSCHEL
FILE NUMBER
21-05-0777
Debts of decedent must be reported on Schedule I.
ITEM
NUMBER
A.
DESCRIPTION
AMOUNT
1.
FUNERAL EXPENSES:
BARNHARTFUNERALHOME,GREENSBURG,PA
6,234.82
B. ADMINISTRATIVE COSTS:
1.
Personal Representative's Commissions
0.00
Name of Personal Representative(s)
Social Security Number(s)/EIN Number of Personal Representative(s)
Street Address
City
State
Zip
Year(s) Commission Paid:
2.
Attorney Fees
0.00
3.
Family Exemption: (If decedent's address is not the same as claimant's, attach explanation)
3,500.00
Claimant Janice Jean Oruschel
Street Address 3901 Chestnut Street
City Camp Hill
State PA .Zip 17011
Relationship of Claimant to Decedent SPOUSE
4.
Probate Fees
128.00
5.
Accountant's Fees
0.00
6.
Tax Return Preparer's Fees
0.00
7.
Newspaper Notices
214.94
TOTAL (Also enter on line 9, Recapitulation) $
(If more space is needed, insert additional sheets of the same size)
10,077.76