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Home My WebLink About02-0982PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERL~ COUNTY, PENNSYLVANIA : CIVIL ACTION 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 aga'mst you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. ct aA RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and : MR. & MRS. CAMBARERI, Defendants : CIVIL ACTION NOTICIA Le han demandado a usted en la corte. Si usted quiere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita o en persona o por abogado y archivar en la corte en forma escrita sus defensas o sus objeciones a las demandas en contra de su persona. Sea avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso o notificacion y por cualquier queja o alivio que es pedido en la peticion de demanda. Usted puede perder dinero o sus propiedades o otros detechos importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO IMMEDIATAMENTE. SI NO TIENE ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMPLAINT AND NOW, comes Plaintiff, Presbyterian Homes, Inc., t/d/b/a Forest Park Health Center, (hereinafter referred to as "PHI"), by and through its attorneys, Killian & Gephatt, LLP, and in support of this Complaint, avers the following: 1. Plaintiff is Presbyterian Homes, Inc., t/d/b/a Forest Park Health Center, which has its principal place of business at 1217 Slate Hill Road, Camp Hill, Cumberland County, Pennsylvania 17011. 2. Defendant, Riggs & Co., is a corporation with an address of 808 17~ Street, NW, Washington, DC 20006-3944. 3. Upon infomiation and belief, Defendants, Mr. and Mrs. Cambareri are adult individuals, one or both of whom may be contingent remaindermen under the Margaret R. Smith Trust, and who have a mailing address of 6923 Western Avenue, NW, Washington, DC 20015. 4. Defendant, Riggs & Co., is the Trustee of the Margaret R. Smith trust with an account number of 41-0116-01-6. 5. Plaintiff, PHI, operates a nursing home called Forest Park Health Center. 6. Margaret Peffer is now and for some time has been a resident at Forest Park Health Center. 7. Upon information and belief, Margaret Peffer is a beneficiary of the Margaret R. Smith Trust of which Defendant, Riggs & Co., is the Trustee. 8. As Trustee, Defendant, Riggs & Co., is in possession of ftmds of which Margaret Peffer is the equitable owner. 9. Margaret Peffer has entered into a contract with PHI wherein PHI has agreed to provide services and care to Margaret Peffer in return for payment. A tree and correct copy of Margaret Peffer's Admission Agreement is incorporated hereby, and attached hereto as Exhibit "A". 10. Margaret Peffer has applied for Medicaid benefits. 11. The Department of Public Welfare, via the Cumberland County Assistance Office, notified Margaret Peffer on August 31, 2001 that "The value of your countable resources exceed the resource limits of $2,000/$2,400 for medical assistance benefits. Your application has been discontinued. You may reapply when your countable resources are reduced to the resource limit. Countable resources include: Member's pt savings $71.02, checking "0", and Margaret R. Smith Trust $216,000 = $216,071.02." A 2 tree and correct copy of the Notice To Applicant from the Department of Public Welfare is incorporated hereby, and attached hereto as Exhibit "B". 12. Upon infmmafion and belief, the trust in which Margaret Peffer has an interest has standard provisions which would enable the principal to be invaded to provide for the health needs of the beneficiary, Margaret Peffer. 13. Defendant, Riggs & Co., has received a legal opinion from its legal counsel, William Fralin, Esquire that Riggs & Co. as the Trustee of the Margaret R. Smith Trust has a responsibility to pay the expenses of Margaret Peffer per the temts of the agreement. 14. Article Third of Amendment To Trust Agreement dated August, 1983, gives Riggs & Co. as Trustee, sole and absolute discretion to use so much of the income and principal or corpus of the trust fund as it deems necessary or desirable for the proper support, maintenance, comfort, health or general welfare of Miss Margaret L. Peffer. 15. It is the opinion of Riggs & Co.'s counsel that there is a responsibility of Riggs & Co. to pay Margaret Peffer's expenses. 16. Defendant, Riggs & Co. is withholding funds required for Margaret Peffer's past, current and future expenses at Forest Park Health Center. 17. At the present time, a balance of $41,365.70 is due and owing with that amount increasing on a dally basis. 18. Monthly nursing home expenses at Forest Park Health Center amount to a minimum of $4,200. 3 19. Defendant, Riggs & Co., is making income payments only in the amount of $514.33 a month, grossly inadequate to cover the monthly costs of Margaret Peffer's care which are in excess of $4,200 a month. 20. Margaret Peffer has current medical conditions as follows: glaucoma with near blindness and deafuess; A-fib and angina heart conditions; high blood pressure and cholesterol; peripheral vascular disease; arthrifs; anemia; and incontinent of bowel and bladder. Previous medical conditions include: breast cancer with a left mastectomy, stroke and depression. 21. Ms. Priscilla Whitman from the Cumberland County Area Agency on Aging has been appointed Margaret Peffer's Power of Attorney. 22. Ms. Whitman has demanded payment on Margaret Peffer's behalf of her expenses at Forest Park Health Center. PHI in its own right has also demanded payment pursuant to the provisions 23. of the trust. 24. Despite the opinion of its counsel, demands of the Power of Attorney, and demands from PHI, Defendant, Riggs & Co., refuses to pay the amount due and owing for Margaret Peffer's care. 25. Title 55, Section 178.7 of the Pennsylvania Administrative Code provides that all trusts established prior to July 30, 1994 are governed by 55 PA Code, Section 184.4(c). 26. That section provides that resources held in a mist are to be considered resources available to the individual to the extent the trust funds may be used for the recipient's food, clothing, shelter or medical care. (Emphasis Supplied). 27. Applicable case law has repeatedly held that a general support trust without limitations is available to an individual and must be expended before Medicaid becomes available. 28. Margaret Peffer's medical care to Plaintiff, PHI. Defendant, Riggs & Co., as Trustee has a fiduciary obligation to pay for COUNT I - DECLARATORY JUDGMENT 29. The avem~ents of paragraphs 1 through 28 are incorporated hereby as if set forth fillly and at length. 30. The failure by Defendant, Riggs & Co., to pay Margaret Peffer's medical bills constitutes a breach of Defendant, Riggs & Co.'s fiduciary obligations as Trustee. 31. Upon information and belief, Defendants, Mr. & Mrs. Cambareri, one or both of whom are contingent beneficiaries of the mast, have unlawfully directed the Trustee to decline to perfmm its fiduciary obligations, thus violating the temxs of the mast, and the duty of payment owed to PHI as care giver for a mast beneficiary. 32. Pursuant to 42 Pa.C.S.A. §7531 et seq., the Declaratory Judgments Act, Plaintiff, PHI, is entitled to declaratory relief to detei-ix-uine its right to payment pursuant to the trust instrument prepared on behalf of the late Margaret R. Smith. 33. Pursuant to 42 Pa.C.S.A. §7535, it is appropriate for a court to construe issues relating to rights and liabilities under a trust and trust administration. 34. Declaratory relief is appropriate since there is an inevitable and imminent risk of litigation. 35. There is imminent and inevitable litigation since Plaintiff should not be required to pay Margaret Peffer's expenses when she has funds available to her which funds are being wrongfully withheld by the Trustee and the contingent remaindermen. 36. Plaintiff, PHI, has a right to a declaratory jud~ument to determine its stares as legitimate recipient of funds in the Margaret R. Smith trust for the benefit of Margaret Peffer. 37. Plaintiff, PHI, should not be required to discharge a medically, frail, elderly lady due to the misfeasance of Trustee and contingent remaindermen. 38. This matter is ripe for detcs~fination since the amount due and owing for the care of Margaret Peffer continues to accumulate on a daily basis. 39. The Trustee should be surcharged and bear the costs itself of any and all legal fees either to the trust or to PHI arising from this matter since Trustee's refusal to pay is in bad faith and in contradiction to the legal opinion of its own attorney. 6 40. Plaintiff, PHI, has a direct substantial and present interest in the resolution of the fights and obligations pursuant to the trust since it is experiencing severe losses because of providing Margaret Peffer's care. WHEREFORE, Plaintiff, PHI, respectfully requests this Honorable Court to grant declaratory judgment that the Trustee is obligated to invade the principal of the Margaret R. Smith Trust to pay expenses for the medical expenses for trust beneficiary, Margaret Peffer at Plaintiff's facility, to order such payment forthwith by the Trustee, to order payment of punitive damages, and to surcharge the Trustee for attorneys' fees incurred by the trust and PHI in pursuing this matter which is above the jurisdictional limit for compulsory arbitration. COUNT II - CONSTRUCTIVE TRUST 41. The answers to the ave. merits of paragraphs 1 through 40 are incorporated hereby as if set forth fully and at length. 42. This court should impose a constructive trust upon the corpus and income of the trust, and payments should not be made to any other person or entity other than PHI which is providing medical care and supportive services to Margaret Peffer. 43. It is manifestly unjust to allow the trust corpus to be spent for any other purpose other than the care and support of trust beneficiary, Margaret Peffer. WHEREFORE, Plaintiff, PHI, respectfully requests this Honorable Court to impose a constructive trust upon the corpus and income of the mast, and forbid payment by Defendant, Riggs & Co. of the funds in the mast to any other person or entity other than Plaintiff, PHI, for the care of mast beneficiary, Margaret Peffer, for as long as she lives, and pay any mounts owed after her demise. Respectfully submitted, KILLIAN & GEPHART Dated: February 28, 2002 ?o~o~ ~3[. Oxct~ Paula J.WIcDermott, Esquire Attorney I.D. g46664 218 Pine Street P.O. Box 886 Harrisburg, PA 17108-0886 (717) 232-1851 VERIFICATION I hereby verify that the statements of fact made in the foregoing document are true and correct to the best of my knowledge, information and belief. I understand that any false statements therein are subject to the criminal penalties contained in 18 Pa. C.S. Section 4904, relating to unswom falsification to authorities. Dated: ~ ~71 o '2_ Paula J. ~IcDermott, Esquire NURSING C~EADMI$SI. 0N~,OREE ENT :'~TRODUCTION 'L :~: : : ~. ' , . · · . .,':~..~ . :' ~ . · ~:. . :, i~ ,i. ~ ~ rP Iv n~la~ Allo th~sC~'~aotli~ted~low;H~we~tO~~ "n~m~tm~s~ ~i ~.i' ~. Long.tek. de ~nsCa~afaCili~es.. and ~s~den~f Ofl~$~.c~.. ..... fa~m~.~ve~o~:n~h~;~po~l~eSi}., .= . ~ ....... an ett~pt~ ~aiv~ or lim~ta~on ts unenf~enhle end ~y ~vs ~e to a legal action aghast Alee, to the extent ~t this A~ee~nt conflict%with ~y count or futu~ pro~st~ of law, cc~.~lling. ~esidents of a f~ili~ that has ~n ~H~ ~ p~icipate ~ Medie~ or M~dicaid (i.e. the =;~ M~ical Assistance ~o~am) have addifion~ fights under fe~l.law. These fights ~ene~ly :: Z.I residents of certified facilities, whe~ ~ not Medic~ or M~lcaM Is paying for ~. PARTIES', The l~utles To this A~reement are: /ia) - '-' - :- ''J- - ' - (herein "the facility"), mad ,Id~b) ~ - :. _-- :- -[.A=J (herein "the resident"; if someone other than the resident is named, in~,icate that individual's relationship to th-- resident, for example, legal guardian or attorney-in-fast), The parties to this Al~reemsnt r~co{nize that the facility cannot req, uire a legally competent p~son to designate an attorney-in-fact or other responsible party ~s a condiuon for ~dmtssion ~ a t{esiaent. -c ¢ resident is not a l~arty to this Agreement, the responsible party is entitled to enforce al! fll[h!.s per. i':'~ -,i~$ ~o rcsidcncy ~)n behalf of the resident and resident is entitled to thc sa~ fights ~la pnvtteges as accorded to fully responsible r~sidents who sign the Admission Agreement. MEDZCARE/MEDICAID CERTIFICATION The facility is certified to participate in the Medicare and Medicaid program, Provider participation 1~ :~.-. Medicare nnd~or Medicaid program is subject to termination by the facility or by the responsible govern mental entity, ~:..C~ARGES Covered services: Beginning on ,-~'7 [~-t')l , the facility will admit J~2MI-~.~tlhe resident. herein. Unless mild until the resident is eligible to have his ~~ pttd forQ~ M~dir. ar~ or Medicnld, the facility will charge the per diem rate tn Attachment A for the prov~sion of long term care services. This charge covers all room and boa~_, ittalts, equ. ipm~nt?nd..? .r~?~s.~re~, - sonably r~lated to the :care and treaimem of the resident. Payment is clue on tl~e ¢_3,~*r- ~ -: ! day of the month, Charges in addition to room and board are included in Attachment A, There will be no charge for any service, equipment or item which is not actually provided to the resident. Chnnges in charges The factltty may amend the charges set forth in the preceding section (4(a)) upon thirty (30) dlys written and/or an oral notice to the resident, legal repre'sentative (if one exists) and responsible .party (if one exists). EXHIBIT "A" PAGE 84 7:~".,~? on discharge ...... .~. -vld~n--- mta~fund ~£' :he re~ident is disch~g~ prate the ~ ~v D~payment f~ ~ove~: ~esi~l~in 30 days~o~ Billing M~lcnre ' ' submit any claim for ~y~nt to the M~ ~.;~ i ~[ '[. Payment amoun~for residen~ who g~;e~ig~.to ~i~aid · 9ePvtment 0f Public Wel~Any~y~imade to a M~l~ld ~e~i~ ~aCag~f~me c°st~ ' ' within ~vc (5) days of heal,cation of r~sidcnt}li~bgi~, l'nc p~cs f~r a Medic~d ~tificd facility to chore, ~li~t. accep~ ~ r~!ve ~diQon~ ~}cs ~ypn~ wn~t ~c M~dic~d pro,am dct~ines is du~; as i ~n~tion for ~!ning, ~p~mn~ ~e an~sston et, or ~taining a rcsid~m und~ Medieval. Thc p~cs r~gnize ~at a M~tcsld c~fl~ ~acility ma~ ch~e for i~ems, cq~mcnt ~ scmcc not reimbursable under the M~icaid pm~, if ~e provision o~ such item, eqmpmcnt ~ ~icc ~d thc ~h~gc th~forc is d~closcd ~d a~ ~ in advice, p~uant ~ law. ~e~id recipients who ~ unchain whe~r ~ item ~ se~i~ ~ not reimbursable und~ the Medi~pm~m should contact thc Dep~tment of ~blic Welfa~, Long Te~ C~e ~ient S~ces at (71~) 7~2-2~. ~3tsMing Private Payment and Public ~e~efi~ . Thc ~acility will assist the resident en~ ot~e~ ~b~nina p~vate insurance and pub~ Th~ resident a~ees to ~oo~rate to thc ~st ~ his ~ her nbili~ with any s~ch ~plication. Interference =. The parties acknowledg, that a Medicaid certified facility rnay .not. requtre, ?n, _wr~ ~}]n_l~ ~cr~ai~,aor promise that a resident will remain in private pay status or retrain Item apptymg tot it specified period of time. Finnncial Guarnntor The parties acknowledge that under PennSylvania law, this A~ecme~u= scandinS alone is insuffi- cient to lazily bind any individual es financial guarantor for charges owed hereunder. Any other '.,.::'son signing this aiTeemcnt is only obligated to make payment from the resident's funds and bnly to the extent that those funds are available to such signing person. Tharefore~ if st guarantor a~u'ccment exists, it is attached hereto as Attachment B. FFtOTECTION OF R£SIDKNT'8 PROPERTY .The facility will take reasonable steps to prevent the theft or loss of the resident'S, propertY. T? resident is not required to deposit personal funds (including, but not limited to Social Security and F.nsion checks) with the facility. If the resident wishes, however, the ifactlity will hold, safeguard and :~ccount for any personal funds deposited with the facility, in accordance with state and federal law. 'T'%~.:~,-:..-=i. cs acknowledge that any resident funds held by the facility are subject to various provisions of i f:=;-;~or f~derai laWgoveming access to the funds, mandatory posting of lmcr~st and rcponin~ on .'.h~ ?:at,.~s of said funds. .Th~ procedure for filing claims for property of thc resident which is lost or stolen is ~t forth in At~,chmcnt C. ' B2/27/20~2 B9:22 7177376763 PHI ~ , ,:,. ~ ~ARGE OR TRANSFER OF THE RESIDENT FROM THE FACIb~Y P~GE D5 ,f, ~. Reasons for Trnnsfer or Dis~hnrge : , , ~ The facility will not ~Cha~ge or cranSf~i~ resident P~on~ thc~cilhy ~t, f~c~ for his ~ her welfa~ ~t that of~o~et ~de~, for no~a~m~t for ~i~ dr h~ h~ m~e reachable effo~ to colleci ~6 ~, ~ if the ficiii~ ~ea~a'~ o~ in the event th~ a dis~h~g~ ~ansf~ig~s~ and~a~Pt a ~ e~?~nn~Y, ~;facili~ ~lgive 30 :days advaac~ wntt~ nOti~ to ~b ~, ~ any i~g~ r~}a~ ~if one exists) and io o~eri r~Uired bYi~ ~ ~ceive ~hi$ nOt[~. ~e ~fltten n~.i~ {h~ reason for ~e ~an~ or dischvgelth~ ~[~five ~te of the ~n~ ob~seh~ a~ ~e l~alion give ~e ~sid~n~ as much nodc~ as is ~sSible und~ the ~rcumsmnces. c. Facility Responsibility for Transr~r or Dlschsrg. In ~hc cven~ ~ha~ ~ ~nsf~ or disch~ge is necess~, ~he facility ~11 pro~d~ sufficient pmp~a- :~on ~o assure tha~ ~h~ ~nsfer ~ disch~g~ is sar: ~d orally. ~e f~ility ~.~sfc~ng Ih~ residen~ to an ippropfia~c level of ~,. Holing the RMId~t's Bed Upon Transfer l. HOSPITALIZATION. In ~e ~en~ ~at ~e resident is ~ansf~ to a h~pl~, · c ficili~y will hold th~ resident s bed for up to fi~ da~, tf lh~ Medical Assis~ce eligible and ~he f~ill~y ts Medical ~sismnc~ If ~he mstdem il en~l~ ~ Medtcsid benefits for ~h~ ~fi~, and ~he Acility is c~dfied under the Medicaid pro.am, ~hc facili~ will ~c~p~ M~l~d ~dho~ paymems as pay~nt tn ~11. If th~ mstdent is not ~tcal Asslsmn~ ~ facilky will accep~ the n~m~ per diem lismd in A~mchment A. 2. THERAPEUTIC LEAVE. In thc event the msid~t is absent ~m the fa~ili~ on th~apeutic leave, the fadlity will hold ~ bed upon pa~ent of tho fa~li~y'a Medie~ Assist~ce inmfim ~r~em rate, or, if the facil}}y is not ceffifi~ under Medi~l Assistance, upon payment of ~ per diem mm hst~ in A~hm~nt A. If ~e resident is entitl~ to Medicaid ben.ts dufini th~rap~u~ [~av~, the facility will accept Medicaid bed hold paymenm Oimit~ to 15 da~S ~r caondar ye~ for Skilled c~ ra~d.~ts ~d 30 da~s p~:cal~nd~ intemediate c~ residents) ~ P~yment in full, The ~sid~nt's c~d~ ~gtns on thc ~y of 1st therapeutic leave. 3. NEXT AVAILABLE BED, ~ the event lhe ~sident and others acting on beh~f of the r~sldent ch~sa not to pay to ms~e a bed ~ set forth in p~aphs (1) and (2), the resident is nevertheless entitled to the next available ~ when he/she is ~y to return to the facility. :' ...?;Sg'ERS WITHIN THE FACILITY The :~sident will not ~ 7ansfened wt~hin th~ facility except for ~ic~ m~ons~ for his or h~r ~-. ~.:~ac .of oth~ rasid~nm, or with tho volun~ cons~t of th~ rasid~nt ~ hi~ or h~ le~ ~ ;i;e event of a uanaf~r hemund~, except in anemergeney, the facility will ~tve p~pt Mv~ce :~ :kc r~s!dent, to the responsibl~ pray (if one exists), m any legal ~pres~ntauve and:to ~y f~ily. m~m~r who Is known to the facilhy. The no~ea will state the re.on for the ~sfer, ~d the l~a~on to which the resident will ~ move. In ~he event &at a ~sf~r within the fa~il[~ is n~eess~, the facility ~11 ~ovido sufficient p~p~ion ~ aasu~ that the Wansf~ is safe and orderly. 02/27/2002 09:22 7177376763 PHI 'I'~c T~t~es r~ogni~ that federal and stare law ~u~nt-- ,~--~-L- _..__ = .... .... ,~.~, ;n m~ a~eemenc ~e facxl~ty a~cts to u~hold ~I of the dohe~ ~ t~,--~ ......... mc [acdit admm~at~on tn ~v.n~ . : ~ ,. ....... ~ F .7 C e~ wt~ %~¢ p~tes recognize the fight bi ~e:~de~;t~ recommend ehange~ ~: ~e fa~it ~d ~be m m~,ner by w~ich ~ resident or 0th~a: ~cfi~;~if of ~e r~si~t ~n su e~ ch ' '" T~c ~fios recognize ~ha~ ~he Pennsylvania Depa~en[ of Aiin~ has assi~n~ ~ Ombudsmsn ~ursmg f~ciU~ in ihe slain. ~c Ombudsman may assis~ ~crcsiden[ or o~hers acting onbehalfof~hg resid~l ~ re~lvin~ dl~mes wi[h [he facilily. ' iL R~GULATORY AGENCIES 7M p~ies recognize that thc facili[y is licensed by [he Dep~m~cm o¢ Heahh and ~ ~lamd P,~nas~lvanii Dcp~mem of Welf~e and ~hc Hca[h C~e Pin~cing A~inis~adon of Ih~ U.S. ~e~t of ~eal~ and Hum~ Sc~ices. BoA p~tes recognize tha~ m~ulaw~changcs;may ~mr c~n~ttons of thil a~eeme~[. ~:,:~L glGHTS COMPLIANCE ~abymfl~ Ho~' facilities ~e o~n to ail in a~d of our ~tccs, ~d ~c not ma~ict~ to ~sbyt~ans. Also, in accor~nce ~th thc Fedgal ~vil Righ~ Act ~d ~e Pennsylvania Hu~n Rela~ons Act, P.L. 744: Thin faci~ty has a~cd to oomply with the provision of the ~edeml Civil Rights Act of ~d th~ Pennsylv~ia HUla Relations Act, ~d all ~utmments pwpo~d pursuant thereto, to the end that no persona shah on the ~un~ of race, color, religious ~eed, national origin, ances~, age. sex. Mndicap or disabili~ should be exclu~d from p~ficipating in. ~ de,ed benefits of, or othe~isc be subjec~ to di~fi~nafioa in ~e pwvision of any cge or se~ice. The non-di~fiminato~, policy of th~ institution applies to m~idents, physicians, ~d all ~mployees. Under no circumstances Will the application of ~is policy result in thc ~egatlon of buildings, wtngs, fl~rs, and rooms for reasons of ~ce, color, religiou~ c~, nationM ancestry, age, sex. handicap, or disability. '? $!GNATURE$ Administrmor Resident or Authofitzed Representative 1,5- Date i,;~., ~.~, .............. 1~' ~ ~(-c/I [ 1-800-269-0173 717-240-2700 NOTICE TO APPLICANT I DEPARTMENT OF PUBLIC WELFARE ~'~ ~ ~ [ CUMBERLAND COUNTY ~SSISTANCE OFF}CE ~ ....... ~ t CARLISLE PA 17013-~9g AS~T,a~JCE C H E~W.-~ FOOD STAMPS':"<";: :,: ~:: Numbe,rof:Pi~raonal~" I A$SIS-[ANCE cHECK.. Name Name TOTAL GROSS MONTHLY INCOME . GROSS MONTHLY INCOME GROSS MONTHLY DEPENDENT CARE COSTS GROSS MONTHLY DEPENDENT CARE COSTS GROSS MEDICAL COSTS $ i MEDICAL ASSISTANCE Number Telephone ~ Water/Se aoe Gas & II -UllllW InBtailallon $ '" ~~ CO~UTIU~ STANOAR~ ~ ' Na~ UNEA~N D ,NCOM ~A~ $, -~~ ~ $~ - $ ~E CO~ ON HOME ~he hou%ho/:~a~::S~I~ be~en rh~a~fua/ ~#ll~ ~s~ and, h: TOT~L~OSS~ONTU~mCOaE ....... -- Oa~e Telephona Number MARGARET PEFFER FOREST PARK HEALTH CENTER C/O PRISCILLA WHITMAN, PO~. CC: LFOREST PARK J LEGAL SERVICES, INC. B IRVINE ROW CARLISLE, PA 17013-3019 717-243-9400 · 717.766-8475 EXHIBIT "B" COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, 1NC. t/dgo/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 NOTICE TO PLEAD To: Plaintiff You are hereby notified to file a written response to the enclosed Preliminary Objections within twenty (20) days after service hereof or a judgment may be ~ntered against yoa. Goodall & Yurchak, P.C. By' H Amos'~Joo~a'll, Jr Attorney for Riggs Bank N.A., d]b/a Riggs & Co. 328 South Atherton Street State College, PA 16801 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, 1NC. t/d/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 PRF, I,IMINARY OBJECTION RAISING OUESTION OF JURISDICTION Defendant Riggs Bank N.A., dfo/a Riggs & Co., by the undersigned counsel, preliminarily objects to the complaint of plaintiff Presbyterian Homes, Inc. t/d/b/a Forest Park Health Center under Pa. R.C.P. No. 1028(a)(1) based on lack of jurisdiction over the person of moving defendant and over the subject matter and in support represents as follows: This is an action to direct a fiduciary ora trust to pay funds from the trust to Plaintiff. 2. Riggs Bank N.A. ("Riggs"), a national banking association, serves the Washington, D.C. community with branches in the District of Columbia and adjacent parts of Maryland and Virginia. Its main office is located at 6805 Old Dominion Drive, McLean, Virginia 22101. 3. On June 10, 1977, The Riggs National Bank of Washington, D.C. was named trustee of a trust established by grantor, Margaret Rebecca Smith. True and correct copies of the best copies obtainable of the original trust as well as amendments dated June 5, 1978, and August 27, 1983, are attached hereto as Exhibit "A". True and correct copies of the originals of such documents will be furnished to the Court and counsel when obtained fi.om the Bank's vault. 4. At the time she created the trust, Ms. Smith was a resident of the District of Columbia, and she remained such a resident until her death on January 8, 1984. 5. Upon the death of the Settlor, the trust became irrevocable. 6. Riggs does not have any branch offices in Pennsylvania. 7. No officer of Riggs has ever been present in Pennsylvania for any purpose connected with the Margaret Smith trust. 8. The trust agreement and all amendments were executed and delivered in the District of Columbia, and custody of all assets of the trust is in the District of Columbia. 9. There are insufficient contacts for this Court to exercise either general jurisdiction over the person of defendant Riggs, specific jurisdiction with respect to its alleged liability in connection with the matters complained of in the complaint, and jurisdiction over the subject matter of the cause of action. 10. The affidavit of Edward L. Wucher, an officer charged with administering the Margaret L. Smith trust in support of the facts alleged herein is attached as Exhibit "B." 11. The foregoing facts were well known to Plaintiff and its counsel prior to the institution of the instant suit. WHEREFORE, defendant Riggs respectfully requests that plaintiffs complaint be dismissed for lack of jurisdiction, with costs and counsel fees assessed against Plaintiff. Respectfully submitted, By: H. Amos Goodall, Jr. Attorney ID No. 19342 328 South Atherton Street State College, PA 16801 814-237-4100 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing Preliminary Objections were was served on all parties of record, in the above entitled matter, by depositing the same wjthip the custody of the United States Postal Service, first class postage prepaid, on t~/--'~/[ 0 ~ addressed as follows: Paula J. McDermott, Esquire 218 Pine Street PO Box 886 Harrisburg, PA 17108-0886 Dated: ~/~//02''' H. A~os'G6odall, Jr. Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 (814) 237-4100 TRUST. SG RE EMENT THIS AGRF~ made this ]$-r_~ day of ~'~ , 1977, by and between ~ REBECCA S~TH, of the District of Col~nbia, party of the first part, hereinafter sometimes called the "Grantor" and THE RIGGS N~kTIONAL BANK OF WASHINGTON, D. C., a body corporate under the laws of the United States, doing business in ~he District of Columbia, party, of the Second part, hereinafter sometimes called the "Trustee"; %~HERFAS the party of the first part desires to create a trust of %he property and for the purposes hereinafter mentioned. NOW, THEPJFORE, THIS AGRE~llENT WITNESSETH, That in consideration of the premises, the mutual covenants herein contained, and of other good and valuable consideration, and of the sum of Ten Dollars ($10.00) to her in hand paid by the party of the second part at or before the ensealing and delivery of these presents, the receipt whereof is hereby acknowledged, the party of the first part has granted, couveyed, assigned, set over and delivered absolutely unto said party.of the second part, and its successors in trust, cash in the sum of Fifty Thousand ($50,000.00) Dollars. TOGETH~ with all the appurtenances and all the estate and rights of the party of the first part thereto. TO HAVE AND TO HOLD, absolutely and in fee sidle, all ~nd singular the said personal property and any other property which, with the consent of the Trustee, may be added hereto by the party of the first part, unto the said party of the second part, BUT, N~-W~.Y-qS, IN TRUST, for and upon the following uses and purposes and subject to the terms, conditions, powers and agreements hereinafter set forth. FIRST. It is the desire of the Grantor that the initial deposit of cash funding this Trust shall be 'place~ in units of the Co~no~ Trus~ Funds and the Trustee shall hold, manage and invest said trust estate, collect the income thereof, and after deducting the commission to the Trustee, hereinafter provided for, and all other proper and necessary costs, charges, expenses and outlays incident to, and in connection with the administration and management of the trust, to disburse the net lucome as follows: A. Pay a gift of a ~minimum of One Hundred ($100.00) Dollars each month to or for the benefit of ~A~RGARET L. PEFFER, who is presently receiving Disability Social Security pa~nents and Supplemental Social Security payments. If at any time these Supplemeutal Social Security payments are reduced, in whole or in p~rt, the Trustee shall thereafter pay monthly gifts to MARGARET L. PEFFER, in addition to said gift of a minimum of One Hundred ($100.00) Dollars, in an amount equal to such reduction. B. The written statement of MARGARET L. PEFFER that such Supplemantal Social Security reductions have been made shall be deemed sufficient proof of such reductions. C. The monthly gifts to MARGARET L. ?~FER shall be increased in accordance with the Cost Price Index as published by the U. S. Department Such adjustment shall be made annually, as of December 31, as of Labor. follows: 1977; and (1) Using as a base the Cost Priee Index for December 31, (2) Any increase shall be in effect con~encing with the · year 1978 and for the succeeding years; and (3) Until the death of MARGARET L. PEFFER at which time monthly payments cease without accrual to her estate. . ~ D. Af~payment of the. monthly gifts ~9~RGARET ~PEFFER and co~ ~rati~n' o~us t, t~~anc.e~ ~ncome shall b paid to e Grantor duri her life; an after the de h of the Gr .~s a~rblifa~e~after t~e ~d to the principalho~fs~~ate' E. Should MARGARET L. PEFFER predecease the Grantor, then the said trust shall continue and said Trustee shall pay the net income monthly to the Grantor. ~ ~/ ~_~ SECOND. Not withstanding any provision of this Agre?men~ to the contra~', and upon the death of ~ Grantor, the T~uste~' herein may appl,y to or for the use and benefit of MARGARET L. PEFFER, so much of the principal or corpus of the ~rusm fund as the Trustee, in i~s sole and absolute discretion, may deem~ to be necessar~ or desirable for the proper supporm, maintenance, comfg~, health or ~neral welfare~ said MARGARET L. PEh'~'E~, and the proper r~e6eipt or receipts for funds hereunder expended by the Trustee shall constitute a discharge of the Trustee herein with respecm .thereto~ ~THIP~. Should MARGARE~ L. PEFFER predecease the Grantor, then the Trustee hereim may apply mo or,for the use and benefit of the Grantor, so much of the principal or corpus of the trust £und as the Trustee, in, its sole and absolute discretion, may deem to be necessary or desirable £e~ the proper support, maintenance, comfort, health or general welfare 6f said Grantor, and the proper receipm or receipts £or funds hereunder expended by th~~ Trustee shall constitute a discharge of the Trustee herein With respect the~eto.~ FOURTH. The Grantor reserves the right to terminate this agreement upon written notice to the said Trustee and upon such revocation, said Trustee shall assign, set over, convey, transfer and deliver unto said Grantor, the balance of the assets of said Trust, in cash. The Grantor likewise reserves the right to alter or emend ~he terms of this Agreement but no such alteration or amendment shall be effect±ye ~thout the written consent and joinder of the Trustee. FIF~. Unless revgk~d by the Grantor/dUring her ill,his.Trust shall conti~e~ until the de'of the Grantor'MARGARET L.~ER, w~er 0~Urs last; whe~on said Trust~h~l terminate~/~on Such~nati0~ Trustee sha~ay over~he ~~l~r.u~e~ and ac~erefrom~o THE WAS~i~GTON HOME FOR INGL~LES~ Washington, D. C.~ SIXTH. In relation to the trust hereinabove created, the Trustee is hereby given f~l discretionary powers of management and control, of sale and re-sale, in fee simple or otherwise, or mortgage~ lease and pledge, of investment, relnvestment and exchange, and it shall keep the trust estate invested in such securities and other forms of property, including real estate, corporate stocks~ common and preferred, debenture bonds and other obligations whether or not secured, including any common trust fund operated by said Trustee, as it may deem s~itable for the trust, and sha~J~not be restricted to securities or property of the character now or hereafter authorized by law or by rules of Court. The Trustee is further authorized to take any action which, in its judgment, is necessary or desirable for the proper and advantageous management, investment and distribution of the trust. SEVENTH. The Trustee is authorized to employ attorneys, auditors, depositaries and agents, as necessary; to exercise in person or by proxy voting and other rights with respect to stocks or other securities; and to keep any property in ~earer form or in the name of said Trustee or its nominee, with or without disclosure of any fiduci, ary relationship; and to continue to exercise any powers and discretion after the termination of the trust until the trust estate is distributed. EIGHTH. The Trustee shall render usual and proper statements' to .the Grantor and the books of the Trustee shall be open at any reasonable time or times, to the inspection of' the Grantor? The Trustee shall be entitled to receive as compensation for its services the commissions agreed to by the parties hereto by separate written instrument, This fee schedule shall apply so long as all the assets of this account are invested in units of the Common Trust Funds. Otherwise, the Trustee~s compensation shall be computed on the basis of its then applicable f~e schedule. NINTH. This Agreement is executed in the District Of Col~nbia and shall be administered in accordance with the laws in force therein. T~A~fH. This instrument is made in triplicate~ each of which is an original~ but altogether shall be deemed one and the same instrument. IN WITNESS WHEREOF~ the parties hereto have set their hands and seals this lO'~-~ day of ~J~- , 1977. Witness: AITEST: (s~) TEE HIGGS NATIONAL BANK OF WASHINGTON,D.C. TI[IS ~J.~f~I[A~"~L~T made this ~ day of ~'~ , 19'/8, by and be'tween ~JlGARE~f REBECCA ~iTH, of the District of Columbia, party of the £irst part, hereinafter sometimes called the "Grantor" and T}~ P~IGG~ NATIONAL BANE OF WASHINGTON, D. C., a body corporate under the laws of the United States, doing business in the District of Columbia, party of the second part, hereinafte, r sometimes called %he "Trustee"~ ~ ~rgaret Rebecca Smith, grantor of a certain Trust Agreement dated June 10, 1977, pursuant to Article FOUR~H of said Agreement, does hereby revoke pauragraph D of Article FIRST of said Trust Agreement in its entirety, and does hereby substitute the following paragraph D of Article First in its place, in like manner as if the same had been originally incorporated 'therein. D. A/'ter payment of the monthly gifts to }.{ARGARA~ L. PA~FER and costs of administration of said Trust, 'then the balance of net income shall be paid to the Grantor during her life; and after the death of 'the Grantor said balance of net income shall be paid to The Washington Home, (formerly Washington Ho~e for Incurables). ~ FURTHER, pursuant to Article FOUR~H of said Trust Agreement, said Grantor does hereby revoke Article SECOND of said Trust Agreement in its entirety, and does hereby substitute the following Ai{rICLE SECOND in its place, in like manner as if the same had been originally incorporated therein. SECOND. Not withstanding any provision of this Agreement to the contrary, and upon the death of the Grantor, the Trustee herein may apply to or for the u~e and benefit of N~dlGARET L. PEFFER, so much of the income, and principal or corpus of the trust fund as the Trustee, in its sole and absolute discretion, may deeJa to be necessary or desirable for 'the proper support, ~in%ens~aee, contfort~ health or ~eneral %7elfa~re of said K~RC~ L. PEFFER, and the proper receipt or receipts for funds hereunder expended by the Trustee shall constitute a discharge of the Trustee herein with respect thereto. o4..0 FURTI{Ett, pursuant to ikrticle FOU~i'It of said Trust A~reement, said Grantor does hereby revoke A~ticle TH~Pd) of said Trust t~reement in its entirety, and does hereby substitute the following f~ticle THIRD in its place, in like manner as if the same had been originallM inco~-porated therein. ~ THIRD. The Tk, ustee may apply to or for the use and benefit of the Grantor so much of the principal or corpus of the trust fund (but only above a minimum of Fifty Thousand Dollars ($50,000.00) during the life of ]~UtGARET L. PEFFER), as 'the T~ustee, in its sole and absolute discretion, ma~ deem to be necessary or desirable for the proper support, maintenance, comfort, health or general welfare of said Grantor and the prope~ receipt or receipts for funds hereunder expended by the Trustee shall c6astitute a discharge of the Trustee herein with respect thereto.- FUR~HER~ pursuant to Article FOURTH of said Trust Agreement~ said Grantor does hereby add Article ELEVENTH to said Trust Agreement, in like marmer as if the same had been originally incorporated therein. ELEU;ENTH. Upon the death of the Grantor, the Trustee shall pay to MIRI~ OTTENBERG, if she shall be living~ the s~ of Nine Thousand Five 'Hundred ($9,500.00) Dollars~ if the principal of said trust estate is at least Fifty-Nine Thousand Five Hundred Dollars ($59,500.00). If said trust estate is less than Fifty-Nine Thousand Five Hundred Dollars ($59,500.00)~ said ~SR!AM 0'iTENBERG shall receive the difference between Fifty Thousand Dollars ($50~000.00) and the balance of said trust estate. But should said MIRIA~I OTTENBERG predecease the Grantor~ then the Trustee shall pay said sum of money ~o D~d~IEL GREEkSLILL, JOEL GREENH!LL (sons of Regina 0. Greenkill, now of Miami Beach, Florida) and JO ELLEN OTTENBERG (daughter of Louis Ottenberg, Jr.), per stirpes, share and share alike. IN VgiTNESS VfHEREOF, the parties hereto have set their hands and seals th-is ~ day of ~--*~. , 1978. ATTEST: Trust 0fflce..~~ RtGC~ NkTICNAL B~IK OF ?IASHINGTON,D.G. VICE pRESIDENT AND TRUS'F OFFICER AMENDMENT TRUST THIS A~U~/D~t~NT made this TO AGREEMENT ~'~'~ day of August, 1983, by and between ~GARET REBECCA S~tITH, of the District of Col~mbla, party of the first part, hereinafter sometimes called the "Grantor" and THE RIGGS NATIONAL BANK OF ~/.~SHINGTON, ~D. C., a body corporate under the laws of the United States, doing business in the Distric~ of Col~m~bia, party of the second part, herein- after sometimes called ~he "Tr.ustee"; WHEREAS ~argaret Rebecca Smith, Erantor of a certain Trust Agreement dated June 10, 1977, pursuant to Article FOUR~H of said Agreement, does hereby revoke P~raEraph D of Article FIRST of the Amendment to Trust Agreement dated Jane 5, 1978, in its entirety, and does hereby substitute the follow, nE Paragraph D of Article FIRST in i~s place, in Iike manner as if the same had b~ oriEinally incorporated therein. D. After payment of the monthly gifts to ~GARET L. PEFFER and costs of administration of said Trust, then the balance of net income shall be paid to the Grantor during her life; 'and after the death of the Grantor said balance of net income shall be added to the principal of said Trust estate. FURTHER, pursuant to Article FOURTH of said Trust Agreement, said Grantor does hereby revoke Article THIRD of the Amendment to Trust Agreement dated June 5, 1978, in its entirety, and does hereby substitute the following Article THIRD in its place, in like manner as if the same had been originally · incorporated therein. THIRD. The Trustee ~nay apply to or for the use and benefit of the Grantor so much of the principal or corpus of the trust fund as the Trustee, in its sole and absolute discretion, may deem to be necessary or desirable for the proper support, maintenance, comfort, health or general welfare of said Grantor, and the proper receipt or receipts for funds hereunder expended by the Trustee shall constitute a discharge of~the Trustee herein with FURTHF~, pursuant to Article FOU~H of said TrUSt Agreement, said Grantor does hereby revoke Article FI~-TH of said TrUSt Agreement in its entirety, and does hereby substitute the following Article FIFTH of said Trust Agreement in its place, in like manner as if the seme had been originally incorporated therein. FIFTH. Unless revoked by the Grantor during her life, this TrUSt shall continue until the death of the Grantor, or M~GA~ L. PEFFER, which ever occurs last; whereupon said Trust shall ter~tnate. Upon such termination, the Trustee shall pay over the entire net trust estate, together with all accrued and accumulated but undistributed net income therefrom, to SEP~INO AND ~ CA~, 6923 Western Avenue, N. W., Washdngton, D. C. 20015~ or to the survivor of them. Should both predecease, l~rior ~to said termination, then the said Trustee shall pay over the entire net trust estate, together with all accrued and accumulated but undistributed net income there- from, to The Washington Home, 3720 Upton Street, N. W., Washington, D. C. IN WITNESS W~F, the parties hereto bare set their hands and seals this ~'] ~'~ day of Angust, 1983. Witness: ATTEST: f//. , _, Trust O~ic er THE RIG,S NATIONAL BANK OF WASHINGTON,D.C. By ........... O££ice~ Apr-01-0~ 13:57 P.05 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, INC. t/d/bls FOREST PARK HEALTH Center, Plaintiff. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITII ACCOUNT ami MR. AND MRS. CAMBARERI, Dcfi:ndaots. No. 02-982 I)ISTRIC'r OF COLL~,IBIA AFIql)AVIT Edward M. Wuchcr, being first duly sworn, deposes and says: I. I am a citizen lind resident of the Commonwealth of Virginia. [ am the Trust · ' ~ ' -" ' ' ' ' ned to Officer of R~ggs ttank N.A., d/b/a Rlggs & Co. (hcr~naflcr Rtggs ') who ~s asses administer the trust established by Margaret R. Smith on June 10, 1977. ~ Riggs lms at al! relevant times, ~een a,n. ational bank, organ!zed ~nd ?i$tin~ under t~-'~ laws of the Untrod States, with o~ces in thc District ofCnlumh a. R SSs prlnopa pl~e of business is in thc District of Columbia and summnding areas, where Riggs e.ngages m the general baukhxg business, as well as the administration of trusts established by tis cuatomgrs. 3. Riggs has never Iransacted any business in thc Commonwealth of Pennsylvania related to this trust, nor ha.n Rigg$ ev~' owned any real property, maintain~ an office, agents or telephone lisiings., or been registered to do business in the Commonwealth of Pennsylvania. 4. On or about June 10, 1977, doing business as The Riggs National Bank of Washington, D.C., Riggs catered into a Trust Agreement with its customer, Margaret Smith. 5. This contract was ~ntered intn in the Rigg.~ Offices in the District of Columbia, 0, At the time, Ms. Smith was a citizen and resident of thc District of Colttmbia, where she lived and, prior to her retirement, worked. Columbia. All actions with respect to this Trust have taken place in the I)i.,;trict of 8. Thc only contact with Pennsylvania during the term offl~is trust ha.s been the receipt ofreporls relating to Margaret Pl~l'fer and thc transmission of funds as required by thc Trust or us dclcm~incd to be appropriate within thc discretion of the Trustee. 9. Custody of all assets of the trust is in thc District of Columbia. P.06 Ap~-OI-OZ 13~58 10. In cmmection with this transaction, except as specifically described herein, neither I our any other agCllt, ~rvafll, employee or oth~ rcpr~elltativc of RJggs has ~vor pomonally set foot in Pennsylvania or dealt with mayone in Pe~sylvania in conn~fion with thi~ Trinet. I I, Thc Ibrogoing is t~c ~d ~orr~t upon my p~mal knowledge ;~ to a p~ and upon my inlbmlalion and belief ~ tO the reminder, Etfwarc~ M. Wuchcr, CTFA Trust Officer Sworn to atld snbseribed before me this _..2 ~ day of April, 7002. My Commission Expkes August 31,200~' PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants : IN THE COURT OF COIVIMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 02-982 CIVIL TERM . : CIVIL ACTION NOTICE TO PLEAD TO: Defendant, Riggs & Co. c/o H. Amos Goodall, Jr., Esquire Ooodail & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 You are hereby notified to file a written response to the enclosed New Matter of the Plaintiff within twenty (20) days after service hereof or a judgmem may be entered against you. KILLIAN & GEPHART, LLP Paula J. McI~ermott, Esquire Attorney ID #46664 218 Pine Street P.O. Box 886 Harrisburg, PA 17108-0886 Telephone: (717) 232-1851 Attorney for Plaimiff PRESBYTERIAN HOMES, INC., lYd/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA . : : NO. 02-982 CIVIL TERM : : CIVIL ACTION oRDER AND NOW, __ day of ,2002, upon consideration of Plaintiff, Presbyterian Homes, Inc., t/d/b/a Forest Park Health Center's Answer to Preliminary Objections together with New Matter, it is hereby ORDERED and DECREED that the Preliminary Objections of the Defendant Riggs & Co. are hereby dismissed and Defendant is hereby ordered to pay the reasonable attorney's fees and costs incurred. BY THE COURT: PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 02-982 CIVIL TERM CIVIL ACTION PLAINTIFF'S ANSWER WITH NEW MATTER TO DEFENDANT. RIGGS & CO.'S. PREI,IMINARY OBJECTIONS RAISING QUESTION OF JURISDICTION AND NOW, this,~ - day of .2002, comes the Plaintiff, Presbyterian Homes, Inc., t/d/b/a Forest Park Health Center (hereinafter referred to as "PHI") by and through its attorneys, Killian & Gephart, LLP, and in response to the Preliminary Objections of Defendant, Riggs & Co., avers in support thereof as follows: 1. Denied. The averments of the Complaint speak for themselves and any attempt to characterize them by Defendant is speeificaily denied. 2. Denied. After reasonable investigation, Plaintiffis without sufficient information to frame an answer to the avennents of this paragraph. The averments thereof are accordingly denied and proof thereof, if material, is demanded at the time of trial. 3. Denied. After reasonable investigation, Plaintiffis without sufficient information to frame an answer to the averments of this paragraph. The averments thereof are accordingly denied and proof thereof, if material, is demanded at the time of trial. 4. Denied. After reasonable investigation, Plalntiffis without sufficiem information to frame an answer to the averments of this paragraph. The averments thereof are accordingly denied and proof thereof, if material, is demanded at the time of trial. 5. Denied as a conclusion of law to which no further responsive pleading is required. 6. Denied. After reasonable investigation, Plaintiffis without sufficiem information to frame an answer to the averments of this paragraph. The avermems thereof are accordingly denied and proof thereof, if material, is demanded at the time of trial. 7. Denied. After reasonable investigation, Plaintiffis without sufficient information to flame an answer to the averments of this paragraph. The averments thereof are accordingly denied and proof thereof, if material, is demanded at the time of trial. By way of further answer, at the presence of any officer ofRiggs & Co., in Pennsylvania conducting business for any purpose would be sufficient to create jurisdiction over Riggs & Co., in Pennsylvania, pursuant to the Pennsylvania Long Arm Statute and applicable Constitutional Principles. Denied. After reasonable investigation, Plalntiffis without sufficient information to Page -2- answer, the Affidavit contains an averment in Paragraph 10 that none of the agents of Riggs & Co. has ever personally set foot in Pennsylvania "in connection with this Trust". (Affidavit, Paragraph 10, emphasis supplied) It is apparent from the wording of this Affidavit that Riggs & Co. regularly transacts business in Pennsylvania and, accordingly, subjects Riggs & Co. to the general jurisdiction of the Commonwealth of Pennsylvania. 11. Denied. To the contrary, what Plaintiff knows is that Riggs & Co. is subject to Pennsylvania's general and specific jurisdiction pursuant to the Pennsylvania Long Ann Statute and applicable Constitutional Principles. By way of further answer, what was well knowto Plaintiff and its counsel prior to the institution of suit, is that Plaintiff is being asked to provide charitable care for an individual who is indigent by virtue of Defendant's contumacious and outrageous refusal to pay assets from the trust for her care despite Defendant's possession of a legal opinion which Defendant freely supplied to Plaintiff indicating that the funds should be supplied even under the principles of District of Columbia Law. This Opinion is which from Defendant's own counsel in the District of Columbia. By way of further answer, PHI's counsel as well as Defendant and its counsel, are aware that Medicaid has declared Ms. Peffer ineligible because of the asset available to her in the Trust held by Defendant. Apparently at the instigation of the comingent remalndermen of this Trust, Defendant has determined to squander the assets of the Trust rather than apply them to the care of the Beneficiary and to effectuate the intention of the settlor and to comply with the principles of both Pennsylvania and District of Columbia Law. Page -4- 18. In connection with Ms. Peffer's care, Riggs & Co., and its wrongful withholding of funds from Ms. Peffer's care, Riggs & Co. has subjected itself to specific personal jurisdiction of Pennsylvania. 19. Riggs & Co. is suppling services to Margaret Peffer as a Beneficiary of the Trust within the Commonwealth of Pennsylvania and is charging fees to Ms. Peffer, a resident of the Commonwealth of Pennsylvania. 20. Riggs & Co. is contractually obligated to supply funds to Ms. Peffer in the Commonwealth of Pennsylvania. 21. Riggs & Co. has caused harm or tortuous injury by its act within the Commonwealth as well as by acts outside the Commonwealth of Pennsylvania to Margaret Peffer and Plaintiff, PHI. 22. Riggs & Co. has violated the terms of the Trust Agreement which has damaged Margaret Peffer and PHI as an entity supplying care, medical services and supplies to Margaret Peffer. 23. Riggs & Co. is interfering with Ms. Peffer's contractual obligations to pay for her services, in reliance upon which PHI admitted Ms. Peffer to its care. Page -6- 24. The foregoing above reasons which are not an exhaustive list, specifically entitle Pennsylvania Courts to assume jurisdiction over Riggs & Co. pursuant to the Pennsylvania Long Ann Statute, 42 Pa. C.S. § 5322. WHEREFORE, Plaintiff, Presbyterian Homes, Inc., t/d/b/a Forest Park Health Center, respectfully requests this Honorable Court to dismiss the Preliminary Objections and award costs and counsel fees to Plaintiff. Respectfully submitted, KILLIAN & GEPHART, LLP Paula J. Meg~ermott, Esquire Attorney ID #46664 218 Pine Street P.O. Box 886 Harrisburg, PA 17108-0886 Telephone: (717) 232-1851 Attorney for Plaintiff Page -7- VERIFICATION I hereby verify that the statements of fact made in the foregoing document are true and correct to the best of my knowledge, information and belief. I understand that any false statements therein are subject to the criminal penalties contained in 18 Pa. C.S. Section 4904, relating to unswom falsification to authorities. PRESBYTERIAN HOMES, 1NC. CERTIFICATE OF SERVICE On thi~__Y~day of~.~, 2002, I hereby certify that I served the foregoing document on the following by depositing a true and correct copy in the United States Mail, postage prepaid, addressed to: H. Amos Goodall, Jr., Esquire Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801-4043 Mr. and Mrs. Carnbareri 6923 Western Avenue, NW Washington, DC 20015 KILLIAN & GEPHART, LLP Paula J. McDermott, Esquire Attorney I.D. #46664 218 Pine Street P. O. Box 886 Harrisburg, PA 17108-0886 (717) 232-1851 Page -9- PRESBYTERIAN HOMES, INC. t/d/b/a FOREST PARK HEALTH CENTER RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT AND MR. & MRS. CAMBARERI IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002-0982 CIVIL TERM CIVIL ACTION - LAW ORDER OF COURT AND NOW, this 25TM day of APRIL, 2002, the request of defendant Riggs and Company for the issuance of a Rule to Show Cause is DENIED. Its preliminary objections based on lack of jurisdiction shall be decided in accordance with the procedure set forth in our local roles governing Argument Court (Rule 210-1 et seq.). Either party may list the matter. H. Amos Goodall Jr., Esquire For the Plaintiff Paula J. Mcdermott, Esquire For the Defendant :sld PRAECIPE FOR LISTING CASE FOR ARGUMEN~T (Must be typewritten and submitted in duplicate) TO THE PROTHONOTARY/OF CUMBERLAND COUNTY: Please list the within matter for the next: [] Pre.Trial Argument Court ] Argument Court CAPTION OF CASE (entire caption must be stated in full) PRESB~rERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, (Plaintiff) RIGGS I OD., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. AND MRS. CAMBARERI,. (Defendant) Ys. 982 Civil Term No. 1. State matter to be argued (i. e., plaintiffs motion for new trial, defendant's demurrer to complaint, etc.): Defendant' s, Riggs & Co., Preliminary Objection Raising Question of Jurisdiction 2. , Identify counsel who will argue case: (a) for plaintiff: Paula J. McDermott, Esquire (b) for defendant: H. Amos Goodall, Jr., Esquire 3. I will notify all parties in writing within two days that this case has been listed for argument._ ~ 200~ (Attorney f Plaintiff ) I~ted: May 13, 2002 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, INC. t/d/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 DEFENDANT RIGGS & CO.'S RESPONSES TO PLAINTIFF'S REQUEST FOR ADMISSIONS 1. Kindly admit that the letter attached hereto was scm by Edward M. Wucher, CTFA, Director, an Officer of Defendant Riggs & Co. on January 3, 2002. ANSWER: Admitted. 2. Kindly admit that you received an Opinion from your legal counsel, William Fralin, Esquire, on December 2001, that Riggs has a responsibility to pay the expenses of Ms. Peffer per the terms of the Trust Instrument. ANSWER: Denied. As to objections: B~all, Jr. Attorney ID No. 19342 Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 814-237-4100 Dated: VERIFICATION The undersigned, being duly sworn according to law, deposes and states that he is authorized to make this affidavit on behalf of the Defendant and that the facts set forth herein are tree and correct upon the personal knowledge of the undersigned and that this Verification is made subject to the provisions of 18 Pa. C.S. § 4904 relating to unswom falsification to authorities. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, INC. tYd/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 CERTIFICATE OF SERVICE I hereby certify that a tree and correct copy of the foregoing Riggs & Co., Trustee of the Margaret R. Smith Account, Responses to Plaintiff's Request for Admissions were served on ail parties of record, in the above entitled matter, by depositing the same within the custody of the United States Postai Service, first class postage prepaid, on · ,/~-'~/~t' ~ _~addressed follows: Paula J. McDermott, Esquire 218 Pine Street PO Box 886 Harrisburg, PA 17108-0886 State College, PA 16801 (814) 237-4100 1N THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION PRESBYTERIAN HOMES, INC. t/d/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 Type of Case: Civil Type of Pleading: Reply to New Matter Filed on Behalf off Defendant RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT Counsel of Record for this Defendant: H. Amos Goodall Jr. PA Supreme Court ID//19342 328 South Atherton Street State College, PA 16801 814-237-4100 Counsel of Record for Plaintiff.' Paula J. Mcdermott, Esquire Killian & Gephart P.O. Box 886 Harrisburg PA 17108 814-342-2240 Counsel of Record for Defendant, Mr. and Mrs. Cambareri Unknown IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION PRESBYTERIAN HOMES, INC. t/dPo/a FOREST PARK HEALTH Center, Plaintiff, No. 02-982 VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. Reply to New Matter Reply to New Matter by Riegs & Co. COMES NOW, Defendant, Riggs & Co. (hereinafter, "Defendant") and hereby responds to Plaintiff's New Matter as follows: 12. Defendant repeats the allegations as contained in its Petition as fully as though set forth at length herein. 13. Admitted. 14. Admitted in part and denied in part. It is admitted that Defendant has been making the payments as required by the Trust documents on behalf of Margaret Peffer. It has been denied that Defendant has been making or is required to be making any other payments. To the contrary, it has not. It is denied that Defendant has been negotiating with Plaintiff to maintain Ms. Peffer. To the contrary, any negotiations on behalf of Ms. Peffer were undertaken by her authorized representatives in the Area Agency on the Aging. 15. This paragraph would be denied except that Counsel has advised Defendant that it contains a conclusion of law to which no responsive pleading is required. 16. Admitted. 17. Denied. It is denied that Defendant does business in the Commonwealth of Pennsylvania. In all other respects, this paragraph would be denied except that Counsel has advised Defendant that it contains a conclusion of law to which no responsive pleading is required. 18. This paragraph would be denied except that Counsel has advised Defendant that it contains a conclusion of law to which no responsive pleading is required. 19. It is denied that Defendant is supplying services to Margaret Peffer. To the contrary, Defendant is supplying services to the Trust created in the District of Columbia on June 10, 1977, by Margaret Rebecca Smith, then and there a resident of the District of Columbia. It is further denied that Defendant is charging fees to Margaret Peffer. To the contrary, Defendant is charging fees to the Trust. 20. This paragraph would be denied except that Counsel has advised Defendant that it contains a conclusion of law to which no responsive pleading is required. 21. This paragraph would be denied except that Counsel has advised Defendant that it contains a conclusion of law to which no responsive pleading is required. 22. This paragraph would be denied except that Counsel has advised Defendant that it contains a conclusion of law to which no responsive pleading is required. 23. This paragraph would be denied except that Counsel has advised Defendant that it contains a conclusion of law to which no responsive pleading is required. 24. This paragraph would be denied except that Counsel has advised Defendant that it contains a conclusion of law to which no responsive pleading is required. WHEREFORE, defendant Riggs respectfully requests that plaintiffs complaint be dismissed for lack of jurisdiction, with costs and counsel fees assessed against Plaintiff. Respectfully submitted, Goodall & Yurchak, P.C. chak 328 South Atherton Street State College, PA 16801 814-237-4100 VERIFICATION The undersigned, being duly sworn according to law, deposes and states that she is authorized to make this affidavit on behalf of the Defendant and that the facts set forth herein are true and correct upon the personal knowledge of the undersigned and that this Verification is made subject to the provisions of 18 Pa. C.S. § 4904 relating to unswom falsification to authorities. Date: 5 At~6mey for Riggs & Co. CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing Reply to New Matter was served on all parties of record, in the above entitled matter, by depositing the same within the custody of the United States Postal Service, first class postage prepaid, on ~._~ ~,2~. ~ addressed as follows: Paula J. McDermott, Esquire 218 Pine Street PO Box 886 Harrisburg, PA 17108-0886 Dated:/~ ,7. 2/ ~'/2~ Katl~eh V. Yurchak Goo"dall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 (814) 2374100 PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : : NO. 02-982 CIVIL TERM : : : : CIVIL ACTION To: Mr. and Mrs. Cambareri 6923 Western Avenue NW Washington, DC 20015 Youareherebynotifiedthaton~l~t IL,, ,2002, thefollowin~iudo~enth~,~,~ entered against you in the above-capti~ °~ " ......... You are hereby ORDERED to instruct the Trustee to invade the principal of the Margaret R. Smith Trust to pay expenses for the medical expenses for trust beneficiary, Margaret Peffer at PlaintitTs facility together with the payment ofpurdtive damages, and surcharges for attorneys' fees incurred by the trust and PHI in pursuing this matter. You are hereby further ORDERED to impose a constructive Imst upon the corpus and income of the trust, and forbid payment of the funds in the trust to any other person or entity other than Plaintiff, PHI, for the care of trust beneficiary, Margaret Peffer, for as long as she lives, and pay mounts owed after her demise DATE: ~~~_~ is: Prothonotary I hereby certify that the name and address of the proper person to receive this notice Mr. and Mrs. Cambareri, 6923 Western Avenue, NW, Washington, DC 20015 PRESBYTERIAN HOMES, INC., tJd/b/a FOREST PARK HEALTH CENTER, Plaintiff Vo RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : : : : NO. 02-982 CIVIL TERM : : : : CIVIL ACTION TO: THE PROTHONOTARY OF SAID COURT PRAECIPE TO ENTER JUDGMENT Kindly enter a declaratory judgment in favor of Plalntiffand against Defendants, Mr. & Mrs. Cambareri, ordering them to instruct the Trustee to invade the principal of the Margaret R. Smith Trust to pay expenses for the medical expenses for trust beneficiary, Margaret Peffer at Plaintiff's facility together with the payment of punitive damages, and surcharge the Trustee for attorneys' fees incurred by the trust and PHI in pursuing this matter together with entering a Judgment against the Defendants, Mr. and Mrs. Cambareri to impose a constructive trust upon the corpus and income of the trust, and forbid payment of the funds in the trust to any other person or entity other than Plaintiff, PHI, for the care of trust beneficiary, Margaret Peffer, for as long as she lives, and pay mounts owed after her demise, pursuant to the Complaint filed in this matter on February 28, 2002, which is attached hereto as Exhibit "A" and the 10 Day Notice mailed on April 22, 2002, and attached hereto as Exhibit "B". Respectfully submitted, KILLIAN & GEPHART Dated: Paula J. Mcl~ermott, Esquire Attorney I.D. g46664 218 Pine Street P. O. Box 886 Harrisburg, PA 17108-0886 Telephone: (717) 232-1851 CERTIFICATE OF SERVICE Oll this ~$~,.~y of~ 2002, I hereby certify that I served the foregoing document on the following by depositing a tree and correct copy in the United States Mail, postage prepaid, addressed to: H. Amos Goodall, Jr., Esquire Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801-4043 Mr. and Mrs. Cambareri 6923 W6stern Avenue, NW Washington, DC 20015 KILLIAN & GEPHART Pau[a J. Mcdermott, Esquire Attoimey I.D. ff46664 218 Pine Street P. O. Box 886 Harrisburg, PA 17108-0886 (717) 232-1851 PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : : : NO. 02-982 CIVIL TERM : : : : CIVIL ACTION ORDER AND NOW, this day of June, 2002, for good cause and appearing, it is hereby ORDERED and DECREED that Plaintiff's Motion to Compel Answers to Discovery is granted and Defendant, Riggs & Co., shall answer Interrogatory Numbers 5, 8, 10, 11, 13, 14 and 15, as well as produce documents from the file of Attorney William Fralin relating to his opinions regarding the disbursement of the Trust as well as any and all fees associated with the defense of this matter within five (5) days of the date of service of this Order. BY THE COURT PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff Vo RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants :NO. : IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA 02-982 CIVIL TERM : CIVIL ACTION MOTION TO COMPEL ANSWERS TO DISCOVERY AND NOW, comes the Plaintiff, Presbyterian Homes, Inc., t/d/b/a Forest Park Health Center, by its attorneys, Killian & Gephart, LLP, and in support of this Motion to Compel Answers to Discovery avers the follow: 1. This matter was instituted by Complaint filed on February 28, 2002. 2. On April 04, 2002, Defendant, Riggs & Co., filed a Preliminary Objection erroneously asserting that this Court lacks jurisdiction in this matter. 3. The Preliminary Objection asserts "there are insufficient contacts for this Court to exercise either general jurisdiction over the person of Defendant, Riggs, specific jurisdiction with respect to its alleged liability in connection with the matters complained of in the Complaint and jurisdiction of the subject matter of the cause of action." (Preliminary Objections of Defendant, Riggs & Co., paragraph 9.) 4. Attached to the Preliminary Objections, is an Affidavit from one Edward Michael Wucher, who is a Trust Officer at Riggs Bank. 5. Mr. Wucher asserts that Pennsylvania Courts lack jurisdiction. 6. The Affidavit states that Riggs & Co. is a national bank. 7. In paragraph 10 of the Affidavit, Mr. Wucher alleges that "In connection with this transaction, except as specifically described herein, neither I nor any other agent, servant, employee or other representative of Riggs has ever personally set foot in Pennsylvania or dealt with anyone in Pennsylvania in connection with this Trust." (Emphasis supplied) 8. The clear purport and tenor of this paragraph is that in connection with other transactions, Riggs & Co., as a national bank, does do and has done business in the Commonwealth of Pennsylvania. -2- 9. Under the circumstances presented in this case, this Honorable Court has both general and specific jurisdiction over this Defendant, Riggs & Co. 10. General Jurisdiction exists regardless of whether the cause of action is related to the Defendant's activities in Pennsylvania, as long as the corporate defendant's activities in the Commonwealth are continuous and substantial. 42 Pa.C.S.A. § 5301; Fideli _ty Leasing, Inc. vs. Limestone County Board of Education, 758 A.2d 1207, 1210 (Pa. Superior Court 2000) (citing GMAC v. Keller, 737 A.2d 279, 291 (Pa. Superior Court, 1999)). 11. Riggs & Co., as a party asserting lack of personal jurisdiction in a Preliminary Objection, has the burden of proof. Scoggins v. Scoggins, 832 Pa. Super. 507, 555 A.2d 314 (1989). 12. The mere allegation in the Preliminary Objection that a Court lacks in personarn jurisdiction does not automatically place the burden of proving that the Court has jurisdiction upon Presbyterian Homes, Inc., as the Plaintiff herein. Shmitt v. Seaspray- Sharkline, Inc. 366 Pa. Super. 528, 531 A.2d 801 (1987). The Defendant is required to support its claim by presenting evidence; only after the Defendant has produced evidence does the burden shift to the Plaintiff to produce sufficient, competent evidence to establish -3- the Court's jurisdiction. Maleski by Taylor v. DP Realty Trust, 653 A.2d 54 (Pa. Commw. Court, 1994). 13. In the instant case, an Affidavit was attached to the Preliminary Objections containing unsubstantiated factual allegations relating to this Court's jurisdiction. 14. In order to refute Defendant's claim and establish that there is both specific or general personal jurisdiction in this matter, Plaintiff has a right to inquire into the nature of Riggs & Co.'s contacts with the State of Pennsylvania. 15. Plaintiff served a Request for Production of Documents and Interrogatories upon Defendant on April 22, 2002. 16. On May 28, 2002, Responses to both were served upon Plaintiff. 17. Defendant should be compelled to answer the following on the First Set of Interrogatories, number 5: 5. Identify any and all individuals at Riggs & Co. with knowledge as to any Riggs & Co. transactions within the Commonwealth of Pennsylvania; Answer: With respect to the items in Request No. 5, objection is made on the grounds that -4- the request is overly broad and burdensome. In order to respond to the discovery request, it would be necessary to search numerous and voluminous files in order to determine whether anything contained therein is pertinent. Riggs & Co. has been in operation for over 100 years, and a review of such records is calculated to harass the Defendant and is not calculated to lead to the discovery of relevant evidence. This question is relevant to the issue as to whether Riggs & Co. has contacts in Pennsylvania sufficient for the courts in Pennsylvania to exercise jurisdiction over Riggs & Co. Riggs & Co. cannot boldly assert lack of jurisdiction and then refuse to answer questions about its transactions in Pennsylvania. 18. Defendant, Riggs & Co., should be compelled to answer the following on First Set of Interrogatories, number 8: 8. You State in paragraph 7 of your Preliminary objections "No officer of Riggs has ever been present in Pennsylvania for any purpose connected with the Margaret Smith Trust"; as to officer, agents, bank directors or other individuals connected with Riggs & Co., state any and all contacts with Pennsylvania between 1990 and the present time and the purpose of the contact or presence in the Commonwealth of Pennsylvania; Answer: Riggs & Co, objects to Request No. 8 as being unduly broad and overly burdensome as it requests all contacts with Pennsylvania for a time period which spans over a decade. In order to respond to this discovery request, it would be necessary to search numerous and voluminous files to determine whether anything contained therein is pertinent. This question is relevant to the issue as to whether the contacts of Riggs & Co. with Pennsylvania are sufficient for the courts in Pennsylvania to exercise jurisdiction over Riggs -5- & Co. Riggs & Co. cannot boldly assert lack of jurisdiction and then refuse to answer questions about its transactions in Pennsylvania. 19. Defendant, Riggs & Co., should be compelled to answer the following on First Set of Interrogatories, number 1 O: 10. Identify any documents you possess in your files or those of your agents in whatsoever format including e-mail, telefax, hard copy, disk, etc. of any and all contacts between Defendant Riggs & Co. and the Commonwealth of Pennsylvania between 1990 and the present time; Answer: Riggs & Co. objects to Request No. 10 as being unduly broad and overly burdensome as it requests all contacts with Pennsylvania for a time period which spans over a decade. In order to respond to this discovery request, it would be necessary to search numerous and voluminous files to detemfine whether anything contained therein is pertinent. This question is relevant as to whether the contacts of Riggs & Co. are sufficient for the courts in Pennsylvania to exercise jurisdiction over Riggs & Co. Riggs & Co. cannot boldly assert lack of jurisdiction and then refuse to answer questions about its transactions in Pennsylvania. 20. Defendant, Riggs & Co., should be compelled to answer the following on First Set of Interrogatories, number 11: As to paragraph 3 of the Affidavit attached to the Preliminary Objections, disclose any and all business in the Commonwealth of Pennsylvania transacted -6- by Riggs & Co. since 1990 whether related or unrelated to this Trust; Answer: Riggs & Co. objets to Request No. 1 as being unduly broad and overly burdensome as it requests all contacts with Pennsylvania for a time period which spans over a decade. In order to respond to this discovery request, ti would be necessary to search numerous and voluminous files to detemfine whether anything contained there is pertinent. This question is relevant to the issue as to whether of the contacts of Riggs & Co. are sufficient for the courts in Pennsylvania to exercise jurisdiction over Riggs & Co. Riggs & Co. cannot boldly assert lack of jurisdiction and then refuse to answer questions about its transactions in Pennsylvania. 21. Defendant, Riggs & Co., should be compelled to answer the following on First Set of Interrogatories, number 13: 13. As to paragraph 10 of the Affidavit attached to the Preliminary Objections, state why any agent, servant, employee or any other representative of Riggs has personally set foot in Pennsylvania or dealt with anyone in Pennsylvania, generally including by not limited to in connection with the Margaret Smith Trust; Answer: Riggs & Co. objets to Request No. 13 as being unduly broad and overly burdensome as it requests all contacts with Pennsylvania for a time period which spans over a decade. In order to respond to this discovery request, ti would be necessary to search numerous and voluminous files to determine whether anything contained there is pertinent. This question is relevant as to whether the contacts of Riggs & Co. are sufficient for the courts in Pennsylvania to exercise jurisdiction over Riggs & Co. Riggs & Co. cannot boldly assert lack of jurisdiction and then refuse to answer questions about its transactions in Pennsylvania. -7- 22. As to objections of attorney-client privilege made in responses to questions 14 and 15, it is clear that Riggs & Co. does not enjoy attorney-client privilege and is required to disclose fees that it is paying in connection with its opposition to Presbyterian Homes, Inc.'s claim for complete payment of Ms. Peffer's medical expenses out of the Trust corpus. 23. Additionally, as will be noted in connection with the Answers to the Request for Production of Documents, as to communications between Riggs & Co. and its Washington D.C. Attorney, William Fralin, privilege has been waived, and those documents are discoverable by Presbyterian Homes, Inc. See attached letter of Edward Wucher to Mr. and Mrs. Cambareri, carbon copying Ms. Paula J. McDermott, dated December 28, 2001, attached as Exhibit "A". Under these circumstances, the withholding of Attorney Fralin's Opinion and associated documents from Attorney Fralin in connection with the requirement of the disbursement of trust principal to pay for Ms. Peffer's expenses is indefensible, and attorney-client privilege has been expressly waived by the client, Riggs & Co. 24. Deposition of a corporate designee ofRiggs & Co. is scheduled for June 27, 2002. Presbyterian Homes, Inc. is in need of the foregoing documentation sufficiently in advance of that time to prepare for the deposition and to prepare for Argument Court in this matter before this Honorable Court in July 2002. -8- WHEREFORE, Plaintiff, Presbyterian Homes, Inc., t/d/b/a Forest Park Health Center respectfully requests this Honorable Court to sign the Motion to Compel Answers in the form of Order attached and to require Defendant, Riggs & Co., to respond to the Interrogatories and produce documentation relating to the opinion of Attorney Fralin, as well as relating to fees being charged in this matter. Respectfully submitted, KILLIAN & GEPHART, LLP Date: ~[ ~ ,,.~o ~- By: Paula J. M0cDermot~ Esquire Attorney I.D. No.: 46664 218 Pine Street P.O. Box 886 Harrisburg, PA 1108-0886 Telephone: (717) 232-1851 Attorneys for Plaintiff -9- CERTIFICATE OF SERVICE On this ~'-¥t,,day of ~ , 2002, I hereby certify that I served the foregoing document on the following by depositing a true and correct copy in the United States Mail, postage prepaid, addressed to: H. Amos Goodall, Jr., Esquire Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801-4043 Mr. and Mrs. Cambareri 6923 Western Avenue, NW Washington, DC 20015 KILLIAN & GEPHART g,~-0-~ ~- · Il*-c ~ Paula J. lV~cDermott, Esquire Attorney I.D. g46664 218 Pine Street P. O. Box 886 Harrisburg, PA 17108-0886 (717) 232-1851 & co. Riggs & Co. 808 17th Street, NW Washington, DC 20006-3944 (202) 835-6891 Myrna F. Cayron (202) 835-6823 Facsimile No. (202) 8354380 Myrna_Cayron @ RiggsBanlaCom Courier December 28, 2001 Mr. & Mrs. Cambareri 6923 Western Ave NW Washington, DC 20015 Re: Margaret Smith Tr 41-0116-01-6 Dear Mr. & Mrs. Cambareri, Per our telephone conversation, I am writing to you to give you an update on Miss Margaret Peffer's physical and financial situation and to infom, you that it is highly probable that corpus will need to be invaded to cover past, current and future medical and living expenses. In January 2001 Miss Peffer became physically debilitated to the point where she required maximum assistance with all transfers and care. Fomxal services through Cumberland County Office of Aging and Community Services became inadequate due to Miss Peffer's extensive care needs. In April 2001 Miss Peffer agreed and was placed in the nursing home facility at Forest Park Health Center. Miss Peffer's current medical conditions include: glaucoma with near blindness and deafness; A-fib and angina heart conditions; high blood pressure & cholesterol; peripheral vascular disease; arthritis; anemia; and incontinent of bowel and bladder. Previous medical conditions include: breast cancer with a left mastectomy, stroke and depression. Since admission to Forest Park, Miss Peffer has stabilized medically, received therapy to increase strength and has benefited from 24 hour supervision and care. The monthly nursing home expense at Forest Park is $4,200. The monthly nursing home fee at Forest Park was deferred pending an application for Medical Assistance that was submitted on behalf of Miss Peffer to the Department of Public Welfare in Cumberland County, Pennsylvania. RIGGS & CO. Riggs & Co. 808 17th Street, NW Washington, DC 20006-3944 (202) 835-6891 In October 2001, Riggs received notification from Miss Peffer's POA, Ms. Pricilla Whitman, that Miss Peffer had been declined Medical Assistance from Cumberland County's Department of Public Welfare and that she was responsible to cover the past current and future expenses at Forest Park Health Center. Ms. Whitman formally made a request that the Margaret Smith Trust pay Miss Peffer's outstanding balance at Forest Park and cover her current and future expenses there. Ms. Whitman informed Riggs that if our Committee on Discretionary Disbursements declines the request for payment, then Forest Park will give Miss Peffer a 30 day notice to leave the facility for non-payment and that in all likelihood no other nursing facility will accept Ms. Peffer as she is ineligible for Medical Assistance. In November 2001, Forest Park agreed to not discharge Miss Peffer pending a final decision by our Committee regarding the request for discretionary distribution from the Margaret Smith Trust on behalf of Ms. Peffer. In December 2001, legal counsel, William Fralin, informed me that in his opinion, Riggs as Trustee of the Margaret Smith Trust has a responsibility to pay the expenses of Miss Peffer per the terms of the instrument. Article THIRD of Amendment to Trust Agreement dated August 1983, gives Riggs as Trustee sole and absolute discretion to use so much of the income and principal or corpus of the trust fund as it deems necessary or desirable for the proper support, maintenance, comfort, health or general welfare of Miss Margaret L. Peffer. I have asked William to send me the formal opinion and will forward a copy to you as soon as I receive it. While I understand your concern against invasion of corpus, it is highly probable that in January 2002 the Committee on Discretionary Disbursements will recommend paying Miss Peffer's outstanding balance at Forest Park Health Center which is approximately $34,000 and will recommend paying her monthly expenses there. I have enclosed the following for your files: · Copy of Margaret Smith Trust Agreement and fact sheet on Miss Peffer. · Durable General Power of Attorney of Ms. Peffer. · Letter from Ms. Whitman to Mr. Wucher dated April 5, 2001. · Letter from Mr. Wucher to Ms. Whitman dated May 9, 2001. · Letter from Ms. Whitman to Mr. Wucher dated Oct 5, 2001. · Copy of Declined Medical Assistance Application. · Current Invoice from Forest Park. I will be on vacation all of next week and will inform you of the Committee's decision as soon as one is made which I anticipate will be in the second or third week of January. If you would like to speak to William Fralin regarding his legal opinion he may be reached at 703-243-3200. ~RIGGS & CO. Sin~cerely, ~ ~~. W~c her, Director CC: Ms. Pricilla Whitman Ms. Paula J. McDermott Riggs & Co. 808 17th Street, NW Washington, DC 20006-3944 (202) 835-6891 PRESBYTERIAN HOMES, INC., tYd/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. AND MRS.: Defendant : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 02-0982 CIVIL TERM ORDER OF COURT AND NOW, this 10t~ day of June, 2002, upon consideration of Plaintiff's Motion To Compel AnsWers to Discovery, a Rule is hereby issued upon Defendants to show cause why the relief requested should not be granted. RULE RETURNABLE within 20 days of service. "faula J. McDermott, Esq. 218 Pine Street P.O. Box 886 Harrisburg, PA 17108-0886 Attorney for Plaintiff ~H. Amos Goodall, Jr., Esq. 328 South Atherton Street State College, PA 16801-4043 Attorney for Defendants BY THE COURT, J0~esley Oler, COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, 1NC. t/d/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 PRAECIPE TO SUBSTITUTE VERIFICATION TO THE PROTHONOTARY: Please substitute the attached Verification to the Reply for New Matter that was filed on May 28, 2002. Respectfully submitted, HK.a~lem~s oo al, Jr. Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 (814) 237-4100 Date: COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, INC. t/d/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing Praecipe to Substitute Verification was served on all parties of record, in the above entitled matter, by depositing the same within the custody of the United States Postal Service, first class postage prepaid, on ,2002 addressed as follows: /o Paula J. McDe~rnott, Esquire 218 Pine Street PO Box 886 Harrisburg, PA 17108-0886 H. Amos Goodall, Jr. Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 (814) 237-4100 VERIFICATION The undersigned, being duly sworn according to law, deposes and states that he is authorized to make this affidavit on behalf of the Defendant and that the facts set forth herein are tree and correct upon the personal knowledge of the undersigned and that this Verification is made subject to the provisions of lg Pa. C.S. § 4904 relating to unswom falsification to authorities. EdWard ~;~. Wucher, CTFA Riggs & Co. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, INC. t/d/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 RESPONSE TO MOTION TO COMPEL ANSWERS TO DISCOVERY Riggs & Co., by and through its counsel, Goodall & Yurchak, P.C., files the following Response to the Motion to Compel Answers to Discovery filed by Plaintiff Presbyterian Homes, Inc.: 1. On or about February 28, 2002, Plaintiff Presbyterian Homes, Inc. filed a civil action against Riggs & Co., as Trustee of the Margaret R. Smith Account, and Mr. and Mrs. Cambareri. The civil action contained two counts, one for declaratory judgment and one for constructive trust. Essentially, Plaintiff is requesting that this Court order Riggs & Co., in its capacity as trustee for a certain trust under which Margaret Peffer is a beneficiary, to pay certain funds for Margaret Peffer's medical care provided by Plaintiff. 2. Riggs & Co. has filed a Preliminary Objection based on lack of jurisdiction over the person and over the subject matter. In this Preliminary Objection, Riggs & Co. asserts that it does not have any branch offices in Pennsylvania, no officer of Riggs & Co. has ever been present in Pennsylvania for any purpose connected with the Margaret R. Smith Trust, the trust agreement and all amendments were executed and delivered in the District of Columbia, and custody of all assets of trust is in the District of Columbia and that there are insufficient contacts for this court to exercise either general jurisdiction over the person of Defendant Riggs, specific jurisdiction with respect to its alleged liability in connection with matters contained in the Complaint and jurisdiction over the subject matter of the cause of action. On or about April 22, 2002, Plaintiff served upon Defendant Riggs & Co. a First Request for Production of Documents, First Request of Interrogatories and First Request for Admissions pertaining to the jurisdictional allegations. Riggs & Co. duly answered the Request for Admissions, Request for Production of Documents and Interrogatories. In its response to the Request for Production of Documents, Riggs & Co. provided to the Plaintiff copies of the trust document and amendments, new account checklist, brief, tax forms, investment policy statement, account notes, power of attorney, correspondence from 1990 to present and discretionary disbursement memos. In addition, on June 21, 2002, Riggs & Co. produced for a deposition the corporate designee, Edward Wucher, for the purposes of allowing Plaintiff to inquire into the issue of jurisdiction.~ Mr. Wucher is the trust officer currently responsible for maintenance of the Margaret R. Smith Trust Account. At the time of the deposition, Mr. Wucher produced for Plaintiff a document which identified for the Plaintiff the number of personal trust accounts managed by Riggs & Co. and the number of trust accounts in which Pennsylvania was the "situs". That document is attached hereto as Exhibit A. Additionally, Exhibit A contains information regarding the total recipients of trusts with Riggs & Co. and those specifically in Pennsylvania. Finally, Exhibit A provides information regarding the open accounts at Riggs Bank, N.A. and the total number of Pennsylvania accounts. ~Riggs & Co. has limited the inquiry to the issue of jurisdiction and verified that its actions should not be considered a waiver of its right to ultimately object to the jurisdiction of this court. 10. Plaintiff has requested that Riggs & Co. be compelled to answer the following Interrogatories: .No. 5: Identify and all individuals at Riggs & Co. with knowledge as to any Riggs & Co. transactions within the Commonwealth of Pennsylvania (emphasis supplied). No. 8: [A]s to officers, agents, bank directors or other individuals connected with Riggs & Co., state any and all contacts with Pennsylvania between 1990 and the present time and the purpose of the contact or presence in the Commonwealth of Pennsylvania (emphasis supplied). No. 10: Identify any documents you possess in your files or those of your agents in whatsoever format including e-mail, telefax, hard copy, disk, etc. of any and all contacts between Defendant Riggs & Co. and the Commonwealth of Pennsylvania between 1990 and the present time (emphasis supplied). No. 11: As to paragraph 3 of the Affidavit attached to the Preliminary Objections, disclose any and all business in the Commonwealth of Pennsylvania transacted by Riggs & Co. since 1990 whether related or unrelated to this Trust (emphasis supplied). No. 13: As to paragraph 10 of the Affidavit attached to the Preliminary Objections, state why any agent, servant, employee or any other representative of Riggs has personally set foot in Pennsylvania or dealt with anyone in Pennsylvania, generally including but not limited to in connection with the Margaret Smith Trust. Pa. Rules of Civil Procedure Rule 4011 prohibits any discovery which would cause unreasonable oppression, burden or expense to a party. The standard of "reasonable" is to be adjusted based upon the fact and circumstances of each case. See Davis v. Pennzoil Co, 438 Pa. 194, 264 A.2d 597 (1970). Requests for discovery which have been denied as causing unreasonable oppression, burden and expense include discovery of masses of documents 18. 19. 20. counsel for Riggs & Co. proposed that the Plaintiff review Exhibit A, determine whether Exhibit A provides sufficient information regarding the issue of jurisdiction. Counsel for Defendant Riggs & Co. proposed that there may be altemative information available in the computer system which could be provided to Plaintiff regarding the type of accounts, location, etc. In response to that proposed solution, counsel for Presbyterian Homes, Inc. indicated that she believes that there is enough information on Exhibit A in order to prevail on the issue of jurisdiction and did not respond to the solution proposed by counsel for Riggs & Co. Consequently, Riggs & Co. asserts that the Motion to Compel should be deemed moot as Plaintiff has proceeded forward with the deposition of Mr. Wucher and had been provided with information regarding the total number of personal trust accounts in Pennsylvania and the situs for those trust accounts and has failed to respond to an offer to provide additional information in an alternate form. As to the request of the Plaintiff to compel Defendant Riggs & Co. to respond to Interrogatories No. 5, 8, 10, 11, 13, this Court should deny that request. Further, this court should find that Exhibit A produced to the Plaintiff provides sufficient information for Plaintiff to inquire into and respond to the Preliminary Objections Additionally, the Plaintiff has requested that Riggs & Co. provide it with disclosure of all fees and costs associated with its opposition to covering Ms. Peffer's medical expenses at Plaintiff's facility including but not limited to attorney's fees and any other fees which are being charged to the trust. Riggs & Co. has objected to this disclosure as it violates the attorney client privilege. Without citation to authority, in Paragraph 22, Plaintiff has asserted that Riggs & Co. "does not enjoy attorney-client privilege." To the contrary, a trust is authorized to employ and enjoy the protections of counsel. See In re Trust Deeds of Smaltz, 142 Pa. Super. 463, 17 A.2d 455 (1941). 21. Finally, as to paragraph 23 of its Motion to Compel, it is unclear as to what specific request for production of documents the Plaintiff is addressing. However, the Plaintiff appears to be under the misconception that there is an "opinion" in existence from Attorney Fralin in connection with the requirement of disbursement of the trust principal. Plaintiff has previously been informed that the reference in the December 28, 2001 letter to "his opinion" did not refer to a formal written opinion and that there is certainly no document in existence in the files ofRiggs & Co. which formalizes this opinion. To the contrary, Riggs & Co. has no documents in that regard and Presbyterian Homes, Inc. has been notified as such. WHEREFORE, Defendant Riggs & Co requests that this Honorable Court deny the Motion to Compel Answers and find that the production of Exhibit A by Riggs & Co. has satisfied the request of the Plaintiff and enter the form of Order attached hereto. B~: .I3/]Amos Goodall, Jr. Atto/0{ey ID No. 19342 Katlfleen V. Yurchak Attorney ID No. 55948 Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 814-237-4100 Dated: June 25, 2002 Rigg$ & Company Wealth Management- Trust Dept. Account Level Total # of Personal Trust Accounts: 2356 Pennsylvania State/Situs 10 Percenta~le: 0.42% Name/Address Recipient Level Total # of Recipients: 3258 Pennsylvania State: 56 Percenta~le: 1.72% ,Riggs Bank N.A. , Community Banking ' /~ceo~m:t Level: Total # DDA, N"~'O'W, MMA, IRA & CDA accounts: Total PA accounts: 222,195 (open accounts) 488 Percenta~ie: 0.22% Account Level Breakout: Total # PA accounts: Total # DC accounts: Total # VA accounts: Total # MD accounts: Total # other accounts~ Total # air-mai~ 488 88,752 45,341 55,823 8,683 23,108 Total DDA- Personal checking accounts NOW- Interest checking accounts MMA- Money Market accounts IRA- IRA accounts CDA- CD accounts Riggs Bank Confidential Page 1 6/20/02 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, 1NC. t/d/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOLrNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing Response to Motion to Compel Answers To Discovery was served on all parties of record, in the above entitled matter, by depositing the same within the custody of the United States Postal Service, first class postage prepaid, on June 25, 2002 addressed as follows: Paula J. McDermott, Esquire 218 Pine Street PO Box 886 Harrisburg, PA 17108-0886 K~ ath]een V./~rur~hak Goodall &~urchak, P.C. 328 Sout¥'Atherton Street State College, PA 16801 (814) 237-4100 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, INC. t/d/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 ORDER AND NOW this day o£July, 2002, upon review of the Motion To Compel Answers to Discovery and Response filed hereto by Riggs & Co., it is hereby ORDERED and DECREED that Plaintiff's Motion to Compel Answers to Discovery is DENIED. BY THE COURT: PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff Vo RIGGS & CO., TRUSTEE OF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW THE MARGARET R. SMITH : ACCOUNT, and MR. AND MRS.: CAMBARERI, : Defendant · NO. 02-0982 CIVIL TERM ORDER OF COURT. AND NOW, this 2nd day of July, 2002, upon consideration of Plaintiff's Motion To Compel Answers to Discovery and Defendants' Response To Motion To Compel Answers to Discovery, a conference/hearing is scheduled for Wednesday, August 28, 2002, at 3:30 p.m., in Courtroom No. 1, Cumberland County Courthouse, Carlisle, Pennsylvania. BY THE COURT, (fN~sley Ole~r), ~ .J~ Paula J. McDermott, Esq. 218 Pine Street P.O. Box 886 Harrisburg, PA 17108-0886 Attorney for Plaintiff H. Amos Goodall, Jr., Esq. Kathleen V. Yurchak, Esq. 328 South Atherton Street State College, PA 16801-4043 Attorney for Defendants ~rc JUL 1 9 200 PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 02-982 CWIL TERM : CIVIL ACTION ., EXHIBIT COMPENDIUM TO PLAINTIFF, PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER'S BRIEF OPPOSING PRELIMINARY OBJECTIONS OF RIGGS & CO., TRUSTEE OF TI-IE MARGARET R. SMITH ACCOUNT Prepared by: Paula J. McDermott, Esquire Attorney I.D. No.: 46664 Ix'II &lAN & GEPHART, LLP 218 Pine Street P.O. Box 886 Harrisburg, PA 17108-0886 Telephone: (717) 232-1852 E-mail: pmcdermott~kflliangephamcom XVo XVI. XVII. TABLE OF CONTENTS I. Affidavit of Annette Bailey ............................................... la II. Deposition Transcript of Edward M. Wucher ................................. 6a III. Trust Agreement of Margaret Rebecca Smith ................................ 72a IV. Amendment to Trust Agreement Dated June 5, 1978 .......................... 78a V. Amendment to Trust Agreement Dated November 15, 1982 ..................... 79a VI. Amendment to Trust Agreement Dated August 27, 1983 ....................... 81 a VII. New Account Check List ................................................ 83a VII. Riggs & Co.'s Summary of Trust .......................................... 84a IX. Riggs & Co.'s Taxpayer Identification Number Form .......................... 85a X. Riggs & Co.'s Investment Policy Statement ................................. 86a XI. Durable General Power of Attorney of Margaret Peffer ........................ 90a XII. Forest Park Health Center's Accounts Receivable Statement for Mrs. Peffer ........ 94a XIII. Letter Dated March 21, 2002, From Mr. Wucher to Priscilla Whitman Informing Her of The Boards Decision to Withhold Any Payments Over and Above $514.00 a Month ...................................................... 96a XIV. E-mail from Mr. Wucher to David McClung and Michael Richwine Dated March 26, 2002 Regarding Receipt of Engagement Letter From Amos Goodall and Preliminary Objections to Complaint .................. 98a Fax from Priscilla Whitman to Mr. Wucher Regarding the George B. Stuart Trust .. 99a Correspondence from Mr. Wucher to Mr. and Mrs. Carnbareri Dated December 28, 2001, Regarding an Update on Miss Peffer's Physical and Financial Situation ................................................. 103a Correspondence from Ms. Whitman to Mr. Wucher Dated October 05, 2001, Regarding Application for Medical Assistance .............................. 106a i XVIII. Correspondence from Mr. Wucher to Ms. Whitman Dated May 09, 2001, Enclosing Copies of the Trust Agreements for the Margaret Smith Trust .......... 10Sa XIX. Correspondence from Ms. Whitman to Mr. Wucher Dated April 05, 2001, yearly update on Ms. Peffer ................................ 110a XX. Fax from HUD to Riggs & Co. Dated January 09, 1996, Regarding Ms. Peffer's Application for Housing Assistance ............................. 114a Correspondence from Deborah Baldwin of Defense Activities Federal Credit Union dated July 27, 1990, Regarding Receipt of a Direct Deposit' . Check for Ms. Peffer ................................................... 116a XXII. Authorization for Direct Deposit of Riggs Trust Disbursements Form ............ 118a XXIII. Correspondence from Teresa Davis to Ms. Peffer dated March 21, 1994, Regarding Annual Review of Trust ...................................... 119a XXIV. Correspondence from Maria Symionow to Ms. Peffer Dated February 23, 1999, Informing Her That Her Trust Distribution Will Increase to $514.33 ........ 120a Correspondence from Maria Symionow to Laura Burkholder of One West Penn dated March 13, 1998, Regarding Income Distributions From the Margaret R. Smith Trust .............................................. 12la XXVI. Correspondence from Mr. Wucher to Ms. Whitman Dated May 09, 2001 .......... 108a XXVII. Fax to Riggs & Co. from HUD Dated January 28, 1998, Regarding Ms. Peffer's Application for Housing Assistance .............. 122a XXVIII. Memo from Maria Symionow to Roger Thief Dated November 7, 1997, Regarding Attached Disbursements Tickler Maintenance Forms ..... 123a XXVIX. Correspondence from Maria Symionow to Ms. Peffer Dated September 16, 1997, Regarding Direct Deposit of Disbursements ......... 124a XXX. Correspondence from Mafia Symionow to Ms. Peffer Dated January 28, 1997, Regarding Verification of Social Security Number ....................... 125a XXI. Correspondence from Mafia Symionow to Ms. Peffer Dated January 28, 1997, Regarding Increase of Monthly Disbursement to $467.02 ................. 126a XXXVII. XXXVIII. XXXIX o XLII. XLIII. XLV. Correspondence from Made Walsh to Ms. Peffer Dated February 12, 1996, Regarding Increase of Monthly Disbursement to $467.02 ........... 127a Correspondence from Nhorma Rodriguez to Defense Activity Federal Credit Union Dated May 04, 1995, Regarding Monument Prime Money Market Fund ............................... 128a Correspondence from Made Walsh to Ms. Peffer Dated August 17, 1995, Regarding New Trust Officer Handling Account ......... 129a Correspondence from Made Walsh to Mr. and Mrs. Cambareri Dated August 17, 1995, Regarding New Trust Officer Handling Account... 130a Correspondence from Nhorma Rodriguez to Defense Activity Federal Credit Union Dated May 04, 1995, Regarding Monument Prime Money Market Fund ........................................ 131 a Correspondence from Nhomia Rodriguez to Mr. and Mrs. Cambareri Dated February 27, 1995, Regarding Annual Review ................... 132a Correspondence from Nhorma Rodriguez to Ms. Peffer Dated February 02, 1995, Regarding Increase of Monthly Disbursement to $455.63 ......................................... 133a Correspondence from Teresa Davis to Mr. and Mrs. Cambareri Dated March 21, 1994, Regarding Annual Review ..................... 134a Correspondence from Teresa Davis to Ms. Peffer Dated February 02, 1994, Regarding Increase of Monthly Disbursement to $443.65 ................. 135a Correspondence from Teresa Davis to Ms. Peffer Dated January 10, 1994, Regarding Monthly Increase Delay Due to Price Index From the Department of Labor Not Being Available Until January 13, 1995 ......................... 136a Correspondence from Teresa Davis to Ms. Peffer Dated May 10, 1993, Regarding Increase of Monthly Disbursement to $431.99 ...................... 137a Correspondence from Teresa Davis to Ms. Peffer Dated April 22, 1993, Regarding the Monthly Income for the Trust in 1992 Being $419.82 ............. 138a Correspondence from Ronald Peddicord to the IRS Dated May 22, 1992, Regarding the Trust's 1991 Form 1041, U.S. Fiduciary Income Tax Return ....... 139a iii XLVI. Correspondence from Brian Kennedy to Ms. Peffer Dated January 22, 1992, Regarding Increase of Monthly Disbursement to $419.82 ................. 140a XLVII. Correspondence from Brian Kennedy to Ms. Peffer Dated April 19, 1991, Regarding Explanation of Monthly Disbursement Calculations ........... 14la XLVIII. Correspondence from Brian Kennedy to Ms. Peffer Dated December 28, 1990, Regarding Monthly Income for 1990 Being 398.79 .................................................. 142a XLIX. Correspondence from Brian Kennedy to Ms. Peffer Dated June 05, 1990,' · Regarding Increase of Monthly Income to $383.79 ........................... 143a Memorandum for Committee on Discretionary Disbursements Dated April 19, 2000 ....................................................... 144a LI. Amendment to the Trust Agreement Dated June 05, 1978 ..................... 145a LII. Correspondence from Priscilla Whitman to Mr. Wucher Dated April 20, 2000, regarding Ms. Peffer's Monthly Expenses ..................... 146a iv PRESBYTERIAN HOMES, INC., t/dgo/a FOREST PARK HEALTH CENTER, Plaintiff Vo RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 02-982 CIVIL TERM CIVIL ACTION AFFIDAVIT I, Annette M. Bailey, do swear and affirm the following: 1. I am employed at the Forest Park Health Center, which is part of Presbyterian Homes, Inc. My job title is account receivable coordinator. 2. Forest Park Health Center is located at 700 Walnut Bottom Road, Carlisle, Pennsylvania 17013. 3. My job duties include assisting residents in obtaining medical assistance, obtaining payment for past due accounts and general business office functions regarding obtaining payment for services rendered at Forest Park Health Center. 4. Margaret Peffer was admitted as a resident to Forest Park Health Center on March 16, 2001. 5. On or about April 10, 2001, Ms. Peffer applied for medical assistance to pay for services provided during her stay at Forest Park Health Center. 6. On september 04, 2001, I received a denial notice regarding Ms. Peffer's application for medical assistance. 7. On September 27, 2001, I spoke with Priscilla Whitman of the Department of Aging regarding Mrs. Peffer's denial for medical assistance. Ms. Whitman told me that she was in contact with the Trust, and was waiting for the release of funds.' 'Ms. Whitman thought that the Trust should pay for all of Ms. Peffer's medical expenses, but was not sure if they were going to. 8. On October 29, 2001; I had a telephone conversation with Priscilla Whiteman of the Department of Aging. Ms. Whitman stated that she still thought that the Trust should pay for all of Ms. Peffer's medical expenses, but was not sure if they were intending to do SO. On November 27, 2002, I spoke with Doffs Klingensmith, the Cumberland County caseworker for Ms. Peffer, regarding the denial of Ms. Peffer's medical assistance application. Doris said that the application for Ms. Peffer's medical assistance was denied because ora Trust through Riggs & Co. worth approximately $216,000. According to Doris, a Mr. Edward Wucher of Riggs & Co. called her to discuss the Trust with Doffs and her supervisor on November 6, 2001. Mr. Wucher maintained that the Trust cannot fully pay for Ms. Peffer's services due to the Trust's set up, but the Cumberland County Assistance Office maintained that it could be used to pay for Ms. Peffer's medical bills at Forest Park Health Center. 2 2a 10. On November 27, 2001, I received a check for $514.33 from Riggs & Co., a check paid out from the Margaret R. Smith Trust, of which Ms. Peffer is the beneficiary. 11. On November 27, 2001, I spoke to a Mr. Edward Wucher ofRiggs & Co. He said that they will only send a monthly payment of $514.33, which he will have sent directly to Forest Park instead of to Ms. Peffer's checking account. Mr. Wucher sai~l'~e will not pay the balance owed to Forest Park as of that date, which totaled approximately $26,325. Mr. Wucher also said that the Trust will only be paying $514.33 a month in the future and no more, even though Ms. Peffer's medical bills are approximately $4,200 a month. 12. On November 28, 2001, I talked to Priscilla Whitman at the Office of Aging. Ms. Whitman is employed by the Cumberland County Office of Aging and was appointed Ms. Peffer's power of attorney because Ms. Peffer has no family. Ms. Whitman told me she has not had any luck in getting more money from this Trust either. Ms. Whitman told me that she has been trying to get the Riggs & Company Trust for which Ms. Peffer is a beneficiary (The Margaret R. Smith Trust) to pay for Ms. Peffer's other bills as well. 13. On a monthly basis since November 27, 2001, Riggs & Company has sent a check for $514.33 directly to Forest Park from the Margaret R. Smith Trust. This money has been sent to Ms. Peffer as the beneficiary of the Trust, in order to pay for serVices provided to Ms. Peffer by Forest Park Health Center. 14. On December 27, 2001, Mri Wucher ofRiggs & Company called me and asked that I fax him a copy of Ms. Peffer's November 30, 2001 account statement. I did so that 3 3a same day. Mr. Wucher also asked that he be sent a copy of Ms. Peffer's monthly statement every month thereafter. '15. Every month since December 27, 2001, I have mailed a monthly statement of Ms. Peffer's account to Mr. Wucher at Riggs & Co. These statements were mailed addressed to: c/o Riggs Bank, Attention: Edward Wucher, 808 17th StreetN.W., 12th Fl(Joi,'Washington, D.C. 20006. None of these monthly mailings have ever been returned to me, and I therefore, presume that they have been reaching Mr. Wucher. 411 I understand that any false statements herein are subject to the penalties contained in 18 Pa.C.S. §4904, relating to unswom falsification to authorities. Date Sworn to and subscribed before me this /~'~'day Notary Public · ' Notarial Seal Susan K. Nailor, Notary Public .S.ilve_r Spring Twp., Cumberland County My ~ommls~lon Expires Nov. 22, 2004 Member, Pennsylvania Assoctabon ot Notaries Annette M. Bailey Account Receivables CorJrdi/~ator Forest Park Health Center 700 Walnut Bottom Road Carlisle, PA 17013 (717) 960-7702 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PRESBYTERIAN HOMES, INC. , t/d/b/a FOREST PARK ~HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF TEE MARGARET R. SMITH ACCOUNT, and. MR. AND MRS . CAMBARERI, Defendants No. 02-982 CIVIL TERM CIVIL ACTION Deposition of: EDWARD M. WUCHER Taken by : Plaintiff Date : June 21, 2002, 10:06 a.m. Place : Killian & Gephart, LLP 218 Pine Street Harrisburg, Pennsylvania Reporter : Glenda S. Travitz Registered Professional Reporter Notary Public APPEARANCES: KILLIAN & GEPHART, LLP By: PAULA J. McDERMOTT, ESQUIRE For - Plaintiff GOODALL & YURCHAK, P.C. By: KATHLEEN V. YURCHAK, ESQUIRE For - Defendant Riggs & Co. ALSO PRESENT: DONNA BURKETT, Presbyterian Homes, Inc. VALERIE FISHEL, Presbyterian Homes, Inc. STEVEN BAINBRIDGE, Law Clerk, Killian & Gephart FILt. U$ & McLUCAS REPORTING SERVICE, _rNC. ~-Iarrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 25 .INDEX WITNESS )WARD M. WUCHER By Ms. McDermott Examination Presbyterian Homes Exhibit Numbe~ EXHIBITS Amended Notice of Deposition, three pages Document entitled Riggs & Company, Wealth Management Trust Dept., one page Marked FILIUS & McLUCAS REPORTING SERVICE, INC. - Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-235-9327 1 2 3 4 5 6 7 Exam./McDermott Wucher STIPULATION It is hereby stipulated by and between counsel for the respective parties that reading, signing, sealing, certification and filing are hereby waived; and'all objections except as to the form of the question are reserved to the time of trial. 8 9 10 11 12 13 15 16 17 18 19 2O 21 22 23 2~ 25 EDWARD M. WUCHER, called as a witness, being duly sworn, testified as follows: EXAMINATION BY MS. McDERMOTT: Q. Mr. Wucher, my name is Paula McDermott. I'm the attorney for Presbyterian Homes, incorporated, which operates Forest Park Health Center. We have filed suit against your employer, Riggs & Company, as you know, at a civil action docketed at 2-982 in Cumberland County, Pennsylvania- Your attorneys on your behalf have filed preliminary objections which indicate a belief that there is no personal jurisdiction in the Cumberland County courts over Riggs & Company. So we're here today for the purpose of . FILIUS & McLLICAS REPORTING SERVICE, INC. . Harrisburg 717-23,6-0623 York 717-845-6418 PA 1-800-233-9327 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 2~ 25 Exam./McDermott Wucher taking a deposition of a corporate representative of Riggs & Company to testify relating to matters that may be relevant, especially to the issue of personal jurisdiction. Is that your understanding als~ Yes . MS. YURCHAK: For the record, you indicate especially to the issue of personal jurisdiction. There is some law in Pennsylvania that in the event that we go into tke merits of the case that we may be waiving that issue. So I'm concerned about the parameters of the deposition. I believe that we either need an understanding that the questions will only relate to the issue of personal jurisdiction or an agreement that if we do in any way touch on the merits that that will not be considered in any' way to be a waiver of our objection. MS. McDERMOTT: Well, I'm going to try to stay away from the merits, but I'm not sure that it's entirely possible to stay away from the merits. MS. YURCHAK: I think if we put on an 9a PILIU$ & McLUCAS REPORTING SERVICE, I-NC, Harrisburg 717-236-0623 York 717-845-6418 P~. I.$00-253-9327 1 2 3 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 Exam./McDermott - Wucher understanding that Presbyterian will not use this deposition to go into court and say, Judge, they waived the issue of personal jurisdiction, we can proceed. MS. McDERMOTT: I'm not willing to agree to that. So I think what you'll h~Ve to do is object when you think we're going into that territory. MS. YURCHAK: Okay. MS. McDERMOTT: I'm not willing to agree to any limitation on what I ask. MS. YURCHAK: That wasn't my -- MS. McDERMOTT: as it comes up. MS. YURCHAK: That wasn't my suggestion, that there was a limitation on what you ask. My suggestion is that if you ask a question that touches upon the merits the answer will not be used to -- MS. McDERMOTT: . I'm not willing to do that. MS. YURCHAK: Okay. (Amended Notice of Deposition, three pages, was produced and marked Presbyterian Homes Exhibit 1.) .... FI~U$ & McLU~$ ~PORTING SER~CE, ~C. -- Ha~sbu~ ~256-0~3 Yo~ ~-~I8 PA 1-800-~3-~27 We'll have to deal with it lOa 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 Exam./McDermott Wucher BY MS. MCDERMOTT: Q. I'm going to show you a document that I've had marked. We marked it Exhibit A, but this will be Exhibit 1. It will be Presbyterian Homes 1. I ask you, Mr. Wucher, if you have seen a copy of this document. ' '' A. Yes, I have. Q. On the second page of the document, it asks you to bring any and all documents in your file or those of your agents or contractors which are not privileged which relate to this matter. I know you brought one document. Is there anything else you brought with you? A. No. I mean -- MS. YURCHAK: If you're talking about the documents that we already produced that we looked at, other than this document, no. A. NO. BY MS. McDERMOTT: Q. So you brought one document? A. Yes. Q o And that document is labeled Riggs & Company? Yes. (Document entitled Riggs & Company, Wealth Management Trust Dept., one page, was FILILI$ & McLUCA$ REPORTING SERVICE, INC. . .. Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9527 lla 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 Exam./McDermott Wucher produced and marked Presbyterian Homes Exhibit 2.) BY MS. McDERMOTT: Q. That, I guess, will be deposition Exhibit 2. I'll just ask you to briefly indicate what this is. I'd like to question you about ~t a little later. But if you could tell me what this is. A. Sure. If you look at the top box, we had our data computer people look at all of our accounts in Riggs & Company Wealth Management Trust Department. They did an account level search on our computer database, and they came up with the total number of personal trust accounts, which is the figure you see there, 2,356. Out of those accounts, ten of them have Pennsylvania state situs. What that basically means is on our computers we list every account by state situs in terms of, if the individual died in Pennsylvania and the trust was probated in Pennsylvania, it would be a Pennsylvania state situs trust account for fiduciary income tax purposes. If you go down to the second box, we ran a name/address recipient level search. The .. FILIU$ & McLUCA$ REPORT1A~G SERVICE, 1NC, ~ 12a Harrisbt~rg 717-236-0623 York 717-845-6418 PA 1-800-235-9327 2 3 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 8 Exam./McDermott - Wucher difference between the account level search and the name/address recipient level search is all of our trust accounts may have more than one beneficiary. That's why the figure is greater than the total number of personal trust accounts, because each trust account'.would have like two or three or four different beneficiaries. We also asked our data people to tell us how many of those recipients, the beneficiaries, reside in Pennsylvania; and that's 56. And this is just for your benefit. The percent is .42 percent on the account level and 1.72 percent on the recipient level. If you go further down, we asked our data entry people on Riggs Bank N.A., on the community banking side, to also run an account level search for our checking, interest checking, money market, IRA, and CD accounts. This figure here, 222,195 accounts, those are the total number of open accounts in community banking. The total number of Pennsylvania accounts is 488. Again, this percent here is .22 percent. If you go down to the next box, the FIL~S & McLU~$ ~PORTrNG SER~C£, ~C. Ha~sbu~ ~6-0~3 ~ ~5-~18 PA 1-8~-~3-~27 1 2 3 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 9 Exam./McDermott - Wucher account level breakout, this is just basically showing you the number of Pennsylvania accounts, the number of accounts in the District of Columbia, the number of accounts in Virginia, Maryland. Total number of other accounts includes other states. Total number of air-mail includes international, embassy banking. Again, that 488 figure is representative of the total number of c~mmunity banking accounts, and that's .22 percent of the whole. This is basically just to give you an idea of our contacts in Pennsylvania broken down as a percent. So I thought this could help you, give you a better feel of our contacts in Pennsylvania. All right. And I appreciate that. Mr. Wucher, just looking at this Exhibit 2, when you say the situs of the trust is in Pennsylvania, what do you mean by that? I understood what you were saying about the inheritance tax returns, but -- Well, generally when a person creates a trust account, wherever they live, that will be the state situs of the trust account. F[LIU$ & McLUCA$ ~PORT~G SER~C~ ~C. Ha~sbu~ ~6-06~ Yo~ ~8~-~18 PA 1-800-233-~27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 10 Exam./McDermott - Wucher If it's like a trust account and I live in the District of Columbia and I go to Riggs and I open up a trust account, the state situs would be the District of Columbia. If I then move to Pennsylvania, the state situs doesn't change. It's still a trust account Ln the District of Columbia, but I would be a recipient in Pennsylvania. I could also open up an account in~the District of Columbia and it would be a ~ate situs of District of Columbia, and I could list five beneficiaries, my brothers and sisters, who reside in California and Texas. Therefore, at the recipient level, those states would be listed. But the state situs would remain in the District of Columbia. So it's where the trust account originated. That's why like on testamentary trusts the state situs is where the person died and where it was probated. Irrevocable trust is where the person lived when they created the trust instrument. If a Pennsylvania resident were to establish a trust with your company, you are capable of affording them.services? ~L~$ & McLUCA$ ~PORTING SER~CE, ~C. -- Ha~sbu~ ~236-0~3 ¥o~ 7I~8~-~18 PA 1-80~253-~27 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q o 11 Exam./McDermott - Wucher Generally, we don't have Pennsylvania clients coming to Riggs to open up trust accounts. We would not -- I've had people out of state call me up and ask, Can I open up a trust account? We explain to them generally no. We don't really do a lot of trust accounts ~r~ugh the mail for out-of-state residents. We're really a local institution. If you look at the number of accounts that we have, almost all of them are in the District of Columbia, Virginia, and Maryland. How did you come to have these ten Pennsylvania trusts? That's relatively easy to explain. Someone could live in the District of Columbia, and they could create a relationship with us. Then say they moved to Pennsylvania. Well, when they had the relationship with us, maybe in their will -- They drafted their will in the District of Columbia with an attorney, and they have named Riggs as executor and then also as trustee of a trust created upon their death. They die in Pennsylvania. You know, we're -- And maybe they then list beneficiaries who live in Pennsylvania or maybe beneficiaries who live FILIUS & McLUCAS REPORTING SERVICE, INC. -- Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ao 12 Exam./McDermott Wucher in District of Columbia but then move to Pennsylvania. We would be then having a situation where the trust would be state sitused in Pennsylvania, and you could actually have recipients of Pennsylvania outside of Pennsylvania. And the property in the trust could be Pennsylvania property? If it's -- That's the thing. We look at -- We're talking about revocable trusts, wills. We work with the attorneys. If an attorney comes to us and says, Would you take on the responsibility of executor of this person's estate, or will you be trustee of this person's estate? We look at all their assets. If there's any assets outside the District of Columbia, we'll decline, because we don't have any contacts in Pennsylvania. We don't have any offices in Pennsylvania. We don't do real estate in Pennsylvania generally, unless it's like a huge account, millions of dollars, and maybe they have something and we make an exception. But that's far and few between. generally, no. FILIU$ & M. ¢LUCAS REPORTING SERVICE, rNC. ~ Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 SO 17a 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 2l 22 23 24 25 Q o 13 Exam./McDermott - Wucher You're saying that this document indicates that Riggs & Company is currently administering ten trusts which have a situs in the Commonwealth of Pennsylvania and servicing recipients of trusts, 56 of whom are located in Pennsylvania? Correct. Mr. Wucher, let me backtrack for a minute since we sort of dived into things here without some of the preliminaries. We're taking your deposition. Your counsel has put in the record some qualifications relating to some issues we may run into if we get into the merits of what's going to be before the Cumberland County court. When I ask you questions, you certainly have a right to ask me to clarify the question if you don't understand it. You have the right at any time to leave the room and go confer with your counsel or confer with your counsel here if you prefer. I'm going to ask that you give verbal answers to my questions for the benefit of the court reporter. I'm also going to assume that if you answer my question you heard it and understood ~L~$ & McLUCA$ ~PORTING SER~C~ ~C. Ha~bu~ ~7-236-0~3 ~ ~8~-~18 PA 1-800-233-~27 1 2 3 4 5 6 7 8 9 10 1! 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 ao it. Yes. lqow, Exam./McDermott Is that fair? wucher 14 I also need to ask you -- no one ever says yes to this question; I don't know why people always ask this question -- if you're on any type of medication or subject to a~'type of legal, illegal, or otherwise drugs or drink or anything else that would prevent you from understanding what I'm saying. No. The only thing I take is Claritin for allergies. There you go. And we don't know that to be a psychotropic drug. So I think we're okay. MS. McDERMOTT: The other thing I would like to indicate for the record myself is that I may -- I'm going to put in the record that may not be able to get answers to all the questions that I'm going to ask, even in connection with the limited issues relating to jurisdiction and preliminary objections, since practically every discovery question which we asked was objected to and is currently the subject of a motion to compel, which Judge Oler has signed a rule to show cause, but a response is not due from defendants' attorneys as yet to ~L~$ & McLUCA$ ~PORTi-NG SER~CE, ~C. . Ha~sburg ~236-~23 York ~845-~I8 PA 1.800-235-~27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 15 that. Exam./McDermott - Wucher So it may and probably will be necessary to re-call this witness and ask further questions once we have received whatever discovery responses may be forthcoming as a result of those proceedings with Jdd~e Oler. If you want to make a response to that, that's fine. MS. YURCHAK: I will just formally put on the record that I believe that because we're taking the deposition today and based on the information provided there is enough information to go into the question of personal jurisdiction, and we would object to another re-call of this witness on that issue. I know we discussed and I would like to put on the record that the purpose of this deposition is to inquire into personal jurisdiction, and it is not to be considered a waiver by the defendant Riggs & Company of pursuing that preliminary objection. That's all. BY MS. McDERMOTT: Q. Mr. Wucher, if you could state your full name and address for the record, please. FIY-JU$ & McLUCA$ F..EPORTtNG SERVICE, INC. Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 20a 1 A. 2 3 4 Q. 5 A. 6 Q. 7 A. 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 ao 16 Exam./McDermott Wucher Edward Michael Wucher. My address is 3835 North Ninth Street, Number 505E, Arlington, Virginia 22203. Where are you currently employed? Riggs & Company in Washington, D.C. What is the nature of your duties?''' I'm a trust director. I manage approximately 250 revocable and irrevocable trust accounts. How long have you worked at Riggs & Company? A little over five years. What have been the jobs you've had there? I have been trust director. I've been a broker, and I've been a personal associate to trusts. You are the individual that was designated to respond to our subpoena as an individual at Riggs & Company, the corporation, who has knowledge of issues relating to the jurisdictional questions which you have raised? Yes. What is your educational background, Mr. Wucher? I have a Bachelor of Science in finance from George Mason University, and I am a second-year law student at George Mason Law School. FIL~US & McLUCAS REPORTING SER~C~ ~C. Ha~sbu~ ~6-0623 ~rk ~8~-~18 PA 1-800-235-~27 1 2 3 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 Q o 17 Exam./McDermott - Wucher Anything else? I have a certificate of trust from Canon Financial. It's CTFA, which is Certified Trust Financial Analyst. Basically, you go through three years of trust schooling, and you have to take a standardized exam. Once yo~ p~ss it, then you're qualified. Then there's continuing education. I also hold a Series 6/63 and Series 7. There's continuing education with that, to maintain that license. But I'm inactive right now with that at Riggs. That's it. Did you work anywhere prior to working at Riggs? Yes. I worked for First Union Bank. And what were your duties there? I was an assistant branch manager and a broker. Anything before that? No. What year did you graduate from school? 19 -- High school or college? College. I'm sorry. 1994. Could you tell me again what your duties are at FII3'U$&McLU~$~PORT~GSER~CE,~-- 22a Ha~sbu~236-0623 Yoek ~8~-~18 PA 1-800~$3-~27 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q o ao no a 0 18 Exam./McDermott - Wucher Riggs, your current duties? Sure. I'm a director in Riggs' Wealth Management Trust Department. I manage about 250 personal revocable and irrevocable trust accounts. What is the basis of your knowledg~ '~f what, if any, activities Riggs & Company conducts in Pennsylvania? The spreadsheet that I provided you is my knowledge of the accounts that we manage in Pennsylvania. Out of the 250 accounts that I manage, this is the only account that I have a beneficiary in Pennsylvania. Are any of your trusts among these ten which have a state situs in Pennsylvania? No. Have you reviewed any records other than this summary relating to activities that Riggs may or may not conduct in Pennsylvania? No. Are you the person responsible for maintaining files which may relate to any activities that Riggs does or does not conduct in Pennsylvania? The only files I maintain are my own. And you've already indicated that Ms. FILIU$ & McLUCAS REPORTrNG SERVICE, [NC. -- Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 Peffer is. 23a ao 1 2 3 5 6 7 9 10 ll Q. 12 A. 13 Q. 14 A. 15 Q. 16 A. !7 Q. 18 19 A. 2o Q. 21 22 A. 23 Q. 24 A. 25 Q. 19 Exam./McDermott - Wucher the only beneficiary in the files that you have who is located in Pennsylvania. Correct. How long have you been dealing with the Margaret Smith trust? A little over two years. Do you know what employee at Riggs was dealing with it before you? Liz symionow, Maria. Maria Symionow, S-Y-M-I-N-O-W, I think. Is she still a Riggs employee? No. She's retired. And did she have the same job that you do? Yes. The same basic duties? Correct. And you maintain documents in your file relating to the Margaret Smith trust? Yes. But you were not in any way involved in the drafting or setting up of that trust? Po, I was not. Do you know who was? I do not know. Do you have records at Riggs which would -- FILMS & McLU~$ ~PORTING SER~CE, NC. -- Ha~sbu~ 717-236-~23 York ~7-8~-6418 PA 1-800-233-9327 24a 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 20 Exam./McDermott Wucher reflect who was? I reviewed my legal file and correspondence file, and I could not find who was responsible for the original drafting of that trust instrument. It was executed at Riggs; but I don't know, you know, which attorney,' who drafted it. It could be somewhere in the files and I just didn't see it. But I did not see it, no. Do you know or have records which indicate what Margaret smith's date of death was? Yes, I do. I actually have the death certificate. But off the top of my head without looking at the death certificate, I don't have her date of death. But it's in the file. I saw it the other night. You don't have that with you? No. Do you have any idea ballpark when that was? I'm embarrassed to say I don't.. I looked at it, and I should have looked at the date of death, but I didn't think coming into this that that was, you know, important. But I can tell you I know it was in the early '70s. I think it was in the early '70s. FILIUS & McLUCA$ ~PORTING SER~CE, ~C. Ha~sbu~ ~7-236-06~ ~rk ~5-~18 PA 1-$00-233~327 1 2 3 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 25 ao .21 Exam./McDermott - Wucher I don't have the exact. I know from reading my correspondence files everything starts from '74, and I think it was probated maybe '73, '72. It'S your understanding that Ms. Peffer is the beneficiary of the Margaret Smith tr~st? She's the current income beneficiary, yes. And that was always the case? Yes, I believe so. What would the procedure be when a grantor of a trust dies, specifically the Smith trust? What would the procedure be for dealing with the income beneficiary? Normally, you know, we get the death certificate. We contact the income beneficiary, explain to the income beneficiary the provisions of the instrument--what they're entitled to in terms of income, if any; what they're entitled to in terms of principal, if any. We then ask them to sign a W-9 form for social security identification. We set up statements for them, usually quarterly. contact information from them of their accountants, attorneys. Maybe they want us to ~L~S & McLU~S ~PORTFNG SER~CL NC..-- Ha~sbu~ 71~23&0~3 York 71~8~-~15 PA I-8~-233-~27 We get 1 2 3 5 6 7 8 9 i0 11 12 13 15 16 17 18 19 2O 21 22 23 24 25 22 PILU. IS & McLUCAS REPORTFIVG SERVICE, INC. Harrisburg717-236-0623 York 717-845-6418 PA 1-800-233-9327 Exam./McDermott - Wucher do their personal' income tax returns. We talk to them about that. We explain to them that they'll start receiving a tax information letter every year and they have to report that on their personal income tax returns, K-1. Am I missing anything else? Then we have an investment session with them and try to structure a portfolio that meets the needs to the best that we can meet their needs and also meet the needs of their remaindermen. In other words, a private split-interest trust basically is balanced, and you generally try to have it 50 percent stocks, 50 percent bonds. The income beneficiary is basically getting the benefit of half the portfolio generating income for them. The remaindermen, they're getting half of the portfolio · generating capital appreciate for growth. Sometimes we try to structure it based on, the way the market has been doing, maybe 70/30 ratio between bonds and stocks if the income beneficiary has a need. This particular trust, however, 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2! 22 23 24 25 23 Exam./McDermott Wucher simple trust. The difference between a simple and a complex trust, a simple trust you're required by law to pay out a hundred.percent, of the income to the beneficiary. So say you have a $100,000 trust. It's generating $10,000 a year in incom~.' 'After our ~fees, we have to pay them $8,000. Say our fees are 2,000. But with this particular trust, the way it was set up it's called a complex trust. There's no language in the trust saying you have to pay Mrs. Peffer a hundred percent of the income. There was a gift established, $100. The way this trust was set up was the grantor, she said, I know Ms. Peffer has.~ supplemental social security -- MS. YURCHAK: I'm going to instruct the witness not to get into the underlying merits of the case. A. I sort of lost my train of thought. apologize for that, but -- BY MS. McDERMOTT: Q. You described the procedure in Riggs dealing with a trust beneficiary. Do you have documents in your file relating to the FILIUS & McLUCAS REPORTING SERVICE, INC. ~ Harrisburg 717-236-0623 York 717-84S-6418 PA 1-800-233-9327 28a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ao 24 Exam./McDermott - Wucher implementation of the procedures you described with Ms. Peffer? I believe that there is documentation in the files, but I'm not a hundred percent sure of exactly what documentation because I was not the administrator who created this '~ust. I can't be a hundred percent sure that all the documents that I normally would document the file with in terms of correspondence -- I do know there's a W-9. I saw the W-9 filed in there. I do know there's some letters to Mrs. Peffer regarding statements and income, and I do know there's some memorandums to the trust. So everything is probably there. It's just documents have changed from the '70s to today, and the documents that I deal with are a little different. The fundamental documents are there, documentation are there. If I could ask you and your attorney to fish out the documents you produced in response to our request for production of documents. MS. YURCHAK: I have those. MS. McDERMOTT: I'm sure you do. BY MS. McDERMOTT: PILIUS & McLUCA$ REPORTING SERVICE, INC. Harrisburg 717-236-0623 York 717-84~-6418 PA 1-800'233~9327 29a 1 2 3 5 6 ? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q o MS. YURCHAK: MS. McDERMOTT: front of the trust. the trust. BY MS. McDERMOTT: Q. A. 25 Exam./McDermott Wucher Let's direct our attention to a document which you produced called a Memorandum for Committee on Discretionary Disbursements. Yeah. Let your attorney get it for you, and you can take a look at that. Towards the back or -- Yes, it is. It's right in Almost right in front of What is this? It's dated April 19th, 2000. Sure. I received a telephone call from Priscilla whitman, social worker for Mrs. Peffer, in April, I believe, 2000. She informed us that Mrs. Peffer was changing her supplemental insurance and that there were some prescription drug bills that Mrs. Peffer needed assistance with payment on. Also there was something wrong with the 1999 taxes, state and federal taxes. She was coming up short, and based on the money she had coming in from social security and this other little trust and then the $514 gifting that we supply her, she put in a F[LIU$ & McLUCAS REPORTFN'G SERVICE, I~NC. Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 Q o ao ao 26 Exam./McDermott - Wucher request for a discretionary disbursement of $1,330 to assist her in making the medical expenses and paying off the 1999 taxes, which was approved. I approved it. You have engaged in telephone conversations with Priscilla Whitman of the OffidA'of Aging? Yes. What is Ms. Whitman's function as you understand it? She's a social worker that works for Mrs. Peffer, and she was looking after her. How many conversations, phone conversations, do you think you've had with Ms. Whitman? I can't really -- Five plus maybe. Is that in total since you've worked at Riggs, or would that be annually, if you know? I can't really recall. I know it's more than five, but I would have to sit down and sort of go month by month and look through my file. But I know it's been more than five. Do you maintain telephone logs? Sometimes I do, but I don't have a formal telephone log. But like with this particular request, I had it documented with an e-mail that I sent to my assistant, I believe. So I PIOUS & McLU~$ ~PORTrNG SER~CE, Ha~s~ ~236-0~3 York 71~8~-~18 PA 1-800-235-~27 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 Q o 27 Exam./McDermott - Wucher have this document. Going back a couple pages in that batch of documents to a letter from the Cumberland County office of Aging and Community Service which is dated April 20th, 2000, which, apparently, is to you, although Wud~e~ seems to become Washer. A. Yes. MS. YURCHAK: MS. McDERMOTT: MS. YURCHAK: doesn't it? MS. McDERMOTT: letterhead on it. BY MS. McDERMOTT: I assume this is you. Not April 5th? April 20th? April 20th, 2000. It has letterhead on it, Yes, it does have the There it is. That's it. Mr. Wucher, is this a letter that you received? Yes. Do you recall receiving this? Yes. And is this letter discussing issues you just testified to? Yes. What is the procedure which you require on bekalf of your employer when a trust beneficiary wishes to have a disbursement made Ff~U$ & McLUCAS ~POR~NG SER~CE, PC. Ha~sbu~ ~6-0625 Yo~ ~8~-~18 PA 1-800-233-9327 1 2 3 5 6 7 8 9 10 tl 12 13 15 16 17 18 19 20 21 22 23 24 25 28 33a FILILIS & McLUCA$ REPORTING SERVICE, 1'NC. Harrisburg 717-236-0623 York. 717-845-6418 PA 1.800-233-9327 Exam./McDermott Wucher from the trust? MS. YURCHAK: I'm going to object and instruct the witness not to answer, that it goes over the bounds of the personal jurisdiction issue. MS. McDERMOTT: Well, it's hi~l~ relevant to the issue of what he -- I mean there's two types of personal jurisdiction in Pennsylvania--specific and general. In my view, they're subjected to both. His particular transactions with the Cumberland County Office of Aging on behalf of the trust beneficiary -- involving this trust beneficiary obviously had to do with the presence that Riggs & Company has had in Pennsylvania in connection with this transaction. MS. YURCHAK: I don't have any problem with you asking him questions regarding what transactions or conversations he had with anyone in Pennsylvania. You asked him regarding internal procedures in the case, and I don't believe that's relevant. MS. McDERMOTT: No. The question relates to why this letter was written' to him. I mean 1 2 3 5 6 7 8 9 10 11 12 13 14 !5 16 17 18 19 20 21 22 23 24 25 29 Exam./McDermott Wucher this letter contains a lot of information relating to medical conditions, relating to Ms. peffer's inability to manage her financial affairs. I'm wondering -- and I think it's certainly a legitimate subject of f~uiry -- what led to this type of letter being written to a trust officer at Riggs & Company. MS. YURCHAK: I'm going to instruct the witness. If you can answer the question without going into the underlying merits of why the decision was made regarding her medical payments and focus on the procedure--what is done, what connections are made, who calls whom--in that regard, you can answer the question. MS. McDERMOTT: I'm not asking him why the decision was made. I am asking why the information was provided. I can't recall why she -- Well, when you read the letter, it's basically asking for money. But I'm assuming as a social worker working for her she wanted to express her -- Because she's taking care of her, she wanted to -- I'm 34a FIL~S & McLUCA$ REPORIING SER~CE, INC. Ha~sbu~ ~7-236-0~3 York ~5-~18 PA 2-800-~3-~27 30 Exam./McDermott - Wucher 1 assuming she wanted to explain her medical 2 condition to me. 3 MS. McDERMOTT: 4 Q. Riggs requires that a request for funds be 5 accompanied by a statement of the reasons 6 either from the beneficiary or someone 7 representing the beneficiary? 8 A. Of course. They have to explain why they need 9 the money. 10 Q. Is there a form for that, or is it -- !1 A. No. 12 Q. Would this letter be typical of the requests 13 you get? 14 A. This is not typical of a request in as far as 15 it's coming from her, not directly from 16 Mrs. peffer. 17 Q. Have you ever met Mrs. Peffer? 18 A. I have not had the pleasure of meeting 19 Mrs. Peffer, no, unfortunately. Like I said, 20 we don't really have many -- She's the only 21 beneficiary I have in Pennsylvania, so I don't 22 make many trips up here. 23 Q. Let me ask you -- Still sticking with the 24 packet of documents which your counsel provided 25 to us, let me ask you to look at the pages just PIOUS & McLUCAS ~POR'ITNG SER~C~ ~C. Ha~sbu~ ~&0623 Yo~ ~8~-~18 PA 1-800-233-~27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 31 Exam./McDermott - Wucher ahead of that first sheet, that Memorandum for Committee on Discretionary,Disbursements' There's a letter dated June 5th, 1990 from a Brian F. Kennedy, and there's another one dated September 28th, 1990 from Mr. Kennedy. Can you tell me what these ar~,' ~nd do you know who Mr. Kennedy was? I'm assuming Mr. Kennedy was a trust administrator managing this trust account. I believe this is in reference to her monthly remittance. These are Riggs & Company documents? Yes. At the time they weren't Riggs & Company documents. They were Riggs, N.A. documents. Riggs & Company just came into existence about two years, three years ago. These are documents that are maintained in your files? Correct. There's a letter of April 19th, 1991 to Ms. Margaret Peffer from Mr. Kennedy. Can you tell us what this is? Can I have a minute to review it? Absolutely. (pause.) ~L~S & McLUCA$ REPORTING SER~C~ ~C. -- Ha~sbu~ ~7-236~06~ ~k 717-8~-~18 PA 1-800-233-9~27 1 A. 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 21 22 23 24 25 32 Exam./McDermott - Wucher It looks like it's a letter to Mrs. Peffer reviewing her account for the calendar year 1990, explaining to her what the total amount of distributions to her was and then explaining that they were adjusting the monthly remittances going forward as of th£s' Letter April 19th, 1991 up to $407.20 a month starting -- it says starting April 1991 -- in correspondence with the CPI index. This is a Riggs & Company document also? Yes. Or, well, Riggs, N.A. Right. This is maintained in your files? Yes. Flipping forward, there's a letter of January 22nd, 1992 to Ms. Peffer from Brian F. Kennedy also. Is this also a Riggs, N.A. document -- Yes. -- that's in the files? It appears that at this point back in the early '90s Ms. Peffer was dealing directly with Riggs on her own behalf. It appears that 'way, yes. It appears from the records -- FIL!IIS & McLUCAS REPOR22?'lG SER~CE, ~ Ha~sbu~ ~6-06~ Yo~ ~845-6418 PA 1-800-~3-~27 1 2 a o 3 5 6 7 8 A. 9 10 I1 12 Q. 14 15 16 A. 17 Q. 18 A. 19 2O 21 22 23 24 '25 Exam./McDermott - Wucher Yes. -- like that was what was going on. Do you have in your records pertaining to the Margaret Smith trust any documentation of other, whether telephonic or fax or any other communications between Ms. Peffer ~r{~ Riggs or any of its predecessors? I believe in your request was documents from 1990 through present. As I told you, I have a legal and correspondence file that goes back to 1974. So the answer would be I do have other documents from 1974 through 1990. ' }{as the trust been charged fees for the services which Riggs and its predecessors have provided to the trust? Yes. And how are those fees determined? By trust instrument and -- Let me recall this trust instrument. Each is different. Usually it's the standard published rate, and that's how it' s determined. I believe in this particular trust account it is the standard published rate that we have. This one is on our lower schedule because it's a smaller trust account'. But it's by the FILIUS & McLUCAS REPORTING SERVICE, INC. Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 34 Exam./McDermott - Wucher standard published rate. The standard published rate is a percentage of the trust corpus, or how is that done? Yes. Like the standard rate right now is -- For an irrevocable trust, it's 1.2 percent on the first 500,000. I might be wro~'with that. I have to look at the fee schedules· But, generally, yes, with this size trust, just say it's 1.2 percent. However, because this trust is so small, I don't believe we're charging the full 1.2 percent. I think we're trying to help her out by staying with an older published fee schedule. I believe that's one percent. Yeah, because the 2002 fee schedule is 1.2. The 1997 or '98 fee schedule was only one. Of course, business and cost increases and whatever, we increased our fee schedules. But we didn't subject older trust accounts to the new fee schedule if those trust accounts were less than 500,000, if they were really tiny and it was really going to start eating into the principal· With this particular trust account, we were already eating into the principal with the 39a ~LIUS & McLU~$ ~PORTING SER~C~ NC. Ha~sb~ 717-236-0623 York 717-845-6418 PA 1-800-233-9327 3 5 6 Q. 7 8 9 10 A. 11 A. 12 13 14 15 16 17 18 19 20 21 22 23 25 35 Exam./McDermott - Wucher $514 or whatever we were distributing to her, because we were actually distributing more than the CPI index gifting to her just trying to pay her medical expenses because social security didn't cover it. The next document I have is a lett~f'written by a Ronald Peddicord to the Internal Revenue Service on May 22nd, 1992. Do you know what that is? Yeah. Let me just read this. It looks like Mr. Peddicord was arguing with the Internal Revenue Service on the trust 1991 taxable income which was in dispute. When we filed the fiduciary income tax return for 1991, apparently, the IRS was trying -- they were trying to make us pay more. I guess this letter was to them requesting -- It is requested that you -- It looks like he's requesting that the IRS reinstate the original computation of the total tax liability of $2,743. When stocks or bonds are sold, there's capital gains; and in an irrevocable trust account, those are paid by the trust. We file fiduciary income tax returns every year. If 40a F[LIUS & McLUCAS REPORTING SERVICE, I~VC. , .... Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2! 22 23 25 ao 36 Exam./McDermott - Wucher we're reallocating a portfolio for more income or capital appreciation and we sell something and it generates a gain, then the trust at the end of the year reports it on a fiduciary income tax return, a 1041. But this is in regards to the 1991 Form 1041. Thank you. The next item I have is an April 22nd, 1993 letter to Ms. Peffer from a Teresa Davis. Is this a Riggs document? Yes, it appears that way. The next one I have is a May 10th, 1993 document to Ms. Peffer. Is this also a Riggs document? Yes. Riggs would have been charging fees as you indicated to this trust while it's been administering the trust? Yeah. Yeah. And continues to charge fees to the trust? Yes. I have a document, a letter January 10th, 1994 from a Teresa Davis, as well as one of February 2nd, 1994. Are these Riggs documents also? Yes . FILIUS & McLUCA$ REPORT12~G SER~C~ ~C. Ha~sbu~ ~236-0623 y~k ~$~-6418 PA 1-800-233-~27 Q o 1 3 5 6 7 8 9 10 A, il Q. 12 A. 13 Q. 14 A. 15 Q. 16 A. i7 Q. 18 A. 19 Q- 20 A. 21 Q. 22 23 24 25 A. 37 Exam./McDermott - Wucher Do you know Teresa Davis? I do not. Was she still employed at Riggs while you were there? No, she was not, to my knowledge. She wasn't in the trust department. The next document I have is a letter of March 21st, 1994 from Teresa Davis to a Serefino and Maria Cambareri. Do you have a copy of that? Yes. Can you tell me what that is? Yeah. Is that a Riggs document? It is a Riggs document. Who are Serefino and Maria Cambareri? They're the remaindermen in the trust account. Do they receive regular reports from Riggs? Yes, they do. How often are those reports sent? I believe they receive a quarterly statement. There's a letter of February 2nd, 1995 and a letter of February 27th, 1995, one of these to Ms. peffer and one of them to Serefino and Maria Cambareri. Are these Riggs documents? Yes . 42a FILIUS & McLUCAS REPORTING SERV/CE, I-Iarrisbur~ 717-236-0623 York 717-845-6418 PA 1-800-253-9327 Exam./McDermott - Wucher 1 2 3 Q There's a letter of May 4th, 1995 from a Norma Rodriguez to the Defense Activity FEDL Credit Union in Mechanicsburg, Pennsylvania. 4 A. 6 A. 7 8 9 10 11 Q. Uh-huh. Can you tell me what that is? The only thing I can tell you is t~t"s a Riggs bank document, and I'm not familiar with Defense Activity Federal Credit Union. But it looks like she was informing them just of the new RIMCO prime money market account. Is Norma Rodriguez someone you know at ~iggs? 12 A. 13 Q. 15 Unfortunately, no. No. I'm directing your attention to a letter of August 17th, 1995 to Margaret Peffer from a Maria V. Walsh. Is she, to your knowledge, !6 17 A. 18 19 Q. Riggs employee? Yeah, I know Lisa. She was a Riggs employee. She's no longer employed with Riggs. She was your predecessor on the Margaret R. 2O 21 22 23 24 Q o smith trust account? I believe, yeah, Liz -- I mean Lisa was, and then she gave it to Maria, or Liz. So yeah. Now, there's a letter in here of February 12th, 1996 to Ms. Peffer from Maria Walsh. 25 A. Uh-huh. 43a FILIIIS & McLUCAS REPORTTNG SERVICE, INC. Harrisburg 717-236-0623 York 717-845-6418 ?PA 1-800-233-9327 1 2 3 5 6 7 8 9 10 12 13 15 A. 16 Q. 17 A. 18 Q. 19 20 A. 2! Q. 22 23 24 25 Exam./McDermott Is this a Riggs document? Wucher 39 Yes. How about that letter of January 28th, 1997 to Ms. peffer from an Elizabeth Symionow? YeS. Is this one of your predecessors o~ 'this account? Yes, it is. Do you know Ms. Symionow? Yes, I do. Is that how you pronounce it? Yes. I'm looking at a letter of September 16th, from Ms. symionow to Ms. Peffer. 1997 Uh-huh. This is a Riggs document? Yes. This was offering an opportunity for direct deposit? Correct. And that was set up, I believe. Looking at a document which apparently was sent to Riggs by the Redevelopment Authority, One West Penn Street dated January 28th, 1998, is this something that you received or one of your predecessors received? 44a FILIUS & NIcLUCAS REPORTING SERVICE, INC. Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 1 2 3 5 6 7 8 9 10 11 12 13 15 t6 17 18 19 A 20 21 22 23 24 25 40 Exam./McDermott Wucher One of my predecessors. Probably either Lisa or Liz. Do you know what the purpose of this was? I need to look at it. Sure. It looks like Mrs. Peffer applied fo~' housing assistance, and there is verification of assets and income. I'm looking at a letter of March 13th, 1998 to a Laura Burkholder from Liz Symionow. Uh-huh. That's a Riggs document? Yes, it is. similarly the letter of February 23rd, 1999 to Ms. peffer? Yes. A Riggs document? Yes. And March 24th of 1994, that's a Riggs document, a letter to Ms. Peffer from Teresa Davis? Yes. That letter indicates that the annual review of the account has been completed. The investments in your trust account are in line ~LIU$ & McLU~S ~PORTING $ER~CE, PC. -- Ha~sbu~ ~7.~6-0623 York 717-8~-6418 PA 1-800-~3-9327 1 2 3 5 6 A 7 Q. 8 9 10 A. !1 Q 12 A. 13 Q. !5 A. !6 Q- 17 19 20 21 A. 22 Q. 23 A. 24 Q. 25 41 Exam./McDermott - Wucher with the objective you had indicated to us. Is this- a reference to the procedure you described where there's a meeting with the beneficiary and the beneficiary discusses investment objectives? Generally, yes. That's what it lodes' like. I'm looking at a document which appears to be a check from Riggs to the Defense Activity FEDL credit union. yes. This is a document you have in your file? Yes. Do you know what the purpose of this payment was? I do not know. I'm looking at a handwritten letter. It appears to be a copy of a handwritten letter stamped Trust Department, January 6, 1994 from Ms. peffer. Is that a document that Ms. peffer sent to Riggs? Yes, it appears that way. This is in your files? Yes . I'm looking at a letter that's marked Received, Riggs Bank, April 12th, 2001, which is directed .- FILIU$ & McLUCAS REPORTING SERVICE, INC. - Harrisburg 717-236-0623 york 717-845-6418 PA 1-800-233-9327 Exam./McDermott - Wucher 2 to you from Priscilla Whitman. It begins, I'm writing to give you a yearly update on Ms. Margaret peffer. Is this something you asked Ms. Whitman to 5 6 A. 7 Q. 8 9 A. 10 provide? No. Was it in response to a request of yours or a conversation you had with Ms. Whitman? It may have been. I can't recall. I had several telephone conversations with her. Like 11 12 13 14 15 16 I said, five plus. But I can't recall if she called me requesting something and then explained she was a social worker and -- I'm just assuming with a social worker that they have to do these reports. So I don't know. I have to read 17 18 19 2O 21 22 23 24 25 Q o this. Let me see. Go ahead. Is she just updating me? I can't recall why she -- I, obviously, had some conversation with her that she would write this to me, but I can't recall that conversation, unfortunately. But you indicated you have had five plus conversations with Ms. Whitman about I don't know -- 47a FILIU$ & McLUCA$ REPORTEVG SERVICE, INC. Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 1 2 A. 3 5 6 7 Q. 8 9 A. l0 Q. 11 12 A. 13 15 16 17 18 19 2O 21 22 23 24 A. 25 Exam./McDermott - Wucher Ms. Peffer? I believe so. 43 But they were usually, I mean, precipitated by Ms. Whitman. I may have called her once or twice, but I can't recall. Usually she's asking for money or assistance, and that's why she would contact me. Now, you've produced a letter dated May 9th, 2001 from you to Ms. Whitman. Yes. Can you tell me what prompted you to compose this letter? Sure. She had informed me that she had recently moved Mrs. Peffer to a nursing home Presbyterian Homes operated, and she informed me that she was applying for Medicaid to pay. She said with the application they need information about the trust account. So I wrote this letter to her clearly telling her that -- MS. YURCHAK: I'm going to again instruct you not to go into the merits. You can go into what contacts were made and why you wrote this letter. So I wrote this letter in response to her request · 48a FIL[U$ & McLU~S ~PORTING SER~CE, ~C. Ha~sbu~ ~7-236-06~ ~ ~8~-~18 PA 1-800-~3-9327 Exam./McDermott Wucher 1 BY MS..McDERMOTT: 2 Q Did you provide any information directly to the 3 Department of Public Welfare? 4 A No, I did not. 5 Q. I have a letter here also from Ms. Whitman to 6 you dated October 5th, 2001. 7 A. Yes. 8 Q. Was this letter sent to you at your request, if 9 you recall? 10 A. I can't recall. I may have requested it with a ll conversation that she may have called me and 12 said she was -- and I said we need everything 13 documented. I can't recall, though. I'm just 14 looking at this letter, so -~- 15 Q. Was this the first you learned, if you know, 16 that it had been determined that Ms. Peffer was 17 ineligible for medical assistance? 18 A. With this letter, or was there a prior 19 telephone conversation? I can't recall. As of 20 October 5th, I'm definitely sure I was aware, 21 because it's right there in writing. But I 22 can't recall if there was a telephone 23 conversation a couple days before that or not. 24 I can't recall that. 25 Q. What did you do when you received this letter? 49a .... FiLl'US & McLUCAS REPORTi'NG SERVIrCE, INC. Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 45 Exam./McDermott - Wucher 2 3 5 I took it to my supervisor and asked him for guidance, the head of our department. Did you have further discussions with Ms. Whitman about this matter? I believe so. What was the nature of those 6 7 8 9 10 12 13 16 17 18 19 20 21 22 23 25 discussions? MS. YURCHAK: I'm going to object to that question again based upon the purview of the deposition and instruct you not to answer. MS. McDERMOTT: Well, the relevancy of that is the contention is being made that they don't do anything in Pennsylvania sufficient to satisfy the very minimal standards established by the Pennsylvania law. In fact, an answer was provided in discovery that there had not been nothing except some minimal correspondence back and forth. Obviously, that's not true. Certainly the substantive nature of the quality of these contacts is something that the court will~be legitimately looking at when we brief and argue this matter in July. So what he discussed with her and what the nature of his understandings with her were as well as the next question I'm going to ask is any discussions he had with people at Forest PILI~S & McLU~$ ~PORTING SER~CE, ~C. Ha~sbu~ ~236-0~3 ~rk ~7.~5-6418 PA 1-800-~3-~27 l 2 3 5 6 7 8 9 10 11 12 13 15 16 17 18 !9 2O 21 22 23 24 25 46 Exam./McDermott - Wucher Park are obviously relevant to what they have been doing in Pennsylvania relevant to the jurisdictional issue. But having said that, I'll ask him the question again. If he's not going to answer, he's not. I am, frankly, amazed t~at.the contention is even being made that there isn't jurisdiction based on the facts here; but if we have to take it to a judge, we will. BY MS. McDERMOTT: Q. What was the nature of your discussions with Ms. whitman relating to Ms. peffer's care? MS. YURCHAK: I'll instruct the witness. You can answer regarding the existence of a conversation and the general matter you discussed but not to go into details that will, again, pass the borderline of the purposes of this deposition. A. All right. It just had to do with her application for medical assistance. That was my conversations with her. BY MS. McDERMOTT: Q. Have you had any conversations with any employees of either Forest Park or Presbyterian Homes relating to Ms. Peffer? FILl'US & McLUCAS REPORTING SERVitCE,/NC. '- Harrisburg 717-236-0623 Yo'rk 717-g,AS-6418 PA 1-800-233-9327 5la 1 2 3 4 5 6 A 7 A. 8 9 Q. 10 A. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q o 47 Exam./McDermott - Wucher I. believe I may have had one telephone conversation with Forest Park, and I may have · had -- What was the other one? Presbyterian Homes, incorporated, which is actually the company which operates Forest park. I believe I may have had one or two calls to them. And -- I called just to redirect the $514 remittance directly to them instead of it going into Mrs. peffer's checking account direct deposit. I needed to get information. As soon as she moved into a nursing facility, I wanted to redirect that remittance to the nursing home facility directly so I knew that they got the full amount of money and it wasn't going to be spent somewhere else. Do you know who you .talked to? I can't recall. I didn't write who I spoke to. It was someone that just gave me the information, I believe. I can't recall. Was it someone at Forest Park, if you know, or you don't know? I can't recall if it was someone -- FILIU$ & McLUCA$ REPORTING SERVICE, INC. Harrisburg 717-236-0623 Yo~'k T17-$45-6418 PA 1-800-233-9527 think it 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Q o Q Ao Q o 2O 21 22 23 24 A. 25 Exam./McDermott Wucher may have been. Do you recall talking to an Annette Bailey at Forest Park who was the bookkeeper? I may have. But, again, I don't recall the name of the individual I spoke to. Do you recall having discussions w~t~' her about whether payment was going to be made from the trust on Ms. peffer's behalf? I do not recall that conversation. I may have spoken to her and mentioned something, but to be honest with you, I don't recall. Directing your attention to a letter which you wrote on December 28th, 2001 to Mr. and Mrs. Cambareri and in particular the first full paragraph of that second page, which says, In November 2001 Forest Park agreed not to discharge Ms. peffer pending a final decision by our committee regarding a request for discretionary distribution of the Margaret Smith trust on behalf of Ms.. Peffer. Do you recall what led you to put that in that letter? Was that as a result of discussions with Forest Park representatives? Yes. This sort of refreshes my memory. I think I may have had a brief conversation with FILIU$ & McLU~S ~POR~NG SER~CE, ~C. Ha~sbu~7-236-0623 ~ ~8~-~18 PA 1-$0~3-~27 2 4 5 6 7 8 9 10 11 12 13 Q. 15 16 A. 17 18 Q. 19 2O 21 A. 22 23 24 25 49 Exam./McDermott Wucher someone at Forest Park at that time because I was concerned that Mrs. Peffer -- she maintain a nursing home facility, that they don't kick her out. I wanted to let them know that we're doing everything we can, you know, to pa~ them. At that time -- I guess I shouldn't go into the merits of the case. But no. Looking at that, I believe I did have a conversation with them just to ensure that she would stay there. I mean that she wouldn't be kicked out. I didn't want her to be kicked out. What was it that Forest Park told you during that conversation or the representative of Forest Park? To be honest with you, I can't recall what the representative said. Do you have notes or a telephonic log relating to this conversation or conversations or e-mails, something of that nature? I don't -- If I would have documented it, I would have put it in the file, and it's not in the file. So it's not documented. I don't know if we have telephone logs, but we may have them. I'll have to check.. You know, I think ~L~S&McLU~S~POR~NGSER~C~C. Ha~bu~ ~236-0~3 ¥o~ ~7-8~-~18 PA 1-800-233-~27 2 3 5 6 7 8 ao 9 ~o Q. 11 12 A. 13 16 17 18 19 20 22 23 A. 24 25 50 Exam./McDermott - Wucher they may record all of our conversations. So I don't know. I'll have to check. You're saying your employer may record all your conversations? They might. WOW · don't know. Maybe it's too expensive- I mean they haven't told me that don't knoW. they're recording them, but -- What was the purpose of this letter that you wrote to Mr. and Mrs. Cambareri? They're the remainder beneficiaries on the trust. At this time when I wrote this letter, I wanted to let them know of the changed situation of Mrs. peffer and the possibility that we may have to invade the principal to start paying for the nursing home expenses. That was the main purpose of the letter, because they're remaindermen and -- That was the main purpose. You previously indicated you do make regular reports to the remaindermen. I believe they do receive statements, because they've called me on occasion to find out the status of. Mrs. peffer. 55a .... FILIU$ & McLUCA$ REPORTING SERVICE, INC. Harrisburg717-236-0623 York 717-845-6418 PA 1-800-233-9327 1 2 3 4 5 6 7 Q A 8 A. 9 10 11 12 13 14 15 16 Q. 17 18 19 20 A. 21 22 23 24 25 Exam./McDermott - Wucher What is their relationship to Mrs. Peffer, if 51 you know? I believe they were -- I believe they were neighbors to the grantor of the trust, Margaret Smith. What was Margaret Smith's relationShiP to Ms. peffer? Do you know? I'm not a hundred percent sure. I think maybe she was like a grandniece or something like that. Mrs. peffer didn't have any -- I mean Mrs. smith didn't have any children, and I believe Mrs. peffer -- I'd have to look in my files -- was like a real distant relative, like a grandniece or something like that or a cousin but not -- .Have you personally had any discussions with Forest Park or any other PHI representatives relating to Ms. Peffer after this December 28th communication? Oh, wow. I may have. I may have. I can't · recall. I mean I would have to, you know, go through my files and really try to recall. I don't -- I may have. But I know that when we started using -- When was it? January? Yeah, January, S6a ~ - F~LJ'US & McLUCAS REPORTING SERVICE, INC. "~ Harrisburg 717-236-0625 York 717-845-6418 PAI-800-233-9527 1 2 3 Q 4 5 A. 6 Q 7 A. 8 9 10 ll Q. 12 13 A. 14 Q. 15 16 A. 17 Q. 18 19 A. 2O 21 Q. 22 A. 23 24 25 Exam./McDermott - Wucher February. I know when -- Oh, I guess I shouldn't disclose all that. Riggs & Company is making regular payments to Forest Park? 52 Yes. Do you know what the amount of thos'e' is? I believe it's five hundred and -- Without looking, I think it's 515 or 514 or something like that. I would have to look at the exact amount. Is Riggs & Company receiving bills for Ms. peffer's care? Yes. You're receiving those from Forest Park; that right? is Yes. Are you receiving them from any other person or entity? I believe Ms. Whitman may have forwarded a copy to us as well. She didn't forward other invoices, or did she? If you recall that discretionary distribution, the only thing she sent was -- No, she didn't send the actual invoice, no. She just sent the letter with the breakdown of the expenses.. So PIL~S ~ McLUCA$ ~PORIING SER~, ~C. ~ H~$b~ ~7-~6-0623 York ~8~5-~I$ PA 1-8~0-233-9327 3 Q. 5 6 7 A. 8 9 Q. 10 il 12 13 14 A. 15 Q. 16 A. 17 18 19 '20 21 22 23 25 53 Exam./McDermott - Wucher no. I guess the answer is no. To the best of my knowledge, no. Do you recall the substance of what you discussed regarding Ms. Peffer with Forest Park representatives on the occasion or occasions when you acknowledge having discussions? If I recall, it had to do with her nursing care. I'm going to ask you about a document which appears to be a two-page document called Margaret smith Trust and it has the number after it. It sort of appears to be sort of a summary sheet. Yes. Can you tell me what that is? I just -- Yes. I 'just created that for my own benefit so I can just pull the desk file. There's important contacts in there, like the attorney for Presbyterian Homes, her date of birth, social security number. If there's a medical power of attorney, that would be listed. I list Mrs. Whitman. T~en I listed, like, her medical conditions and the remaindermen information, and a budget is on the second page. 58a , FILIU$ & McLUCA$ REPORT/NG SERV/CE,/NC. ' Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9~27 1 Q 2 3 4 A. 5 Q 6 7 8 A. 9 Q. 10 A. 11 Q. 12 A. 13 14 15 Q. 16 17 18 A. 19 20 2! 22 23 24 Q. 25 54 Exam./McDermott - Wucher That is an indication of, to your knowledge, what Ms. peffer's expenses are, expenses and income are? Yes. Yes. Prior to that document, in the documents your attorney provided is a Margaret Smi't~' Trust number and then Investment Policy Statement. Yes. Who generated that document? I did. When did you generate that document? I have to look on my computer, but this says estimated trustee's fees 2002. So this was generated this year, probably April. Those are the fees which you previously indicated are based on a percentage of the trust corpus? Yeah. The $3,000 figure there, because it's so small, it doesn't generate enough money to reach our minimum, because our minimum fee on a smaller trust with that older fee schedule is $3,000. So it's just going to be a flat $3,000 a year. That's the fee on this trust. Ahead of that I have a Riggs document which appears to be a tax form. Is this a document .. FILIU$ & ~cLUCAS ~PORTING SER~CE, ~C. ~ Ha~sbu~ ~7-236-0623 Yo~ 71~8~-~15 PA 1-800-~3-9327 2 3 5 6 7 8 9 10 11 12 13 15 i6 17 18 19 20 21 22 23 25 a · no 55 Exam./McDermott - Wucher f.rom your files? Yes. I notice this one is signed by Ms. Peffer and dated February 18th, 1991. Uh-huh. This is something you would ask her Co provide to you? Yes, if we for whatever reason lost or misplaced the W-9. We need to have the'W-9 on file. This is just verifying her social security number, which is listed up there, and she signs that that's her taxpayer identification number. The document I have ahead of that is called Brief. Yes. What is that? An administrator will sometimes create a Brief for the desk file. Without having to go into the instrument, they can just look at it and get an idea of the instrument. In tkis particular Brief, apparently, when Mrs. Smith was still alive because it says, Revocable, yes, during lifetime of grantor. So this is a very old F[L[US & McLU~S REPOR~NG SER~CE, ~C. ~ Ha~bu~ ~7-~6-0623 Yo~ ~7-8~-6418 PA 1-800-233-~27 it was prepared, Exam./McDermott - wucher 1 2 3 4 A. 5 Q. 6 7 A. 8 9 Q- 10 11 A. 12 13 14 Q. 15 A. 16 Q- 17 A. 18 Q. 19 21 22 23 24 A. 25 Q. Brief. Now, it indicates Mrs. Smith had a date of death of January 8th, 1984. Yeah. I wrote that in there. Now, the preceding page is called New Account Checklist. Do you know what that I'm sorry. I didn't write that in there. I wrote the date of birth. I'm sorry. What is this New Account Checklist? Is'that a document from your files? Yes. when a new account is opened -- this was opened June 1977 -- there's a checklist that the administrator has to complete. So this is whoever opened this account? Yes. And you don't know who that is? From looking at this document, no, I don't. Let's shift gears a little bit. If I could direct your attention to the affidavit which you filed which is attached to the preliminary objections raising the question of jurisdiction. Do you have that in front of you? Yes. If I could direct your attention to ... FILIUS & McLLiCA5 REPORTING SERVICE, 12VC. -- Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233~9327 the second 6la 1 2 3 5 6 7 8 9 10 11 A 12 Q. 13 14 15 16 17 18 19 20 21 22 24 25 ao 57 Exam./McDermott wucher page, Items 10 and 11, you indicate in this affidavit, which was sworn on the second day of April 2002, In connection with this transaction, neither I nor any other agent, servant, employee, or other representative of Riggs has ever personally set foot Pennsylvania or dealt with anyone in Pennsylvania in connection with this trust. I take it that that response is ii~ited to this trust. Yes. It was not your intent in making that averment to indicate that no agent, servant, employee, or other representative of Riggs has ever had dealings in Pennsylvania -- or has not had dealings in Pennsylvania? Yes. My affidavit was limited to the trust. To your knowledge, do agents, servants, employees, Or other representatives of Riggs deal with anyone in Pennsylvania for business purposes? I don't know. To my knowledge, no. The answer is you don't know or no, they don't? You know, I can't answer that question because I haven't -- I haven't reviewed the documents. ,- FILIU5 & McLUCA$ REPORTING SERVICE, INC. ~ Harrisburg 717-236-0623 York 717-84,5-6418 PA 1-800-233-9327 2 3 4 5 6 7 Q. 8 9 10 12 13 15 17 18 A. ~9 Q. 2O 21 22 23 A. 24 25 Exam./McDermott - Wucher The only thing I know is from the trust accounts -- I know that from the trust accounts we manage no one -- All I can speak to is myself, and I have not set foot in Pennsylvania. I don't know the answer to that question- I'm going to direct your attention to the responses to interrogatories which your counsel provided to us, which you'signed the -- Mr. Wucher, you have very kindly brought with you a document which we've labeled deposition Exhibit 2, which was a summary sheet provided to you by other employees of Riggs. I think you just indicated to me that you don't have any personal knowledge of any transactions involving Riggs & Company or Riggs Bank, N.A. with pennsylvania. Is that correct? Yes. So you wouldn't know to what extent there may or may not be business contacts between Riggs and the Commonwealth of Pennsylvania; is that right? Well, just in reference to this case, I know that upon reviewing the case and speaking with ~ur legal department that we don't have many 63a _ ~$ & McLU~S ~PORITNG SER~C~, ~C. '- ~a~sbu~ 717-236-06~ York 717-~5-~18 PA I-$00o233-9327 1 2 3 Q. 4 5 A 6 7 8 9 11 12 13 Q- 15 16 A. 17 Q. 18 19 20 A. 21 22 23 24 25 ~ '' 59 Exam./McDermott - wucher contacts with Pennsylvania. I mean that's what this spreadsheet shows, less than one percent. That's not a matter within your personal knowledge, is it? Well, based on -- I rely on the data that was given to me. I don't think computers, lie. So I guess based on -- I believe this. It'S less than -- .24 percent is our contacts in Pennsylvania. So, to my personal knowledge, that's -- I'm standing by that figure unless __ Sometimes computers make mistakes but not often. You have not personally reviewed -- You're referring to the document we've marked deposition Exhibit 2. Yes. You don't have personal knowledge of the underlying records relating to this document, do you? No, I do not. This was just taken from the computer- I didn't actually go into the ten trust files and review those. MS. McDERMOTT: Let me just take like a two-minute break and talk to the client. I think we're just about done here. 64a FILIUS & McLUCAS REPORTING SERVICE, INC. - ~ Harrisburg T17-236-0623 York 717-845-6418 PA 1.800-233-9327 Exam./McDermott (Recess taken.) BY MS. McDERMOTT: Q 5 6 7 8 A. 9 Q. 10 A. ~ Q. 12 A. 13 Q. 14 A. 15 16 Q. 17 18 A. 19 Q. 2o 21 A. 22 23 24 25 Wucher 60 Referring back to that pack of documents and that letter that we talked about of December 28th, 200!, this letter indicates that it was in response to a telephone call. PLd you have a telephone call with Mr. and Mrs. Cambareri? Yes, I spoke to Mr. cambareri. Do you have records of that call? No, but I recall it. I recall speaking to him. What was his purpose in calling you? I called him. For what purpose? To give him an update of Mrs. peffer's condition- You indicate' to him that you had a conversation with Riggs' attorney William Fralin? Yeah, on Page 2. Uh-huh. And you describe that conversation for Mr. Cambareri? Yes . MS. YURCHAK: go into the merits of the case. whether the conversation occurred or whether you instructed him or not. I instruct you again not to You can answer not and You can 65a FIL1%IS & McLUCA$ REPORTING SERVICE, INC. Harrisburg 717-236-0623 York T17-845-6418 PA 1-800-235-9327 2 3 5 6 7 8 A0 9 12 13 15 16 17 18 !9 20 21 22 23 24 25 Exam./McDermott Wucher answer. Yeah, I had a conversation -- or I wrote in a letter regarding my conversation I had with Mr. Fralin. MS. McDERMOTT: MS. YURCHAK: I have nothing further. Thank you. I have. no questions. (whereupon, the deposition concluded at 11:30 a.m.) 61 66a FILIUS & McLUCAS REPORIING SERVICE, I-NC. Harrisburg 7'/7-236-0623 York 717-845-6418 PA 1-800-233-9327 · ' 62 1 3 5 COMMONWEALTH OF PENNSYLVANIA) ) ss. COUNTY OF DAUPHIN ) I, Glenda S. Travitz, Registered Professional Reporter and Notary Public in and for the Commonwealth of Pennsylvania and County of Dauphin, do hereby certify that the foregoing testimony was taken before me at the time and place hereinbefore set forth and that it is the testimony of: EDWARD M. WUCHER 6 7 I further certify that said 8 witness was by me duly sworn to testify the 9 whole and complete truth in said cause; that the testimony then given was reported by me 10 stenographically and subsequently transcribed under my direction and supervision and that the 11 foregoing is a full, true and correct transcript of my original shorthand notes. 12 I further certify that I am not counsel 13 for nor related to any of the parties to the foregoing cause, nor employed by them or 14 their attorneys and am not interested in the subject matter or outcome thereof. 15 Dated at Harrisburg, Pennsylvania, this 16 27th day of June 2002. 1 8 I Glenda S. Tmvi~, Notary Public I. L~er P~on T~., Da~hln [ My Uommission Expires ~pt. 24, 2002 ~ 7 ~ i~ 19 Registered Professional Reporter 20 Notary Public (The foregoing certification of this 21 transcript does not apply to any reproduction 22 of the same by any means unless under the direct control and/or supervision of the 23 certifying reporter.) 24 25 67a FIZ3US & McLUCA$ REPORTFN'G SERVICE, INC, ~ Harrisburg 717-236-0623 York 717-845-6418 PA 1-800-233-9327 PRESBYTERIAN HOMES, liNC., tJd/b/a FOREST PARK HEALTH cENTER, Plaintiff RIGGS & CO., TRUSTEE OF THB MARGOT R. SMITH AccOUNT, and MR. & MRS. CAMBARERI, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 02-982 CIVIL TERIVi : CIVIL ACTION AMENDED NOTICE... OF DEPOSITION TO: RIGGS & CO., TRUSTEE OF TIlE MARGARET R. SMITEI AccoUNT by and through its attorneys, H. Amos Goodall, Jr., Esquire GOODALL & YURCItAK, P.C. 328 South Atherton Street State College, PA 16801-4043 Pursuant to Rule 4007.1 (e) of the pe~nnsylvania Rules of Civil Procedure, notice is hereby given that Plaintiff will take tixe deposition of Defendant, RIGGS & CO., TRUSTEE OF THE MARGARBT tL SMITH ACCOUNT, on Friday, June 21, 2002 at 10:00 a.m. at the offices of Killian & Gephart, LLP, 218 Pine Street, Harrisburg, Pennsylvania 17101. 68a Pursuant to Rule 4007.1 (e), Defendant is required to serve on Plaintiff a designation of one or more officers, directors, managing agents, or other persons who consent to testify on Defendant's' behalf, as to matters alleged in the transactions between Plaintiff, PRESBYTERIAN HOMES, INC., and Defendant, RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, presented in the Complaint docketed to No. 02-982 CIVIL TERM, in Cumberland County, Pennsylvania, and to bring with you any and all documents in your file or those of your agents or individual contractors,'not privileged, relating to this matter. Respectfully submitted, K!LLIAN & GEPHART, LLP Dated: June 10, 2002 Paula J. MYDennott, Esquire Attorney I.D. #46664 218 Pine Street P.O. Box 886 Harrisburg, PA 17108-0886 (717) 232-1851 69a CERTIFICATE OF SERVICE On this ~ day of June, 2002, I hereby'certifY that I served the foregoing NOTICE OF DEPOSITION on the following by mailing a tree and correct copy via first class mail addressed to: H. Amos Goodatl, Jr., Esquire and Kathleen V. Yurchak, Esquire Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801-4043 Mr. and Mrs. Cambareri 6923 Western Avenue, NW Washington, DC 2~)015 KILLIAN & GEPHART, LLP Paula J. Mi'Dennott, Esquire Attorney I.D. ~46664 218 Pine Street P. O. Box 886 Harrisburg, PA 17108-0886 Telephone: (717) 232-1851 70a Riggs & Company Wealth Management- Trust Dept. Account Level Total # of Personal Trust Accounts: Pennsylvania State/Situs Percentage: Name/Address Recipient Level Total # of Recipients: Pennsylvania State: · Percentage: 2356 10 0.42% 3258 56 1.72% Riggs Bank N.A. :ommunity Banking Level: Total # DDA, NOW, MMA, IRA & CDA accounts: 222,195 (open accounts) Total PA accounts: 488 Percentage: 0.22% :count Level Breakout: Total # PA accounts: Total # DC accounts: Total # VA accounts: Total # MD accounts: Total # other accounts: Total # air-mail Total 488 88,752 45,341 55,823 8,683 23,108 222,195 DDA- Personal checking accounts NOW- Interest checking accounts MMA-'Money Market accounts IRA- IRA accounts ;DA- CD accounts Riggs Bank Confidential ,Page 1 7la 6/20/02 THIS AGP.w~ made this ~'~-~ day of ~'-'~'~'~ 1977, by and between NAP~ REBECCA S~ITH, of the District of Columbia~ party of the first p~rt', hereinafter sometimes c~ed the ~Gr~ntor" ~nd THE RIGGS N~ION~ B~NK OF WASHINGTON~ D. Co ~ a body corporate under the laws of the United States, doing business in the District of 0olumbia, party of the second part~ hereinafter sometimes called the "Trustee"; WHEREAS the party of the first part desires to create a trust of the property and for the purposes hereinafter mentioned. NOW~ THEREFORE, THIS AGREE~ WITNESSE~H, That in consideration of the premises~ the mutual covenants herein contained, and of other ~ood and valuable consideration, and of the sum of Ten Dollars ($10.00) to her in hand paid by the party of the secoud part at or before the ensealing and delivery of these presents, the receipt whereof is hereby ac~owledged, the party of the first part has granted, conveyed: assigned, set over and delivered absolutely unto said ps~tY of the second part, and its successors in trust~ cash in the sum of Fifty Thousand ($50,000.00) Dollars. TOG~ with all the appurtenances and all the estate and rights of the party of the first part thereto. TO HAVE AND TO HOLD~ absolutely and in fee simple, ell and sinEular the said personal property and any other property which, with the consent of the Trustee, may be added hereto by the party of the first part, unto the said party of the second part~ BUT~ NE~wMS, IN TRUST~ for and upon the following uses and purposes and subject to the terms, canditio~s ~ powers and agreements hereinafter set forth. 72a ~ of the Grantor that t'== 'initi~-I deposit of ~IRS~. it is ~he desire cash f~uding this Trust shall be placed in units of the Common Trust Funds t, Trustee shall hold, manage and invest said trust estate, collect the income thereof, and after deducting the commission to the Trustee, hereinafter prov~_ded for, and all other proper and necessary costs, charges, expenses and ~outlaYS incident to ~ and in connection with the ad~inistrati°u and management of the trust, to disburse the net income as follows: A. Pay a gift of a minimum of One Hundred ($100.00) Dollars each month to or for the benefit of MARGARET L. PEFFER, who is presently ~et~ring Disability Social Security payments and Supplemental Social'Security pa~yments. · If at any time these Supplemental Social Security payments are reduced, in whole or in part, the Trustee shall thereafter pay montb?y~ gifts to ~ L. PEFFEE, in additiou to said gift of a minimum of One Hundred (.$100.00) DoLlars, in an amount equal to such re,ductiom. B. The written statement of ~V~RGARBT L. P~FER that such Supplemental Social Security reductions have been made shall be deemed sufficient proof of such reductions. C. The mon~klY gifts to ~qGARET L. PEFFER shall be increased in accordance with the Cost Price Index as published by the U. S. Department of Labor. Such adjustment shall be made annually, as of December '31, as follOWS: (1) Using .as a base the Cost Price Index for December ~1, 1977; and (2) Any in~rease sh~l be in effect commencing with the year 1975 and for the succeeding years; aud (3) Until~ the death of NARGARET L. PEFFER at which time mouthlY payments cease without accrual to her estate. D. After payment of the monthly gifts 'to ~A~Sa4RET L. pEFFER and costs of administration of said Trust, then the balance of net income shall be paid to the Grantor during her life; and after the death of the Grantor said balance of net income shall be added to the principal of said Trust estate E. Should ~qGARET L. pEFFER predecease the Grantor, then the SECOND. ' Not withstanding any provision of this Agreement to the coutr~ry~ and upon the death of the Grantor, the Trustee herein may apply to or for the use and benefit of NARGARET L. PEFFER, so much of the principal or corpus of the trust fund as the Trustee, in its sole and absolute discretion~ may deem to be necessary or desirable for the proper support~ maintenance,. comfort, health, or general welfare of said NARGAKE1 L. PEFFER~ ~ud the proper receipt or receipts for funds hereunder expended, by the Trustee shall constitute a discher, ge of the Trustee herein with respect thereto o THTRD. ~nould NARGA~ L. PEFFER predecease the Grantor, then the Trustee herein m~.y apply to or for the use and benefit of the Grantor, so much of the principal or corpus of the trust fund as the TruStee~ in its sole and absolute discretion~ may deem to be necessaz~y or desirable for the proper support, maintenance~ comfort, health or general welfare of said Grantor, and the proper receipt or receipts for funds hereunder expended by the Trustee shall constitute a discharge of the Trustee herein with respect thereto. FOUP~TH. The Grantor reserves the right to terminate this agreement upon written notice to the said Trustee and upon such revocation, said Trustee slml~ assign~ set over~ convey~ transfer and deliver unto said Grantor, the balance of the assets of said Trust~ in cash. The Grantor likewise reserves the right to alter or amend the terms of this Agreement but no such alteration or amendment shall be effective without the written Consent and joinder of the Trustee. FIFTH. Unless revoked by the Grantor dur~.ng her life, this Trust shall continue until the death of the Grantor, or 3A4~G~RET L. PEFFER, which ever occurs last~ whereupo~ said Trust shall terminate. Upon such termination~ the Trustee shall pay over the entire ne~ trust estate, together with all accrued and accumulated but undistributed net income therefrom, to THE WASPKKNGTON H~ME FOR INCURABLES, Washington~ D. C~ 74a S~X~H. ~h relation to the trust hereinabove created? t~e Trustee is hereby given full discretionary pow. ers of management and control, of sale and re-sale, in fee simple or otherwise~ or mortgages lease and pledge, of investment, reinvestment and exch~e, and it shall keep the trust estate invested in such secumities and other forms of property, including real ~estate, corporate stocks, cammon and preferred, debenture bonds and other'obligati°ns whether or not secured, including any common trust fund operated by said Trustee, as it may. deem suitable for the trust~ ~ud shall not b~.~estricted to securities or property of the character now or hereafter authorized by law or by rules of Court. The Trustee is further authorized to take any action which, in its jud~ment~ is necesssmY or desirable for the proper and advantageous management, investment and distribution of the trust. SEVENTH. The Trustee is authorized to employ attorneys, auditors, depositaries and agents, as necessary) to exercise in person or ~y .proxy voting and other rights with respect to stocks or other securities) and to keep any property in bearer form or in the name of said Trustee or its nominee, with or without disclosure of any fiduciary relationshiP; and to continue to exercise any powers and discretion after the termination of the trust until the trust estate is distributed. EIGMTH. The Trustee sh"~d_l render usual and proper statements to the Grantor and the books of the T~ustee shall be open at any reasonable time or times: to the inspection of the Grantor. The Trt~tee shall be entitled to receive as compensation for its ser-~rlces the commissions agreed to by the parties hereto by separate written instrument. This fee schedule shall apply so long as all the ~ssets of this account are invested in units of the Common Trust Funds. Otherwise, the Trustee's compensation shall be computed on the basis of its then applicable fee schedule. NINTH. This Agreement is executed in the District of Columbia and shall be administered in accordance with the laws in force therein. 75a T~£H. ~Fnls instrument is made in triplicate, each of which is an original, but altogether shall be de~med one aud the same instrument. IN WITNESS W~F~ the parties hereto have set their bauds and seals this' (0'~-$ day of ~0~- , 1977. Witue s s: ATTEST: THE RIGGS NATIONAL BANK OF W~SHiNGTON~D.C 76a The Riggs National of Washington, D. C. Washington, D. C. 20005 In re: MARC~W~WT REBECCA S~TH TRUST U/A C~ntlemen: In the matter of the trust created by Agreement as above desigua%ed wherein you are the Trustee, it is provided that the Trustee be entitled to com~ensatiou for its services thereunder~ the co~missions provided for by a separate A~-~eement between the par~ies. In accordance therewith, it is under- stood and agreed that the fees to be charged by the B~D~ as such TrUStee are as follows: A fee on principal value will be charged which may be taken quarterly, se~niann~ally, or annually and shall be based upon cturrent ~rk~t value computed as the follow~ug ~nnual rates: $5 per thousand on the first $200,000" $3 per thousand on the ne~ $300,000 $2 per thousand on excess M~nimum Fee $300 per annum Term~n~tiou Fee Upon ter~nation in whole or in pa~t~ a fee of 1% of market value of the assets distributed cr paid shall be charged. So~rce o$ Fees As specified by Grantor, all of the above fees shall be charged to income. Any compensatiou taken incident to death of the Grantor shall be charged against principal. Yours very truly, ' !~rgaret Rebecca Smith THE RIGGS NATION~T. BANK OF WASHINGTON~ D. C.. Trust 0Efic~ Date: jg~ i~ 1~7~ 77a A~i E N D 1,~ E N T TRUST AGREEMENT THiS ~/~I~ made this day of ~'~ : 1978, by and between ~k~ REBECCA S~TH, of the District of Columbia~ party of the first part~ herei~~fter sometimes called the ,,Grantor" and THE R!GGS NATIONAL BANK OF WASH/3IGTON, D. C., a body corporate under the laws of the United States, doing business in the District of Columbia, party of the second p~rt, hereinafter sometimes called the ,,Trustee"; . . WHEREAS ~s~g~ret Rebecca Smith, grantor of a certain Trust ~reement dated June ~0, 1997, pursuant to ~rticle FOUR2H of said Agreement, does hereby revoke Paragraph D of Article FIRST of said Trust Agreement in its entirety, and does hereby substitute the follow'nE Paragraph D of A~ticle First in its place, in like manner as if the same had beeu originally incorporated therein. D. After payment of the monthly gifts to MARGA~ L. PEFFER and costs of s~mlnistration of said Trust, then the balance of net income shall be paid to the Grantor during her life; and after the death of the Grantor said balance of net income shs]~ be paid to The Washington Home, (formerly Washington Ho~.e for Incurables). F~I{T2tER~ pursuant to Article FOURTH of said Trust Agreement, said Grantor does hereby revoke Article SECOND of said Trust Agre~nt in its entirety, and does hereby substitute the following ARTICLE SECOND in. its place, in like manner as if the same had been originally incorporated therein. SECOND. Not withstanding any provision of this Agreement to the contrary,, and upon the death of the Grantor, the TrUStee herein may apply to or for the use and benefit of MA~ L.' PEFFER, so much of the income, and principal or corpus of the trust fund as the Trustee, in its sole and abs'olute discretion, may deem to be necessary or desirable for the proper support, maintenance, cohort, health or general welfare of sa~d MA~ L. pEFFER, and the proper receipt or receipts for funds hereunder e~ended by the Trustee shall constitute a discharge of the Trustee herein with respect thereto. FUP~, Purs~ant to ~rticle FOURTH of said Tr~ Agre~-ment, ~tor does hereby re~ ~icle T~ of said ~t ~e~ut iu its ent~ety,~ ~d does hereby s~ostitute the fol!ow~ place, in ~ke m~un~r as if the s~ had been orig~a]]Y inco~orated therein. T~. ~ ~tee ~Y app~ to or for the ~e ~d benefit of the ~tor so much of the principal or cc~ of t~ t~t f~d (b~ o~ ~0ove a ~m~ of F~ty ~o~d ~s ($50~0~.~) d~i~ t~ ~fe of ~c.~ L. P~)~ ~ the ~tee, in its sole ~d absolute discretiou~ m~v de~ to be necess~ or desirable for t~ proper s~ort, m~nteu~ce, co~o~t: ~th or genial we~e of said Gr~tor ~d ~e proper recent or receipts 'for f~ here~d~ e~ended by ~e ~tee sh~l co~titute a disc~ge of ~e ~tee here~ with respect t~reto. F~ p~s~t to ~ticle FO~H of said ~t ~e~nt~ said ~tor does here~Y ~d ~ticle ~H to sai~ ~t ~e~ut, in like ~er ~ if ~e s~e ~d been origi~]lY inco~orated t~rein- ~H. ~on the death of the ~antor, ~e ~tee sh~]~ pay to ~ ~~,. if she sha~ be li~, the s~ of Nine ~d H~ed (~:5~.00) ~s ~ if t~ principal cf said t~t estate is at ~t F~ty-Ni~ ~d Five H~ed ~s ($59,500.00). If s~d trot estate is less ~ Fifty-N~e ~o~d Five H~ed ~ll~s ($59,500.00), s~d ~ ~G sh~l receive the difference between Fifty ~s ($~,000.00) ~d the bal~ce of s~d trot estate. But shoed s~d ~ ~G predece~e the ~tor, theu the ~tee sh~l pay s~d s~ of ~Y to D~ ~~, JO~ ~~ (so~ of ~g~ O. ~ee~ n~ of ~ ~ach~. Florida) ~d JO ~.7.~ ~~ (da~hter of ~tenberg, Jr. ), per st~es, s~e ~ shoe ~e. ~ ~S ~0F, the p~ies hereto have set the~ ha~S and s~ais TEE ~IGGS NATIONAL BANK OF WASEINGTON,D.G.. ~~ 79a TRUST AOREEMENT 80a AMENDMENT TO T RUST · AGREEMENT THIS AMENDmeNT made this ~'~'~ day of Au~ust~ 1983, by and between MARGARET B~ECCA SMITH, of the District of Columbia, party of the first part, hereinafter sometimes called the "Grantor" and THE BIGGS NATIONAL BANK OF WASHINGTON, D. C., a body corporate under the laws of the United States, doing busine~s in. the D~str~c~ of ~ol~m~, p~rty of'~e cecond~ part, herein- after sometimes, called the ,,Trus'tee"; WHEREAS Margaret Rebecca Smith, grantor of a certain Trust Agreement dated June 10, 1977, p~ursuant to Article FOUE~H of said Agreement, does hereby revoke Paragraph D of Article FIRST of the Amendment to Trus~t Agreement dated June 5, 1978, in its entirety, and does hereby substitute the.following Paragraph D of Article FIRST in its place, in .like manner as if the ·same had originally incorporated therein. D. After payment of the monthly gifts to ~j~qET L. PEFFER and costs of administration of said Trust, then the balance of net income shall ~e paid to the Grantor during her life; and after the death of the Grantor said balance of net income shall be added to the principal of said Trustl estate. FUF~PLER, p~rsuant to Article FOURTH of said Trust Agreement, said Grantor does hereby revoke Article THIRD of the Amendment to Trust Agreement dated June 5, 1978, in its entirety, and does hereby substitute the folloWing Article THIRD in its place, in like manner as if the same had been Originally incorporated therein. THIRD. The Trustee m~y applj to or for the use and beuefit of the Grantor. so much of the principal or corpus of the trust fund as the Trustee, in its sole and absolute discretion, may deem 'to be necessary or desirabl~ for the proper support, maintenance~ comfort, health or general welfar~ of said Grantors and the proper receipt or receipts for funds hereunder expended by the .Trustee shall constitute a discharge of the Trustee herei~ with b ~n respect thereto. FU~H~, ~rsuant to A~icle FOUP~H of said ,~ust Agreement, said Grantor does hereby revoke Article FIFTH of said Trust Agreement in its entirety, and does hereby substitute the following Article FIFTH of said Trust Agreement in its place, in like resigner as if the same had been originally incorporated therein. FIFTH. Unless revoked by the Grantor during her life', this Trust sh~l! continue until the death of the Grantor, or MAP~ L. PEFFER,~ which ever occurs last; whereupon said Trust shall terminate. UPon such termination, the Trustee shall pay over the entire net trust estate, %ogethe. r with accrued and accumulated but undistributed net income therefrom, to SEREFiN0 AND ~ CAM~, 6923 Western Avenue, N..W., Washington, D. C. 20015, or to the survivor of them. Should both predecease, prior.to said ternutnation, then the said Trustee shall pay over the entire net trust estate, together with ~l l accrued and accum~_!ated but undistributed net income there- from, to Tke Washington Home, 3720 Upton Street, N. W., Washington, D. C. IN WITNESS WPLEREOF, the parties hereto have set their hands and seals this ~ ~-~ day of August, 1983. Witness: ATT EST: /'i ' - Trot Officer THE HIGGS NATION~-L BANK OF WASHINGTON,D.C. II.o.e. ~e~i~e~ ~ ~rust 0f~icer 82a 'fPE OF ACCOUNT: I ['~;k .]ES OF INTERESTED PARTIES: NEW ACCOUNT CIIECK LIST :E~TED ACCOUNTS: ~' .??ROXL~TE~VALUE AND CO~mOS~TION OF EXISTING ASSETS: : VES T AU=ORIT : so= ( Es oR uo) :P~CIFIC INSTRUCTIONS ~GAZO~G SECURITIES TO BE ar;AINED: ~J~ C-.n~' ~ 'ERMISSION OBTAINED TO USE OUR DISCRETION RELATING TO STOCK RIGHTS, STOCK FRACTIONS AND APITAL GAIN DISTRIBUTIONS: ~//% 7~.%MISSION OBTAINED TO USE OUR DISCRETION RELATING TO SELECTION OF SHORT TERM ~;VES~'IENTS: Y ~ ~" ESPONSE WITH REFERENCE TO USE OF CO}~[ON TRUST FUNDS: ONTINGENCY RESERVE (AMOUNT AND REASON): J/~) ?ECIAL SITUATIONS: /~. /~. ESTRICTIONS: /~, ~, ERECTED BROKERAGE BUSINESS: TAX INFORMATION 5SIDENCE FOR TAX PURPOSES:' :CO}~ (R~IITTED OR REINVESTED): SOURCES OF INCOME (AND AMOUNT): BRACKET OR INC0,~ OF INCOME BENEFICIARY: LAST YF_AR: PECTED INCOME OR TAX BP~kCKET FOR CURRENT YEAR: ST BASIS OF SECURITIES: LING STATUS: ~?^ INS OR LOSSES TO DATE:, 83a ADM MES I~NV DATE: Bl~rm* ACCOIIbtT: . MARGARET R. SMITI"t TRUST U/A #0113~401 TEI~V~AT!OM: AGR.E~NT DATED 8110177 A.M~-NDED 615178, 11/15t82 AND 812718.3 UPON DEATI:i OF SURVIVOR OF GRAi'TI'OR AND i~LARGA.REz .L: ?~='~ER,,g4'~ pAYABLE TO "P~O NA.[vPA'~ I'N'DrVIDUALS. I~ BOTH PB~EC~.:-kSE TERM~ATION, PAYABI ,E TO ~. YES, DURING ~~ OF GRAJ.~OR ~COM:E: TR. ANS~:~O TO pR~q'CI[PA.T., MO. 2STP! POV~RS: BROAD NO ANYEST~ ~NT OBiE~: BALANCED PORTFOLIO GRANTOR FAS BF3.N ADVIS~ TI-L~.T AM T'm~. E-'v-~NT ~ P-~~-~ ~ST IS pAYA.BL.E TO ~ CtlARI'~£, 5'4 g!.r. PROBABW I5"£ ~ ESTATE V~fLL NOT BE ABLE TO TAIiE A Ct~.ARITABLE DEDUCTION. M. SMITH DOD i/8/84 84a .RI GGS cURRENT MAILING ADDRESS lndividaal ~ · ~, ~: ~. ~Employ~ [d~a~ifi~adon Numbm The l~gg~ Nadonal Bank TAXPa'nm ros~-mmcA'mo~ ACCOUNT NUMBER(S) NU~mm~ Fr~ Ot 136401 '", L.~L92 I la'l 5856 ~t, eaze check appropria£e box: ~: OR. ~ I~di~idaal/Sole pmprieto~ [~ Corpor:~don [] Partnership [] Other ~E: If joint names, list first and circle the individual/endW whose TEN you provide us. -i" the joint owner whose TIN is provided should sign the certification. Bs-,.n'tm mjm u, bd°w 7ou =der p . de? oC penury mat: The taxpayer identification number [rlN) shown on this form Ls your correct TIN; and ' ol ' because: a you are exempt from backup withholding, or (b) ' You. are nog subjea to. backup .v, nthh ding ,_- -- ._(~).>t.u. withholdin~ as a result of a failure to repo=.aa~nr,reit_ai'~qi_ct!mae~_.m, 9r Lc) me '" Internal Revenue Serrate (II~) mar you ~re suojeu~ ....... v ~ must cross out item (2) if you ha~e been notified by the'iRS IRS has notified you tha~ you are no longer subjec~ to backup withholding. (You that you are clJarendy subjec~ to backup withl~oldir~g because of' mlderreporting interest or dividends on your tax return.) ' 7j;~u qualify as a.~ exempt payee under the criteria h~[ed on the reverse, check here [2 NO'ri:: COMPLE'I;h FORM W-8 OR FORM W-9. DO NOT COMPLI:'I'~ DOTH. EsTITIJ'I'B CERTIFICATION OF FOREIGN STATUS ~.~in~:bdow yo~ ccrtif~ under penalties o£ped~r7 tha~ you ~re no~ a U.S. citizen or resider (or you arc filing for a £or~ign corporation, ~nrmcr- --~ermz~c Add~sss (includ~ apt. or suim .o.) TIN (if'my)' 2. 4. X / '" prin= Name o(Joim Owner · i V~mxan~; ~.(indaqt~ ap~. or' mi~,- ha,l,...-- -' Ci~, province or s~z~,~l.~ad~ cg~m~.r~. ..... .-~' ' · 4. X )TE$: A) On joint accounts, each individual must provide the requested information' B) On joint accounts, if any person is a U.S. citizen or resident, that person must'provide his Social Securky Number. a.~d complere Form W-9 "Taxpayer Identification Number Certification" above. The account will then be created, for U.S. tax reporting purposes as being held by that U.S. person .... · 5:;7 ' ..~ :'. "' APPLIED FOR TAX1~A~ I~DENrl'L~ICATION NUM.~-~ ;~ ,: ;: , : s/gning below, you certify under penalties of perjury dmt: ~ a er identification number (TIN') has not been issued to you; 2) you have already applied for or [utead to apply £or-a TIN in th. heal: filmre ~' axP Y , .... ' ..... r or Soda[ Security Admm.isrradon Office; and 3) you will provide the'number to Riggs as soon is obtained: ~ ~--ul~dons require Riggs' to withhold 3 t % of any interest payments made to your account untiI you provide us with a certified TIN on Form W-9. ur' certified TEN is received within 60 days of the account opemng date and you are not subjec~ to backup withholding for other reasons, Riggs refund any amomats withheld during that 60-day period untess the 60-day period extends into the following calendar year. An)' amounts withheld ~ the 60-day period or in a prior calendar year carmot .be refunded by Riggs. 85a Investment Goal: 'Spending Policy: Principal Distributions: Terminating Event: Margaret Smith Tr U/A #41-0116-01-6 Investment Policy Statement To generate current income and to grow the principal value of the portfolio. at an average annual compound return that is in line with the broad market averages. Mrs. Margaret Pfeifer receives a fixed monthly distri.bution of $514.33 or $6,171.96 a year. Note: Ms. Priscilla Whitman (Mrs: PfeffeCs POA and a social worker for Cumberland county), recently moved Mrs. Pfeifer from an assited living facility to a full service nursing home in Carlisle, Pennsylyania. Mrs. Pfeffer's expected annual medical and'living expenses will most likely increase. Amendment to Trust Agreement June 5, 1978; Second. Trustee may use so much of the income and principal or corpus of the trust in its sole and absolute discretion that they deem .necessary or desirable for the support, maintenance, comfort health and general welfare Of Margaret L. Pfeifer. Upon the death of Mrs. Pfeifer, the trust terminates and the entire net'trust estate, together with all accrued and accumulated but undistributed net ' income shall be distributed to Serefino and Maria Cambareri or to the survivor of them. If both predecease Mrs. Pfeifer, then to the Washington Home, 3720 Upton Street, N.W. Washington, D.C. Liquidity Requirements: $3,000 .-- $6,172. Time Horizon: Risk Tolerance: Tax Situation: - Legailssues: $15,043 estimated trustee fccs (2002) estimated distribution to Mrs. Pfeifer total estimated liquidity requirement The porfolio's time horizon is long term in excess of 5 years. Ms. Pfeffers DOB is 08/16/23- She is 79 years old in reasonable good health and living in a nursing home in Carlisle, PA. Given the investment goals, constraints, and unique circumstances, the portfolio can tolerate a Imoderate level of risk. Ms. Pfeifer is a resident of the Pennsylvania and in a Iow federal and municipal tax bracket. Riggs has sole investment authority. 86a Margaret Smith Tr U/A #41-0116-01-6 Investment Policy Statement Unique Circumstances: Investment Strategy: Mrs. Pfeifer was moved in early March 2001 into the Forest Park Nursing Home in Carlisle, Pennsylvania. Ms. Priscilla Whitman has'been Mrs. Pfeffers POA for the last two years. Ms. Whitman is'~ social worker for Cumberland County Office of Aging and Community Services in Pennsylvania. She can be reached at 717-240-6162. Balanced Investment Strategy. ASSET CLASS: Cash and Equivalents Fixed Income Equities: Large Cap Small Cap international STRATEGIC ASSET ALLOCA'~ON O% 45 55 35 15 5 ACTUAL ALLOCATION. 7% 44 49 34 10 5 COMMENTS: 87a Margaret Smith Tr U/A 41-0116-01-6 · Notes on Current Beneficiary_ Date: February 20, 2002 Margaret Peffer Forest Park Health Center 700 Walnut Bottom Road Carlisle, PA 17013-3699 Tel: 717-243-1032 Attorney for presbyterian Homes Paula J McDermott Killian & Gephart, 1.1 .P 218 Pine Street Harrisburg, PA 17108-0886 Tel: 717-232-1851 Fax: 717-238-0592 www. Killiangephart. com DOB: August 16, 1923 (79 years old) SS# 192-14-5856 Medical POA: Pricilla Whitman Cumberland County Office of Aging 16 West High Street Carlisle, PA 17013 Tel: 717-240-6110 Fax: 717-240-6118 Ms. Peffer's current medical conditions: · Heart conditions: A-fib and angina · Highblood pressure & cholesterol · Peripheral vascular disease · Arthritis · Anemic · Physically debilitated requiring maximum assistance · Incontinent of bowel & bladder Requires 24 hour supervision and care Ms. Peffer'~ previous medical conditions: Breast cancer with a left mastectomy · Stroke · Depression 88a Remainermen Beneficiaries Mr. & Mrs. Cambareri 6923 Western Ave NW Washington, DC 20015 Attorney for Remainderiaen Michael F Curtin Sherman, Meehan, Curtin & Ain 1900 M Street, NW Washington, DC 20036 Tel: 202-530-3320 Mcurrin@smcalaw.¢om Budget Income: Monthly Almllal Social Security $413 $4,956 Other Trust $200 $2,400 Riggs Trust $514 $6,172 Total $1,127 $13~528 Expenses: Monthly Nursing Home $4,200 Misc $150 Medical Expenses $1,000 Total $5,350 Deficit ($4,223) A~nual $50,40O $1,800 $12,000 ($50,672~ 89a DURABLE GENERAL POWER OF ATTORNEy. NOTICE THE PURPOSE. OF THIS POWER OF ATTORNEY IS TO GIVE THE.PERSON YOU DESIGNATE (YOUR "AGENT") BROAD POWERS TO HANDLE YOUR PROPERTY, WHICH MAY INCLUDE POWERS TO SELL OR OTHERWISE DISPOSE OF ANY REAL OR PERSONAL PROPERTY WITHOUT ADVANCE NOTICE TO YOU OR APPROVAL BY YOU. , THIS POWER OF AI-FORNEY DOES NOT IMPOSE A DUTY ON YOUR AGENT TO EXERCISE GRANTED POWERS, BUT WHEN POWERS ARE EXERCISED, YOUR AGENT MUST USE DUE CARE TO ACT FOR YOUR BENEFIT AND IN ACCORDANCE WITH THIS POWER'OF A~-FORNEY. · YOUR AGENT MAY EXERCISE THE POWERS GIVEN HERE THROUGHOUT YOUR LIFETIME, EVEN AFTER YOU BECOME INCAPACITATED, UNLESS YOU EXPRESSLY LIMIT THE DURATION OF THIS POWERS OR YOU REVOKE THESE POWERS OR A' COURT ACTING ON YOUR BEHALF TERMINATES YOUR AGENT'S AUTHORITY. YOUR AGENT MUST KEEP YOUR FUNDS SEPARATE FROM YOUR AGENT'S FUNDS. A COURT CAN TAKE AWAY THE POWERS OF YOUR AGENT IF IT FINDS YOUR AGENT IS NOT ACTING PROPERLY. THE POWERS AND DUTIES OF AN AGENT UNDER A POWER OF ATTORNEY. ARE EXPLAINED MORE FULLY IN 20 PA. C. S. CH. 56. IF THERE IS ANYTHING ABOUT THIS FORM THAT YOU DO NOT UNDERSTAI~D, YOU SHOULD ASK A LAWYER OF YOUR OWN CHOOSING TO EXPLAIN IT TO YOU. I HAVE READ OR HAD EXPLAINED TO ME THIS NOTICE AND I UNDERSTAND ITS CONTENTS. JUNE 2, 2000 MA"P,-C~E'~ PEFF~EI~J~--~ v ~.~ 90a DURABLE GENERAL POWER OF ATTORNEY KNOTM ALL MEN BY THESE PRESENTS, that I, MARGARET PEFFER, of One West Penn Street, Apartment 402, Carlisle, Pennsylvania, 17013, do by .these presents make, constitute and appoint pRISCILLA M. WHITMAN and I or BEVERLY CHRIST, either jointly or individually, (hereinafter referred to as "my agents"), my true and lawfuJ agents under a power of attorney, for me and in my name and on my behalf generally, to do'and perform ail matters and things, including, without limiting the generality of the foregoing, to transact all business, to make, execute, acknowledge, endorse and deliver all deeds of conveyance, certificates of stock, .bonds, car titles, releases of'lien or satisfaction of bonds' and mortgages, con'tracts, orders, releases, checks, notes and endorsements, transfers and assigr~ments of any Such contracts, specifically including but in no way limited to' the execution in my-name of checks or orders of any nature for the withdrawal of funds standing to my credit in any type of account in any bank, building and loan association or other financial institution, and also to deposit in any accounts in my name in any such institutidns any money, funds, checks or drafts, payable or belonging to me; to enter my safe deposit boxes in any and all banking institutions and to establish new safe deposit boxes and to add to and to remove any of the contents thereof; to borrow money and to mortgage, pledge or hypothecate any property, real or personal,, now or hereafter owned by me as security therefore; to buy, sell possess, insure, manage, maintain, improve, lease, mortgage, pledge, encumber, convey and otherwise dispose of, or take any. other action with respect to, any property, real or personal, now or hereafter owned by me, on such terms and conditions as my agent may consider appropriate, and in the event of sale of any of my real estate, to execute the sales agreement and the deed in my name and to make settlement and receive the proceeds;, and to prepare, execute and file any tax returns, governmental reports and other instruments of whatever kind, and likewise to execute any and all writings, assurances, instruments or documents which may be requisite or proper to effectuate any matter or thing appertaining or. belonging to me. I hereby authorize either and/or both of my agents to contract with and arrange for my entrance to any hospital, nursing home, health center, convalescent home, residential care facility or similar institution, to authorize medical, therapeutic and surgical Procedures for me and to pay all bills in connection therewith. GIVING AND' GRANTING unto either and/or both of my agents full authority and power to do and perform any and all other acts necessary or incident to the performance and 'execution of the powers herein expressly granted, with power to do and perform all acts authorized hereby as fully to ail intents and purposes and with the same validity as I might or could so if personally present, hereby ratifying and confihning whatsoever all that my agent shall lawfully do or cause to be done by virtue hereof. AND, I hereby- declare that any act or thing lawfully done hereunder by either of my agents shall be binding on myself and my heirs, legal and personal representatives and assigns. AND. If incapacity proceedings for my estate or person are hereafter commenced. I hereby nominate my agents to be appointed the guardians of my estate or person by any court 9la having jurisdiction in accordance with the provisions of Section 5604 (c) (2) of the Probate, Estates and Fiduciaries Code. This Power of Attorney shall continue in force and may be accepted and relied upon by anyone or any entity to whom it is presented despite my purported revocation of it or my death, until actual wdtten notice of any such event is'received by such person or entity. In the event of my incapacity from whatever cause, this Power of Attorney shall not thereby be revoked but shall thereupon become irrevocable and may be accepted and relied upon by anyone or any entity to whom it is presented despite such incapacity, subject only to t becoming void and of no further effect only upon receipt by such person or entity either of (1) wdtten, evidence of the appointment of a guardian. (or similar fiduciary) of my estate following adjudiCatio~ 'of incapacity, or (2) wdtten notice of my death. This Power of Attorney shall not be affected by my subsequent disability or incapacity. This power of attorney shall rescind and revoke any other powers of attorney previOuSly made by me. IN WITNESS WHEREOF, I have hereunto set my hand and seal this 2nd day of June, 2000. COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND :SS: . On this, the 2~° day of June, 2000, before me, the undersigned officer, personally appeared MARGARET PEFFER, knoWn to me or satisfactorily proven to be the person whose name is subscribed to the within instrument, and acknowledged that she executed same for the purposes therein contained. 92a ACKNOWLEDGMENT BY AGENT i, PRISCILLA M. WHITMAN, and 1, BEVERLY CHRIST, have read the'attached Power of Attorney executed by MARGARET PEFFER and am the person identified as the Agent for the PRINCIPAL. I hereby acknowledge that in the absence of a specific provision to the contrary in the Power of Attorney or in 20 PA. C. S. when I act as Agent: I shall exercise the power~ for the benefit of the pRINCIPAL. · . I shall keep the ass'ets of the pRINCIPAL separate from my assets. I shall exercise reasonable caution and prudence. I shall keep a ?all and accurate record of ail actions, receipts' and disbursements on behalf of the pRINCiPAL. PRISCILLA M. WHITMAN June 2,2000 - B~)'~HRIST COMMONWEALTH OF PENNSYLVANIA : :SS: COUNTY OF CUMBERLAND : On this, the 2"d day of Jun'~, 2000, before me, the undersigned officer, pemonally appeared PRISCILLA M. WHITMAN and BEVERLY CHRIST, known to me Or satisfactorily erson whose name is subscribed to the within acknowledgment and roven to be the p ...... ~.~h.~ n,~moses therein contained. Packnowledged that they executeo ~,~ ....... ~.-. , year aforesaid, WITNESS my hand and seal the day an/d~ .. . Harold S, ~rwi~l ~lt, N(~ry Pu{31ic | Ca~tis~e Bom, Cumberland County | My Cornrniss~n Expires Sept 2.3, 2002 Member, Pennsylvania Association oi Notaries :. · 93a ¢"3REST PARK HEALTH CENTER 700 WALNUT BO,-rOM ROAD CARLISLE PA 17013-3699 ~?IT) 960-??02 MARGARET ?EFFER cio RIGGS BANK ATTENTION EDWARD WUCHER 808 17'tH STREET NW 12 TH FLOOR WASHINGTON DC 20006 03/04/2002 - 03/0412002 03104.12002 "0310512002 03/17/2~02 * 03/1712002 r~"17/2002 - 03/1712002 0~17/2002 - 03117/2002 03/17/2002 - 03/17/2002 03/17/2002 - 03/17/2002 03/20t2002 - 0312012002 ~'20/2002 - 03/20/2002 0'3/28/2002 - 03/28/2002 03/28/2002 - 03/28/2002 03/28/2002 - 03/28/2002 03/28/2002 - 03/2612002 ~J28/2002 - 03/28/2002 03/28J2002 - 0:3J29/2002 03/3112002 - 03131/2002 03/31/2002 - (~3/31/2002 03/31/2002 - 03/31/2002 .~3/31/2002 - 03/3dI2002 04/0112002 - 04/01/2002 04t01/2002 - 0413012002 Strips Elite Soap Loving Lather Classic Plus Bdef Lrg. S~ps Elite Wipes Stay Dry Denture Tabs 40's Soap Loving Lather Classic Plus Bdef Lrg. payment from statement 03/02 Shampoo/Cut/Set S~ips Elite ' Oil Ba[h T~c 8oz Soap Loving Lather Aloe Vesta Skin cond. Orchid Fresh II 8 oz. Classic Plus Brief Lrg. Body Wash Telephone Wipes Stay Dry Personal Laundry Payment Room/Board- Self Pay TOTAL: AccOuNTS RECEIVABLE STATEMENT Statement Date: 0313i/2002 · Balance Due: 48,923.63 , RECEIVED " RIGGS BANK, N.A. APR 0 8 2002 TRUST DEPARTMENT Account Number: 22035 Balance Forward: 1.38 8.98 24.10 1.38 7.95 · 3.88 17.96 60.25 1,000.00 20.00 1.38 3.88 8.98 4.00 8.35 72.30 4.13 14.84. 7.95 42.00 514.33 4,440.00 4,753.69 1,514.33 45,684,2'/ · 45,685.85 45,694.63 45,718.73 45,720.11 45,728.06 45,731 45,749.9O 45,810.15 44,810.15 44,830.15 44,831.53 44,835.41 44,844.39 44,848.39 44,856.74 44,929.04 44,933.1T 44,948.01 4~,955.96 44,997.96 44,483.63 48,923.63 48,923.63 copy wir. h you~ remittance: RETALlq one copy fo: your ~ecords, ~S IS T~ O~Y COPYYOU ~ ~CE~ one ~sb~e~ ~omes ~ , 94a ~FOREST PARK HEALTH CENTER: MARGARET PEFFER 22035 ~OREST PARK HEALTH CENTER 700 WALNUT BO1 rOM ROAD CARLISLE PA 17013-3699 (717) 960-7702 MARGARET PEFFER cio RIGGS BANK ATTENTION EDWARD WUCHER 808 17TH STREET NW 12 TH FLOOR WASHINGTON DC 20006 03/04/2002 - 03/04/2002 03/04/2002 - 03/04/2002 03~04~2002 - 03/05/2002 03/17/2002 - 03/17/2002 0~17~2002 - 03/17/2002 03/17/2002 - 03117/2002 03/17/2002 - 03/17/2002 03/17/2002 - 03/17/2002 03/20/2002 - 03/20/2002 ~]/20/2002 - 03/20/2002 03/28/2002 - 03128/2002 03/28/2002 - 03/25/2002 03/28/2002 o 03/28/2002 03/28J2002 - 03/28/2002 ~/28/2002 - 03/28/2002 03/28/2002 - 03/29/2002 03/31/2002 - 03131/2002 03/31/2002 - (~3/31/2002 0313112002 - 03/3112002 ~.~/31/2002 - 03/31/2002 04/01/2002 - 04/01/2002 04/01/2002 - 04/30/2602 Sb'ips Etite Soap Loving Lather Classic Plus Bdef Lrg, Strips Etite Wipes Stay Dry Denture Tabs 40's Soap Loving Lather Classic Plus Brief Lrg. Payment from statement 07J02 ShampoolCutJSet St~ps Elite Oil Bath Tic 8oz Soap Loving Lather Aloe Vesta Skin cond. Orchid Fresh II 8 oz. CIsssic P~us Brief Lrg. Body Wash Telephone Wipes Stay Dry Personal Laundry Payment Room/Board- Self Pay -) ACCOUNTS RECEIVABLE STATEMENT Statement Date: 0313;112002 Balance Due: 48,923.63 Account Number: 22035 Balance Forward: 1.38 8.98 24.10 1.38 7.95 ' 3,88 17.96 60.25 20.00 1,38 3.88 8.98 4.00 8.35 72.30 4.13 14.84 7.95 42.00 4,440.00 1,000.00 514.33 45,684.27 45,685.65 45,694.53 45,718.73 45,720.11 45,726.06 45,731.94 45,749.90 45,8t0.15 44,810.15 44,830.15 44,831.53 44,835.41 44,844.39 44,848.39 44,856.74 44,929.0~- 44,933.17' 44,948.01 44,955.96 44,997.96 44,483.63 48,923.63 TOTAL: 4,753.69 1,514.33 48,923.63 "Z~, TLTI~N' one copy w~.th your rsn:i~ance: RETAIN one copy for y~u: records, TFfIS IS T~E ONLY COPY YOU WILL RECEIVE B~,~ce Due ~pon receipt: pre~b~e~-u ]~omes Luc. . 95a ~OREST PARK HEALTH CENTER: MARGARET PEFFER 22035 ,I RIGGS & CO. Riggs & Co. 808 17th Street, NW washington, DC 20006-3944 (202) 835-6891 Edward. Wucher (202) 835-6893 F~imile No. (7.02) 835-4380 Edward_Wucher @RtggsBn- k-Corn Federal Express March 21,, 2002 Ms. Priscilla Wkitman 16 West High Street Carlisle, PA 17013 Re: Margaret Smith Tr 41-0116-01-6 Dear Ms Whitman, This letter is written as the Trustee of the Trust established by'Margaret Rebecca Smith by instrument dated June 10, 1977 as amended by instruments dated June 5, 1978 and August 27, 1983. The Trust became irrevocable on Ms. Smith's death on January 8, 1984. The Trust as constituted on the Grantor's death named Margaret T. Peffer as income beneficiary and Serefino and Maria Cambarer/as remainder beneficiaries (naming The Washington Home, a nonprofit corporation as contingent alternative remainder). In pertinent part, the trust direct that Ms. Peffer receive a minimum of $1% each month increased in accordance with the Cost Pr/ce Index and in addition, "so much of the income, and princ/pal or corpus of the trust fund as the Trustee, in its sole and absolute discretion, may deem to be necessary or desirable for the proper support, maintenance, comfort, heath or general welfare of said MARGARET L. As Trustee, we have determined to exercise our discretion to withhold any payments over and above $514.33 per month to or on behalf of Ms. Peffer's (exclusive legal expenses reasonably expended on her behalf), pending resolution of the claim on Ms. Peffer's behalf for entitlement to Medicare benefits. Since.rely, .. Director 96a ~RIGGS & CO. CC: Amos Goodall William Fralin Michael Cra'tin Serefino and Maria Cambare~ Riggs ~ Co. 808 17th Street, N'~ ~(7ashington, DC 20006-3944 ' (202) 835-6891 97a Page 1 From: Edward Wucher To: David McClung; Michael Richwine Date: Tue, Mar 26, 2002 11:47 AM Subject: Margaret Smith Tr 4rl-01.16-01-6 I recieved an engagement letter from Amos Goodall and have faxed it over to Mike Curtin along with a copy of the draft of the preliminary objections to Complaint that Amos had forwarded to us. I have asked Mike to review both and to call us to discuss the matter. 98a ~ By: CUMB CO OFFICE OF AGINO, ; 717240§118; Jan-11 ~' 11:18A~; Page tl'4 I{ W~ ~ Strt~, Car~d*~ PA I7013 53:Z-'tlS6, ~. g118 gl~ 14iL611~ TO: P,,/ ali, u :' · I -'-btu. - / . N'UMBER. OF PAGES (Including cover sheet) rfyou have any qucatiom you may contact us at (717) 240-61 I0. CONFIDENTIALITY NOTICE This transmission is intended only for the use of the individual or entity to which it is addressed, and may contain confidential information belonging to thc sender which is protected by an itgcncy-cllcnt privilege. If you arc not thc intea~dcd recipient, you are hereby notified that my disclosure, copying, dis~zibutlon or the taking of an action in rcliance on thc contents of this info~.aa~ion is strictly prohibit'cd. If you have receded ~ transmission in error, immediately notify us by telephone for its return. Thank you. 99a Cumbe~lau~ C~m~ty Office of AFIr~ Carlisle, pe~mm~ylvanim 17013 Be: ~rgaret T/W seorg~ B- be advised ~ha~ ~he z~i~e~ and will ~e~ei~s $2,400.00 a y~r from a ~% L. S~rt ~sle, ~ ~70~ lOOa ~/: CUMB CO OFF~CE OF AQINQ Jan- 11 .'! 11:18AM; Page 3/4 Thank you! q~y Amount ~m~ De~P$P~ .......... ........ Previous Balance ~0 18.04 l~/O?/Oi RF~ ~3&150 GU~IFENE$IN 6001'18 LA TAB 1~/07/0~ RFa ?~O~EI FE-TINZC 1.~OM~ CAP ~0 iZ/O7/Oi RF# g,~SZ&~ TRMOX~FEN IOMG T~BLET 60 106.56 iZ/07/O~ RF~ ~98Z~ PLAVIX 75M~ TABLET ~0 '1~'~ Endin~j pAYMENT DU~ BY t/~llOZ Pas~ Due p&~ Due 31-~0 days al-~O days ~Z7.80 ~Z3,57 cu% he~ an~ remit ~h%a ~oe%i~n wtth p~ymant ~8 ~ ~ND ~T /PO ~X ~5~ NEWPORT PA i7074 toooo?s FPO R~it Name~ I~'~RGA~T L. pEFFER [& W. W~CmH ST ..... OFFICE OF AGING FOREST ~ARK HEAL'IH CENTER ?00 WALNUT BOI'I'OM ROAD CARLISLE PA t70t3-3~99 ) ; 7172~.08118; Jan-11- ~11:1gAME Page 4/4 ACCOUNTS RECEIVABLE ~'TATF~ENT Stab)ment Oa~: 12/31/2.~t PG.~by~r4.ar~ ~12.5,'1714. Balance Due: 35,,~08,S3 MARGA~ PEFFER 16 WEET HIGH ST CARLI~.E[ pa, 17O13 A~"eunt Number:. 220~ Balance Forward: ~ EKG - Tl~.,hni~at TO'AL: 34,234.7~ 33,~ 102a -CREST PARK HEALTH CENTER; MARCma~,ET PEFFER 22031 RIGGS ;& CO. Bigg, s & Co. 808 17th Street, NW Washin~on, DC 20006-394~4 (202) 835-6891 Myrna F. Cayron (20~) 83S-~823 Faczimile No. (20~) 83S~1380 M~_Cayr o~@ Rtg~Ba~k. Com Courier, December 28, 2001 Mr. & Mrs. Cambareri 6923 Western Ave NW Washington, DC 20015 Re: Margaret Smith Tr 41-0116-01-6 Dear Mr. & Mrs. Cambareri, Per our telephone conversation, I am writing to you to give you an update on Miss Margaret Peffer's physical and financial situation and to inform you that it is highly probable that corpus will need to be invaded to cover past, current and future medical and living expenses. In January 2001 Miss Peffer become physically debilitated to the point where she required max/mum assistance with all transfers and care. Formal services through Cumberland County Office of Aging and Commuuity Services bec~rne inadequate due to Mdss Peffer's extensive care needs. In April 2001 Miss Peffer agreed and was placed in the nursing home facility at Forest Park Health Center. Miss Peffer's current medical conditions include: glaucoma w/th near blindness and deafness; A-fib and angina heart conditions; high. blood pressure & cholesterol; peripheral vascular disease; arthritis; anemia; and incontinent of bowel and bladder. Previous medical conditions include: breast cancer with a left mastectomy,. stroke and depression. Since admission to Forest Park, lVliss Peffer has stabilized medically, received therapy to increase strength and has benefited from 24 hour supervision and care. The monthly nursing home expense at Forest Park is $4,200. The monthly nursing hor~e fee at Forest Park was deferred pending an application for Medical Assistance that was submitted on behalf of lvliss Peffer to the Department of Public Welfare in Cumberland County, Pennsylvan)a. 103a I IGGS & CO. ~ggs & Co. 808 17~ Street, NW Washiagmn, IbC 20006-3944 (202) 835-6891 In October 2001, Riggs received nouficatton fi:om Miss Peffer POA, Ms. Pridilla Whitman, that Miss peffer'had been declined Medical Assistance fi:om Cumberland . County's Department of Public Welfare and that she was responsible to cover the past current and future expenses at Forest Park Health Center. Ms. Whitman foxraally made a request that the Margaret Smith Trust pay Miss Peffer's outstanding balance at Forest Park and cover her current and future expenses there. Ms. Whitman informed,Riggs that if our Committee on Discretionary Disbttrsements declines the request for payment, then Forest Park will give Miss Peffer a 30 day notice to leave the fac/lity for non-payment and that in all likelihood no other nursing facility will accept Ms. Peffer as she is ineligible for Medical Assistance. In November 2001, Forest Park agreed to not discharge Miss Peffer pending a final decision by our Committee regarding the request for discretionary distribution from the Margaret Smith Trust on behalf of Ms. Peffer. In December 2001, legal counsel, Willium Fralin, informed me that in his opinion, Riggs as Trustee of the Margaret Smith Trust has a responsibility to pay the expenses of Miss Peffer per the terms of the instrument. Article TH]RD of Amendment to Trust Agreement dated August 1983, gives Riggs as Trustee sole and absolute discretion to use so much of the income and principal or corpus of the trust fund as it deems necessary or desirable for the proper support, maintenance, comfort, health or general welfare of Miss Margaret L. Peffer. I have asked William to send me the formal opinion and will forward a copy to you as soon as I receive it. While I understand your concern 'against invasion of corpus, it is highly probable that in lanuary 2002 the Comm/ttee on Discretionary Disbursements will recommend paying Miss Peffer's outstanding balance at Forest Park Health Center which is appromimately $34,000 and will recommend paying her monthly expenses there. I have enclosed the following for your files: · Copy of Margaret Smith Trust Agreement and fact sheet on Miss Peffer. · Durable General Power of Attorney of Ms. Peffer. · Letter from Ms. Whitman to Mr. Wucher dated April 5, 2001. · Letter from Mr. Wucher to Ms. Whitman dated May 9, 2001. · Letter from Ms. Whitman to Mr. Wucher dated Oct 5,2001. · 'Copy of DecLined Medical Assistance Application. · Current Invoice fi:om Forest Park. I will be on,vacation all of next week and will infoxm you of the Corem/tree's decision as soon as one is made which I anticipate will be in the second or third week of January. If you would like to speak to William Fralin regarding his legal opinion he may be reached at 703-243-3200.. 104a & co. Lff,.ff'~'affrfM. Wucher, CTFA Director CC: Ms. Pricilla Whitman Ms. Paula J. McDermott l~iggs & Co. 808 't7da Street, NW Wastxington, DC 20006-3944 (202) 835-6891 10Sa I:[UMkN S]~i~,WICES BUILDING October~ 5,. 2001 OCT 1 0 200t . .TRUST OEPARTME Mr. Edward Wucher, CTFA Kiggs Bank N.A. Personal Trust P.O. Box 96202 Wasbl. ngton, D.C. '~O0°0 16 West ltigh $~reet, Csrlisle, PA 17013 REC.EIW= ,z4o- no ..... w~-7286, E~ 6110 F~: 240~118 RIGGS Dear Sir: I am writing in regards to Miss Margaret Peffer a resident of Forest park Health Center in Carlisle. Application for Medical Assistance waS made on her behalf this past · Trust was forwarded to April. Information I had requested concerning the Margaret Snnth the County Board of Assistance. This information was then reviewed by their legal co,m~el. It was det~o~fined that Miss Peffer was ineligible for Medical Assistance as her assets were over the resource;limit'of$2,000' Miss Peffer needs to spend down her resources from the trust in Order to be eligible. As her Power of Attorney, I have finalized all her past bills from the commwnity and handled the closing out of her apartment- I have paid limited amounts of her bi_lis from the nursing home. Now that she has been deter c,-fined ineligible for Medical Assistance she is responsible for all her medicatiOns. Miss Peffer has approximately $1,500.00 in her checking account. Mrs. Klingensmith of Medical Assistance agreed I could keep that mount to purchase personal items such as clothing for Miss Peffer. If the Board decides, Miss Peffer is ineligible to receive additional, monies fi~m the trust, the nursing home can. give her a 30-day notice to leave the facility for non,payment. Miss Peffer requires the nursing care shepresently receives. No other nursing facility would ~. qb ~ , be cons,dered.m,.dicm assistance based on her monthly income. take ~. as _.e .vould ~ ~ ' ~ Please call if you have any questions regarding tiffs matter. My phone n, mber is 717- 240-6162 and ifI am not available please leave a message. Thank you for your time and interest. Sincerely, Priscilla W~iUnan Aging Care Manager 106a NOTICETO APPLIC~..~ . SENEF~T : SSISTANCE .IEDICAL ·, · ,SSISTANCE . FOOD STAMPS - NURSING HOME CARE i o-269-o 73 717-24~2700 ., DEPARTMENT OF PUBLIC WELFARE CUMBERLAND COUNTY ASSISTANCE OFFICE 33 WESTMINSTER OR. - ' P.O. BOX 599 . · ' L_ --eciel ameunt y~u witt recmve $ ---------------------' ~?~'' CARLISLE, PA 17013-0599 [] Effective D~ -- NAME NAME he value of your countable resources exceed the resource l~its of $2,000/2,400 for'medical assistance benefits. %our application has been discontinued. You ~y raapply when your count~le resources are reduced to the resource l~it. Countable resources i~c~de: Meter's 1st savings $71.02, checking "0" and ~rgaret R. ~ith T~s~ $216,000. = $216~071.02 GROSS MONTHLY INCOME ~ROSS MONTHLY DEPENDENT CARE cOSTS GROSS MEDICAL COSTS Telephone FJect~c G~O~i UTIUTY COSTS~ITILFrY STANDARD' RENT/MORTGAGE TA~ES INSURANCE cOS'T ON HOME TOTAL SHELTER COST , In~t~llation TOTAL GROSS MONTHLY INCOME GROSS MONTHLY DEPENDENT CARE Cu~T$ I~ ' ' ' Name $ $ $ Name GROSS MONTHLY INCOME LIMIT I E.q4 ET SEMI-ANNUAL INCOME MARGARET PEFFER FOREST PARK BF-J~Ln~B. CENTER Date Te[ep LEGAL SERVICES, INC. 8 IRVINE ROW CARLISLE. PA 17013-3019 717-243-9400 · 717-766-8475 107a I: GGS & CO. Pdggs & Co. 808 17th Street, NW Washington, DC 20006-3944 (202) 8354891 Myna F. Cayron (201) $35-fo8~3 Facsimile No. ('Ifil) 8354380 Myr.na_Cayron@ Rtgg~Bnnk- C om May 9, 2001 mrs. Priscilla.W iunan 16 West High Street Carlisle, PA 17013 Re: Margaret Smith Tr 41-0116-01-6 Dear Mrs. Whitman, Per your request, enclosed are copies of the Trust Agreements for the Margaret Smith Trust dated June 10,1977 and Amendments dated June 5, 1978 and August 27, 1983. The Margaret Smith Trust is a split interest irrevocable trust with Ms. Peffer, the current income beneficiary, receiving a fixed monthly distribution of $514.33 and Mr. & Mrs. Cambareri, the remaindermen, receiving the remaining corpus/principal of the Trust upon Ms. Peffer's death. Riggs is Trustee and has a fiduciary responsibility to protect the interests of both parties equally- The current value of the mist is approximately $216,000 and earns approximately $5,400 a year in income. The portfolio is balanced with approximately 45% in bonds (bond mutual funds) and 55% in stocks (stock mutual funds). Article FIRST in the Margaret Smith Trust provides that Riggs distribute a minim~m annual ~ of $100 a month or $1,200 a year to Mrs. Pfeifer for the rest of her life subject to a yearly adjusted increase in accordance with the Cost price Index (CPI). In today's dollars this amount is equal to approximately $289 a month or $3,468 a year. As previously mentioned, we currently pay Ms. Peffer approximately $6,171 a year which is more the mivim,m annual amount required. With annual fiduciary income taxes averaging $2,300 and Trustee 'expenses $3,000, the trust unfortunately is carrying an annual running deficit of approximately $6,000. In other words, the Trust's principal is declining in value at a rate of $6,000 a year Article SECOND gives Riggs as Trustee "sole and absolute discretion' at what we "deem to be necessary and desirable" in regards to discretionary distributions from principal for Mrs. peffer. Given the size, minimum distribution requirements, and expenses, it is in Ms. peffe~s best interests that Medicaid partially supplement the cost of 108a I IGGS & CO. ?dggs & Co. 808 17th Street, NW Waskington, DC 20006-3944 (202) 835-6891 her nursing home expense. To inCrease her monthly distribution' from the. trust to cover the full cost of the nursing home.expense is not in e~tlxez Mrs. Pfeifer . best interests or Mr. and Mrs. Cambareri's. as it would' increase' the aXmual deficit the trust currefltly realizes, and threaten the solvency oi~ the'Trust- In short, such an increase would threaten Mrs. peffer's, life estate interes~ in the. Trust (i.e. her guaranteed minimum annual distribution/annuity) and threaten 'the.Cambareri's future interest in the Trust's corpus/principal- If you have any questions please feel free to contact me at 202-835-6893. Sincerely, Director 109a April 5, 2001 16 West ltigh Street, Carlisle, PA 17013 [717] 240-6110 or 697-0371, Ext. 6110 532-7286, Ext. 6110 Fax: 240-6118 RECEIVED RIGGS BANK, N.A. APR 1 2 2001 TRUST DEPAEI~ENT Harl IL Keller. ~ce Cha/~nan Richarc[ L. Roveg~o Secretary John S. Ward C~ Cizrt Coum~ AdmJrd~trator Terry L. Barley Dfr~c~r Mr..Edward Wucher P,.iggs Bank N.A. Personal Trust P.O. Box 96202 Washington, D.C. 20090-8202 Dear Sir: I am writing to give you a yearly update on Miss Margaret peffer. Miss Peffer resided at her subsidized apara.uent until March 13, 2001 when she was hospitalized for dehydration, malTmtrifion and weakness. This was her second admission for these conditions. The first time being January 15-18, 2001. Upon discharge on 3/16/0t she was admired to Forest Park Nursing Home in Carlisle. ' Glaucoma with near blindness and deafness secondary to Miss peffer's medical-condiUons include. congenital syphilis, heart conditions of A-fib and an~na, high blood pressure, peripheral vascular disease and arthritis. She was also being treated for anemia, non-insulin dependent diabetes, high cholesterol and hypothyroidism. She has a history of breast cancer with left mastectomy and suffered a si~oke resulting in weakness of all extremities with in. ability to ,tabulate. Emotionally she was treated for depression and displayed some cognitive impairment. The Cumberland County Office of Aging hadbeen assisting Miss ?offer with in-home sea'vices over the past year. We provided assistance with her personal care, dressing, undressing, grooming, transfers, meal prep, laundry, grocery shopping, housework and errands. As her health declined, serv/ce and time allotted were increased. Miss peffer appointed two representatives from the Office of Aging as her f~_ancial POA on June 2, 2000. Visiting Nurses pre-poured medicatio~ and monitored her vitals on a weekly basis.. Since January 2001, Miss ?offer became pki~'~ically debilitated to the point where she required max/mnm ' assistance with all transfers and care. She bec~me incontinent of bowel and bladder as she could not physically get to the toilet or use a bedpan. Formal services through Aging became inadequate due to Miss Peffer's extensive care needs. Miss peffer became ,usa/e to remain in her apartment. The Carlisle Senior Housing Associates wrote a letter of lease term/nation for Marcl~ 30, 2001. Miss Peffer agreed to Nursing Home Placement and chose Forest Park. Since admission she has stabilized medically, received therapy to increase strength and has benefited from 24 hour supervision' and care. ll0a Celebrate Cumberland County's 250th Anniversary in the year 2000 Miss peffer allowed'me to provide some assis*a~ce with her finances starting in March 2000. Even after being appointed POA in June 2000 she only allowed me to assist on a limited basis. Starting In January 2001 she agreed to have her.bills sent to me and allowed me to keep her checkbook. Miss peffer was misplacing her bills and checks were being written but not recorded. Miss Peffer was unable to provide the information regarding these checks. The other trust monies she received quarterly at $600.00. These checks were sent directly to her and cashed. I have no accounting of this money. I still believe Miss peffer was a victim of financial exploitation but I have no proof to substantiate it. Enclosed you will find a list of expenses ]mown to me for this time period. Sincerely, Priscilla Whitman Aging Care Manager llla F/nancial Accounting 3/00 -3/01 ~lar~aret Peffer' s income Social Security $402. (2000 and $413. (200!) Rigg's $514. Monthly + 1330.00 Auother Trust Kent $2,980.00 Prescriptions PP&L 430.00 Groceries Sprint 403.00 Medical Cable 386.00 Newspaper mS 346.00 PACE Miscellaneous 412.00 Clothing/I-tomsehold Tot*l Total $2,288.00 1,765.00 1,484.00 196.00 500.00 1,066.00 $12,256.00 $4,857.00 $7,498.00 ' $14,755.00 l12a l13a 26-OWP 3A · ONE WEST pENN STREET CARLISLE, PA 17Q13 (717) 249-7797 ~QUAL HOU~INQ o~,~,o~Tum'rY VERIFICATION OF ASSETS AND OR INCOME firm 20218 ~--EQUAL HOUSING OPPORTUI~ TY SUBJECT: supplied by ~n applicant Z~ ~) for Housin Assistance _ soc SEc# - Dear Sirs/Madam: This person has applied for housing assistance under a programyof the U.S. Department of Housing and Urban Development (R~D). MUD requires the housing o~ner to verify all information that is used in determ- ining this person's eligibility or level of benefits. We ask your Cooperation in provi4ing the following information and returning it to the person listed at the top of the page. Your prompt. retu~ of this.info=marion will.help to assure timely processing of the application for assistance. Enclosed is a self-addressed enve- lope for this purpose. The applicant/tenant has consented to this re- lease of information as shown on reverse side. Sincerely yours Duane Dro ~dow~ki Manager Carlisle Senior Housing Associates, Inc. Owner The Redevelopment Authority of the County of Cumberland Managing Agent (OVER)' l14a iNFO~ATION BEING REQUESTE~ of --T_~ Average ~count Balanc~ - for the last ~ months. Current Current Balance, Interes~ Rate ~E:' I hereby authorize the releaze of the requeated iaxt%rmatien. ~ S~ ' Date' - pENALTIES FOR ~U~ING T~IS CONBEI~T:. · Code atatea that a l~ZSon i~ ~ of a re,my for k~-~Jf and · DEFENSE ACTIVITIES FEDERAL CREDIT UNION "Seruing F~mily Members of All Ages" a, o UcE 5275 E. Tnndle R~c~, P.O. Box 40 Mechamcsburg, PA 17055 Tel: (717) 697-1161 July Riggs National Bank Attn.: Trust Department P.O. Box 1~12 Washington, 'DC 20074-%912 Dear Sir or Madam: Defense Activities Federal Credit Union has received a direct deposit check for Margaret L. peffer from Riggs National Bank. A copy of the check is enclosed. The address on the check is the address of one of our branches and use of this address has caused a delay in posting the deposit. Direct deposit checks must be sent to the following address: Defense Activities Federal Credit Union Attn.: Member Accounting Dept. 5275 E. Trindle Road, P.O. Box 40 Mechanicsburg~ PA 17055 Thank you for your cooperatio~ Manager of Member Accounting. 116a l17a AUTHORIZATION FOR DIRECT DEPOSIT OF RIGGS TRUST DISBURSEMENTS nted Name(s): MISS MAKGAKET L. PEYFER scheduled disbursements made from the Trust Account(s) shown below, until furttxer notice you are 'horized to make disbursements directly to my accotmt at the designated b~uk using the Automated Clearing ,,use (ACH) system. I authorize the designated bank to'which payments are made to debit/nj kccount and to .~ any overpayment to the Riggs'trust account di.sbursing the funds. 01136401 AccountN~me: MARGARET R..g~TTR TR U/A rust Acct. No. fast Acct- No. Account N~me:. INFORMATION FOR BANK AccoUNT TO W~tICE[ PAYM~INTS ARE TO BE BLADE ~aignated B~nk Name: DEFENSE ACTIVI~f FEDL CREDIT UNION :count Name: MARGARET L. PEFER ~-p.e of Account: Checkin.d'NOW account Savings Account '~Bank p~ccount Number: ~ 6 Enter from lcfi mm'gin. D-o aot use da~h~ or spacc~ within tile acr..ount. · *Bank Routing Number: [ [ _ [ _[ [ _[ [ [ [ 1 · ** pi¢~e ,~ttm:h a bI~nk ch'~d~ for ~hi~ ~' ptea~e confirm the dam with your bank. l18a The Ri~s National Bank File Copy March 21, 1994 Miss Margaret L Peffer 514 Cherry Street Carlisle, PA 17013. RE: Margaret R. Smith Trust U/A #011364-01 Dear Miss Peffer: . We have recently completed the annual review of your trust accoUnt before our Portfolio Ex~mixaing Committee and have found the investments in your trust account to be in line with tlae objective you had indicated to us. For your reference, I have enclosed a recent Invesu_uent Analysis for your trust. Addition~y, I am enclosing a data sheet which highlights the common fund in which you are invested. If your financial situation should change, or ff you would l~e to reexamine your invest,,',ent strategy, please feel free to contact me at any time. I would look forward to the opportunity to speak wkh you about any questions which you may have. My best wishes to you and your family. I look forward to continuing to work with you. Yours truly, Teresa L. Davis Trust O~cer (202) 835-6721 Enclosures l19a I~g~ B~ N~A. File Copy Mafia Elizabeth,Symionow (202) 835-6721, Fax (202) 825-4380 February 23, 1999 Miss Margaret L. peffer One West Penn Apt. 402 Carlisle, PA RE: Margaret IL Smith TrustU/A #01136401 Dear ~Mrs. Peffer: Beginning February 25, 1999, your trust dis~bufion will increase to $514.33. The increase based on the anmml CPt index as of December 1998, which was 1.6%. Yours truly, . Maria Elizabeth Symionow Senior Manager 120a I:kig~ B~'''lc N.A, -. File Cop2/ Max'eh 13, 1998 One West Penn One West ?enn Street Carlisle, PA 17013 Ama: Laura Burkholder RE: Margaret R. Smith Trust U/W FBO Margaret Peffer Acct. #01136401 Dear Ms. Burlflaolder: I am responding to your request for information regarding Miss Peffer's income di~u~utiom from the above referenced trust. There is a provision of the Margaret R. Smith Trust under will for Mi~s Peffer to receive a set distribution of $490.63 each month, with annual CPI adju~ia~ents, if necessary. This distffbution is to continue for Ms. Peffer's lifetime. Please call me at 202-835-6721 ff I may be of additional assistance. truly yours, M. Elizabeth Symionow Senior M~nager Enclosure cc: Miss Margaret L. Peffer 12la ONE WEST PENN STREET CARLISLE, PA 17013 (717) 249-7797 IQUAI. NOUtiNG OPPORTUNITY HUD 202~8 EQUAL. HOUSING ~OPPORTUNITY VERIFICATION OF ASSETS AND.-O[ [NCOM~ TO: SUBJECT: ~ V~riflcati0n/df Information supplied by an appl£cant for HouslnE A-sist~-ce SOC SEC # ~Dear Sirs/Madam: · b/s person has applied for housing assists-ce --der a prosram~of the U.S. Department of Housing and Urban Development (HUD). HUD req-i~es the hous~-g owner to verif7 ail i-~ormation that is used 4. ~eter~- ining ~s person~s eli~tbili=~ or lev-l.of beuefits. ~e ask your cooperation ~- proviR~-S the followLug ~-Forma'tion "nd re=urn/ng i~ to the person listed at ~he ~op of the page. Your prompt re~urn of this informa~ion will .he[p =o assure timel~ processing of =he &ppltca=ion for assis=s-ce. Enclosed is a self-addressed enve-' lope for tb/s purpose. The applicsn~/~-s-t has consented to ~hls re- lease of informa~ion as shown on reverse side. Sincerely yours, Carlisle Senior Housing Associates, lnG. Tho Redevelo0ment Authority of tho County of Cumberland Managing Agent (ova) 122a .~ 1~g~ Bank N.A. File Copy TO: FROM: DATE: RE: Roger Thiel Liz Symionow November 7, 1997 / Margaret S. Smith Tr U/A #0113~40 Robert L. & Juanita N. Lyon St Tr U/A//01548601 We are forwarding to you the attached Disbursement Tickler Maintenance form.q regarding the ACH Transfer ticklers for the referenced trusts. We have contacted the recipients' ba,lr for further clarification as indicated on the rwlntenance for're. Pleas6 re-disburse the funds previously sent on October 27, 1997 and October 28, 1997 respectively using the new in~tmctions. Thank you for your assistance in this matter. Should you have any questions or need addifion*l information, please contact me. Liz Syrnionow Ext. 6721 anffs 123a Bank File Copy M. '~t~eth S~nnionow (102) September 16, 1997 Miss Margaret L. Peffer One West Penn Apt. 412 Carlisle, PA 17013 RE: Margaret R~ Smith Trust Acct. #01136401 Dear Miss Peffer: Riggs and Company is contimmlly working on improving our services to our valued customers. For your convenience we are able to send your recurring di~x~utiom using the Automated Clearin~ House system. The Automated Clearing House (ACH) systean provides you with direct credit of funds to your bank account. This service is provided at no additional cost to you. Currently your distn'bution is sent by check through the US po~al system eith~ m you or your banking imtitution. By using the Automated Clearing House system we will be able to send your di~albution electronically on the ~me day it is disUfOuted from the tx'ust account to your bank account. ~ process reduc~ the amonnt of ~ it takes to receive and deposit your money, and also reduces the risk of loss or theft of your 'check. To begin using the Automated Clearing House system please sign the enclosed authorization form and include a voided check or depusit slip from your bank account, These should be returned in the serf-addressed envelope provided. When I receive your sign authorization and voided check or deposit slip I will immediately set up your next distribution to be. processed on the Autom,t~l Clearing House system. Please call me at 202-835-6721 ff I may an.~wer any questions. Ve~ truly yours, M. ~l;?abeth Symionow Senior Manager Enclosures 124a Riggs. Bank N.A. File Copy M. Elizabeth Symionow 202-8~,~.8721 Januaw 28,1997 Miss Margaret Peffer 514 Cherry Street Carlisle, PA 15213 RE: Margaret R. Smith TR U/A #0f t3640~ Dear Miss Peffer: Our records indicate that a verfication of your social security number is needed at this time. Please take a moment and verify the social security number and your address on the enclosed W-9 form. If it is correct please sign the form where indicated and return it to me in the enclosed postage paid envelope. Thank you. Sincerely, M. Elizabeth Symionow Trust Officer 125a l:~gg~ Bank N.A. File Cop , M. EI]z3beth Symionow 202-835-6721 January 28, 1997 Miss Margaret Peffer 514 Cherry Street Carlisle, PA 15213 RE: Margaret R. Smith TR U/A #~f36401 Dear Miss Peffer: i would like to take this opportunity to introduce myself as the new account officer assigned to this trust. Please feel free to call me at the above number if I may be of assistance. Your monthly remittances will increase to $482.43 from $467.02, due to an increase of 3.3% in the Consumer Pricing Index for twelve months ending December 31, 1996. Your credit union account will be credited with an additional $15.41 this month and thereaf[er monthly will be credited in the amount of $482.43. Sincerely, M. Elizabeth Symionow Trust Officer 126a The R.~$~ Nntional Bank File Copy Miss Margaret peffer 51~ cherry Street ~ Carlisle, PA 15213 RE: Margaret R. smith TR U/A ~01.136401 Dear peffer:' 'Your monthly remittance amount in 1995 was $455.63. The CPi increased 2.5% as of December 31, 1995 resulting in an increase to. your monthly remittance of $11.39. Per the terms of the trust agreement referenced above, your 1996 monthly remittance will increase to a total of $467.02 per month.. · the amount of $11.39 from the above EnclOsed is our check %n referenced trust. T~mS ms the retroactive payment due to you for JanUary 1996. Ail ~uture payments for 1996 will be in the new amount of $467.02. My best wishes to you for a happy healthy 1996. ..If I can provide you with any additional assistance, please feel free to give me a call. Sincerely, ~ie V. Welsh Trust officer Enclosures 127a The Ri~s Nation~ Bank File Copy May 4, 1995 DEFENSE ACTIVITY FEDL CREDIT UNION MEMB ACT DEPT A/~#68273-002 PEFPER 5275 E.TRINDI .~- ROAD,PO BOX 40 MECFIAN~CSBURG, PA 17055 ' Re: MARGARET R SM1TH TR U/A 01136401 Dear DEFENSE ACTIVITY FEDL CREDIT UNION: We at Pdggs are contimmlly reviewing our services to impr6ve the quality of our delivery and to provide our clients with investment vehicles designed to optimize return and minimize risk. In this regard, we are now able to provide the RIMCO Mom~ment Prime Money Market Fund as an automated short-te~m inve~Unent alternative for existing U-asr relationships. The KIMCO Mom~ment Prime Money Market Fund is managed by the Pdggs Inve=izaent Management Corporation (RIMCO) which is a subsidiary of the Riggs Nafion~] Bank of Washington, D.C. Federated Securities Corp., which is independent of Pdggs, is the di~ibutor of the Fund. A combined prospectus for the RIMCO mona,me~t Funds is enclosed for your review. As with all other investment products, the Prime Mon~ment Fund is not a dePosit or an obligation of the bank, nor is it insured by the F.D.I.C. or guaranteed by the U.S. Government. In order to place the Fund in fiduciary accounts, however, the q~m]ity of the investments comprising the Fund must meet fiduciary standards and Riggs must constantly exercise its discretion in the best interest of the accounts that it manages. Sincerely, Nhozma P. Rodfiguez Trust Officer 128a The Rl~ National Bank File Copy August 17, 1995 Margaret L. Peffer 514 Cherry Street 'Carlisle, PA 17013 Re: Margaret R. Smith TR U/A ~01136401 Dear Miss Peffer: Nhorma Rodriguez has recently left the bank to pursue other career opportunities. · I have assumed the responsibility for managing the above referenced account. I would like to take this opportunity to introduce myself, and to let you know that ! look forward to working with you. I received my undergraduate degree in Finance from George Mason University. I joined .Riggs in 1992. I worked in the Credit Department and the Customer Service Division before joining the Trust Department in 1993 as an Investment Assistant. I am currently studying to become a Chartered Financial Analyst. I am extremely excited about my new position within the Riggs Trust Group and am eager to assist you in any way possible. Over the next several weeks, I will be reviewing your account and contacting you to discuss administrative and investment matters. In the interim, please feel free to call me at (202) 835-6721 if you have any questions or need assistance. Sincerely, Marie V. Walsh Trust Officer 129a The Rilgs National Bank File Copy August17,1995 Serefino & Maria Cambarefi 6923 Western Avenue, N.W. 'Washington, D.C. 20015 Re: Margaret R. Smith TR U/A #01136401 Dear Mr. and Mrs. Cambarefi: Nho~--~a Rodriguez has recently left the bank to pursue other career opportunities. I have assumed the responsibility for managing the above referenced account. '1 would like to take this opportunity to introduce myself, and to let you know that I look forward to working with you. I received my undergraduate degree in Finance from George Mason University. I joined Riggs in 1992. I worked in the Credit Department and the Customer Service Division before joining the Trust Department in 1993 as an Investment Assistant. I am currently studying to become a Chartered Financial Analyst. I am extremely excited about my new position within the Riggs Trust Group and am eager to assist you in any way possible. Over the next several weeks, I will be revieWing your account and contacting you to discuss administrative and investment matters. In the interim, please feel free to call me at (202) 835-6721 if you have any questions or need assistance. Sincerely, Marie V, Walsh Trust Officer 130a The Ri~a National Bank ",~ File Copy May 4, 1995 DEFENSE ACTIVITY FEDL CR~PDIT uN~oN MEMB ACT DEPT MC~68273-002 PEFFER 5275 E.TRINDX.E ROAD,PO BOX 40 MECHANICSBURG, PA 17055 'Re: MARGARET R SMITIt TR U/A 01136401 Dear DEFENSE ACTIVITY FEDL CREDIT UNION: We at Pdggs are continually reviewing our services to improve the quality of' our delivery amd to provide our clients with investment vehicles designed to op6mize return a~d minimize risk. In this regard, we are now able to provide the R]2VICO Monument prime Money Market Fund as an automated short-term investme~xt alternative for existing trust relationships. The RIMCO Monument Prime Money Market Fund is managed by the Riggs Inve.~b~ent Management Corporation (RI~CO) which is a subsidiary of the Pdggs National Bank of Washington, D.C. Federated Securities Corp., which is independent of Riggs, is the distributor 'of the Fund. A combined prospectus for the R]~CO mo,,meat Funds is enclosed for your review. As with all other investment products, the Prime Mo~,ment Fund is not a deposit or an obligation of the bank, nor is it ins~ed by the F.D.I.C. or gajaranteed by the U.S. Government. In order to place the Fund in fiduciary accounts, however, the quality of the inve~ixaents comprising the Fund must meet fiduciary ~a~H_nrd8 and Riggs must com~antiy exercise its discretion in the best interest of the accouuts that it manages. Sincerely, . Nho~ma P. Rodriguez Trust Officer 13la ~-00216 ~'he Ri~ NationaZ File CoPy February 27, 1995 Serefino and Maria Cambareri 6923 Western Avenue, N.W. Washington, D.C.. 20015 P~E: Margaret R. Smith TI{U/A Dear Mr. &'Mrs. Cambareri: · tl completed the annual review of the 'above- We have ~ecen- ~ ...... ~ ~ our Portfolio Examining Committee reference~ ~rus~ a~uu~ .... re 'and have found the investments in this trust account to be accordance with the objective indicated to us. .I have enclosed a recent Investment Analysis for this trust'. If financial circumstances should change, or if you would like to reexamine the account's current investment strategy, please feel free to contact me at any time. Sincerely, Nhorma P. Rodriguez Trust officer (202) 835-6721 NP~/ChC 132a The Riggs National Bank "~ ," File Copy February 2, 1995 Miss Margaret Peffer 514 Cherry Stree~ Carlisle, PA 17013 RE: Margaret R. Smith TR U/A ~01i36401 · Dear Miss Peffer: Your monthly remit amount in 1994 was $443.65. The CPI-U increased 2.7% as of December 31, 1994 resulting in an increase of $11.98 to your monthly remit. In accordance with the terms of the trust agreement of the account referenced a~ove, your t995 monthly remittance will increase to a total of $455.63 per month. EnClosed is our check in the amount of $11.98.from the above- referenced trust. This is the retroactive payment due to you for January 1995. All future payments for 1995 will be in the new amount of $455.63. I can provide you with any additional assistance, please contact me at (202) 835-6721. Sincerely, Nhorma P. Rodriguez Trust officer Enclosure 'NPR/chc 133a The R.i$$s National Bank "~ ") March 21, 1994 Sere~in0 and Maria Cambareri 6923 Western Avenue, N.W. Washington, D.C~ 20015 RE: Margaret R. Smith Trust U/A #01L364-01 Dear Mr. & Mrs. Cambareri: We have recently completed the annual review of your trust account before our Portfolio Examining CommiVzee and have found the invesi~ents in your trust account to be in line with the objective you had indicated to us. For your reference, I have enclosed a recent Investment Analysis. for your trust. Additionally, I am enclosing a data sheet which highlights the common fund in which you are invested. If your financial situation should change, or ff you would like to reexamine your inves~,nent strategy, please feel free to contact me at any t4me. I would look forward to the opportunity to speak with you about any questions which you may have. My best wishes to you and your family. I look forward to continuing to work with you. Yours trtlly, Trust Officer (202) 835-6721 Enclosures 134a The ]R,i~gs National Bank File Copy February 2, 1994 Miss Margaret Peffer 514 Cherry Street. Carlisle, PA 17013 RE: l~flaargaret R. Smith Tr u/a #011364-01 Dear Miss Peffer: Your monthly remit amount in 1993 was $431.99. The CPI-U increased 2.7% as of December 31, 1993 resulting in an increase to your monthly remit of $11.66. Per the terms of the trust agreement referenced above, your 1994 monthly remittance wlql increase to a total of $443.65 per month. Enclosed is our check in the amount $11.66 from the above-referenced trust. This is the retroactive payment due to you for January 1994. All future payments for 1994 will be in the new amount of $443.65. My best wishes to you for a happy healthy :[994. ff I can provide you with aW additional assistance, please feel free to give me a call. Yours truly, ..~ · .Teresa L Davis Trust Officer (202) 835-6721 Enclosure TLD/gci 135a The P, iv~ ~ationa~ Ba~k ~-~. File Copy January 10, 1994 M_~s Margaret Peffer 514 Cherry Street Carlisle, PA 17013 RE: Margaret R. Smith TR U/A #011364.01 Dear Mi~s Peffer, We are in receipt of your letter dated January 3, 1994 regarding the above referenced mt. Under the terms of the governing instrument for this mt account, we are to adjust your monthly payment in accordance with the cost price index as published by the U.S. Department of Labor annually, as of December 31. Th~ figure will not be made available by the U.S. Depm'tment of Labor until January 13. At that 6me, I will make the annual adjustment which will subsequently be reflected in your January payment. Addit/onatly, we will al~o send to you written confirmation of the percentage by Which the CPI has increased. If there is any way in which I can further assist you, please do not hesitate to contact me. Best wishes to you for a happy healthy New Year! Yours_Jruly, · 'Teresa L Davis Trust Officer (202) 8354721 136a The Riggs Nation~l Bank Copy May 10, 1993 Miss Margaret Peffer 514 Cherry Stre~ot Carlisle, PA 17013 Re: Margaret R. Smith TR U/A #01136401 Dear Miss Peffer, Thank you for your recent telephone call regarding the increase which should have been. applied to your monthly remittance on Jammry 1, 1993. I regret to say that this increase was overlooked by your prior account admin~trator. Your monttrly remit mount ha 1992 was $419.82. The CPI increased 2.9% in 1992, resulting in an increase to your monthiy remit by $12.17. Per the tmm.q of the trust agreement referenced above, your 1993 monthly remittance wfLt increase to $431.99. Due to the oversight in increasing your monthly remit~xnce as of January 1, 1993, I am enclosing a check in the amount of $48.68 which represen~ the retroactive payment due to you for January - April 1993. I apologize for the inconvenience this oversight may have mused you. Thankyou once again for calling it to my attention. Rest assured that your account has been properly flagged so that you do not have to continue to endure this inconven/ence in the future. If I can assist you in anyway, please do not hesitate to call. Yours ti~ Teresa L. Davis Trust Officer (202)835-6721 Check enclosed 137a The Riggs National Bank ~ File Copy April 22, 1993 lVfisa Margaret L. po. flYer , 514 Cherry Street Carlial~ PA 17013 Re: Margaret 1L Smith Trust U/A #011364-0i Dear lVfiss Peffer: Your monthly income from the above-referenced trust for 1992 was $419.82. If you have any questions, please feel free to call me at the number listed below. yours LrU~[y, Teresa L. D · Trust Officer (202) 835-6721 138a The ~ National Bank File Copy (202) 835-6969 May 22, 1992 Internal Revenue Service Philadelphia, PA 19255 Re: Margaret R smith Trust Account No. 01136401 EIN 52-6181727 Dear Sir/Madame: This is a response to your notice dated May 4, 199~, copy enclosed, concerning the above-captioned trust's 1991 Form 1041, U.S. Fiduciary Income Tax Return. Your notice informs us that there has been an arithmetic correction made to the fiduciary tax that we corrupted on the trust's 1991 taxable income. Your computation resulted in higher tax compared to our computation. We disagree with your computation on the basis that this trust qualified for the maxim,~ capital gains tax rate of 28% as computed on Part VI of Schedule D attached to the 1991 Form 1041, copy enclosed. It is requested that you reinstate our original computation of the total tax liability of $2,743.00. Kindly receipt and return the enclosed copy of this letter to the attention of the undersigned. Ronald Peddicord Vice President & Trust officer Enclosure 139a T'iZz Ri~'~ National Bank File Copy January 22, 1992 Miss Margaret Peffer 514 Cherry Street Carlisle, PA 17013 Re: Margaret Smith Trust U/A #01136401 Dear Miss Peffer: Your monthly r~mit ~mount in 1991 was $40~.20. The CPI increased 3.1% in 1991. Per the terms of the referenced trust your 1992 monthly remit will increase to $419.82. If you have any questions, please call me at (202) 835-6721. Sincerely, Brian F. Kennedy senior Trust officer BFK:tph 140a The Ri$Ss Halional Bank F le Copy April 19, 1991 (202) 83545721 Miss Margaret L Peffer 514 Cherry Street Carlisle, PermsyNa. rda 17103 Re: Margaret R. Smith Trust u/a #011364-01 Dear Miss Peffer: I have reviewed thc remittances to you from the Smith Trust in 1990. The total amount disbursed was $4,605.48. When you divide this sum by twelve the resulting amount is $383.79. This amount is how much you. r monthly remit for 1990 was calculated to be based upon the increase in the CPI in 1989. Included with this letter is a list of transactions showing all the 1990 disbursements to you. As you can see, all of the remittances except for the June adjustment were mailed to your account at the credit union. The June adjusia-ent of $84.40 was marled directly to you. In 1990, the CPI rose 6.1%. As a result, your monthly remit for 1991 will be $407.20. The January, February and March remits were for only $383.79. To adjust these three payments up we are sending an additional $70.23 to your credit union (an increase of $23.41 per month from $383.79 to $407.20. Starting with the April 1991 remit, the deposits to your credit union will be $407.20 per month. I apolo~ee for the inconvenience. We have verified these figures with the housing authority so that your 1991 papers can be processed. Sincerely, Brian F. Kermedy Trust Officer BFK:erp Enclosures 14la File Copy December 28, 1990 Miss Margaret L. Peffer 514 Cherry'Street Carlisle, PA 17013 RE: Marqaret R. smith Trust U/A ~011364-01 Dear Miss Peffer: Your monthly income from the above - referenced trust 'for 1990 was $398.79. If you have any questions please feel free to call me. My direct dial number is (202) 835-6721. Sincerely, Brian F. Kennedy Trust officer BFK/rfe 142a File Copy June 5, 1990 Miss Margaret L, Peffer 514 Cherry Street Carlisle, PA 17013 RE: Margaret R. smith Trust U/A #011364-01 Dear Miss Peffer: Your monthly remittance for 1990 is to be increased by $16.88 to $383.79. This change will be reflected in the June deposit to your credit union account. Enclosed is a check for $S4.40. This is the total of the monthly increases due to you since the first of the year. If you have any questions please feel free to call me. My direct dial n~]mber is (202) 835-6721. Sincerely, Brian F. Kennedy Trust officer BFK/rfe. 143a MEMORANDUM FOR COMMITTEE ON DISCRETIONARY DISBURSEMENTS ACCOUNT NAME & NUMBER: Margaret Smith TR 41-0116-01-6 REVOCABLE: No GENERATiON-SKIPPING TRUST APPROXIMATE SIZE:. NO $236,000 AMOUNT REQUESTED: FROM PRINCIPAL: $ t ,330 $1,330 FROM INCOME: 0 APPROX. ANNUAL INCOME: ~5,548 PURPOSE OF REQUEST: To pay for Medical expenses., and 1999 taxes. See attached letter from social worker. APPLICATION OF FUNDS: Check mailed to Mrs. Peffer STANDARD FOR INVASION OF THE INSTRUMENT: See Attached Amendment. OUTSIDE RESOURCES TO BE CONSIDERED: No MEDICARE OR OTHER REIMBURSEMENT: No RECOMMENDATIONS AND REMARKS: DATE 04/19/2000 Approval APPROVED BY TWO ~OF~MITTEE ON DISCRETIONARY DISBURSEMENTS:(I~_~HWI~LL,~RETH, HARVEY, MEES, PRUIKSMA)" 144a ADMEN D!,~E NT TO TRUST AGRE E~[ENT between E~RGARST REBECCA SMITH, of the District of Columbia, party of the first part, hereinafter sometimes ca3~ed the "Orsntor" and THE RIGOS NATIONAL BANK OF WASHINGTON~ D. C., a body corporate under the laws of the United States, doing business in the District~ of Columbia, party bf the seconal part, hereinafte? sometimes c~lled the ,,Trustee"; ~zh~iEAS ~urgeret Rebecca Smith, ~-rantor of a certain Trust Aomreement dated June 10, 1977~ pursusnt to Article FOUI~ of said Agreement, does h~reby revoke Paragraph D of Arti61e FIRST of said Trust Agreement in its entirety, a~ does hereby substitute the foil~wing Psragraph D of Article First in its place, in like ~mnner as if the same had been iucorpor~ed Shsrein. ~ ~i' 9'~/ 'rD After payment of the monthly gifts to ~RGARE~ L, PEFFER a~ cos+~s of ~dministration of said Trust, then the balance of o~t in~o~ sha~_l be paid to the Grantor during her life; and after the death of the Grantor said balance of net income sb~11 be paid to The Wasb_tugton Home, (formerly Washington Ho.n~ for Incurables).~ FU9~w~R, pursuant to Article FOURTH of said Trust Agreement, said Grantor does hereby revo~ Article SECOND of 'said Trust Agreement in its entirety, a~ does hereby substitute the following ARTICLE SEC0~) in its place, in ~ke manner as if the same had been originally incorporated therein. SECOND. Not wit~taz~ any proVision of this Agre-ment to the contrea-y, and upon the death of the Grantor, the Trustee herein may apply to or for tbs use mud benefit of MAEGA~ L. p,~'~-ER~so much of the i~ncome~ and principal or corpus of the trust fum~i as the Trustee, absolute discretion, ~ deem to be necessary or desirable for the ~roper s~port, maintenance, comfort,, health or gener-~l welfare of said M~LRGARA"E L. p,.¥~-~ ~nd the proper receipt or receipts for funds hereunder expended by the Trustee shall constitute a discharge of the Trustee herein with reSpect thereto. 145a 16x~/~tHlg~Str~e~Cartisle, P~ 17013 [~17]~-~110 arf~Y7~371, Ext 6110 TO: t~. AGENCY: ~i,o~a m~]~ N.A. FAX #: · (202) 8~-4380 FROM: _ NUMBF, R OF PAGES 3 _ (Including covcr sh~t) If you have any qu~tionz you may contact tm at (717) 240-61 i0. CONI~IDENTIALITY NOTICE This trfmzmission is' intended only for the use of the indivi6val or entity to which it iz addressed, and may contain confidential informalion belonging to the sender whi~ is protected by ~ agency-client privilege. If you are not the intended recipient, you ar~ hereby notified tha~ any disclosure~ copying, dis~bufion or the taking of an action in reliance on the contents of this information is strictly prohibited- If you hav~ received' this transmission in error, immediately notify us by tet~hone for its re~um. Thank you. Celtbrate Cumberland County's 250~ Anni~sary ~ gle yam' 2000 146a P. 2 Mr. Wash~ ~ggs Bank N.A. Personal Trtm~ P.O. Box 96~02 W~.4~om DC 2~90-g202 Dear Sir, ! ~,- wri6u~ in mspon~ to o~r phone conversation we h~ th~ other d~y Mm'gm~ L. ?~r. The ~,~ ~ O~ ofA~n~ ~e i~ol~ p~ff~ ~ r~i~ ~ of ~ ~ ~ ~om ~. Pcff~ ~v~ ~ s~or ~ole~l~ ~ b~ c~. ~. P~ ~ ~ ~ ~o~ H~ m~o~. ~. P~ ~m no ~ ~ h~ ~ ~. ~e Offi~ cf 1~, ~ld ~, ~ ~ ~ A n~ ~ $o~ ~ ~ m~mr h~ ~~c~ ~ Co~t f~ ~e ~y ~ ~ sho ~ ~cB~le hy ~ D~~ of~. ~e ~ PA~ $~.00 ~ b~k p~m. She ~y ~lY ~ ~s~ b~ ~ ~ ~he m~ psy for ~ h~ m~om ~g to 1999 ~ ~ ~ ~c shoed ~ eBCdic. Wo ~ ~ ~ ~ ~ cf~. P:ff~ 1998-~ ~c~ ~ ~~ She ~ H~R BI~ ~e follo~g ~ a t~ of ~ ~ ~ ~ ~ ~ m pay: ~ Blo~ $ rS,00 In~c ~ for PA $280.~ ' ~A~ $500.00 147a Her money m~lical cxpcnscs sr~ a~ follows: $ 7.00 $66.00 $~0.00 $95.00 $13.00 $ 7.00 ~57.00 $ 8.00 $1,330,00 Sinee~ly, A~ng C~e Mam~e~ PW/¢b 148a CERTIFICATE OF SERVICE On this 19th day of July, 2002, I hereby certify that I served the foregoing document on the following by depositing a tree and correct copy in the United States Mail, postage prepaid, addressed to: H. Amos Goodall, Jr., Esquire Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801-4043 Mr. and Mrs. Cambareri 6923 Western Avenue, NW Washington, DC 20015 KILLIAN & GEPHART, LLP Paula J. M~YDermott, Esquire Attorney I.D. #46664 218 Pine Street P. O. Box 886 Harrisburg, PA 17108-0886 Telephone: (717) 232-1851 PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. AND MRS.: CAMBARERI, : Defendant : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 02-0982 CIVIL TERM ORDER OF COURT AND NOW, this 29th day of August, 2002, upon consideration of Plaintiff's Motion To Compel Answers to Discovery, and Defendants' Response to Motion to Compel Answers to Discovery, and following a discovery conference in the chambers of the undersigned judge in which Plaintiff was represented by Paula J. McDermott, Esq., and Defendant Riggs & Co. was represented by Kathleen V. Yurchak, Esq., and it appearing that the issue to which the discovery requested is directed (jurisdiction) has been argued and is awaiting disposition by the argument court and that as of this date the court has neither ordered nor been asked to order a supplemented record, Plaintiff's motion is denied, without prejudice to Plaintiff's right to refile the motion in the event such an order is entered. BY THE COURT, ula J McDerm · ott, Esq. 218 Pine Street P.O. Box 886 Harrisburg, PA 17108-0886 Attorney for Plaintiff ~H. Amos Gooda//, Jr., Esq. Kathleen V. Yurchak, Esq. 328 South Atherton Street State College, PA 16801-4043 Attorney for Defendant R/ggs & Co. · and Mrs Cambareri 6923 Western Avenue, NW Washington, DC 20015 Defendants, Pro Se ;rc PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff Vo RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2002-0982 CIVIL TERM CIVIL ACTION - LAW IN RE: DEFENDANT'S RIGGS & CO. PRELIMINARY OBJECTIONS RAISING QUESTION OF JURISDICTION BEFORE BAYLEY~ GUIDO~ JJ. ORDER OF COURT AND NOW, this ~&- day of SEPTEMBER, 2002, the preliminary objection raising the question of jurisdiction filed by defendant Riggs and Co. is DENIED. /l~aula J. McDermott, Esquire ,/5-I. Amos Goodall, Jr., Esquire :sld Edward E. Guido, J. PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT, and MR. & MRS. CAMBARERI, Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : : : : NO. 2002-0982 CIVIL TERM : CIVIL ACTION - LAW IN RE: DEFENDANT'S RIGGS & CO. PRELIMINARY OBJECTIONS RAISING QUESTION OF JURISDICTION BEFORE BAYLEY, GUIDO, JJ. OPINION AND ORDER OF COURT Plaintiff instituted this lawsuit to obtain payment for services rendered in connection with the treatment and care of a Ms. Margaret Peffer. The action was commenced by complaint filed on February 28, 2002.1 Defendant Riggs and Co. (hereinafter "Riggs") filed preliminary objections raising the question of jurisdiction. The parties engaged in discovery to create a factual record on this issue.2 The parties have briefed and argued their respective positions. This matter is now ready for disposition. FACTUAL BACKGROUND Plaintiffis a corporation with its principal place of business located in Cumberland County, Pennsylvania. It operates a nursing home in the Borough of The complaint contains one count in declaratory judgment and a second count requesting the imposition of a constructive trust. Relevant portions of that discovery were filed of record as an "Exhibit Compendium". NO. 2002-0982 CIVIL TERM Carlisle. For more than a year prior to her death, Margaret Peffer was a resident in that nursing home. Ms. Peffer was the sole income beneficiary under a trust agreement between Margaret Rebecca Smith as Grantor and the defendant Riggs as Trustee. The Trust Agreement also provided as follows: SECOND: Not withstanding any provision of this Agreement to the contrary, and upon the death of the Grantor, the Trustee herein may apply to or for the use and benefit of MARGARET L. PEFFER, so much of the income, and principal or corpus of the trust fund as the Trustee, in its sole and absolute discretion, may deem to be necessary or desirable for the proper support, maintenance, comfort, health or general welfare of said MARGARET L. PEFFER, and the proper receipt or receipts for funds hereunder expended by the Trustee shall constitute a discharge of the Trustee herein with respect thereto.3 Defendant Riggs is a national banking corporation with its principal place of business located in Washington, D.C.4 It does not have any branch offices in the Commonwealth of Pennsylvania. However, it acts as trustee for 10 trusts with a Pennsylvania situs.5 Additionally, 56 of its trust beneficiaries reside in this state.6 Furthermore, it has a total of nearly 500 checking, money market, IRA and certificate of deposit accounts which are owned by Pennsylvania residents.7 Riggs employees corresponded regularly with Ms. Peffer at her Cumberland County address since at least the latter part of 1990. On occasion they sought to obtain additional business for defendant Riggs by soliciting a local financial institution with 3 "Exhibit Compendium", p. 78a. The "Grantor" has long since passed away. 4 The Trust Agreement involved in the instant case was executed, and has a trust sims, in the District of Columbia. 5 This represents just under .42% of the total trust accounts under management. Riggs charges annual fees for its management services. 6 This represents 1.72% of all the lxust beneficiaries it services. 7 This represents .22% of its total accounts. NO. 2002-0982 CIVIL TERM which Ms. Peffer dealt. In March of 2001, Ms. Peffer, was no longer able to properly care for herself. The Cumberland County Office of Aging took over her affairs and arranged for her admittance into plaintiff's nursing home. At the time she entered the home, the trust account was being managed by Riggs employee Edward Wucher. Mr. Wucher corresponded frequently with the Office of Aging regarding the level of care Ms. Peffer needed and the expenses to be incurred in connection therewith. Further, as Ms. Peffer's overdue bill at the nursing home grew, Mr. Wucher negotiated with plaintiff to make sure that she would not be discharged. As he stated in his deposition, "I wanted to let them know that we're doing everything we can, you know, to pay them.''8 DISCUSSION Pennsylvania Rule of Civil Procedure 1028(a)(1) allows a party to question jurisdiction by means of a preliminary objection. Our appellate courts have often articulated the standard to be applied in such cases. As the Superior Court noted: At the outset, we note that "when preliminary objections, if sustained, would result in the dismissal of an action, such objections should be sustained only in the clearest of cases." King v. Detroit Tool Co.,, 452 Pa. Super. 334, 337, 682 A.2d 313,314 (1996) (citation omitted). Moreover, because the burden rests upon the party challenging the court's exercise of jurisdiction, the court must consider the evidence in the light most favorable to the non-moving party. Id. See also Filipovich v. J.T. Imports, Inc., 431 Pa. Super. 552, 555-57, 637 A.2d 314, 316 (1994). Once the movant has supported its jurisdictional objection, however, the burden shifts to the party asserting jurisdiction to prove that there is statutory and constitutional support for the court's exercise of in personam jurisdiction. See, e.g., McCall v. Formu-3 International, Inc., 437 Pa. Super. 575, 577-79, 650 A.2d 903,904 (1994); Derman v. Wilair Services, Inc., 404 Pa. Super. 136, 139-41,590 A.2d 317, 319 (1991). Pursuant to the Judiciary Act, 42 Pa.C.S.A. § 5301 et seq., our courts may exercise two types of in personam jurisdiction over a non- 8 "Exhibit Compendium", p. 54a. NO. 2002~0982 CIVIL TERM resident defendant. General jurisdiction is founded upon a defendant's general activities within the forum which evidence continuous and systematic contacts with the state. See Derman, 404 Pa. Super. at 139-43, 590 A.2d at 319-20. Specific jurisdiction has a more narrow scope and is focused upon the particular acts of the defendant which gave rise to the underlying cause of action. Id. Regardless of whether general or specific personal jurisdiction is asserted, the propriety of such an exercise must be tested against both the Pennsylvania long ann statute, 42 Pa.C.S.A. § 5322, and the due process clause of the fourteenth amendment. In order to meet constitutional muster, a defendant's contacts with the forum state must be such that the defendant could reasonably anticipate being called to defend itself in the forum. See, e.g., Kubik v. Letteri, 532 Pa. 10, 19-20, 614 A.2d 1110, 1115 (1992) (expressly adopting the minimum contacts test advocated by the United States Supreme Court in Burger King Corp. v. Rudzewicz, 471 U.S. 462, 105 S.Ct. 2174, 85 L.Ed. 2d 528 (1985)). Random, fortuitous and attenuated contacts cannot reasonably notify a party that it may be called to defend itself in a foreign forum and, thus, cannot support the exercise of personal jurisdiction. Id. That is, the defendant must have purposefully directed its activities to the forum and conducted itself in a manner indicating that it has availed itself of the forum's privileges and benefits such that it should also be subject to the forum state's laws and regulations. Id. Hall-Woolford Tank Co., Inc. v. R.F. Kilns, Inc. 698 A.2d 80, 82-83 (Pa. Super., 1997) (emphasis added). Applying the above standard to the case at bar, we are satisfied that Riggs' contacts with this Commonwealth are sufficient to establish both general and specific personal jurisdiction. Those contacts cannot be described as "random, fortuitous, and attenuated." It has hundreds of customers (in the form of account holders), manages several trusts and services dozens of trust beneficiaries within Pennsylvania. These facts alone are sufficient to establish that it has "availed itself of the forum's privileges". Id. Therefore, it should be subject to this Commonwealth's laws. However, even if those contacts were not sufficient to establish general personal jurisdiction, the defendant's actions on behalf of its beneficiary, Ms. Peffer, are sufficient NO. 2002-0982 CIVIL TERM to establish specific personal jurisdiction under Section 5322 of the Judiciary Act (42 Pa.C.S.A. § 5322). The relevant portions of that section provide as follows: General rule.-A tribunal of this Commonwealth may exercise personal jurisdiction over a person.., who acts directly or by an agent, as to a cause of action or other matter arising from such person: (1) Transacting any business in this Commonwealth. Without excluding other acts which may constitute transacting business in this Commonwealth, any of the following shall constitute transacting business for the purpose of this paragraph: (i) The doing by any person in this Commonwealth of a series of similar acts for the purpose of thereby realizing pecuniary benefit or otherwise accomplishing an object. In the instant case, Mr. Wucher had numerous contacts with Ms. Peffer's personal representative, as well as employees of the nursing home, to insure that the medical and financial needs of the trust beneficiary were met. In fact, viewing the record in the light most favorable to the non-moving party, it appears that Mr. Wucher negotiated to keep Ms. Peffer in the nursing home with the promise of payment by the trust, if it could be done. Under these circumstances, we are satisfied that this court has specific personal jurisdiction over Riggs. Therefore, we will deny its preliminary objection. ORDER OF COURT AND NOW, this 6TM day of SEPTEMBER, 2002, the preliminary objection raising the question of jurisdiction filed by defendant Riggs and Co. is DENIED. By the Court, Paula J. McDermott, Esquire H. Amos Goodall, Jr., Esquire /s/Edward E. Guido Edward E. Guido, J. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, INC. t/d/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 NOTICE TO PLEAD To' Presbyterian Homes, Inc. c/o Paula J. McDermott, Esq. 218 Pine Street P.O. Box 886 Harrisburg, PA 17108-0886 You are hereby notified to file a written response to the enclosed New Matter within twenty (20) days after service hereof or a judgment may be entered against you. Dated: /BY: k2~thleen V. Yurch4E'sq. Attorney ID No. 55948' Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 814-237-4100 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, INC. t/d/b/a FOREST PARK HEALTH Center, Plaintiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02-982 COMES NOW, Defendant, Riggs & Co., Trustee of the Margaret R. Smith Account, and hereby responds to the Complaint as follows: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. Admitted in part. It is admitted that Margaret Peffer was, at the time of the filing of Complaint, and for sometime prior lhereto, had been, a resident at Forest Park Health Center. It is denied, however, that she continues to reside at the Forest Park Health Center. To the contrary, she is deceased. 7. This paragraph contains a legal conclusion to which no response is required. 8. This paragraph contains a legal conclusion to which no response is required. 9. Admitted. 10. Admitted. 11. Admitted in part and denied in part. It is admitted that the Department of Public Welfare has issued the notice quoted in the text in the Complaint. It is denied, however, that this determination is proper. ANSWER TO COMPLAINT AND NEW MATTER 12. This paragraph contains a legal conclusion to which no response is required. 13. Denied. It is denied that William Fralin is legal counsel to Riggs & Co. as the Trustee of the Margaret R. Smith Trust. It is further denied that Defendant Riggs & Co. has ever received a final legal opinion from William Fralin to the effect that the trustee of the Margaret R. Smith Trust has responsibility to pay the expenses of Margaret Peffer for the term,s of the agreement. 14. This paragraph contains a legal conclusion to which no response is required. 15. Denied. It is denied that it is the opinion of Riggs & Co.'s counsel that it is the responsibility of Riggs & Co. to pay Margaret Peffer's expenses. 16. Admitted. By way of further response, Riggs & Co.'s actions in this regard were undertaken in the exercise of its fiduciary responsibilities under this trust document. 17. After investigation, answering Defendant is without knowledge or information sufficient to form a belief as the truth of the averment and therefore denies the SaBle. 18. After investigation, answering Defendant is ~hthout knowledge or information sufficient to form a belief as to the truth of the averment and therefore denies the same. 19. Admitted in part. It is admitted that Defendant Riggs & Co made income payments in the amount of $514.33 per month during the lifetime of Ms. Peffer. With respect to the adequacy of these: payments, after investigation, answering Defendant is without knowledge or information sufficient to form a belief as to the truth of the averment and therefore denies the same. 20. Admitted. 21. Admitted. 22. Denied. 23. Admitted. By way of further response, answering Defendant contends that Plaintiff is without legal standing to make such a demand. 24. It is denied that the counsel of Riggs & Co. has provided the opinion referred to in this paragraph. It is further denied that his agent made such a demand during the lifetime of Margaret Peffer. It is further denied that PHI has standing to make such a demand. It is admitted, however, that Defendant Riggs & Co. has refused to pay the amount claimed for Margaret Peffer's care. 25. This paragraph contains a legal conclusion to which no response is required. 26. This paragraph contains a legal conclusion to which no response is required. 27. This paragraph contains a legal conclusion to which no response is required. 28. This paragraph contains a legal conclusion to which no response is required. COUNT I - DECLARATORY JUDGMENT 29. The allegations and denials contained in paragraphs 1 through 28 are incorporated herein as if set forth fully and at length. 30. This paragraph contains a legal conclusion to which no response is required. 31. Denied. It is denied that Mr. and Mrs. Cambareri have made directions to the Trustee which the Trustee considers unlawful. In all respects this paragraph contains a legal conclusion to which no response is required.. 32. This paragraph contains a legai conclusion to which no response is required. 33. This paragraph contains a legal conclusion to which no response is required. 34. This paragraph contains a legal conclusion to which no response ~s required. 35. This paragraph contains a legal conclusion to which no response ~s required. 36. This paragraph contains a legal conclusion to 'which no response is required. 37. This paragraph contains a legal conclusion to which no response is required. 38. This paragraph contains a legal conclusion to which no response is required. 39. This paragraph contains a legal conclusion to which no response ~s required. 40. This paragraph contains a legal conclusion to which no response ~s required. WHEREFORE, Riggs & Co. respectfully requests this Court to deny declaratory relief as requested by Plaintiff and to award costs and counsel fees to Riggs & Co. COUNT II - CONSTRUCTIVE TRUST 41. The allegations and denials contained in paragraphs 1 through 40 are incorporated herein as if set forth fully and at length. 42. This paragraph comains a legal conclusion to which no response is required. 43. This paragraph contains a legal conclusion to which no response is required. WHEREFORE, Defendant, Riggs & Co., respectfully requests the Court to deny the relief requested by Plaintiff, or any of the costs and counsel fees. 44. NEW MATTER Plaintiff is neither beneficiary of nor remainderman of the trust at issue. Therefore, it has no standing to bring this action. Dated: Respectfully submitted, By: K~thl~n V. Yurchak, Esq. Attorffey ID No. 55948 Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 814-237-4100 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PRESBYTERIAN HOMES, INC. t/d/b/a FOREST PARK HEALTH Center, Plaimiff, VS. RIGGS & CO., TRUSTEE OF THE MARGARET R. SMITH ACCOUNT and MR. AND MRS. CAMBARERI, Defendants. No. 02.-982 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing Riggs & Co., Trustee of the Margaret R. Smith Account, Answers to Complaint were served on all parties of record, in the above entitled matter, by depositing the same within the custody of the United States Postal Service, first class postage prepaid, on /~treo' [~, ~ addressed as follows: t · ~ ., Paula J. McDermott, Esquire 218 Pine Street PO Box 886 Harrisburg, PA 17108-0886 328 South Atherton Street State College, PA 16801 (814) 237-,4100 VERIFICATION The undersigned, being duly sworn according to law, deposes and states that he is authorized to make this affidavit on behalf of the Defendant and that the facts set forth herein are tree and correct upon the personal knowledge of the undersigned and that this Verification is made subject to the provisions of 18 Pa. C.S. § 4904 relating to unswom falsification to authorities. Date: Et~'w'arc~M. Wucher, CTFA Riggs & Co. PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., Trustee of the Margaret R. Smith Account, and MR. & MRS. CAMBARERI Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : No. 02-982 Civil Term : CIVIL ACTION' MOTION FOR COURT APPROVAL OF SETTLEMENT TO THE HONORABLE, JUDGE GUIDO: AND NOW, come the parties Presbyterian Homes, Inc., t/d/b/a Forest Park Health Center, Riggs & Co., Trustee of the Margaret R. Smith Account, and Serafino and Mafia Cambareri and file the following concurred-in Motion for Courl Approval of Settlement and represent to the Court as follows: 1. This matter was initiated by Complaint filed on February 28, 2002. 2. On April 4, 2002, Defendant Riggs filed Preliminary Objections, raising the question of jurisdiction. No answer was ever filed by Defendants Serafino and Mafia Cambareri, and a Praecipe for Default Judgment was entered in this Honorable Court against them on May 16, 2002. 3. On September 6, 2002, the Preliminary Objections of Riggs raising the question of jurisdiction were denied by this Honorable Court. Homes, Inc. The parties filed subsequent pleadings. At the present time the parties have agreed to setlle this matter. The terms of the settlement are $40,000 paid by Riggs & Co. to Presbyterian 7. A complete Release, withdrawal of all actions a~ad satisfaction of the judgment against Serafino and Maria Cambareri will be executed by Presbyterian Homes, Inc. 8. This Court is respectfully requested to approve lhat settlement in the form of Order attached. WHEREFORE, the parties respectfully request this Honorable Court to approve this settlement. Respectfully submitted, DUANE IVIORRIS LLP SUBMITTED ON BEHALF Date: Z-q ~ 'zoo 5 Paula J. 101cDermott I.D. No. 46664 305 North Front Street, 5th Floor P.O. Box 1003 Harrisburg,. PA 17108-1003 (717) 237-5500 Attomeys tbr Plaintiff Presbyterian Homes, Inc. OF ALL P.~RTIES TO THIS ACTION 2 CERTIFICATE OF SERVICE I, Cathleen P. Vernon, an employee of the law firm of Duane Morris LLP, hereby certify that I have this day served a tree and correct copy of the foregoing Concurred-In Motion to Approve Settlement upon the persons and at the addresses below named, by depositing same in the United States Mail, first class postage prepaid, from Harrisburg, Pennsylvania: Kathleen V. Yurchak, Esquire Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 Date: Cathleen P. Vernon JUN 2 6 2003 PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., Trustee of the Margaret R. Smith Account, and MR. & MRS. CAMBARERI Defendants 1N THE COURT' OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 02-982 Civil Term CIVIL ACTION ORtnEr. AND NOW, this ~t~ day of ~ ~ ,2003, for good cause appearing, it is hereby ordered and decreed that the terms of the settlement agreement entered into by the parties in the above-captioned matter are APPROVED. The parties are directed to comply with the terms of that agreement. Guido, J. PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., Trustee of the Margaret R. Smith Account, and MR. & MRS. CAMBARERI Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 02-982 Civil Term CWIL ACTION PRAECIPE TO WITHDRAW COMPLAINT TO THE PROTHONOTARY: Kindly mark the above-captioned action satisfied, settled, and withdrawn. Respectful][y submitted, DUANE MORRIS LLP Date: ~'O~ 2003 Patila J. I~cDermott I.D. No. 46664 305 North Front Street, 5th Floor P.O. Box 1003 Harrisburg, PA 17108-1003 (717) 237-5:500 Attorneys fi~r Plaintiff Presbyterian Homes, Inc. CERTIFICATE OF SERVICE I, Cathleen P. Vernon, an employee of the law firm of Duane Moms LLP, hereby certify that I have this day served a tree and correct copy of the foregoing Praeeipe to Withdraw upon the persons and at the addresses below named, by depositing sanae in the United States Mail, first class postage prepaid, from Harrisburg, Pennsylvania: Kathleen V. Yurchak, Esquire Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 Date: /0/~/03 Cathleen P. Vernon PRESBYTERIAN HOMES, INC., t/d/b/a FOREST PARK HEALTH CENTER, Plaintiff RIGGS & CO., Trustee of the Margaret R. Smith Account, and MR. & MRS. CAMBARERI Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 02~982 Civil Term CIVIL ACTION .SATISFACTION OF JUDGMENT TO THE PROTHONOTARY: It is hereby acknowledged by the undersigned, attorney of record for the Plaintiff herein, that the Judgment herein, same dated and entered on May 16, 2002, has been satisfied, and the same may be discharged of record and so noted on this Court's docket. Respectfully submitted, DUANE MORRIS LLP Date: ~f-O~ 2003 Paula J. McDermott I.D. No. 46664 305 North Front Street, 5th Floor P.O. Box 1003 Harrisburg, I?A 17108-1003 (717) 237-5500 Attorneys for Plaintiff Presbyterian Homes, Inc. ItBG\116341.1 C~ERTIFICATE OF SERVICE I, Cathleen p. Vernon, an employee of the law firm of Duane Morris LLP, hereby certify that I have this day served a true and correct copy of the foregoing Satisfaction of Judgment upon the persons and at the addresses below named, by depos][ting same in the United States Mail, first class postage prepaid, from Harrisburg, Pennsylvania: Kathleen V. Yurchak, Esquire Goodall & Yurchak, P.C. 328 South Atherton Street State College, PA 16801 Date: Cathleen p. Vernon 16341.I