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HomeMy WebLinkAbout02-22-06 CHARLES E. SHIELDS, III ATTORNEY-AT-LAW 6 CLOUSER ROAD Corner ofTrindle and Clouser Roads MECHANICSBURG, PA 17055 GEORGE M. HOUCK (1912-1991) February 21, 2006 TELEPHONE (717) 766-0209 FAX (717) 795-7473 Honorable 1. Wesley Oler, Judge Cumberland County Courthouse Carlisle, P A 17013 Via Hand Delivery Dear Judge Oler: Please find enclosed herewith the PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION. The Petitioners, Mr. and Mrs. DeAngelis, have discovered that they have several problems with their various properties. The most difficult one involves the title to their real estate. There are other significant problems involved with some financial instruments and tax issues which most likely will not need to involve the Court. I have a c.P.A. and a tax lawyer working on those aspects of their affairs. As to the real estate title, there does not appear to be any simple way to accomplish clearing the title and meeting the current goals of Mr. and Mrs. DeAngelis, both of whom are now in their eighties. I have already discussed the mechanics of some of this with Bob Zeigler, Recorder of Deeds. I believe everything is now properly detailed and set forth in proper order. There are five (5) adult children involved. All of them have read and joined in the PETITION. By disclaiming the title to the real estate and going this route, we can eliminate any argument that any title or real property got into the Irrevocable Trust. There are other assets that clearly got into it, thus, making any attempt to dissolve the trust more difficult. Doing such would create additional problems for my clients that they can do without. The current approach as set forth at large in the PETITION will clear the title and not create any additional problems for Mr. and Mrs. DeAngelis. The Petitioners and their children, are all of the interested parties. Accordingly, we requested that we be able to waive the expense and time involved with a hearing. We hope that everything will be clear enough to obtain an ORDER in line with the Prayer of our PETITION. In the event you have any questions, please advise. Thank you. Very truly yours, ~E~~ Charles E. Shields III Attorney-At-Law CES/mjj Enclosures ~ INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF PENNSYLVANIA DeANGELIS REVOCABLE REAL PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - <0\\c'\ PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION AND NOW COME THE PETITIONERS: Joseph B. DeAngelis and Janet DeAngelis, his wife. ("Petitioners"), by and through their attorney-at-law, Charles E. Shields III, Esq., a member of the Cumberland County and Pennsylvania Bars, maintaining his office at 6 Clouser Road, Mechanicsburg, (Monroe Township) Cumberland County, Pennsylvania, 17055, and respectfully pray for and request from your HONORABLE COURT a recordable decree to clear clouds from title and to eliminate eminent exposure to the hazards of possible litigation. In support thereof, Petitioners over the following: PETITIONERS 1. Petitioners, Joseph B. DeAngelis and Janet DeAngelis, his wife, are adult individuals of full capacity who currently reside at 420 Kent Drive, Mechanicsburg, (Upper Allen Township), Cumberland County, Pennsylvania. NATURE OF ISSUES BEFORE THE COURT 2. Petitioners purchased a residential dwelling house in their joint names, as Tenants by the Entireties, at the above address, in June of 1976. Subsequently, in May of 1995 Petitioners quit- claimed or attempted to quit-claim the said premises into themselves as Trustees of a revocable real property trust. Later, in May of 2000, Petitioners, in their own names, attempted to make an outright grant and conveyance of the said premises into an irrevocable trust. As will be set forth herein more fully at large below the conveyancing and other actions taken in connection therewith were replete with errors, oversights, and the like, all of which have given rise~to clouds on the title to the premises and which expose Petitioners and the premises to eminent hazards of litigation. r : I i . '. . . -- JURISDICTION 3. Jurisdiction resides in your Honorable Court by virtue of several sections of Title 20, generally referred to as the "Probate, Estates, and Fiduciaries Code" or more simply the "PEF Code," as follows, to wit: Section 711 (3)(ii) regarding inter-vivos trusts, the administration and distribution ofreal property within such trusts, specifically including such trusts created under a deed and/or an agreement; Section 711 (12) regarding the control of fiduciaries, including trustees; Section 711 (16) regarding the disposition of title to real estate to render it freely alienable, including instances where title has been acquired by or resides in a Trust, the jurisdiction of which trust is exercised through the Orphans' Court as is the case herein; Section 712 (1) and (3) regarding a non-mandatory but available and exercisable jurisdiction of the Orphans' Court regarding titles to real estate and other similar matters. Your Honorable Court also jurisdiction by virtue of its powers of supervision over trustees of inter-vivos trusts as relates to their several duties and powers regarding the possession and administration, as well as distribution, of real estate in such trusts as is more fully set forth in Sections 7131, and 7133,7141, and 7143 of the said PEF Code. Additionally, jurisdiction resides in your Honorable Court as regards the power to grant and declare relief where legal title to real estate is arguably otherwise inalienable as is more fully set forth in Sections 8301 (3), 8302, 8304, and 8306 ofthe said PEF Code. Jurisdiction also resides in your Honorable Court by virtue of the inherent equitable powers of the Orphans' Court and the traditional and customary way of removing clouds on title such as exist in the instant case. (See for example, W. Hall, A Manual on Title Searches and Passing Titles in Pennsylvania (1934) with reference to the several methods of clearing up titles when a petitioning party is in possession of land, as is set forth in Section 348 (c.) at page 246 as follows: "By a bill in equity to remove cloud on title. The relief afforded in this action is by the directing of the instrument constituting the "cloud" or "blot" on [Petitioners'] title to be delivered up and cancelled." See, also, in this regard and as to the other issues set forth in this Petition more fully hereinbelow the case ofOctoraro Water Co. v. Garrison, 271 Pa. 421, 427, 114 A. 638, 640 (1921) (copy attached hereto as "Exhibit A"). 2 . . ~ .. VENUE 4. Venue lies in Cumberland County, Pennsylvania as the situs of the two trusts herein involved and as the county of residence of the settlors and grantors herein, as per the PEF Code, Sections 722, 724 (a); and 724 (b)(1)(i). CHRONOLOGICAL HISTORY OF GRANTS. CONVEYANCES. ESTABLISHMENT OF TRUSTS. AND THE LIKE 5. Dean P. Lorah and Dora R. Lorah, his wife, by their deed dated June 23, 1976 and recorded the same date in the Office of the Recorder of Deeds in and for Cumberland County, in Deed Book "Q," volume 26, page 587 granted and conveyed the instant premises to Petitioners (see a certified true and correct copy of said deed attached hereto as "Exhibit B"). 6. A true and correct description ofthe instant premises is as follows: ALL THAT CERTAIN piece of parcel of land situate in the Township of Upper Allen, County of Cumberland and State of Pennsylvania, bounded and described as follows, to wit: BEGINNING at a point on the northern line of Kim Acres Drive, said point being referenced westwardly a distance of six hundred fifty-two and fifty-two one-hundredths (652.52) feet from the centerline of Mt. Allen Drive; thence along the northern line of Kim Acres Drive, South eighty-four (84) degrees fifty- three (53) minutes West, a distance of one hundred (100) feet to a point; thence North five (5) degrees seven (7) minutes West, a distance of one hundred thirty- two (132) feet to a point; thence North eight-four (84) degrees fifty-three (53) minutes East, a distance of ninety-four and seventy-eight one-hundredths (94.78) feet to a point; thence South seven (7) degrees twenty-three (23) minutes East, a distance of one hundred thirty-two and ten one-hundredths (132.10) feet to a point on the northern line of Kim Acres Drive, the place of BEGINNING. HAVING THEREON ERECTED a single brick dwelling known as No. 420 Kent Drive. 7. In or about the fall season of 1994, Petitioners attended a living trust seminar at the Harrisburg Area Community College presented by among others, Thomas A. Hamilton, Esq., an attorney then apparently registered and licensed to practice law within the Commonwealth of Pennsy 1 vania. 8. As a result of various further representations made at said seminar, Petitioners, on advice of the said Thomas A. Hamilton, proceeded to execute a quit-claim deed apparently from themselves to a revocable property trust of which they served as Trustees and to themselves as 3 . . . . ... trustees, the grantee clause reading: "The DeAngelis Revocable Property Trust, Joseph B. DeAngelis and Janet DeAngelis, his wife (hereinafter called the Trustees). . .1" 9. The said quit-claim deed is dated May 10, 1995 and was recorded on June 8, 1995 in the Recorder's Office aforesaid in Deed Book 123, page 312. (See a certified true and correct copy of said deed attached hereto as "Exhibit C"). 1 O. It is hornbook law that a Trust qua trust is not such an entity as can accept and hold a conveyance of title, rather Trustees qua Trustees take and hold legal title for the benefit of the beneficiaries of the trust who typically are regarded as owning or having equitable rights to the thus bifurcated equitable title. (See, in this regard, 1 1. Palomar, Title Insurance Law (2004) at Chapter 4, section 23; and the definitions of "Title," "equitable title," "legal title" in Black's Law Dictionary (8th ed., 2004) at 1522 - 23 as well as the definitions of "trust" and "trustee" therein at 1546 - 54). 11. The said quit-claim deed can charitably be called a curious amalgam of the old-style common-law quit-claim deed format and the new "statutory form" of quit-claim deed. (See, in this regard, 1 Ladner, Conveyancing in Pennsylvania (rev. 4th ed., Suppl. to 2005), at sections 9.02 and 9.07 and Forms 54 and 55 in volume 2 thereot). Nevertheless, Petitioners aver and 1 The use of trusts to hold property interests antedates the English common and goes back to at least Roman times. Trusts have been used from time to time by most transactional/office attorneys for specified and limited purposes. In the early 1950s there was an almost fad-like promotion and usage of revocable living trusts designed ostensibly to avoid "probate" and estate settlement and administrative costs. In reality, the promotion of trusts on a wide scale was generally combined with "attorney-bashing" and served as a way for financial salesmen and a few others to promote the sale and maintenance of control over various financial instruments. Some of these various promotional schemes led to charges for the unauthorized practice oflaw. As time went by and some of the trustors began to die off, it became apparent that much of the ballyhoo and snake-oil promotion was simply false. The fad basically died out and the use of these trusts went, for the most part, back into the hands of transactional / office attorneys where it rightly belonged. However, after the United States Supreme Court decided to overrule the State Bars and allow attorney advertising, there was a resurgence of widespread promotion of revocable living trusts. In some instances, the promotional means and flyers are even part of franchised operations. There have been a variety of sales methods employed which vary from snake-oil ballyhoo to outright terror / fear and flagrant misrepresentation. Since much of this promotion is now in the hands of attorneys, the general "attorney-bashing" has now often been modified to "selective attorney-bashing" such as "your own attorney lacks the expertise to properly deal with these, etc." Sometimes presenters go so far as to say "your own attorney will lie to you about these" - all of which is generally designed to break the then present attorney-client bond. Otherwise, the presenter runs the significant risk that the client would likely gladly accept the free meal and/or other inducements provided and then simply go to his own attorney whom he would otherwise presumably trust to do the legal work for him. The above comments are not aimed at all lawyers who prepare trusts nor at Mr. Hamilton, as trusts can often be a valuable estate planning tool. Rather, the comments are aimed at those who act more like used car salesmen than counselors and analysts. By appearance at least some of the more aggressive trust "salesmen" have reaped great financial benefits by "selective attorney-bashing" and other related tactics. These assorted actions have now attracted the attention of various state attorneys-general. A visit to the Pennsylvania Attorney-General's website will show that approximately twenty (20) trust purveyors have been sued and/or prosecuted, including several attorneys. The Attorney-General of Michigan, among others, has taken similar action. There are a large number of books and articles on the subject. Among the most popular are Norman F. Dacey, How To Avoid Probate (1965) and various later revised editions and John P. Huggard, J.D., Living Trust. Living Hell. Whv You Should Avoid Living Trusts (1998). 4 . .~ believe that the technically operative words of the release are effective to release if not technically grant and convey Petitioners' interests in the premises from themselves as individuals to themselves as Trustees of the said Trust. 12. The operative words of release in said quit-claim deed are as follows: "WITNESSETH, That in conformity with the terms of a certain Declaration of Trust executed by the Releasors [Petitioners] on the 17th day of December, 1994, do by these presents release and forever Quit-Claim to ourselves as trustees under the terms of such Declaration of Revocable Real Property Trust, all right, title, interest, claim and demand whatsoever which we as Releasors [Petitioners] have or ought to have in or to the property located at 420 Kent Drive. . . ." 13. The use of a quit-claim deed in this instance rather than a standard of grant and conveyance is also curious in that: "Quitclaim deeds are used primarily to cure a defect in title, a questionable title or to quiet a title affected by presumed or ambiguous interests in the grantor." Lesson 5 of the Instructional Course of the Pennsylvania Land Title Institute called Fundamentals of Pennsylvania Real Estate and Land Title Insurance Practice (1994 ed.). 14. The distinguishing characteristic of the quit-claim deed as it relates to any transfer is that it transfers only the title or interest of the grantors rather than the property or the premises themselves. Thus the quit-claim deed is not a deed of conveyance at all since it does not transfer the property itself. (See 1 Ladner, Conveyancing in Pennsylvania (rev. 4th ed. Supp!. To 2005), at section 9.02; and see, Greek Catholic Congregation of Borough ofOlyphant v. Plummer, 338 Pa. 373, 12 A. 2d 435, 127 A. L. R. 1008 (1940) (Copy attached hereto as "Exhibit D")). Thus, this manner of transfer in and of itself raises some issues as to the quality and fullness of the rights and title to the actual property itself in the event of an attempted future conveyance to any savvy third party, Petitioners having severed the chain of the warranty of title previously running intact with the property2. 15. Additional problems arise in that Petitioners do not recollect having ever received a copy of the Revocable Real Property Trust referred to in the said quit-claim deed. In any event, Petitioners do not presently have a copy of the Trust. 16. One of the recitals to the aforesaid deed of May 10, 1995 states in pertinent part: "This is a revocable transfer of property between the owners as grantors and the owners as grantee beneficiaries and their lineal [sic] descendant [sic] children as contingent beneficiaries, therefore the transfer is tax free." 2 During a phone conversation with Mr. Hamilton, counsel inquired of him as to whether he knew why so many attorneys pushing trusts are using quit-claim deeds instead of the more standard deeds of grant and conveyance. His theory was that since the use of such quit-claim deeds would bifurcate the title from the property so to speak, an argument could be advanced that the transfer could be arguably not subject to realty transfer tax. The gist of the argument would be that the transfer tax is on the transfer of property and not the mere release of an interest in title. Counsel inquired of a now current employee and of a now former employee of the Realty Transfer Tax Division as to whether they had ever heard such an argument advanced or addressed. The answer was no. They, like counsel, at best, find this to be a strange argument and justification for a less than fully effective conveyance. 5 ~ 17. The above recital, although not completely technically accurate, and although it could have been more artfully drawn, seems to make sufficiently clear that Petitioners are the beneficiaries of the said Revocable Real Property Trust. 18. However, without the original Declaration of Trust of December 17, 1994 there is no way to confirm on the record in the Recorder of Deeds Office that there were and are no restrictions or limitations on the Trustees general power of sale, exchange, or transfer. This creates an impediment to and a problem for any future effort to grant and convey, assign, exchange, or otherwise transfer the property and title to the premises. (See, regarding the general powers of trustees to exercise their power over real estate when there are no restrictions or fetters imposed by the Trust document, 2 Ladner, Conveyancing in Pennsylvania (rev. 4th ed., Supp!. to 2005) at Section 22.10 which reads in pertinent part: "In general most of the statutory powers given to trustees over real estate are substantially the same as those conferred on personal representatives. Thus, unless otherwise provided in the trust instrument, a trustee has power to sell real estate at public or private sale. . . as in the case of a personal representative." (emphasis added). See, also in this regard, PEF Code, Section 7141. Ladner, at the same Section 22.10, further states in pertinent part, "Where the trustee is not authorized by . . . the trust instrument to sell, or is denied the power to do so by the trust instrument. . . he may sell for any purpose of administration or distribution. . . or may exchange. . . any real estate, upon order of the court, after such notice and upon such terms and security as the court may direct." (Emphasis added). See, also, in this regard, PEF Code, Section 7133. Foran example of restrictive language as to sales in a testamentary trust that led to a set aside of a sale of real estate by a trustee, see In re: Estate of Banes, 452 Pa. 388, 305 A.2d 723 (1973) (copy attached hereto as "Exhibit E.") 19. It is standard procedure when filing a deed into Trustees in the Recorder's Office and seeking an exemption from realty transfer tax to also provide a true and correct copy of the trust instrument in question. This is so that the Department of Revenue may review the document as to exactly whom the beneficiaries of any trust distribution are likely to be. The Department then rules on the request for exemption. On August 26, 2005 Petitioners' Counsel spoke to Mr. Brian Foster of the Pennsylvania Department of Revenue and was advised by him that the Department shreds all such trust instruments approximately three (3) years from the date of submission. 20. Lack of a copy ofthe trust instrument to record with any future conveyances to prove that there are no limitations or restrictions on the Trustees' power to sell or convey thus would constitute a cloud upon Petitioners' title. 21. In an effort to find a means to cure such title problem and remove the cloud, counsel began a search for Mr. Hamilton. Through assorted inquiries, counsel was able to track down Mr. Hamilton. He is currently in Texas and is, as he termed it, dealing with "high-end" tax planning and financial strategies, including off-shore vehicles. He now operates under the name of "Team Hamilton." Mr. Hamilton originally had no recollection of providing any services to Mr. and Mrs. DeAngelis regarding a trust and doubted and denied that he did until counsel supplied him with various proofs of such activities on Mr. Hamilton's part. Such proofs included the recording of the deed and related items by Mr. Hamilton. Based on assorted phone conversations with Mr. Hamilton, counsel prepared an Affidavit for Mr. Hamilton to sign in 6 front of a notary. Mr. Hamilton reviewed the proposed Affidavit, said he would make a "couple of' minor adjustments and that he would be happy to sign. He later said he had signed and sent the Affidavit to counsel. Despite repeated efforts by counsel and repeated guarantees by Mr. Hamilton, counsel has not received the allegedly executed and notarized Affidavit. After several months of such communications, counsel has now determined that optimism in this matter may well be a form of delusional cowardice. (See representative items of correspondence attached hereto as "Exhibit F.") 22. The AFFIDAVIT REGARDING THE TERMS AND CONDITIONS OF A LOST REVOCABLE REAL PROPERTY TRUST prepared by counsel based on counsel's discussions with Mr. Hamilton is attached hereto and incorporated herein by reference. (See "Exhibit G.") Although, as immediately above related, it does not appear that a signed and notarized copy is likely to be forthcoming, counsel nevertheless believes this AFFIDA VIT to be true and accurate as to its contents. This averment is based not only on counsel's discussions with Mr. Hamilton, per se, but also on counsel's own twenty (20) years plus experience in title searching which has led him to request and examine many revocable living trust documents. Rarely do special limitations appear and this is especially true of those resulting from sales presentations. Most trusts generated by such sales presentations prove to be "cookie-cutter" and genenc. THE IRREVOCABLE TRUST 23. Subsequently, on April 26, 2000, as a result of another trust sales seminar, Petitioners executed an additional Trust Agreement, titled "THE DeANGELIS F AMIL Y IRREVOCABLE TRUST" with Petitioners as the Co-Settlors and as the Co-Trustees. The TRUST had been prepared by Susan K. Candiello, Esq., then of the Law Offices of Gates & Associates, P.e., of 1013 Mumma Road, Suite 100, Lemoyne, P A 17043. (See a true and correct copy attached as "EXHIBIT H.") 24. Approximately one week later, Petitioners, in their own individual rights and persons, and not as co-Trustees of the aforesaid Revocable Real Property Trust nor in any other capacity related to the said Revocable Real Property Trust, by their deed prepared by Ms. Candiello, dated May 1,2000 and recorded May 9, 2000 in the Recorder's office aforesaid in Deed Book 220, page 1055 granted and conveyed by a deed of special warranty the instant premises to themselves as co-Trustees of the said Irrevocable Trust. (See a certified true and correct copy of said deed attached hereto as "Exhibit I.") 25. The grantee clause in said deed reads: "Joseph B. DeAngelis and Janet DeAngelis, husband and wife, Co-Trustees of the DeAngelis Family Irrevocable Trust dated April 26, 2000. . . Grantees. " 26. The operative words of the grant and conveyance in said special warranty deed are as follows: 7 :.. ... "WITNESSETH, that said [Joseph B. DeAngelis and Janet DeAngelis, his wife], for and in consideration of the sum of One ($1.00) Dollar, lawful money of the United States of America, well and truly paid by the said [Joseph B. DeAngelis and Janet DeAngelis, husband and wife, Co-Trustees of the DeAngelis Family Irrevocable Trust dated April 26, 2000] to the said [Joseph B. DeAngelis and Janet DeAngelis, his wife], at or before the sealing and delivery of these presents, the receipt whereof is hereby acknowledged, has hereby granted, bargained, sold, aliened, enfeoffed, released, conveyed and confirmed, and by these presents does grant, bargain, sell, alien, enfeoff, release, convey and confirm unto the said [Joseph B. DeAngelis and Janet DeAngelis, husband and wife, Co- Trustees of the DeAngelis Family Irrevocable Trust dated April 26, 2000], their heirs, successors, and assigns, ALL THA T CERTAIN piece or parcel of land situate in the Township of Upper Allen, County of Cumberland and State of Pennsylvania, bounded and described as follows: . . . ." 27. THE above words of grant are the old common law words typically used to grant and convey a full and absolute fee simple estate which includes the title to the property and the property itself. (See, in this regard. 1 Ladner, Conveyancing in Pennsylvania, Sections 9.03 and 9.04 (d) (rev. 4th ed., Supp!. to 2005)). 28. The quit-claim deed aforesaid (See Paragraph 14 above) technically and likely practically served only to release or transfer the title in and to the property which the Petitioners held in their own individual right into themselves as Trustees of the aforesaid Revocable Trust. It is hornbook law that once the title has been released or transferred out that the releasor or transferor of that title has no further title to release, transfer or grant and convey and that any attempt to do so is null and void. Thus, placing this latest deed on record from Petitioners in their own individual capacity to Petitioners in their capacity as Trustees of the said Irrevocable Trust places a cloud on title because only Petitioners in their capacity as Trustees of the said Revocable Trust have any legitimate right or claim to be able to convey the now bifurcated title to the property, if not the actual property itself. 29. Additional problems arise to affect the title herein because of the use of a quit-claim deed in the first instance. As related above, Petitioners, by the use of the quit-claim deed, arguably bifurcated the title and the property or premises and then transferred only their rights in the title to themselves as Trustees of the Revocable Trust but not their rights in the property itself. Thus, Petitioners arguably retained the property in themselves. A curious set of circumstances at best which typically would be at most an interesting bar exam question. 30. However, in the present circumstances, the sequence of the aforesaid deeding raises another issue. Since Petitioners arguably retained in themselves as individuals the property itself, if not the title to it, they can arguably transfer the property by a subsequent deed even without transferring the title thereto. By virtue of the use of the old common law words of grant, the use of an old fashioned habendum clause, and by the use of the special warranty clause in said deed to the Trustees of the said Irrevocable Trust, the Petitioners have managed to transfer a record title into themselves as Trustees of the Revocable Trust and to subsequently transfer the technical and perhaps real and practical ownership rights to quiet enjoyment and occupancy of the property to themselves as Trustees of the Irrevocable Trust. (See, in regard to the covenants arguably raised and the effect of a special warranty clause in the instant case, 1 Ladner, 8 .. Conveyancing in Pennsylvania, Sections 9.03; 9.04 (d); 9.05 (a); 9.05 (b); and 9.05 (c) (rev. 4th ed., Supp!. to 2005)). 31. In ordinary circumstances the use of a standard deed of grant and conveyance after the use of a quit-claim deed would make no practical difference since the aforesaid rights in property would be of no practical or monetary value or use without the title thereto. However, in the present instance the placing of this arguably bifurcated right of property into the records of the Recorder's Office constitutes a strange and bizarre form of cloud on title. 32. The DeAngelis Family Irrevocable Trust (See Copy attached hereto as "Exhibit H") contains a number of relevant clauses which further complicate the issues at hand. 33. Initial transfers and additional transfers of principal into the trust are irrevocable. See paragraphs 1.01 and 1.02, and especially paragraph 2.01. 34. Petitioners are not in a position to transfer any part of the principal or corpus of the Irrevocable Trust to themselves as individuals. See paragraphs 4.01, 4.02, and 4.03. 35. Petitioners are, however, in a position "to disclaim, in whole or in part, prior to its acceptance by the Trustee, any interests in property for any reason. . . ." (emphasis added) as is set forth in paragraph 1.03. There is no time limit set in the Deed of Trust to disclaim the interest in question. Additionally, to constitute a bar to a disclaimer "a prior acceptance must be affirmatively proved. The mere lapse of time, with or without knowledge of the interest on the part of the disclaimant, shall not constitute an acceptance." (emphasis added) per PEF Code Section 6206 (a). 36. Petitioners are not learned in the law and relied upon advice of and preparation of documents by various counsel in an effort to simplify their estate plans and property holdings. Petitioners have not been able to form the necessary intent to make an acceptance of any bifurcated title or property, assuming in the worst case that such bifurcation was, in fact, accomplished by the deed into Petitioners as Trustees of the Irrevocable Trust. 37. Petitioners take the position herein that the deed into themselves as Trustees of the Irrevocable Trust fails for lack of understanding and intent and because by the general custom and tradition of curing clouds on title such as are present herein, the entire deed should be delivered up, nullified, cancelled and voided in the records of the Office of the Recorder of Deeds. (See in this regard, the statement of jurisdiction in paragraph 3, especially the reference therein to Hall, at sect. 348( c) at page 246 and the quotation therefrom and the Octaroro case attached hereto as "Exhibit A.") 38. Additional technical problems exist in that by Irrevocable Trust paragraphs 4.03 and 4.04, Petitioners' five (5) adult children are not only the vested remaindermen of the Irrevocable Trust but have a general power of appointment of the broadest nature, scope, and power without any limitation as to the time or extent of its exercise. In laymen's terms the majority agreement of the children can, at any time, result in their taking all of the assets of the trust unto themselves in their own right, title and interest absolutely. 9 39. The five (5) adult children of Petitioners are, to wit: A.) Gregory B. DeAngelis, an adult individual offull capacity, who currently resides at 22 Ryan Road, Cranbury, NJ 08512-3314, DOB: 11/18/1955. B.) Todd A. DeAngelis, an adult individual of full capacity, who currently resides at 2175 Berryhill, Harrisburg, PA 17107, DOB: 11/24/1957. C.) Drew 1. DeAngelis, an adult individual of full capacity, who currently resides at 16017 Greenfield Drive, Richmond, VA 23235, DaB: 6/4/1963. D.) Jodi D. DeAngelis, an adult individual of full capacity, who currently resides at 16017 Greenfield Drive, Richmond, VA 23235, DOB: 11/2/1967. E.) Taralyn 1. Bradley, an adult individual of full capacity, who currently resides at 2207 Canterbury Drive, Mechanicsburg, PA 17055, DOB: 1/23/1965. 40. All of the above five (5) children have read this Petition and its Prayer and are in full agreement with it and Consent and Join in this Petition and the Prayer herein and are specifically agreeable with and join in the part of the prayer asking to waive a hearing hereon. Evidence of each child's Joinder herein and consent hereto is evidenced by the Consent and Joinder forms attached hereto. SUMMARY 41. Petitioners purchased a residence in 1976. In 1995 Petitioners executed a quit-claim deed from themselves as individuals to themselves as Trustees of a Revocable Trust. The quit-claim deed arguably technically and practically bifurcated the title and the property into separate spheres of legal ownership. Such would normally be only an abstruse question of the most technical nature and of a de mininis effect at most. However, Petitioners in 2000, placed on record a deed of grant and conveyance with common law words of grant, the usual covenants implied thereby, a habendum clause, and a special warranty. Ordinarily, if such a deed of grant had been executed by Petitioners in the first instance, Petitioners would have taken full and absolute title and all rights and interest in and to the property as Trustees of the Revocable Trust. Thus the subsequent deed from Petitioners in their own right to themselves as Trustees of the Irrevocable trust would have been wholly and absolutely void for having tried to convey that which they did not have. However, Petitioners use of a quit-claim deed arguably retained certain rights to the property itself in Petitioners independent of the title, thus enabling them to technically convey such property rights to themselves as Trustees of the Irrevocable Trust. Thus a somewhat ordinary cloud on title became even more technical and complex than would typically be the case. Additionally, the terms of the Irrevocable Trust prevent Petitioners from simply redeeding the property to themselves. 10 . Thus, Petitioners, in any capacity, lack a complete or perfected good and marketable legal title in that the rights of ownership, possession, and actual or constructive possession are arguably scattered and divided by the instruments now of record. Additionally, Petitioners, in any capacity, lack a marketable title in that, as set forth above, the title is uninsurable in the regular course and at regular rates and clearly exposes the property and the title thereto to the hazards of litigation. (See, in these several regards, 1 Ladner, Conveyancing in Pennsylvania (rev. 4th ed., Suppl. to 2005), Sections 2.05; 2.06; 2.07; and 2.08). 42. A surrendering up and cancellation of the said deed from Petitioners in their individual capacity to Petitioners in their capacity as trustees of the aforesaid Irrevocable Trust will eliminate a cloud on the bifurcated legal title created by the recording of said deed. 43. In an abundance of caution, a recorded disclaimer by Petitioners as Trustees of the aforesaid Irrevocable Trust will prevent any legal right to the property or its occupancy from vesting in Petitioners as Trustees and any equitable rights that would follow the legal rights from vesting in the five (5) children as remaindermen of the said Irrevocable Trust. Further, such disclaimer would result in such legal rights in the property remaining in Petitioners in their own right, the same rights to the property having been bifurcated from the legal title by virtue of the aforesaid quit-claim deed to Petitioners in their capacity as Trustees of the Revocable Real Property Trust aforesaid. 44. The dual results of such a surrender and cancellation and of such a disclaimer would be to put the legal title in the premises in Petitioners as Trustees of the Revocable Real Property Trust, the equitable title in Petitioners as the beneficiaries of the said Revocable Trust and the legal rights to the property in Petitioners in their own individual capacities. 45. That state of divided title would still be subject to a cloud in that no true and correct copy of the original Revocable Trust can be found to show that there was no limitation or restriction on the right of the Trustees of the Revocable Trust to grant and conveyor to otherwise transfer the legal title to themselves or to anyone else. Such cloud can be cured by a decree recognizing and stating that there are not any restrictions or limitations upon Petitioners' rights as Trustees of the said Revocable trust to grant and conveyor otherwise transfer to themselves or anyone else the legal title. 46. Such an order will then work to allow Petitioners to grant and conveyor otherwise transfer to themselves as individuals the legal title currently held by themselves as Trustees of the Revocable Trust. This will then reunify the legal and equitable titles as well as any arguable technical legal rights in the property itself back into Petitioners in their individual capacity. Thus, a complete or perfected good and marketable legal and equitable title would then be held by Petitioners in their individual capacities. (A proposed deed form is attached hereto as "Exhibit 1. ") WHEREFORE, Petitioners respectfully request and pray that your Honorable Court enter an ORDER that: 11 (a) Joseph B. DeAngelis and Janet DeAngelis, his wife, in their capacities as Trustees of the DeAngelis Family Irrevocable Trust, shall surrender and deliver up to the Recorder of Deeds in and for Cumberland County, Pennsylvania that certain deed from Joseph B. DeAngelis and Janet DeAngelis, his wife, to themselves as Trustees of the said Irrevocable Trust, dated May 1, 2000 and recorded May 9, 2000, recorded in the Recorder's Office aforesaid in Deed Book 220, Page 1055. Said deed shall then be marked "cancelled and void and of no further force or effect." The Recorder shall then proceed to make such marginal notations and/or to record such other items as the Recorder may request to show such cancellation in the record of his office and to see to it that the same are properly indexed. (b) Joseph B. DeAngelis and Janet DeAngelis, his wife, in their capacities as Trustees of the DeAngelis Family Irrevocable Trust, shall prepare and execute a Disclaimer of any interest in or to the property at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania in a form recordable by the Recorder of Deeds either separately or by attachment to the Deed referred to herein below. Such disclaimer shall be considered to bar and prevent any interests in the said property from being accepted by or entering into the possession or ownership of the said Joseph B. DeAngelis and Janet DeAngelis, his wife, as Trustees aforesaid, and shall further prevent any right or interest in the said property from being considered or deemed to have entered into the said Trust or as having vested legally or equitably in the five (5) aforesaid children or anyone else as the remaindermen of said Irrevocable Trust. (c) Any arguable interest in the said remaindermen in or to the said property as such remaindermen is hereby nullified and made void. The remaindermen, as remaindermen of the said Irrevocable Trust, are hereby forever barred from asserting any interest or right in or to the said property as remaindermen of the said Irrevocable Trust. (d) It is hereby conclusively determined that there were no restrictions or limitations on Joseph B. DeAngelis and Janet DeAngelis, his wife, as Trustees of the DeAngelis Revocable Property Trust executed December 17, 1994, and referred to in that certain quit-claim deed from Joseph B. DeAngelis and Janet DeAngelis, his wife, in their own individual rights to Joseph B. DeAngelis and Janet DeAngelis, as Trustees of the said Revocable Property Trust. Said deed was dated May 10, 1995 and recorded on June 8, 1995 in the Recorders' Office aforesaid in Deed Book 123, Page 312. Petitioners are thus free to grant and conveyor otherwise transfer the legal title they hold as Trustees of the said Revocable Property Trust in order to reunify the legal title, equitable title and other rights in and to the said property at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania. (e) Petitioners are more specifically authorized and empowered to make, sign, seal, and deliver a deed from themselves as Trustees of the said Revocable Trust to themselves as individuals in a form substantially similar to that proposed deed attached to the Petition herein, for the purpose of creating a complete or perfected good and marketable legal and equitable title and a title which will incorporate and include with it all rights of property in and to the said property at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania. 12 (f) The ORDER may be recorded along with such deed and/or the other instruments referred to herein in the Recorder's Office, the office of the Register of Wills in and for Cumberland County and/or any other Office where such recording may be deemed helpful and appropriate. (g) In view of the nature and contents of the Petition and the affinity of the parties thereto, no hearing on the Petition is deemed necessary by the Court. (h) Makes such other findings, authorizations, empowerments, and approvals as your Honorable Court deems appropriate in the circumstances. Respectfully submitted by, clu.~v ~ JtJJA 1; Charles E. Shields, III, Esquire 6 Clouser Road Mechanicsburg, P A 17055 (717) 766-0209 PA S. Ct. ID No. 38513 13 INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF PENNSYLVANIA DeANGELIS REVOCABLE REAL PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - VERIFICATION I, JOSEPH B. DeANGELIS, Petitioner in the attached Petition concerning the DeAngelis Revocable Real Property Trust and DeAngelis Family Irrevocable Trust as co-Trustee of both Trusts and in my individual capacity, hereby verify that the facts recited are true and correct to the best of my knowledge, information and belief. I make this verification subject to penalty for unsworn falsification to authorities (18 Pa. C.S.A. Section 4904). M. /7, ~tJ~ I i " / V ' . l, /1 G/c ( J,~~~~~: ;eA~GELIS (j' (~ '/ {'- ~ ~A~:!!T Witness INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF PENNSYL VANIA DeANGELIS REVOCABLE REAL PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06- VERIFICA TION I, JANET DeANGELIS, Petitioner in the attached Petition concerning the DeAngelis Revocable Real Property Trust and DeAngelis Family Irrevocable Trust as co-Trustee of both Trusts and in my individual capacity, hereby verify that the facts recited are true and correct to the best of my knowledge, information and belief. I make this verification subject to penalty for unsworn falsification to authorities (18 Pa. C.S.A. Section 4904). d~~ Witness ~~~~I~ INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYL VANIA PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - CONSENT. AGREEMENT AND JOINDER TO PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION WHEREAS, I am an adult and mentally competent child of the Petitioners in the above- captioned matter; and WHEREAS, I have been provided with a copy of the said Petition For A Recordable Decree To Clear Clouds From Title And To Eliminate Eminent Exposure To The Hazards Of Possible Litigation; and WHEREAS, I have studied the said Petition and have made an independent determination that the objectives stated therein are consistent with and beneficial to the interests of Petitioners and am fully aware that under the said Petition I may be giving up some arguable rights in the premises; WHEREFORE, be it known hereby, that I, Gregory B. DeAngelis, do hereby conjlnt, agree to, and join in the above-referenced Petition by affixing my hand and seal this t-/._ day of ~h tv ('.... y' \../ ,2006. I Witnessed by: _______ ~ ~~ G~fnP~ Sworn to and subscribed to ~ 'f day of Before me this h~ rV:(~"7 , 2006. Notf:-:,":.:'t: SeCii . , Jay M. Zimrnerr'cc.n. Notary Pub!lc I I Upper A:len TWD. ClImberiand County I . My Commiss;(:r~ :::xplres Mar. 16,2006 I -~-- ---.-----.--...---~.----.-______J I" Off /2~ho , J;:; '/ ft.....{;:~t f '~n~e.2.~-A'..,--.-J ,/ ,/ INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYLVANIA PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06- CONSENT. AGREEMENT AND JOINDER TO PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION WHEREAS, I am an adult and mentally competent child of the Petitioners in the above- captioned matter; and WHEREAS, I have been provided with a copy of the said Petition For A Recordable Decree To Clear Clouds From Title And To Eliminate Eminent Exposure To The Hazards Of Possible Litigation; and WHEREAS, I have studied the said Petition and have made an independent determination that the objectives stated therein are consistent with and beneficial to the interests of Petitioners and am fully aware that under the said Petition I may be giving up some arguable rights in the premises; WHEREFORE, be it known hereby, that I, Todd A. DeAngelis, do hereby consent, agree to, an? join in the above-referenced Petition by affixing my hand and seal this ~~' day of ~ ,2006. Witnessed by: ~(#Ill~ < _ azd~J(r:,4tfL~1P _ ~ T D A. DeANGELIS Sworn to and subscribed to Before me this W day of tl~~- ,2006. ~ I%tt6r &&~r INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYL VANIA PROPERTY TRUST; DeANGELIS FAMILY IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - CONSENT. AGREEMENT AND JOINDER TO PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION WHEREAS, I am an adult and mentally competent child of the Petitioners in the above- captioned matter; and WHEREAS, I have been provided with a copy of the said Petition For A Recordable Decree To Clear Clouds From Title And To Eliminate Eminent Exposure To The Hazards Of Possible Litigation; and WHEREAS, I have studied the said Petition and have made an independent determination that the objectives stated therein are consistent with and beneficial to the interests of Petitioners and am fully aware that under the said Petition I may be giving up some arguable rights in the premises; WHEREFORE, be it known hereby, that I, Drew J. DeAngelis, do hereby consent, agree to, andjoin in the above-referenced Petition by affixing my hand and seal this 8-t<. day of ~t:>N1 ' 2006. Witnessed by: 2t'e~ ~~- DREW J. De NGELIS 0- - Sworn to and subscribed to Before me this ~ day of J) bf\ UO.JI U.,. , 2006. ~ . {~~~~ . . ,. rn~ LG'-'YY\iYY\\~l.C5Y\ &pL~~: N~Ib.Qf) 3C~ ~1Q'l INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYLVANIA PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06- CONSENT. AGREEMENT AND JOINDER TO PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION WHEREAS, I am an adult and mentally competent child of the Petitioners in the above- captioned matter; and WHEREAS, I have been provided with a copy of the said Petition For A Recordable Decree To Clear Clouds From Title And To Eliminate Eminent Exposure To The Hazards Of Possible Litigation; and WHEREAS, I have studied the said Petition and have made an independent determination that the objectives stated therein are consistent with and beneficial to the interests of Petitioners and am fully aware that under the said Petition I may be giving up some arguable rights in the premises; WHEREFORE, be it known hereby, that I, Jodi D. DeAngelis, do hereby consent, agree to, and jo!n in the above-referenced Petition by affixing my hand and seal this :3rd day of ~ ))n Itl Fl. / ' 2006. Witnessed by: ~! '/.11. t .ltvl P- /d:/!if6&J Sworn to and subscribed to Before me this 3.c.E day of k~J'r. ,2006. i a~dv f~~19iP , , INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYL VANIA PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - CONSENT. AGREEMENT AND JOINDER TO PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION WHEREAS, I am an adult and mentally competent child of the Petitioners in the above- captioned matter; and WHEREAS, I have been provided with a copy of the said Petition For A Recordable Decree To Clear Clouds From Title And To Eliminate Eminent Exposure To The Hazards Of Possible Litigation; and WHEREAS, I have studied the said Petition and have made an independent determination that the objectives stated therein are consistent with and beneficial to the interests of Petitioners and am fully aware that under the said Petition I may be giving up some arguable rights in the premises; WHEREFORE, be it known hereby, that I, Taralyn 1. Bradley, do hereby consent, agree to,JtI1djoin in the above-referenced Petition by affixing my hand and seal this .,3rd day of (j~ ,2006. Witnessed by: Utdu f<~.i4~ ~ 9- ~ TARALYNJ.BRADLEY Sworn to and subscribed to Before me this W day of Ilkr ,2006. ~tdr~~&t) L' ri ~~,.~~,. Iv INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYL VANIA PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - DISCLAIMER OF JOSEPH B. DeANGELIS 1. On or about the 17M) day of ~r- , A.D. 2006, Petitioners, Joseph B. DeAngelis and Janet DeAngeli#,' his wife, who reside at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania, filed a PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINA TE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION in an effort to, inter alia, clear a cloud from the title to their said residential property. 2. I am one of the said Petitioners. 3. I am aware that I may arguably have some rights, legal and/or equitable, in or to the said residential premises by virtue of a certain Trust styled "THE DeANGELIS F AMIL Y IRREVOCABLE TRUST" and by the recording of a certain deed into that said TRUST as is more fully set forth at large, most particularly, in Paragraphs 23 through 40, in the said PETITION. 4. I am not indigent, necessitous, nor impoverished. 5. I have so far as I understand matters, never formed any intent to, nor do I believe I have accepted any benefits from or in conjunction with the said IRREVOCABLE TRUST with regard to the said premises or the title thereto. 6. I, as Co-Trustee of the said IRREVOCABLE TRUST, desire to officially disclaim any and all legal and/or equitable rights, titles, and/or interests that I might arguably have in or to the said residential premises by means of said IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. NOW THEREFORE, intending to be legally bound hereby, I JOSEPH B. DeANGELIS, as Co-Trustee of the aforesaid IRREVOCABLE TRUST, do hereby disclaim any and all legal and/or equitable rights, titles and/or interests that I as such Co-Trustee might arguably have in or to the said residential premises at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania by means of the aforesaid IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. 2006. I have hereunto set my hand and seal this /71tt day of ~ ~!t~~ Witness '^, C~, J~A~;: i3' ti ([/1 y l" . rPH tl. DeANGELIS '\../~ 1L~~ Witness COMMONWEAL TH OF PENNSYL VANIA) ) SS: COUNTY OF CUMBERLAND ) On this, the /71Q day of ~ . 2006, before me, the unders;gned officer, personally appeared JOSEPH B. DeA ELlS, who being duly sworn according to law, deposes and says that the foregoing Disclaimer is his act and deed and that he desires the same to be recorded as such. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal the day and year aforesaid. ~fA&;zzr Notary Public My commission expires: (SEAL) COMMONWEALTH OF PENNSYLVANIA NotarIal Seal Charles E. Shields III, Nolary Pl.tlIic Monroe Twp., Clmbertand ColIlty My QxnrnIssion Expires June 20, 2008 Member, Pennsylvania Association Of Notaries INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYL VANIA PROPERTY TRUST; DeANGELIS FAMILY IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - DISCLAIMER OF JANET. DeANGELIS 1. On or about the a...o day of ~ ' A.D. 2006, Petitioners, Joseph B. DeAngelis and Janet DeAngelis, his wife, who reside at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania, filed a PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION in an effort to, inter alia, clear a cloud from the title to their said residential property. 2. I am one ofthe said Petitioners. 3. I am aware that I may arguably have some rights, legal and/or equitable, in or to the said residential premises by virtue of a certain Trust styled "THE DeANGELIS F AMIL Y IRREVOCABLE TRUST" and by the recording of a certain deed into that said TRUST as is more fully set forth at large, most particularly, in Paragraphs 23 through 40, in the said PETITION. 4. I am not indigent, necessitous, nor impoverished. 5. I have so far as I understand matters, never formed any intent to, nor do I believe I have accepted any benefits from or in conjunction with the said IRREVOCABLE TRUST with regard to the said premises or the title thereto. 6. I, as Co-Trustee of the said IRREVOCABLE TRUST, desire to officially disclaim any and all legal and/or equitable rights, titles, and/or interests that I might arguably have in or to the said residential premises by means of said IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. NOW THEREFORE, intending to be legally bound hereby, I JANET B. DeANGELIS, as Co-Trustee of the aforesaid IRREVOCABLE TRUST, do hereby disclaim any and all legal and/or equitable rights, titles and/or interests that I as such Co-Trustee might arguably have in or to the said residential premises at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania by means of the aforesaid IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. 2006. I have hereunto set my hand and seal this :h.-cl day of R6tc-<"'-<-f_ t7 ~~1d((L . A ET. DeANGELIS ~ t!ltttltP. &~ Witness 4~b'~ Witness COMMONWEAL TH OF PENNSYL VANIA) ) SS: COUNTY OF CUMBERLAND ) On this, the ~~L day of ~ , 2006, before me, the undersigned officer, personally appeared JANET DeANGELIS, who being duly sworn according to law, deposes and says that the foregoing Disclaimer is her act and deed and that she desires the same to be recorded as such. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal the day and year aforesaid. tJM~~&p Notary Public My commission expires: (SEAL) . . INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYL VANIA PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - DISCLAIMER OF GREGORY B. DeANGELIS 1. On or about the ~ ti day of ;:;... 6 (\~c..V' 't , A.D. 2006, Petitioners, Joseph B. DeAngelis and Janet DeAngelis, His wife, who reside at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania, filed a PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION in an effort to, inter alia, clear a cloud from the title to their said residential property. 2. I am an adult and mentally competent natural born child of the whole blood of the said Petitioners. 3. I am aware that I may arguably have some rights, legal and/or equitable, in or to the said residential premises by virtue of a certain Trust styled "THE DeANGELIS F AMIL Y IRREVOCABLE TRUST" and by the recording of a certain deed into that said TRUST as is more fully set forth at large, most particularly, in Paragraphs 23 through 40, in the said PETITION. 4. I have read the said PETITION and have signed and have had filed a CONSENT AGREEMENT AND JOINDER TO PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION, by which I have joined in said PETITION and in the PRA YER thereof. 5. I am not indigent, necessitous, nor impoverished. 6. I have accepted no benefits from or in conjunction with the said IRREVOCABLE TRUST. 7. I desire to officially disclaim any and all legal and/or equitable rights, titles, and/or interests that I might arguably have in or to the said residential premises by means of said IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. NOW THEREFORE, intending to be legally bound hereby, I GREGORY B. DeANGELIS, the natural born child of the whole blood of the said Joseph B. DeAngelis and Janet DeAngelis, his wife, do hereby disclaim any and all legal and/or equitable rights, titles and/or interests that I might arguably have in or to the said residential premises at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania by means of the aforesaid IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. 11Jl'! r I have hereunto set my hand and seal this..., day of ,t,.1'l.u"Vty' 2006. Wi~~~ ~ 7// /). /L! /~ L-llZb . Witness ~y1!2~ : .. COMMONWEAL TH OF PENNSYL VANIA) ) COUNTY OF CUMBERLAND ) SS: On this, the '/114 day of r&1"LL/ ~'l-t" , 2006, before me, the undersigned officer, personally appeared GREGORY B. DeANGELIS, who being duly sworn according to law, deposes and says that the foregoing Disclaimer is his act and deed and that he desires the same to be recorded as such. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal the day and year aforesaid. ~......~~? (:;:::,""'c:~."._~ Notary Public ,....... My commission expires: Z- 7- 2~c;o (SEAL) I I Kirk M Wi~r N<~:";: Upper All . ".c, O.2ry Fubr'c en Twn r-. ' Myr--, "-', ~UlTI')"'H2nd ._ ".A),rnm.i,':.'~Jon '. ~~e~~ I I ~. INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYLVANIA PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - DISCLAIMER OF TODD A. DeANGELIS 1. On or about the ~ day of ~ , A.D. 2006, Petitioners, Joseph B. DeAngelis and Janet DeAngelis, his wife, who reside at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania, filed a PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION in an effort to, inter alia, clear a cloud from the title to their said residential property. 2. I am an adult and mentally competent natural born child of the whole blood of the said Petitioners. 3. I am aware that I may arguably have some rights, legal and/or equitable, in or to the said residential premises by virtue of a certain Trust styled "THE DeANGELIS F AMIL Y IRREVOCABLE TRUST" and by the recording of a certain deed into that said TRUST as is more fully set forth at large, most particularly, in Paragraphs 23 through 40, in the said PETITION. 4. I have read the said PETITION and have signed and have had filed a CONSENT AGREEMENT AND JOINDER TO PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION, by which I have joined in said PETITION and in the PRAYER thereof. 5. I am not indigent, necessitous, nor impoverished. 6. I have accepted no benefits from or in conjunction with the said IRREVOCABLE TRUST. 7. I desire to officially disclaim any and all legal and/or equitable rights, titles, and/or interests that I might arguably have in or to the said residential premises by means of said IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. NOW THEREFORE, intending to be legally bound hereby, I TODD A. DeANGELIS, the natural born child of the whole blood of the said Joseph B. DeAngelis and Janet DeAngelis, his wife, do hereby disclaim any and all legal and/or equitable rights, titles and/or interests that I might arguably have in or to the said residential premises at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania by means of the aforesaid IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. I have hereunto set my hand and seal this ~/ day of ~__ 2006. ~ t'kk 8~141lC Pi" . -~) TODD A. DeANGELIS ~ Witness ,-:<,'. , ::7 /" / // // /. . (C.. L (t;;&{~L(~f;%/a'dt?,;(':?'GL--- Witness COMMONWEAL TH OF PENNSYL VANIA) ) SS: COUNTY OF CUMBERLAND ) On this, the ~&'I day of ~d.<.->-- , 2006, before me, the undersigned officer, personally appeared TODD A. DeANGELtS, who being duly sworn according to law, deposes and says that the foregoing Disclaimer is his act and deed and that he desires the same to be recorded as such. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal the day and year aforesaid. ~pAd'~ Notary Public My commission expires: (SEAL) INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYLVANIA PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - DISCLAIMER OF DREW J. DeANGELIS # 1. On or about the () day of t:e-k>N~ , A.D. 2006, Petitioners, Joseph B. DeAngelis and Janet DeAngeli~is wife, who reside at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania, filed a PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINA TE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION in an effort to, inter alia, clear a cloud from the title to their said residential property. 2. I am an adult and mentally competent natural born child of the whole blood of the said Petitioners. 3. I am aware that I may arguably have some rights, legal and/or equitable, in or to the said residential premises by virtue of a certain Trust styled "THE DeANGELIS F AMIL Y IRREVOCABLE TRUST" and by the recording of a certain deed into that said TRUST as is more fully set forth at large, most particularly, in Paragraphs 23 through 40, in the said PETITION. 4. I have read the said PETITION and have signed and have had filed a CONSENT AGREEMENT AND JOINDER TO PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION, by which I have joined in said PETITION and in the PRAYER thereof. 5. I am not indigent, necessitous, nor impoverished. 6. I have accepted no benefits from or in conjunction with the said IRREVOCABLE TRUST. 7. I desire to officially disclaim any and all legal and/or equitable rights, titles, and/or interests that I might arguably have in or to the said residential premises by means of said IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. NOW THEREFORE, intending to be legally bound hereby, I DREW J. DeANGELIS, the natural born child of the whole blood of the said Joseph B. DeAngelis and Janet DeAngelis, his wife, do hereby disclaim any and all legal and/or equitable rights, titles and/or interests that I might arguably have in or to the said residential premises at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania by means of the aforesaid IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. I have hereunto set my hand and seal this () H- day of ~VVP\l/ 2006. ( 2re~~.iwvJ Witness ~~)W ~raJl ttn s ~1~P DREW J. De NGELIS STATEOF VUL~lmLQ COUNTY OF B Lry~~ 0 ../ ) ) ) SS: On this, the ~ day of , 2006, before me, the undersigned officer, personally appeared DREW J. DeANGELIS, wh eing duly sworn according to law, deposes and says that the foregoing Disclaimer is his act and deed and hat he desires the same to be recorded as such. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal the day and year aforesaid. ~ry~ m L0.~ ot ry Public My commission expires: tJDJ)J)'ntJu'L-- 'W /';), 00 ?;" (SEAL) INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYLVANIA PROPERTY TRUST; DeANGELIS F AMIL Y IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06 - DISCLAIMER OF JODI D. DeANGELIS 1. On or about the JrJ.- day of RbYlA{{YLo' , A.D. 2006, Petitioners, Joseph B. DeAngelis and Janet DeAngelis, his wife, who reside at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania, filed a PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINA TE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION in an effort to, inter alia, clear a cloud from the title to their said residential property. 2. I am an adult and mentally competent natural born child of the whole blood of the said Petitioners. 3. I am aware that I may arguably have some rights, legal and/or equitable, in or to the said residential premises by virtue of a certain Trust styled "THE DeANGELIS F AMIL Y IRREVOCABLE TRUST" and by the recording of a certain deed into that said TRUST as is more fully set forth at large, most particularly, in Paragraphs 23 through 40, in the said PETITION. 4. I have read the said PETITION and have signed and have had filed a CONSENT AGREEMENT AND JOINDER TO PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION, by which I have joined in said PETITION and in the PRAYER thereof. 5. I am not indigent, necessitous, nor impoverished. 6. I have accepted no benefits from or in conjunction with the said IRREVOCABLE TRUST. 7. I desire to officially disclaim any and all legal and/or equitable rights, titles, and/or interests that I might arguably have in or to the said residential premises by means of said IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. NOW THEREFORE, intending to be legally bound hereby, I JODI D. DeANGELIS, the natural born child of the whole blood of the said Joseph B. DeAngelis and Janet DeAngelis, his wife, do hereby disclaim any and all legal and/or equitable rights, titles and/or interests that I might arguably have in or to the said residential premises at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania by means of the aforesaid IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. r-- {--( bn \. a {l. j I have hereunto set my hand and seal this ,..'~ jw day of 2006. ~~.t.~ (=-~")cll' lO &0 l'I(({;y/ JODI D. {;\NGELIS ~. " /,;/;7 /lrYh{~t:l..a~C?-r;U''-'' Witness COMMONWEALTH OF PENNSYLVANIA) ) SS: COUNTY OF CUMBERLAND ) On this, the :3.u! day of ~ ,2006, before me, the undersigned officer, personally appeared JODI D. DeANGEL , who being duly sworn according to law, deposes and says that the foregoing Disclaimer is her act and deed and that she desires the same to be recorded as such. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal the day and year aforesaid. ~/~,,- Notary Public My commission expires: (SEAL) INRE: IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY COMMONWEAL TH OF DeANGELIS REVOCABLE REAL PENNSYLVANIA PROPERTY TRUST; DeANGELIS FAMILY IRREVOCABLE TRUST; JOSEPH B. DeANGELIS AND JANET DeANGELIS HIS WIFE, Co-TRUSTEES OF BOTH ABOVE TRUSTS ORPHANS' COURT DIVISION NO. 21 - 06- DISCLAIMER OF TARALYN J. BRADLEY 1. On or about the 3 rd. day of j ~ , A.D. 2006, Petitioners, Joseph B. DeAngelis and Janet DeAngelis, his wife, who reside at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania, filed a PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION in an effort to, inter alia, clear a cloud from the title to their said residential property. 2. I am an adult and mentally competent natural born child of the whole blood of the said Petitioners. 3. I am aware that I may arguably have some rights, legal and/or equitable, in or to the said residential premises by virtue of a certain Trust styled "THE DeANGELIS F AMIL Y IRREVOCABLE TRUST" and by the recording of a certain deed into that said TRUST as is more fully set forth at large, most particularly, in Paragraphs 23 through 40, in the said PETITION. 4. I have read the said PETITION and have signed and have had filed a CONSENT AGREEMENT AND JOINDER TO PETITION FOR A RECORDABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION, by which I have joined in said PETITION and in the PRAYER thereof. 5. I am not indigent, necessitous, nor impoverished. 6. I have accepted no benefits from or in conjunction with the said IRREVOCABLE TRUST. 7. I desire to officially disclaim any and all legal and/or equitable rights, titles, and/or interests that I might arguably have in or to the said residential premises by means of said IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. NOW THEREFORE, intending to be legally bound hereby, r TARALYN J. BRADLEY, the natural born child of the whole blood of the said Joseph B. DeAngelis and Janet DeAngelis, his wife, do hereby disclaim any and all legal and/or equitable rights, titles and/or interests that r might arguably have in or to the said residential premises at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania by means of the aforesaid IRREVOCABLE TRUST and the aforesaid certain deed of conveyance. r have hereunto set my hand and seal this J re:t day of j ~ 2006. ~ !~a1P Witness ~J (hL~ TARALYN J. B DLEY ;i"//', //'#'j.".. . . .' / -( it {. 'i;',,/{ c: ((/( / V' 'c::Ct:~c::U ~ Witness COMMONWEALTH OF PENNSYLVANIA) ) SS: COUNTY OF CUMBERLAND ) 3rd ~-,r On this, the \.-, day of ~ ' 2006, before me, the undersigned officer, personally appeared T ARAL YN J. BRADLEY, who being duly sworn according to law, deposes and says that the foregoing Disclaimer is her act and deed and that she desires the same to be recorded as such. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal the day and year aforesaid. &t,t4 I! ~~)~ Notary Public My commission expires: (SEAL) EXHIBIT A PA-CS (Pennsylvania Cases) 114 A. 638 I Date of Printing: Aug 27, 2005 (Cite as: 271 Pa. 421, 114 A. 638) 271 Pa. 421, 114 A. 638 Supreme Court of Pennsylvania. OCTORARO WATER CO. v. GARRISON et al. July 1, 1921. Bill by the Octoraro Water Company against F. Lynwood Garrison and others. Decree for complainant, and defendants appeal. Affirmed. West Headnotes Mines and Minerals €=;;:;>55(5) 260105(5) In a deed conveying land described by metes and bounds, and also all the mining rights on the lands of grantor situated in two designated counties in Pennsylvania and in Maryland, lying along a creek, the limitation of the rights to those lying along the creek applies only to the lands in Maryland, and the deed conveys all mining rights in the designated counties in Pennsylvania. Mines and Minerals €=;;:;>55 (5) 260k55(5) The written proceedings by which trustees were authorized by a foreign court to convey the trust property to plaintiff, and which clearly showed an intention to transfer to plaintiff all the mining rights of the trust estate in two designated counties in Pennsylvania, confirms the construction of the deed that the limitation of such rights to those lying along the creek applied only to the rights in Maryland. Quieting Title €=;;:;>7 (2) 318k7(2) A conveyance purporting to grant to defendants rights which the grantor had previously granted to plaintiff answers the definition of the term "cloud on title," which is a title or incumbrance apparently valid, but in fact invalid. **638 Appeal from Court of Common Pleas, Lancaster County; A. B. * 422 Hassler, judge. Argued before FRAZER, WALLING, SIMPSON, KEPHART, SADLER, and SCHAFFER, JJ. John N. Groff and John E. Malone, both of Lancaster, for appellants. John M. Coyle, of Lancaster, for appellee. *423 SCHAFFER, J. In this bilI in equity plaintiff alleged that three certain deeds, one to F. Lynwood Garrison, another by him to Chrome Mining Company, and the third from the receivers of the Tyson Mining Company to Chrome Mining Company, constitute a cloud on complainant's title, and prays they be set aside and annulled. The chancellor, after hearing, granted the relief prayed for, and defendants have appealed. The controversy in its final analysis, gets down to the construction of a single paragraph in the deed to plaintiff; its construction being helped and made indubitable by giving consideration to the circumstances leading up to the execution of this deed and the one to the defendant Garrison, as evidenced by certain other writings. Jesse Tyson, surviving trustee of Isaac Tyson, Jr., in pursuance of the decree of the circuit court of Baltimore City, Md., on December 13, 1904, conveyed to plaintiff a tract of 461.8 acres of land situated in Chester county, this state. In addition to the land, which was described by metes and bounds, the deed contains this further grant: 'Together with all water rights in said Octoraro creek belonging or appertaining to the * 424 premises above described, and also all and singular the mineral, mining, water, and other rights and privileges in said Octoraro creek and in and upon the lands situate in both Chester and Lancaster counties, Pennsylvania, and in Maryland, lying in, along said Octoraro creek, of whatsoever nature and by whomsoever granted, reserved, acquired, and owned by the said Isaac Tyson, Jr., during his lifetime, the Tyson Mining Company, and the said executors and trustees or the survivor of them.' * * 639 If by the foregoing plaintiff acquired aU the mining rights and privileges in and upon the lands situate in both Chester and Lancaster counties, and in addition such rights in Maryland, 'lying in, along said Octoraro creek,' as the grantor was competent to convey, then plaintiff is entitled to the relief it seeks; while, on the other hand, if the expression 'lying in along said Octoraro creek' qualifies not only the word 'Maryland' but also the words 'the lands situate in both Chester and Lancaster counties,' plaintiff fails to make out its case. In other words, if the mining rights conveyed both in Chester and Lancaster counties and in Maryland were those lying in and along Octoraro creek, plaintiff can assert no rights against defendants, who do not claim anything in ,md along Octoraro creek, but do claim mining rights under their grants in lands in Lancaster county not Page 1 PA.CS (Pennsylvania Cases) 114 A. 638 Date of Printing: Aug 27, 2005 along Octoraro creek; whereas, if by the paragraph quoted all the mineral rights of the grantor in Chester and Lancaster counties were conveyed to plaintiff, then defendants took nothing by the conveyance which they produce, and their deeds purporting to convey that which had already been assured to plaintiff are a cloud on its title, which it has the right to have removed. As before stated, the deed to plaintiff is dated December 13, 1904, and is from Jesse Tyson, surviving trustee of the estate of Isaac Tyson, Jr. Thirteen years later on November 16, 1917, Richard H. Pleasants, as substituted trustee of the estate of Isaac Tyson, Jr., conveyed to F. *425 Lynwood Garrison, one of defendants, all the mining rights and privileges in Lancaster county, belonging to the estate of Isaac Tyson, Jr., and particularly those reserved in three deeds for lands in that county not in and along Octoraro creek. Garrison, on February 25, 1918, conveyed the mining rights thus acquired to the Chrome Mining Company, the real appellant. On June 28, 1918, Columbus O'Donnell Lee, Jacob Lindley and Richard H. Pleasants receivers of the Tyson Mining Company, executed a quitclaim deed to the Chrome Mining Company for any interest that the Tyson Mining Company may have in the mining rights conveyed to the former. It is these three deeds that plaintiff avers are a cloud on its title, and which it seeks to have annulled. With the thought in mind that when Garrison acquired whatever rights he obtained by the deed from Pleasants in 1917 the deed to plaintiff had long been of record, of which he had notice, it may be well to look into the proceedings that led up to Garrison's deed, which are part of the record and were conducted in the circuit court of Baltimore. In the first place, the trustees of the Isaac Tyson, Jr., estate had been discharged by the court after the conveyance to plaintiff upon their allegation that they had disposed of all the property belonging to the estate; so a new trustee had to be raised to make the conveyance to Garrison. It was set forth in the petition for the new trustee that the estate made no claim to any mining rights, but that Garrison offered to pay to the estate $100 for a grant of its interest in them in Lancaster county, 'notwithstanding the fact that he has been advised that all such interests have been disposed of and that said estate makes no claim thereto.' The petitioner asked only for an order to sell 'such uncertain mining rights and claims' as the estate might possess; and in his deed, for the consideration named, the substituted trustee conveyed only the mining rights and privileges 'which stilI remain a part of the property of the said Isaac Tyson, Ir.' The purchaser * 4 2 6 necessarily knew that what he was acquiring was enveloped in doubt, and must have realized he was buying a lawsuit. [1] Agreeing with the chancellor who heard this case, we are satisfied the proper construction of plaintiffs deed is that for which it contends; that the language of the grant clearly vests in plaintiff all mining rights in Chester and Lancaster counties which were possessed by its grantor, and that these rights are not in those two counties limited, as they are in the state of Maryland, to such as are in and along Octoraro creek. If, however, there were doubt on the question after reading the deed, a study of the Writings which were preliminary to and led up to the deed will resolve all doubts in plaintiffs favor. [2] In the written agreement of sale with plaintiffs representative, Huy, it is set forth that three things are to be acquired: (1) The tract of land; (2) all the land in Chester and Lancaster counties in which the seller merely holds the mineral right; (3) all mineral rights in other lands abutting on Octoraro creek. When we look at the deed these three things are conveyed--the tract of land, the mining rights upon lands situate in Chester and Lancaster counties, and the mineral rights in other lands abutting on Octoraro creek, which were those in Maryland. In the petition of the trustee to the circuit court of Baltimore for authority to make the sale, he set forth that he had received an offer from plaintiffs representative for the land, 'provided, that at the same time all the mineral rights and water rights owned by your petitioner in lands located in either Chester or Lancaster counties, in said state, are conveyed to said H. F. Huy free of cost,' and in the decree of sale the court ordered the trustee to convey the land 'together with all the mineral rights and water rights belonging to said petitioner in either Chester or Lancaster counties.' There can be no question, in the light shed *427 by these papers on the deed, that the instrument conveys what plaintiff contends it does. * * 640 The only result of the deed to Garrison was to put a blot upon plaintiffs title, not to vest anything in him or those claiming from him. Nothing so certainly answers the definition of the term 'cloud on title' as the placing on record of a deed for that which another owns-- a grant which, although it assumes to convey something, in reality conveys nothing at all. [3] The technical term 'cloud on title' is thus defined: Page 2 I PA-CS (Pennsylvania Cases) 114 A. 638 Date of Printing: Aug 27, 2005 'A cloud upon title is a title or incumbrance apparently valid but in fact invalid.' Words and Phrases, First Series, vol. 2, p. 1233. 'A cloud on title has been defined as a semblance of title, either legal or equitable, or a claim of a right in lands, appearing in some legal form, which is, in fact, invalid, or which it would be inequitable to enforce.' 5 Ruling Case Law, 634. 'The general rule is that, if the title against which relief is prayed is of such a character that, if asserted by action, and put in evidence, it would drive the true owner of the property to the production of his own title in order to establish a defense, it constitutes a cloud which he has a right to have removed. The rule is that relief will be granted in equity when the complainant shows a perfect title, legal or equitable, and the title of the defendant is shown to be invalid.' 5 Ruling Case Law, 657. 'The jurisdiction of a court of equity to remove clouds from title is an independent Source or head of jurisdiction, and whenever a deed or other instrument exists which may be vexatiously or injuriously used against a party, after the evidence to impeach or invalidate it is lost, or which may throw a cloud or suspicion over his title or interest, * * * a court of equity will afford relief by directing the instrument to be delivered up and canceled.' Heppenstall v. Leng, 217 Pa. 491, 66 At!. 991, 12 L. R. A. (N. S.) 652; Dull's Appeal, 113 Pa. 510, 6 At!. 540; Sears v. Scranton Trust Co., 228 Pa. 126, 77 At!. 423, 20 Ann. Cas. 1145. In reaching our conclusion as to the correct construction of plaintiffs deed, we have disregarded the oral testimony *428 as to what took place before the execution of the agreement of sale; plaintiffs rights find their vindication in its deed and in the undisputed writings which led up to it. What has been said disposes of the case. All the assignments of error are overruled, and the decree is affirmed, at appellants' cost. 271 Pa. 421, 114 A. 638 END OF DOCUMENT Page 3 Date of Printing: AUG 27,2005 KEYCITE HOctoraro Water Co. v. Garrison, 271 Pa. 421, 114 A. 638 (Pa., Jul 01, 1921) History ,Direct History Octoraro Water Co. v. Garrison, (Pa.Com.Pl. 1920) (TEXT NOT AVAIh~LE ON WESTLAW) Affirmed by => 2 Octoraro Water Co. v. Garrison, 271 Pa. 421, 114 A. 638 (Pa. Jul 01, 1921) Page 1 Date of Printing: AUG 27,2005 KEYCITE HOctoraro Water Co. v. Garrison, 271 Pa. 421, 114 A. 638 (Pa., Jul 01, 1921) Ci ting References Positive Cases CU.S.A.) *** Discussed 1 Liddick v. Louden, 1945 WL 1888, *8+, 52 Pa. D. & C. 402, 413+ (Pa.Com.PI. 1945) " ** Cited 2 Frontage, Inc. v. Allegheny County, 162 A.2d 1, 6, 400 Pa. 249, 257 (Pa. Jun 03, 1960) 3 Bank of Pittsburgh v. Purcell, 133 A. 31, 32, 286 Pa. 114, 117 (Pa. Apr 12, 1926) 4 Heller v. Fishman, 123 A. 311, 314, 278 Pa. 328, 335 (Pa. Jan 07, 1924) 5 Goldstein v. Markovitz, 119 A. 739, 740, 276 Pa. 46, 48 (Pa. Jan 03, 1923) 6 Onorato v. Carlini, 116 A. 387, 388+, 272 Pa. 489, 492+ (Pa. Jan 03, 1922) 7 Sattler v. Philadelphia Title Ins. Co., 162 A.2d 22, 25, 192 Pa.Super. 337, 342 (Pa.Super. Jun 15, 1960) 8 Barrows v. Romaine, 1932 WL 3821, *3821, 17 Pa. D. & C. 457, 461 (Pa.Com.PI. 1932) 9 Happold v. Espenship, 1928 WL 5601, *4, 24 Del.Co. 55, 55, 15 Pa. D. & C. 186, 188 (Pa.Com.PI. 1928) 10 Montgomery v. Mahjoubian, 1923 WL 4610, *2+, 3 Pa. D. & C. 833, 834+ (Pa.Com.PI. 1923) " 11 Miners Sav. Bank of Pittston, Pa. v. U.S., 110 F.Supp. 563, 572, 53-1 USTC P 9222, 9222, 43 A.F.T.R. 523, 523 (M.D.Pa. Feb 20, 1953) (NO. CIV. 2395) * Mentioned 12 Phillips v. North Beaver Tp. School Dist., 1931 WL 4529, *4529, 17 Pa. D. & C. 420, 425 (Pa.Com.PI. 1931) Secondary Sources CU.S.A.) 13 What constitutes cloud on title removable in equity, 78 A.L.R. 24, ~ 24+ (1932) Page 1 EXHIBIT B I' I . I i 1 I I J f i i i I I ( , , 1 i ) I " I j . 4 - 1 , J . J I I 'I 1 1 J 1 I I I I '{ i j: I' 1 i J i I ! 1 ! r-' I . .- ---.~ ---_._"._-._--_._-----~._~----- Qt,~.r~..~. ~,...", "'., , tt{; ::~ tt . School Oil,. Cumb-'il / /;'/,;"'" R.~, eJ,J.. Tt,.,,~ ~.. ' \,' . ,;; '" tr ~'" 1 ,:,; ~ ltaM h . CO~I ''''.. . {-:. --/ ... .... -. . - ~-"\ '; ,'I' -~':-"-, . 1 /t; .... l'lftl'" r... ;!1.-1'>'/i-' "-'(";J.....- ,,'. I, ", ~ '/./ / ,; ct..h".; .... "..../......:;,. ........ .~.-:.... 'Dc. .,:-:-':.> k-, ~7j..J ,0,' ,', ',' / ~ ....... An.1:-' .'~' ~ Ch~~~~~u::/c:t'~i~ '/ . ~,;:if'rz'8-J'~>\ ' .{ .n. Cot ,,~ :1/ ' il MADE... 23rd <by of June, /... 1[ :/ ;n ,h. ym n;n""n hood"d ond seventy-six (1976). II ill; BETWEEN DEAN P. LORAH and DORA R. LORAH, his wife, of Upper Allen III Ii Township, Cumherland County, PennsYlvania, GRANTORS and parties of ,I the first part, , I II I Ii I ii -AND- 1 I: JOSEPH R. DeANGELIS and JANET DeANGELIS, his wife, of the Ii !I same place, GRANTEES and parties of the second part, I II I' II II i/ 'I II I' WITNESSETH, That in consideration of FORTY-FOUR THOUSAND ($44,000.00)- _ _ _ _ - - - - - - - - - - - - - - - - - - - - - - - - Dollars, in hand paid, the receipt whereof is hereby acknowledged, the said grantor S do hereby grant I and convey to the said granteeS, their heirs and assigns, ALL THAT CERTAIN piece or parcel of land situate in the Township of Upper Allen, County of Cumherlnnd and State of Pennsylvania, bounded and descrihed as follows: BEGINNING at a point on the northern line of Kim Acres Drive, said I i I II II 1/ 1/ I 'I I. /1 il I I I I grees seven (7) minutes West, a distance of one hundred thirty-two (132) feet to a point; TI/ENCE North eip,htY-four (84) degrees fifty- 1/' II. ,/ I, 'I II ~=~- - ~"'~c__, I I t ;1 f: , I' I /. r I :1 I , I, " i' Ii r " t' / I , ! /. I' i' , !' i !' I I I' II Ie II I J " ! ~ I , , .. " ------------ .------- --.. --.------.--.----...----. AND the said grantor will GENERALL Y hereby convcyed. W ARMNT AND FOREVER DEFEND the property the). r IN WITNESS WIIEREOF, said grantor S h~e hercunto set / hands day and ycar first above,writtcn, and seal s , the "I · dO~"re ~ ........~~t =~o~~ """~~.~...'t.ci.r~.............,..,..... (SEAL) (SEAL) . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................................................................... I ~-J S Y l VA Nl}~":::""" .......................... ........................, , 'r) ""'""",,,'.. ......;;,""llEnl!y..' 1~',NSWl JUN13'1' TAX . "". '" .. ..... ....................................... ............ ~.H 162 Cml'fJFICA TE OF RESIDENCE , ~> I horehy ",,'Cy, II,,, 11,0 P'~'" re,'d,n" olll~ 8"nl.. S \ / f7in i." r'r"" $~!:::.h~~;'1?-. ~/ ..............~{[;;;:1;;.~ . /70\,) Q!omnUlluuruUq ul iI~ntlll1Jlpanlu } York WI: QbJuuty pf -l I j I I I I II I I I I I, II II whose name s a ra;ubscribed to the within il d h f h ~}~,.' ~.. I :::':,~::'I' "d "k",wl"'8txl ,I." they,,,,,,,, I' ..m';: 1,-' 'p"':.,:;r;, I IN WITNESS WHEHEOF, I I.", h'rennto reo ~y~~d:~Li.lW!~~t~J~~~:.-\\j ..... ....... ...................~~.~~.ry...~~.~~.;.s:At......................~;~~~jl ; My Commission Expires May 15, .rg7~. ...;'.~':Y/ I NOTARY puaLlc'.~j~.~.:.: ':,- I I,'~ ~Dmmission Expires MJy 15. 1978 II fal('fjDIV fr:jl., Pi, YOlk County II ,I 1/ II il I whose name subscribed to the within II executed the same for the purpose therein III i ;1 I' II !i i.l..... I ' I On this, the 23rd day of June, 19 76, before me a Notary Puhlic, the undersigned officer, personally appeared DEAN P. LORAH ~ nORA R. tORAH, his wi fe, known to me (or satisfactorily proven) to be the personS QIommOttUtl'l11tq of JI~nnl1!Jlpanta } WI' QIpunty pf _.......___................................_' On this, the day of 19 , before me the undcrsigned officer, personally appearcd known to me (or satisfactorily proven) instrument, and acknowledged that contained. to be the person IN WITNESS WHEREOF, I have hereunto set my hand and seal. ................................................................................................ ................................................................................................ ., " " I, il iI :i t' :/ '" My Commission Expires eooq 26 PACE 588 --~....."._-. -.----...----------- EXHIBIT C ~ - -- _ __ u. _ --'~---~~___.__~m._.___ _'_. I '. . _._--._----~--_.-- .------- -- .....-..---.-_____.____n...._. _ ____.._ _ - ----.._---~-.,------..----_._-._. Oult-elalm Deed No. 664/5 Printed for anJ SolJ by John C. C1arl" Co., IJ21< Walnut St., Phila, . ~ -~ ~T____ /2b!LG/1. ~ ,,/-C-~' ~ ~ ~ 4,- H-;l Y.;l !-,;;?.;<tj -~ t~--- -- ---# I () 7J.. day of - m ~ in the year of our Lord one thousand nine h1.tndred ~ - 2f~ ( <15) m~tlU~en JOSEPH B. DeANGELIS and JANET16eANGELIS, his wife, (hereinafter called the Releasors), of the one part AND THE DeANGELIS REVOCABLE REAL PROPERTY TRUST, JOSEPH B. DeANGELIS and JANET DeANGELIS, his wife, (hereinafter called the Trustees), of the other part, miht.ess.etq, That in conformity with the terms of a certain Declaration of Trust executed by the Releasors on the 17"'-"-. day of DpC'C::r??)pr , 1994, do by these presents release and forever Quit-Claim to ourselves as trustees under the terms of such Declaration of Revocable Real Property Trust, all right, title, interest, claim and demand whatsoever which we as Releasors have or ought to have in or to the property located at: 420 Kent Drive, City of Mechanicsburg, County of Cumberland, State of Pennsylvania, and described as follows to wit: ALL THAT CERTAIN piece or parcel of land situate in the Township of Upper Allen, County of Cumberland and State of Pennsylvania, bounded and described as follows to wit: BEGINNING at a point on the northern line of Kim Acres Drive, said point being referenced westwardly a distance of six hundred fifty-two one-hundredths (652.52) feet from the center line of Mt. Allen Drive; Thence along the northern line of Kim Acres Drive, South eightY-four degrees (840) fifty-three minutes (53) West, a distance of one hundred (100) feet to a point; Thence North five degrees (50) seven minutes (7) West, a distance of one hundred Thirty-two (132) feet to a point; Thence eightY-four degrees (840) fifty-three minutes (53) East, a distance of ninety-four and seventy-eight one-hundredths (94.78) feet to a point; Thence South seven degrees (70) twenty-three minutes (23) East, a distance of one hundred thirty-two and ten one-hundredths (132.10) feet to a point on the northern line of Kim Acres Drive, the Place of BEGINNING. 3""j 1'23 i.\0:: . J_~ Ii /: 'II II! II, I/i [, ;;: ii ../'/." i! )1: jj' i!: 'i: " " Ii 'I I" , I ~ II Iii ill Ii II! " ii I I II I I I II ill ill J HAVING thereon erected a single dwelling house No. 420 Kent Drive. BEING the same premises which DEAN P. LORAH and DORA R. LORAH, his wife, by indenture dated June 23, 1976 and recorded in the Office of the Recorder of Deeds in and for the County of Cumberland on June 23, 1976, in Deed Book Q-26, Page 587, did grant and convey unto JOSEPH B. DeANGELIS and JANET DeANGELIS, his wife. SUBJECT to restrictions as contained in prior deeds. * This is a revocable transfer of property between the owners as grantors and the owners as grantee beneficiaries and their linieal decendant children as contingent beneficiaries, therefore the transfer is tax free. ... to c...., c- S ..oL. ("") c: ::: :.n __... (~J r~ .<, fT1 0 C'..l ::::J 0 r:::) r- =<J ~1 ;:.. o.:n ~-n,~ C; ;0 :-::J 00",. o~:....: c: r----. r", :z i;; C) -; rT1 1- -< 0 1-, I en.AJ -'.1 ~ Q: \J .=3 Co) . "..J:: o BOu!.' j 23 r ~ 3 LJ " TOGETHER hereditaments and appertaining, and profits thereof: with all and singular, the tenements, appurtenances thereto belonging, or in any wise the reversions, remainders, rents, issues, and AND also, all the estate, right, title, interest, property, claim and demand whatsoever, as well in law as in equity, of the said parties if the first part, of, in, or to the above-described premises, and every part and parcel thereof, with appurtenances. TO HAVE AND TO HOLD all and singular the above- mentioned and described premises, together with the appurtenances, as joint trustees forever: and we declare and agree that neither we as individuals nor our heirs or assigns shall have or make any claim upon such property. IN WITNESS WHEREOF, the said parties of the first part have hereunto set their hands and seals to this Deed dated the day and year first written above. ~ O~,- / \',./ -jJ -1"'7 , (itct Lal ./1. \rvLJLu / /,lr'="1> ~'~r~ /A ;I..() .J. oj-'"' '\--/,' _" " I' ,.r //'.. - .,,'j" \,__>\_,' 1... \ ~~ :' /:,-") 1./ ,/ '--"\_.._ -" _ :.---' ,/ Signed Sealed & Delivered ) In the Presence of us: ) . , .,..... "'''~ "'. COMMONWEALTH OF PENNSYLVANIA SS: COUNTY OF CUMBERLAND .;J~,'''e .. On this, the \ \ day of {Y\Ci...~ ' , 1995, before me, a Notary Public, the unders~ed off1cer, personally appeared JOSEPH B. DeANGELIS and JANET DeANGELIS known to me or satisfactorily proven to be the grantors whose names are subscribed to the within instrument, and acknowledged that they executes same for the purposes therein contained. In witness whereof, I hereunto set my hand and official J..;. Notarial Seal :,.":- Judith A. Walter, Notary Public :..JlMber Allen Twp., Cumberland County ',M'Y'tommission Expires May 12, 1998 ~>"i!' :'.',: .' Member, Pennsylvania Assodation of Notaries e~DK. i2:l PAGE ~.by certify tfllt the l'Midenci .iOO Post Office at WMm G;ltml"~ 1:: .'1~O ~Jt- ()nve (Y1ed'4t"'~Q. fJPJ.J?lJ55 314 Gr'l"'tt'f:~'" ~'_;"'::.iJi.~~~~\~~;'11~i~j:~~:. EXHIBIT D ,. " PA-CS (Pennsylvania Cases) 12 A.2d 435 Date of Printing: Aug 27, 2005 (Cite as: 338 Pa. 373, 12 A.2d 435) 338 Pa. 373, 12 A.2d 435, 127 A.L.R. 1008 Supreme Court of Pennsylvania. GREEK CATHOLIC CONGREGATION OF BOROUGH OF OL YPHANT v. PLUMMER et aI. March 25, 1940. As Amended on Reargument April 15, 1940. Appeal No. 16, January term, 1940, from judgment of Court of Common Pleas, Lackawanna County, No. 794, May term, 1938; Lewis, Judge. Action in trespass by the Greek Catholic Congregation of the Borough of Olyphant against Emma A. Plummer, executrix of Edward E. Cannon, deceased, and others, to recover damages for mining and removing coal from plaintiffs land. From a judgment for defendants, plaintiff appeals. Affirmed. West Headnotes [ 1] Mines and Minerals ~7 1 260k71 An agreement of lease of coal, whereby lessors gave no warranty as to their title to coal described in lease but expressly stipulated that "it is given and accepted subject to any failure of title", constituted a "sale" and was in legal effect a "quitclaim deed" to such coal, as respects lessors' liability for trespasses by lessee after it was established that lessors held no title to the property. [2] Deeds ~25 120k25 [2] Deeds ~ 12 1 120k121 "Quitclaim deeds" are used when a party wishes to sell or otherwise convey an interest he may think he has in land but does not wish to warrant his title, and such deeds do not purport to convey anything more than interests of grantor at time of their execution; distinguishing characteristic of a "quit-claim deed" being that it is a conveyance of interest or title of grantor in and to property described rather than of the property itself. [3] Deeds ~25 120k25 Except for compelling reasons, courts should not impose on grantors in quit claim deeds such obligations as would check employment of such deeds. [ 4] Mines and Minerals ~7 1 260k71 A lessor of a coal mine is not responsible for negligent mining by lessee which results in damage to the surface. [5] Mines and Minerals ~71 260k71 The mere collection of rents and royalties as part of purchase price for coal conveyed under lease, which in legal effect was a quitclaim deed, does not constitute a "participation in mining" so as to render grantors liable for trespass for such mining when it was established that grantors held no title to property quitclaimed. [6] Mines and Minerals ~71 260k71 Where lease for mining coal executed in 1931 provided that "it is given and accepted subject to any failure of title" and was in effect a "quitclaim deed", both parties to lease understanding that question of title was in dispute, and it was not until 1938 that it became judicially established that lessors had no title to the coal, such lessors were not liable to rightful owners for trespasses committed by lessee in mining and removing the coal. [7] Pleading ~312 302k312 In determining whether statement of claim against lessors of coal mine for trespass by lessee removing coal stated cause of action, allegations that lessors were mining and digging and aiding and abetting the mining by lessee would be taken as mere conclusions where allegations were based on lease, which was attached to statement of claim and which warranted no such conclusions. [8] Contracts ~309(2) 95k309(2) The law recognizes the doctrine of "frustration", which holds that under the implied condition of the continuance of a contract's subject matter, contract is dissolved when subject matter is no longer available. [9] Mines and Minerals ~7 1 260k71 Page 1 '. PA-CS (Pennsylvania Cases) 12 A.2d 435 Date of Printing: Aug 27, 2005 Where lease for mining coal provided that "it is given and accepted subject to any failure of title" and was in effect a "quitclaim deed" both parties to lease understanding that question of title was in dispute, lessors were not liable to rightful owners for trespasses on ground that they put lessee "under legal obligation to mine the coal" because lessee "covenanted and agreed to work the veins demised" continuously and to remove all coal by diligent and energetic prosecution of the business, since such provisions were subject to limitation that when title failed lease became inoperative. [10] Mines and Minerals €;::;:I7 1 260k71 Lessors of coal mine which was leased subject to failure of title, parties understanding that question of title was in dispute, were not liable in trespass to rightful owners because lessors sent a mining engineer into the mine from time to time to inspect and report on mining operations, since such a provision for inspection of mining operations does not make the lessor a "director" of the mining operation. Mines and Minerals €;::;:I7 1 260k71 Owner of coal lands was not liable for damages resulting from subsidence of adjoining land on ground that such damage was caused by negligent conduct of mining operations by defendant's lessee, in absence of proof that lessee conducted such operations under supervision, direction, management and control of defendant. *374 **436 Argued before SCHAFFER, C. J., and MAXEY, DREW, LINN, STERN, BARNES, and PATTERSON, JJ. * 375 O'Malley, Hill, Harris & Harris, Walter L. Hill, all of Scranton, for appellant. Valentine L. Fine and William J. Fitzgerald, both of Scranton (Kelly, Fitzgerald & Kelly, of Scranton, of counsel), for appellees. MAXEY, Justice. Plaintiff brought an action in trespass against defendants for the recovery of damages for the mining and removal of coal from plaintiffs land. The statement of claim avers that defendants mined and dug from plaintiffs land, without the latter's consent, 25,472 tons of coal of the value of $12,736, knowing the same to be upon plaintiffs land, and removed and converted the coal to their own use, and did the mining through their agent, the Wilson Coal Company, to which defendants had made a lease dated May I, 1931, and, in addition to making the lease, defendants aided and abetted their agent, and participated in the mining of the coal, and required their agent to account therefor to them and to pay over proceeds thereof to them, and that they received and retained such proceeds. Plaintiff claimed treble damages of $38,208, with damages for detention thereof. The affidavit of defense raised questions of law in that the mining was not done by defendants but by their lessee, under the terms of the contract of May 1, 1931. The court below held that the agreement 'constituted a sale of the defendants' interest in the coal therein described' and that plaintiffs statement of claim did not set froth a cause of action, and entered judgment in favor of defendants. This appeal followed. The lease between Emma A. Plummer, executrix, heir and devisee under the will of Edward E. Cannon, deceased, et aI., and the Wilson Coal Company, set forth that 'the Lessors have demised, leased and to mine let unto the Lessee, all their right, title and interest in and to the remaining coal [in certain veins] lying and being * 3 7 6 in and under that part of the Samuel Callender Tract.' The tract containing the coal demised was described as 'a division of the Edward London Warrant and situate in the Borough of Blakely, County of Lackawanna'. Its boundaries are stated but its acreage is not. As to the tenure.. it was provided that the lessee would 'remove all the coal therefrom which can be mined, stripped and removed by a diligent and energetic prosecution of the business', The lease further provides: 'It is understood and agreed that this lease is given and accepted subject to any failure of title to any part of said coal or otherwise, and that said Lessee, its successors and assigns, assume sole and entire responsibility in the mining of the coal hereunder, without any liability in the lessors under any circumstances whatsoever.' The lease then provides for the payment of rent and royalty based upon the tonnage of coal taken out. **437 [1] It is the contention of the defendants that the relationship between them and the Wilson Coal Company is that of grantor- grantee and that the lease referred to above was in legal effect a quit-claim deed to such coal. The defendants gave no waITanty as to their title to the coal described in the lease, but, on the other hand, the lease expressly stipulated, as above noted, that 'it is given and accepted subject to any failure of title.' It is clear that this agreement of Page 2 " PA-CS (Pennsylvania Cases) 12 A.2d 435 Date of Printing: Aug 27, 2005 lease constituted a sale of the coal in the veins leased until 'all the coal' was removed: Hosack v. Crill, 204 Pa. 97, 53 A. 640. The coal of whose mining plaintiffs complain was the coal whose ownership was decided by this court in Greek Catholic Congregation of Olyphant v. Wilson Coal Co., 329 Pa. 341, 198 A. 841. That there was a substantial dispute as to the ownership of this coal is indicated by the litigation which gave rise to that case. The question of ownership hinged on an interpretation of a deed from Samuel Callender to Newell Callender, dated January 16, 1850. When the lease of May 1, 1931, was made, both parties to it understood that the question of Lessors' *377 title was in dispute. If Samuel Callender, the grantor in the 1850 deed to his son, Newell Callender, died seised of a reversionary interest in the coal in question, the Wilson Coal Company obtained a good title to the coal when it secured its lease from those who claimed under Samuel Callender, i. e. the defendants below. It was not until our decision on March 21, 1938 that it became judicially established that Samuel Callender did not die seised of a reversionary interest in the coal in question and that therefore the Wilson Coal Company had no title to the coal it mined under color of the 1931 lease's authority. In view of the substantial dispute as to the ownership of the coal in controversy, there is no question as to the good faith of the Lessor in this matter. The coal which was later adjudged to belong to the plaintiffs in this action was only a portion of the acreage of coal subject to the 1931 lease. Since this lease was in effect, if not in form, a quit-claim deed, the question before us comes down to this: Is the grantor in a quit-claim deed liable for trespasses committed by his grantee on the property subject to the deed after it is established that the grantor held no title to the property quit-claimed? [2J[3J Both on reason and authority this question must be answered in the negative. Quit-claim deeds, long known to the law, are used when a party wishes to sell or otherwise convey an interest he may think he has in land but does not wish to warrant his title. It does not purport to convey anything more than the interest of the grantor at the time of its execution. 16 Am.Jur. p. 560, sec. 219: 'The distinguishing characteristic of a quitclaim deed is that it is a conveyance of the interest or title of the grantor in and to the property described, rather than of the property itself.' If persons who in good faith believe that they have title to real estate or possibility of title to real estate cannot convey whatever right or title they have in such real estate without being answerable in trespass should it later be decided that they had no * 3 7 8 title and the person to whom the conveyance was made exercised an owner's right in the property, the use of quit-claim deeds will be greatly curtailed. Their long continued employment indicates that they serve a useful purpose and, except for compelling reasons, courts should not impose on the grantors in quit-claim deeds such obligations as would check the employment of such deeds. There is nothing in a quit-claim deed which should incite the grantor therein to commit a trespass by exercising dominion over property he did not own. If there is any doubt of his ownership, he proceeds at his own peril and not at the peril of the party who quit- claimed to him. He is supposed to know the law, and the law is that 'a quitclaim deed is one which purports to convey, and is understood to convey, nothing more than the interest or estate of which the grantor is seised or possessed, if any, at the time'. 18 c.J. p. 156, sec. 32. In the few instances where the question has arisen, courts have taken the view that 'one who merely sells property to which he has no title is not liable for trespasses committed by his vendee'. 63 c.J. p. 934, sec. 77. [4J It is settled law in this Commonwealth that the Lessor of a coal mine is not responsible in trespass for the negligent mining by his lessee which results in damage to the surface. In Hill v. Pardee, J!43 Pa. 98, 22 A. 815, this court held that in such a case the disturbance of a right of surface support is a tort for which the party which did the mining and not the Lessor was responsible. In Offerman v. Starr, 2 Pa. 394, 44 Am.Dec. 211, this court said **438 in an opinion by Chief Justice Gibson: 'Respondeat superior is inapplicable to an owner of land, for acts of negligence in a business not conducted by him and for his account. What had these defendants to do with the direction of the business or the coal when it was mined? Lewis covenanted to sink the slope, erect the engine, to take out a certain number of tons each year, according to the most approved method of mining, and carry it to the landing; and to pay a certain sum per ton for it. So *379 far the defendants had nothing to do with the business, but to receive their rent. But they reserved a right to visit and examine the manner in which the business should be carried on in the mine; and to resume the possession should the tenant refuse to furnish statements of the amount taken out, or pay the rent. Page 3 " PA-CS (Pennsylvania Cases) 12 A.2d 435 Date of Printing: Aug 27, 2005 These clauses do not constitute a reservation of the possession or a right to interfere with the direction of the business. The right of visit was to enable them to see whether the tenant was performing his engagements, in order to found process against him if he were breaking them; and the right to resume the possession was to put an end to the business altogether. The lease was analogous in all respects to the lease of a farm with a clause of re-entry for bad farming, or non-payment of rent. On no principle, then, could the acts of Lewis be imputed to his lessors'. [5][6] Appellant cites two Pennsylvania cases in which the Lessor was held liable for damage caused by its lessee: Dundas v. Muhlenberg's Executors, 35 Pa. 351, and Telford Coal Co. v. Prothero et aI., 24 Pa. D. & C. 183. The court below correctly determined that the facts in those cases were not applicable to the facts in this case. In the former case, this court, in an opinion by Chief Justice Lowrie, said: 'The charge of the court was in substance that, in order to entitle the plaintiff to recover against the defendants, it must appear, not only that they were landlords of Bittinger, who took out the coal, but also that they participated in the act of going into the plaintiffs' land to get it. We think this instruction is quite accurate, and is sustained by most familiar authorities.' This court said further: 'Such being the facts found by the jury [all italics supplied], the defendants are trespassers with Bittinger; * * * and, the tort being waived, may be sued in assumpsit for the value of the coal taken.' In the second case cited by appellant, which is a lower court case, the lessors actually supervised and directed the removal of the coal and were personally present when it was being removed. The court stated in * 380 that case: 'The mining operations were carried on under the directions of W. B. Prothero, and after his death under the directions of Harry B. Prothero. The engineer in charge during all the operations was L. R. Owen, who was acting for the lessors. One of the lessees testified that no map was ever furnished, but that the work was directed by the engineer and the Protheros. Harry B. Prothero was in the mine frequently when the plaintiffs coal was being mined.' The difference between the facts in those two cases and the facts in the case at bar obvious. The defendants in those cases participated directly in the torts. In the instant case there was no such participation. Mere collection of 'rents and royalties' as a part of the purchase price does not constitute a participation in the mining. [7] The allegations in plaintiffs statement of claim and which are quoted in paragraph two of this opinion as to defendants' mining and digging from plaintiffs land and 'aiding and abetting' the mining by the Wilson Coal Company would sufficiently plead a cause of action, were it not based (as we understand from the argument of appellant's counsel [FNl] it is based) on the lease itself, which lease is attached to plaintiffs statement. The language of the lease warrants no such conclusion, and therefore we must treat the allegation of defendants' 'mining and digging' coal and 'aiding and abetting their agent, the Wilson Coal Company' in doing so as mere legal conclusions and not as averments of facts. FNI. In appellant's paper book appears the following statements: 'The defendants acted in concert with the mining company in making the lease and in requiring accounting and payment of proceeds of mining. They not only requested or procured or incited their lessee to do the mining but put their lessee under legal obligation to them to mine the plaintiff's coal, and to pay them royalties thereon, and they received and retained the royalties. * * * The case is not at all one of non-participation, for the participation was as real and substantial and remunerative as if it had been physical.' * 3 81 Appellant cites section 158, 'Comment 1', p. 363, of Restatement of Torts. In this 'comment' it is set forth that 'if the actor * * 439 has commanded or requested a third person to enter land in the possession of another, the actor is responsible for the third person's entry if it be a trespasser.' It is self- evident that one who merely quit-claims his right, title and interest (if any) in land to another for a consideration does not come within the description of an actor who 'commands or requests' a third person to enter another's land. When A quit-claims to B he is not 'intentionally causing' B to commit a trespass on the land in respect to which A quit-claimed whatever title or interest (if any) he had. If B proceeds to exercise dominion over that land, he does so at his own peril, and if it is shown that A had no title or interest in the land he quit-claimed, B's quit-claim deed is no defense to an action of trespass nor does that deed make A a joint tort-feasor with B. In Robinson v. Vaughton & Southwick, 34 Eng.Com.Law Rep. 718, it was held that if A gives B leave to go on a field, in which A has no right and B goes there, this will not make A liable as a co- trespasser with B. In the case of Power v. Foley, Newfoundland Page 4 " PA-CS (Pennsylvania Cases) 12 A.2d 435 Date of Printing: Aug 27, 2005 Reports, 1897-1903, p. 540, the Supreme Court of Newfoundland held, in an opinion by Justice Emerson: 'A mere sale of property, to which a man has no title, does not of itself carry with it a cause of action against the seller, even though the purchaser subsequently trespasses on and converts the property to his own use. It must first be proved that the defendants actually took possession of the property in question, or exercised actual dominion over it, or delivered it to the trespassers in some other manner than by the mere delivery of a document purporting by its alleged construction to convey a title. In order to fasten a liability on defendants in this action for legal damage, * * * these defendants must have actually by themselves, or their agents or servants, wilfully trespassed upon the plaintiffs property, and taken * 3 8 2 down the house and converted the goods to their own use, or wrongfully deprived the plaintiff of them. Has this been proved?' This question was answered in the negative. The following cases were cited: England v. Cowley, L.R. 8 Ex. 126, and Owen v. Legh, 3 B. & Ald. 470. Appellant contends that the defendants were trespassers because they put the lessee 'under legal obligation to mine the plaintiff's coal.' This obligation arose, so it is argued, from the fact that the lessee 'covenanted and agreed to work the veins demised' continuously and to remove 'all the coal therefrom which can be mined by a diligent and energetic prosecution of the business.' [8] The answer to this contention is that the provision in the lease as to diligent mining is subject to the condition that the title of the lessors does not fail. The lease (as already noted herein) was expressly 'given and accepted subject to any failure of title to any part of said coal'. Failure of title to the coal ipso facto terminated the lessee's agreement to mine it. There is in the law the doctrine of 'frustration,' which holds that under the implied condition of the continuance of a contract's subject matter, the contract is dissolved when the subject matter is no longer available. In Nitro Powder Co. v. Agency of Canadian Car & Foundry Co., 233 N.Y. 294, 135 N.E. 507, 508, Judge Pound said: 'When people enter into a contract which is dependent for the possibility of its performance on the continual availability of a specific thing, and that availability comes to an end by reason of circumstances beyond the control of the parties, the contract is prima facie regarded as dissolved.' See also Clarksville Land Co. v. Harriman, 68 N.H. 374, 44 A. 527, and Howell v. Coupland, 1 Q. B. 258. In the leading English case of Tamplin Steamship Co., Ltd., v. Anglo-Mexican Pet. Products Co., Ltd., 2 A. C. 397, it is said at 403: 'A court can and ought to examine the contract and the circumstances in which it was made, not of course to vary, but only to explain it, in order to see * 3 8 3 whether or not, from the nature of it the parties must have made their bargain on the footing that a particular thing or state of things would continue to exist. And if they must have done so, then a term to that effect will be implied, though it be not expressed in the contract.' [9J In the lease now under review what the lessors said to the lessee, in effect, was this: 'We do not guarantee title to the coal we are quit-claiming. If the title proves to be good, you are obligated to mine the coal diligently,' etc. It was reasonably assumed that if the title failed, the owner of the coal would take appropriate action to stop its mining. The lease provisions quoted by appellant were not either commands, directions or incitements to commit trespasses upon another's property. These provisions were subject to the limitation **440 that when title failed the lease became inoperative. [1OJ Appellant also contends that because the defendants sent a mining engineer into the mine from time to time to inspect and report to the lessor on the mining operations, they 'aided and abetted and participated in the mining and digging out of the said coal as fully and effectually as they individually could have done had they been present in person.' In making this contention the appellant is asking this court to attribute to a well recognized custom in respect to mining 'leased' coal a legal significance the custom does not have. Lessors of coal, whose remuneration depends on the tonnage mined, are properly vigilant in seeing to it that none of the coal is wasted by reckless, unskilful mining and to this end they customarily reserve the right to inspect the workings either by themselves or by a competent mining engineer. That such a provision does not make the lessor a 'director' of the mining operation was expressly held by this court in Offerman v. Starr, 2 Pa. 394, 44 Am.Dec. 211, supra. In Miles v. Pennsylvania Coal Co., 217 Pa. 449, 66 A. 764, 10 Ann.Cas. 871, this court held that a provision giving the lessor the right to enter the workings for inspection of the * 3 84 mining 'does not change the character of the instrument', i. e., the coal lease. The case of McCloskey et al. v. Powell et al., 123 Pa. 62, 16 A. 420, 421, 10 Am.St.Rep. 512, cited by appellant, is easily distinguishable from the case at bar. In that case there was no quit-claim deed Page 5 r '. .. PA-CS (Pennsylvania Cases) 12 A.2d 435 Date of Printing: Aug27, 2005 involved. Certain dealers in cherry timber sent their agent, Ryder, into Elk County to purchase such timber. Ryder found two tracts of cherry timber supposedly owned by Powell. The latter promised to have his lines run. The line as run included a large part of the grove of cherry timber which Ryder wanted, but the true line excluded the whole of it. Powell advised Ryder that a survey had been made and the cherry found to be on his land. Powell then sold on a contract all the merchantable cherry, etc., timber standing on two tracts of land including '260 acres west of the true line'. The timber was removed under the contract and Powell was paid for it. The owners brought an action in trespass q. c. f. against Powell et al. At the trial the court below refused this request of plaintiffs: 'If the jury believe from the evidence that [the defendant] Powell procured the west line of his lands to be so run and marked as to include some two hundred and sixty acres of the land belonging to the plaintiffs, * * * and caused said line * * * to be pointed out as his line * * * [that] he Powell would be liable to the plaintiffs as a co- trespasser.' This court, in reversing the court below, said: '[Powell] caused the line to be pointed out, and said, in legal effect: 'This land is mine. These timber trees are mine. I will sell them to you, and you shall cut and remove them, and pay me ten dollars per thousand feet for the cherry as it now stands on the stump.' * * * The mistake was Powell's * * *. He sold what he did not own, and took pay for it. He put his vendees on the ground to cut the trees. By his contract he authorized and directed the work done under it. * * * The point should have been affirmed.' The difference between the facts in that case and those in this case are obvious. The judgment is affirmed. 338 Pa, 373, 12 A.2d 435, 127 A.L.R. 1008 END OF DOCUMENT Page 6 EXHIBIT E PA-CS (Pennsylvania Cases) 305 A.2d 723 (Cite as: 452 Pa. 388, 305 A.2d 723) 452 Pa. 388, 305 A.2d 723 Supreme Court of Pennsylvania. In re ESTATE of J. Walter BANES, Deceased. Appeal of Robert C. BANES. May 23, 1973. Rehearing Denied June 25, 1973. Decedent's son, a named successor trustee to decedent's testamentary trust and a remainder beneficiary to his estate, filed a petition to set aside the conveyance of a portion of a tract of land contained in the trust and to remove decedent's widow as trustee of the trust. The Orphans' Court Division, Common Pleas Court, Montgomery County, No. 68625, Alfred Taxis, Jr., J., dismissed the petition, and the son appealed. The Supreme Court, No. 55 January Term, 1973, Roberts, J., held that where decedent's will specifically prohibited his trustee from selling the trust realty as long as a certain lease of that property was operative, but lessee with an option to buy and the trustee, without court approval or notice to beneficiaries of the trust, sold a small portion of the tract to pay estate expenses after negotiating a release of the lessee's rights, the trustee had violated the intentions of the decedent to preserve the property for the ultimate benefit of the trust's beneficiaries, the purchaser of the tract sold was not a bona fide purchaser without knowledge of circumstances, and the sale should be set aside. Reversed and remanded. West Headnotes [ 1] Wills E;:::;:;>4 3 5 409k435 [1] Wills E;:::;:;>439 409k439 [1] Wills E;:::;:;>440 409k440 [1] Wills E;:::;:;>441 409k44 1 [1] Wills E;:::;:;>442 409k442 Testator's intent unless unlawful shall prevail, and shall be ascertained from consideration of language contained in will, scheme of distribution, Date of Printing: Aug 29, 2005 circumstances surrounding testator at time he made will, and existing facts; and canons of construction will be resorted to only if language of will is ambiguous or conflicting or testator's intent is for any reason uncertain. [2] Executors and Administrators E;:::;:;>327 162k327 Where decedent's will specifically forbade sale of trust realty as long as lease was operative, but lessee had option to purchase tract for very low sum if it were offered for sale, and decedent's will indicated intention to preserve value of tract for benefit of trust's beneficiaries, sale of small portion of tract by decedent's executrix trustee to pay expenses of administration and debts of estate required prior court approval. 20 P.S. ~~ 320.963, 3353. [3] Executors and Administrators E;:::;:;>339 162k339 Where decedent's will forbade sale of trust realty as long as lease remained operative and lessee could exercise option to buy, but executrix trustee nonetheless purported to sell portion of tract for $110,000 to pay debts amounting to less than $10,000, 75% of purchase price was paid to lessee for release of option, and remainder beneficiaries were neither given notice of sale nor afforded opportunity to pay debts or advance alternative plan to avoid sale, facts did not justify departure from terms of will nor court approval of purported sale. 20 P.S. S 320.963. [ 4] Executors and Administrators E;:::;:;>3 4 3 1 62k343 Before court orders sale of asset in estate in order to pay debts of estate or costs of administration, heirs should have opportunity of showing that claims are not well founded, or of paying just debts and avoiding sale. [5] Trusts E;:::;:;>231 (1) 390k23 1(1) (Formerly 390kl(1)) Test of forbidden self-dealing of fiduciary is whether he had personal interest in subject transaction of such substantial nature that it might have affected his judgment in material connection. [6] Trus~ ~231(1) 390k231(1) Where there is self-dealing on part of fiduciary, it is immaterial to question of liability whether he acted Page 1 " PA-CS (Pennsylvania Cases) 305 A.2d 723 without fraudulent intent or whether price received for sale of trust property was fair and adequate, since rule against self-dealing is not intended to be remedial of actual wrong, but preventive of possibility thereof. [7] Trusts €=;:;::>357(2) 390k357(2) Where purchaser of small tract of land from trustee of testamentary trust knew that will creating testamentary trust prohibited sale of property of which tract was a part, and that sale was made without court approval, it was not a bona fide purchaser for value, and sale made to pay expenses of administration and debts of estate could be set aside. [8] Executors and Administrators €=;:;::> 148 162k148 To be "bona fide purchaser" of realty from executrix trustee guilty of breach of trust in making sale, purchaser must have paid value therefor without knowledge of attendant circumstances constituting breach. [9] Trusts €=;:;::>167 390k167 Where, although trustee, who was also beneficiary and creditor of trust, breached her fiduciary duty in making sale of trust realty, she acted in good faith and in reliance upon competent counsel, court did not abuse discretion in refusing to remove her as trustee. **724 *390 Jules Pearlstine, Larry J. Schwartz, Pearls tine, Salkin, Hardiman, Robinson & Hunn, Lansdale, for appellant. Joseph E. Lastowka, Jr., Kassab, Cherry & Archbold, Chester, for appellee, Shell Oil Co. Philip D. Weiss, McTighe, Brown, Weiss, Bonner & Stewart, P.c., Norristown, for appellee, Inez M. Barnes, Trustee of Testamentary Trust. *389 Before JONES, C.J., and EAGEN, O'BRIEN, ROBERTS, POMEROY, NIX and MANDERINO, n. * 3 9 0 OPINION OF THE COURT ROBERTS, Justice. J. Walter Banes died on October 25, 1962, leaving a will which was duly probated. The will designated decedent's wife, Inez Banes, appellee, as trustee- executrix. Thereafter, the first and final account was filed on November 1, 1967, and adjudicated on May 28, 1968. Decedent's estate consisted primarily of a 22-acre tract of land located in Montgomery and Horsham Date of Printing: Aug 29, 2005 Townships. In 1950, decedent and his first wife, Reba Banes, leased the property[FN1] to the 309 Drive-In * * 7 2 5 Corporation. [FN2] The lease entitles the lessee to extend the terms of the lease until the year 2024. It further provides that '(i)n the event that the Lessors shall desire to sell the demised premises and to offer the said premises for sale, the Lessee shall have the first option to purchase the demised premises for the sum of Forty Thousand Dollars ($40,000).' FN I. A portion of the property immediately adjoining the residence was excluded from the lease. FN2. In June, 1969, the assets of the 309 Drive-In Corporation were transferred to V. C. Smith, the present lessee. * 391 Decedent's will conveyed this tract of hmd--as part of the residue-- to: '. . . my trustees hereinafter named, IN TRUST, to hold, invest and reinvest the same, to collect the income, and after paying all expenses incident to the management of the Trust, to pay the net income quarterly, or in other convenient installments, unto my wife, Inez M. Banes, as long as she shall live; and upon her death to pay the income annually on December Fifteenth to my surviving issue per stirpes, until twenty years following the death of the last surviving grandchild of mine who was living at the time of my death. Upon such termination, the principal of the Trust shall be divided per stirpes among my issue then living.' In March 1970, Inez Banes, without court approval or notice to the interested parties (decedent's children and grandchildren), negotiated the sale of approximately I 1/2 acres of the 22-acre tract of land in order to pay the estate's debts and administration expenses of $9,400. The trustee-executrix first obtained a release from the lessee as to the 1 1/2 acres and then sold the parcel to Shell Oil Company, appellee, for $110,000. Under the terms of the agreement the lessee received, after deduction for settlement expenses, 75% Of the proceeds ($75,000), while the estate received 25% Of the amount.[FN3] FN3. The agreement provided that there would be no reduction in the lessee's rent. The instant action was commenced in June, 1970, when appellant, Robert Banes, decedent's son--a named successor trustee and a remainder beneficiary-- filed a petition to set aside the conveyance and remove Inez Banes as trustee. Appellant urged in his petition that the decedent's will specifically prohibited the sale of the property. The orphans' Page 2 " PA-CS (Pennsylvania Cases) 305 A.2d 723 court, however, dismissed the petition. Exceptions were timely filed and on May *392 22, 1912, the court reaffirmed its determination denying the petition. This appeal followed and we reverse. [I] As this Court said in Pearson Estate, 442 Pa. In, 180,275 A.2d 336, 339 (1971) (quoting from Carter Estate, 435 Pa. 492, 496--497, 257 A.2d 843, 845 (1969)): "The law and the legal principles governing the interpretation of wills is well settled, but their application to poorly or ambiguously drawn wills (especially to holographic wills and lengthy testamentary trusts) is often difficult. The pertinent principles may be thus briefly summarized: A testator's intent, unless unlawful, shall prevail; that intent shall be ascertained from a consideration of (a) all the language contrained in his will, and (b) his scheme of distribution, and (c) the circumstances surrounding him at the time he made his will, and (d) the existing facts; and (e) canons of construction will be resorted to only if the language of the will is ambiguous or conflicting or the testator's intent is for any reason uncertain. ..." Accord, Benson Estate, 447 Pa. 62, 68, 285 A.2d 101, 104 (1971); Jessup Estate, 441 Pa. 365, 276 A.2d 499 (1970). Here, decedent's will grants the trustee the general power'. . . (i) (t)o sell at public or private sale, for cash or credit, with or without security, to exchange or to partition property and to give options for sales or exchanges.' However, paragraph * * 7 2 6 seventh expressly prohibits sale of the 22-acre leased premises while the lease remains 'operative.' That paragraph states: 'SEVENTH: I Direct that while a certain Lease to the 309 Drive-In Corporation, dated January 16, 1950, shall remain operative, my Trustee, or Trustees, shall not convey nor offer for sale my real estate situate in the Townships of Montgomery and Horsham, bounded on the Northwest by Evans Road, on the East by Bethlehem Pike, and on the South and Southwest by Welsh Road.' (Emphasis added.) * 3 9 3 The orphans' court held that paragraph seventh did not prohibit sale of the 1 1/2 acres and, thus, court approval was not required as provided in the Act of April 18, 1949, P.L. 512, art. IX, s 963, 20 P.S. s 320.963. [FN4] The court reasoned that since the lessee released his interest in the 1 1/2 acres, the lease was no longer 'operative' as to that parcel. Therefore, the court concluded, the trustee had authority, under her general powers, to sell the Date of Printing: Aug 29, 2005 property, despite paragraph seventh's prohibition. FN4. Section 963 provides: 'When the trustee is not authorized to do so by this act or is denied the power to do so by the trust instrument or when it is advisable: that the sale have the effect of a judicial sale, he may sell, for any purpose of administration or distribution, any real or personal property of the trust, at public or private sale, or may pledge, mortgage, lease, or exchange any such property, or grant an option for the sale, lease, or exchange of any such property, under order of the court, upon such terms and upon such security and after such notice as the court shall direct, whenever the court shall find that such sale, pledge, mortgage, lease, exchange, or option is for the best interests of the trust.' Act of April 18, 1949, P.L. 512, art. IX, s 963, 20 P.S. s 320.963 (footnote omitted). It should be noted that Section 963 has been repealed and replaced by Act of June 30, 1972, P.L. _n, No. 164, s 3353, 20 P.S. s 3353. We are unable to agree with this determination. The court properly stated: 'Decedent was obviously aware that if the trustee was to offer the real estate for sale, the option of the lessee would be thereby activated, in which case the lessee would have the right to buy the valuable asset for only $40,000. The restriction in the will was therefore to avoid activating lessee's option.' (Emphasis added.) [2] The court, however, failed to give effect to decedent's desire to avoid activating the lessee's option because he wanted to insure that the trust and its beneficiaries--rather than the lessee--received the full value of the * 3 9 4 property and the benefits of appreciation, if and when it was sold. Here, the trust received only one-fourth the value of the land. The remaining amount was paid to the lessee for release of his interest in the I 1/2 acre portion of the property. Paragraph seventh was clearly designed to avoid such a result. We must conclude that the will prohibits sale of any of the 22 acres while the lease remains 'operative' as to any portion of the property. To hold otherwise would divert the major pOltion of the proceeds of the sale from the trust to the lessee-- as payment for his release--and, thus, defeat decedent's testamentary intention and scheme of distribution. Since, as we have concluded, the terms of the trust instrument deny the trustee the power to sell the property, court approval is required prior to sale. Act of April 18, 1949, P.L. 512, art. IX, s 963, 20 P.S. s 320.963. [FN5] The court, relying on Mintz Trust, 444 Pa. 189,282 A.2d 295 (1971), stated that Page 3 " PA-CS (Pennsylvania Cases) 305 A.2d 723 'even assuming there was a deviation from the will', it would now, two years after the sale, approve the sale nunc pro tunc. FN5. Id. * * 7 27 In Mintz Trust, supra at 201, 282 A.2d at 301, we said: 'Furthermore, it is well established that an orphans' court possesses the power to approve a deviation from the express terms of a trust nunc pro tunc, if it reviews the subject as if the question had been presented to the court at the time the investments were made. See Henry's Estate, 341 Pa. 439, 444, 19 A.2d 66, 69 (1941); Restatement (Second) of Trusts s 167, comments e, f (1959).' [3][4] We hold, however, that the facts here do not justify a departure from the express terms of the decedent's will. The trustee sold a piece of property worth $110,000 to pay debts amounting to less than $10,000. The interested parties were neither given notice of the March, 1970, sale nor afforded an opportunity to pay * 395 the debts or advance alternative action and, thus, avoid a sale. 'The heirs should have the opportunity of showing that claims are not well founded, or to pay just debts and avoid a sale. Where the indebtedness is denied, it must be duly established before any order of sale is made: . . .' 5 Hunter, Pennsylvania Orphans' Court Commonplace Book, Sales of Real Estate by Order of Court s 3(b) at 288 (1959). See also Noonan Estate, 163 Pa.Super. 70, 60 A.2d 374 (1948), affd, 361 Pa. 26, 63 A.2d 80 (1949). [5] Moreover, appellee, Inez Banes, was in the conflicting positions of trustee, beneficiary, and creditor. Without notice to the other interested parties or court approval, she sold the property for the purpose of satisfying a debt which the estate owed to her. [FN6] In Noonan Estate, 361 Pa. 26, 31,63 A.2d 80, 83 (1949), this Court stated: FN6. The record does not reveal whether Inez Banes requested payment from the estate during the two years after the final account and prior to the sale of the property. 'The test of forbidden self-dealing is whether the fiduciary had a personal interest in the subject transaction of such a substantial nature that it Might have affected his judgment in material connection. Downing Estate, supra, (162 Pa.Super. 354) at p. 359, (57 A.2d 710,) citing Scott on Trusts, Vol. 2, s 170.12, p. 877, and Restatement, Trusts, s 170(1), Comment h.' (Emphasis in original.) Date of Printing: Aug 29, 2005 [6] Here, there is no affirmative showing that the trustee-creditor acted in bad faith or with fraudulent intent. But, as the Court said in Noonan Estate: 'Where there is self-dealing on the part of a fiduciary, it is immaterial to the question of his liability in the premises whether he acted without fraudulent intent or whether the price received for his sale of trust property was fair and adequate: see Tracy v. Central Trust Company, 327 Pa. 77, 79, 192 A. 869, citing Everhart v. Searle, 71 Pa. 256, 260, where the following was approvingly * 3 9 6 quoted from Hare and Wallace's Notes, 1 Lead. Cases in Eq., p. 210,--'It matters not that there was no fraud meditated and no injury done; The rule (forbidding self-dealing) is not intended to be remedial of actual wrong, but preventive of the possibility of it." Id. at 32, 63 A.2d at 84 (emphasis added). See also Comerford Estate, 388 Pa, 278, 130 A.2d 458 (1957) , Restatement, Second, Trusts s 170 (1959). [7] [8] Finally, we note that appellee, Shell Oil Company, having purchased the property in March, 1970--prior to court approval--with complete knowledge of paragraph seventh's prohibition, is not a bona fide purchaser for value. 'To be such, (it) must have paid value for the property Without knowledge of the attendant circumstances constituting the executor's breaches.' Noonan Estate, supra, 361 Pa. at 33, 63 A.2d at 84 (emphasis added). * * 728 'If the trustee in breach of trust transfers trust property to a person who takes with notice of the breach of trust, the transferee does not hold the property free of the trust, although he paid value for the transfer.' Restatement, Second, Trusts s 288 (1959). [9] It must be concluded that the court erred in failing to set aside the conveyance. However, since appellate, Inez Banes, acted in good faith and in reliance upon competent counsel, we find no abuse of discretion in the court's refusal to remove her as trustee. See Mintz Trust, supra, 444 Pa. at 200-- 201,282 A.2d at 301. Decree of the orphans' court approving the March, 1970, conveyance, is reversed and the record remanded for proceedings consistent with this opinion. Each party pay own costs. 452 Pa. 388, 305 A.2d 723 END OF DOCUMENT Page 4 EXHIBIT F " BjZ1/4,r:" CHARLES E. SHIELDS, III ATTORNEY-AT-LA W 6 CLOUSER ROAD Corner ofTrindle and Clouser Roads MECHANICSBURG, PA 17055 GEORGE M. HOUCK (1912-1991) TELEPHONE (717) 766-0209 FAX (717) 795-7473 August 29,2005 Mr. Thomas A. Hamilton, Esq. 4132 Willingham Court Keller, TX 76248 By 1 st Class Mailing with Certificate of Mailing Re: Revocable Real Property Trust, Joseph and Janet DeAngelis, Trustees Dear Mr. Hamilton: Please be advised that I represent Joseph and Janet DeAngelis, of 420 Kent Drive, Mechanicsburg, PA 17055. I am trying to locate the Thomas A. Hamilton who formerly practiced law in the Harrisburg area circa 1994. If you are not the same Thomas A. Hamilton, would you be so kind as to so advise me. I have provided a self-addressed stamped envelope for your convemence. If you are the same Thomas A. Hamilton, I write to try to obtain information regarding a Revocable Real Property Trust, which was evidently prepared by you and dated December 17, 1994. A quitclaim deed was subsequently made from Mr. and Mrs. DeAngelis to themselves as Trustees. Since that time, as a result of actions taken some years later, a cloud on title has arisen. In the process of checking their entire title back to their own purchase deed of 1976, I inquired as to whether they have a copy of the Trust document. I inquired because we need to be able to show or to at least provide an Affidavit that the Trust document contained no limitations or restrictions on the general power and ability of a Trustee to sell real estate. All the title companies I have checked with regard the lack of a true copy of the Trust document as a potential problem in that there is no fully satisfactory way to prove there was no limitation or restriction on the power of sale. Accordingly, they will not insure any conveyance from the Trustees. Mr. and Mrs. DeAngelis do not have a copy of the Trust document, cannot remember ever having one, and do not remember anything as to whether any file copies might still exist. Mr. and Mrs. DeAngelis said they think they retained your services through a seminar put on at Harrisburg Area Community College. If you do not know where there might be a copy, are you in a position to make an Affidavit that the Trusts prepared by you at this time period typically used standard language, did not contain any limitations or restrictions on the sale power of the Trustees and that it is highly unlikely or virtually a sure thing that the Trust document in question would likewise contain no such limitations or restrictions. Any help you can provide would be most sincerely appreciated. " Mr. Thomas A. Hamilton, Esq. August 29,2005 Page 2 Also, as a personal professional question, do you know why quitclaim deeds are often used with transfers into trusts rather than a standard grant and conveyance? Thank you for your kind attention to this matter. It is most sincerely appreciated. Very truly yours, ~~~ Charles E. Shields III Attorney-At-Law CES/mjj " !Je~j U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAil, DOES NOT PROVIDE FOR INSURANCE - POSTMASTER pr; AN6l IS Received From: Affix fee here in stamps or meter postage and post mark. Inquire of Postmaster for current III j1 I I 17055 PS Form 3817, Mar. 1989 '. Tue, Sep 6, 2005 3:02 PM Subject: Affidavit Date: Tuesday, September 6, 2005 3: 02 PM From: Charles Shields III <beamercs@epix.net> To: <teamhamilton@lscom.net> Dear Mr. Hamilton, Per our discussion on September 2, 2005, attached is a draft affidavit for your review. Please let me know if you should have any changes that need to be made. Thank you for your kind assistance in this matter. Very truly yours, Charles E. Shields, III Page 1 of 1 I " fJa~' . 9/27/bf Subject: Re: Affidavit Date: Tuesday, September 27,2005 2:17 PM From: TOM AND MICHELLE HAMILTON <teamhamilton@1scom,net> To: Charles Shields III <beamercs@epix.net> Charles, I made the necessary minor changes and I am sending the signed origincal to you this week. Regards , Tom Thomas A. Hamilton, Esq. 4132 Willingham Court Keller, Texas 76248 817-741-1589 ----- Original Message From: "Charles Shields III" <beamercs@epix.net> To: <teamhamilton@lscom.net> Sent: Tuesday, September 06, 2005 2:04 PM Subject: Affidavit > Dear Mr. Hamilton, > > Per our discussion on September 2, 2005, attached is a draft affidavit for > your review. Please let me know if you should have any changes that need > to > be made. > > Thank you for your kind assistance in this matter. > > Very truly yours, > Charles E. Shields, III > > Page 1 of 1 " a~. . r/271"~ Subject: Re: Affidavit Date: Tuesday, September 27, 2005 4:46 PM From: Charles Shields <beamercs@epix.net> To: TOM AND MICHELLE HAMILTON <teamhamilton@lscom.net> > Charles, > > I made the necessary minor changes and I am sending the signed origincal to > you this week. > > Regards, > > Tom > > > Thomas A. Hamilton, Esq. > 4132 Willingham Court > Keller, Texas 76248 > 817-741-1589 > ----- Original Message > From: "Charles Shields III" <beamercs@epix.net> > To: <teamhamilton@lscom.net> > Sent: Tuesday, September 06, 2005 2:04 PM > Subject: Affidavit > > >> Dear Mr. Hamilton, >> >> Per our discussion on September 2, 2005, attached is a draft affidavit for >> your review. Please let me know if you should have any changes that need >> to >> be made. >> >> Thank you for your kind assistance in this matter. >> >> Very truly yours, >> Charles E. Shields, III >> >> > > Great. Thank you very much. Your kind help is most sincerely appreciated. Chas. Shields III. Page 1 of 1 " lS/31/tI};- Thu, Nov 17,2005 2:02 PM Subject: Affidavit re: DeAngelis Trust Date: Monday, October 31, 2005 4:56 PM From: Charles Shields III <beamercs@epix.net> To: "teamhamilton@lscom.net" <teamhamilton@lscom.net> Conversation: Affidavit re: DeAngelis Trust Dear Mr. Hamilton, As of this date, we have not received your Affidavit in the office with regard to the above-mentioned client. Kindly send your Affidavit to my office as soon as possible as we would like to finalize all documents pertaining to the DeAngelis Estate Planning. Should you have any questions or concerns, please call (717) 766-0209 or email me. Thank you for your kind assistance in this matter. Very truly yours, Charles E. Shields, III Page 1 of 1 I " 11//7 /8S' Thu, Nov 1?, 2005 2:02 PM Subject: DeAngelis Family Trust Date: Thursday, November 17, 2005 1: 58 PM From: Charles Shields III <beamercs@epix.net> To: "teamhamilton@lscom.net" <teamhamilton@lscom.net> Conversation: DeAngelis Family Trust Dear Mr. Hamilton: We are ready to file the Petition of which we spoke. To date, have not received your Affidavit as previously discussed. Please advise as to when we may receive it. from your office. Thank you for your kind assistance and cooperation regarding this matter. Very truly yours, Charles E. Shields, III Page 1 of 1 , . ~~t& j 1'/I'1/"r Subject: Re: DeAngelis Family Trust Date: Thursday, November 17, 2005 2: 12 PM From: TOM AND MICHELLE HAMILTON <teamhamilton@1scom,net> To: Charles Shields III <beamercs@epix,net> I believe I sent that to you about a month ago. I will confirm and get back to you. Regards, Tom Original Message -____ From: "Charles Shields III" <beamercs@epix.net> To: <teamhamilton@lscom.net> Sent: Thursday, November 17, 2005 12:58 PM Subject: DeAngelis Family Trust > Dear Mr. Hamilton: > > We are ready to file the Petition of which we spoke. To date, have not > received your Affidavit as previously discussed. Please advise as to when > we may receive it from your office. > > Thank you for your kind assistance and cooperation regarding this matter. > > Very truly yours, > Charles E. Shields, III > > > Page 1 of 1 " Please Note: If the Court would like copies of counsel's notes of telephone conversations between Charles E. Shields, III, Esquire and Thomas A. Hamilton, Esquire, please advise as we can make these readily available. EXHIBIT G I AFFIDA VIr REGARDING THE TERMS AND CONDITIONS OF A LOST REVOCABLE REAL PROPERTY TRUST I, THOMAS A. HAMIL TON, ESQ., being duly sworn according to law, depose and saith as follows, to wit: 1. I am currently a member in good standing of the Bar of the State of Texas and have an address of 4132 Willingham Court, Keller, Texas 76248. 2. In and during the years 1994 and 1995 I was a member in good standing of the Bar of the Commonwealth of Pennsylvania. 3. In or about the Fall of 1994 I put on a seminar at Harrisburg Area Community College regarding the use of living trusts as part of estate planning, tax planning, and estate settlement packages available to clients and potential clients. 4. As a result of said Seminar, upon information and belief provided to me by a recital in the hereinafter mentioned deed, I prepared a Revocable Living Trust commonly called and referred to as THE DeANGELIS REVOCABLE REAL PROPERTY TRUST with JOSEPH B. DeANGELIS and JANET DeANGELIS, his wife, as the Trustees thereof. 5. Further, upon such information and belief, the said Trust was executed on the 17th day of December, 1994. 6. Upon information and belief, in or about the month of May, 1995, I prepared a quit- claim deed by which JOSEPH B. DeANGELIS and JANET DeANGELIS, his wife, as Releasors, released and forever quit-claimed to themselves, as Trustees of the aforesaid Trust, all right. title, interest, claim and demand which they had in their residential property located at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania. 7. The aforesaid quit-claim deed was dated May 10, 1995 and was recorded by me in the Office of the Recorder of Deeds in and for Cumberland County on June 8, 1995 in Deed Book 123, Page 312. I have no independent recollection of this recording in particular. Rather, the information and belief related hereto is provided by the public records including the Recorder's day book which indicates the instrument was delivered by me. 8. According to then standard procedures, a copy of the said Trust would have been provided along with the deed for the purpose of review by the Pennsylvania Department of Revenue for the purpose of making a determination as to the applicability or lack thereof of realty transfer tax. 9. Upon information and belief provided to me by Charles E. Shields, III, Esq., a member in good standing of the Bar of the Commonwealth of Pennsylvania, the Department of Revenue shredded their copy of the said Trust some years ago and Mr. & Mrs. DeAngelis have no copy of the said Trust. I " 10. Further, upon information and belief provided to me by Mr. Shields, a copy of this Trust is needed to prevent or to remove a cloud on the title in that something is needed to show of record that said Trust contained no restrictions or limitations upon the general right of the Trustees to freely alien, sell, grant, convey, or otherwise transfer the ownership of the real property within the said Trust. 11. I have searched my files and have found no copy of the said Trust. 12. I can state and say unequivocally that, although I have no particular or special recollection of this particular Trust or of the contents thereof, my standard and routine procedure regarding the preparation of such Trusts as referred to herein in and during the year 1994 was to prepare a fully discretionary trust that allowed for and permitted total power in the Settlors during their lifetimes of revocation and amendment. These trusts further provided for full and absolute powers in the Trustees to sell, grant, convey~ or otherwise transfer all rights, titles, and interests in and to real property held by them in their capacities as Trustees. I am therefore certain that this particular Trust would not have contained any restrictions or limitations or the general power of Trustees to sell, grant, conveyor otherwise transfer all rights, titles, and interests in and to real property. Deponent further saith not: IN WITNESS WHEREOF, I, THOMAS A HAMIL TON, affix my hand and seal this day of A.D. 2005. THOMAS A. HAMIL TON (Seal) IN WITNESS WHEREOF, the said THOMAS A. HAMIL TON, has appeared before me, a Notary Public in Tarrant County, in and for the State of Texas, has been duly sworn and has verified to me the above stated contents of this affidavit. Accordingly, I have signed as a Notary Public in and for said state and have affixed my seal hereto. NOTARY PUBLIC EXHIBIT H . . " THE DeANGELIS FAMILY IRREVOCABLE TRUST THIS TRUST AGREEMENT is executed in triplicate on this 26th day of April, 2000, by and between JOSEPH B. DeANGELIS and JANET DeANGELIS, now of 420 Kent Drive, Mechanicsburg, Cumberland County, Pennsylvania 17055 (herein called "Settlors" or "Co-Settlors") and JOSEPH B. DeANGELIS and JANET DeANGELIS, nowof420 Kent Drive, Mechanicsburg, Cumberland County, Pennsylvania 17055 (herein called "Trustees" or "Co-Trustees"). ARTICLE I. TRUST ESTATE 1.01. Initial Principal. Settlors, desiring to establish an irrevocable trust, do hereby irrevocably transfer, assign and deliver to the Trustees and their successors, and assigns the assets listed on Schedule A, attached hereto and made a part hereof As further evidence of such assignment, the Settlors have executed or will execute or cause to be executed such other instruments as may be required for the purposes of completing the assignment or transfer of title to such property to the Trustees. The Trustees accept such transfer and assignment to themselves as Trustees, and undertake to hold, manage, invest and reinvest the assets of this Trust, and to distribute the income and principal of the Trust in accordance with the provisions of this Agreement. 1.02. Additional Principal. The Settlors and any other person or persons, with the consent of the Trustees, shall have the right at any time to make additions to the corpus of this Trust or any share thereof hereby established. All such additions shall be held, governed, and distributed by the Trustees in accordance with the terms and conditions of this Agreement. The Trustee, in its sole discretion, may require, as a prerequisite to accepting property, that the transferring party provide evidence satisfactory to the Trustee that (i) the property is not contaminated by any hazardous or toxic materials or substances; and (ii) the property is not being used and has never been used for any activities directly or indirectly involving the generation, use, treatment, storage, disposal, release or discharge of any hazardous or toxic materials or substances. 1.03. Disclaimer. The Trustee shall have the right to disclaim, in whole or in part, prior to its acceptance by the Trustee, any interests in property for any reason, including but not limited to a concern that such property could cause potential liability under any federal, state, or local environmental law. ARTICLE II. IRREVOCABILITY OF TRUST 2.01. Irrevocability. Settlors have been advised of the consequences ofan irrevocable trust and hereby declare that this Trust shall be irrevocable and shall not be altered, amended, revoked, or terminated by Settlors or any other person or persons. '. ARTICLE III. LIFE INSURANCE POLICIES 3.01. General Provisions. If any insurance policies are transferred into this Trust, the Trustees shall be vested with all right, title, and interest in and to the transferred policies of insurance, and are authorized and empowered to exercise and enjoy, for the purposes ofthe Trust herein created and as absolute owner of such policies of insurance, all the options, benefits, rights and privileges under such policies, including the right to borrow upon and to pledge them for a loan or loans. The Trustees take all rights, title, and interest in and to the above stated insurance policies subject to any prior split-dollar life insurance agreement and assignments, which may be in effect at the time of transfer. The insurance companies which have issued policies are hereby authorized and directed to recognize the Trustees as absolute owners of such policies of insurance and as fully entitled to all options, rights, privileges, and interests under such policies, and any receipts, releases, and other instruments executed by the Trustees in connection with such policies shall be binding upon all persons interested in this Trust. The Settlors hereby relinquish all rights, title, interest and powers in such policies of insurance which Settlors may own and which rights, title, interest and powers are not assignable, and will, at the request of the Trustees, execute all other instruments reasonably required to effectuate this relinquishment. 3.02. Payment of Premiums. The Trustees shall be under no obligation to pay the premiums which may become due and payable under the provisions of any policy of insurance which may be transferred or assigned to this Trust, or to make certain that such premiums are paid by the transferor of such policy, or to notify any persons of the nonpayment of such premiums, and the Trustees shall be under no responsibility or liability of any kind in case such premiums are not paid, except the Trustees shall apply any dividends received on such policies to the payment of premiums thereon. Upon notice at any time during the continuance of this Trust that the premiums due upon such policies are in default, or that premiums which will become due will not be paid, either by the transferor or by any other person, the Trustees, within their sole discretion, may apply any cash values attributable to such policy to the purchase of paid-up insurance or of extended insurance, or may borrow upon such policy for the payment of premiums due thereon, or may accept the cash values of such policy upon the policy's forfeiture. In the event that the Trustees receive the cash value of such policy upon its forfeiture for nonpayment of premiums, the amount received shaH be added to the corpus of this Trust, and shall be administered according to the terms of this Agreement. If the insured under such policies of insurance, becomes totally and permanently disabled within the meaning of any policies and because thereof the payment of premiums, or any of them, shaH during the pendency of such disability, be waived, the Trustees, upon receipt of such knowledge, shall promptly notify the insurance company which has issued such policies, and shall take any and all steps necessary to make such waiver of premium provision effective. 3.03. Duties of Trustees With Re~ard to Life Insurance Policies. The Trustees shall be under no obligation or duty whatever except with respect to the safekeeping of such policies of insurance and the duty to receive such sums as may be paid to them, in accordance with the requirements of this Trust, by the companies issuing such policies, and to hold, manage and disburse such proceeds subject to the terms of this Agreement. Upon the death of the insured, the Trustees 2 " shall make reasonable efforts to carry out the provisions of this Agreement, including the maintenance or defense of any suit, provided, however, the Trustees shall be under no duty to maintain or enter into any litigation unless its expenses, including counsel fees and costs, have been advanced or guaranteed in an amount and in a manner reasonably satisfactory to the Trustees. The Trustees may repay any advances made by them or reimburse themselves for any such fees and costs from any corpus or income of this Trust. ARTICLE IV. TRUST DISTRIBUTIONS 4.01. Trust Princioal. The entire corpus of this Trust, including the assets initially transferred to this Trust, subsequent additions to this Trust, and the proceeds of any sale, exchange or investment of such Trust assets, shall be used for the purposes herein contained. 4.02. Income Distribution. During the Settlors' lifetimes, the Trustees shall distribute all of the net income of the trust to, or for the benefit of, JOSEPH B. DeANGELIS and JANET DeANGELIS, for and during the remainder of their lives, and the Trustees shall distribute all of the net income of the Trust to, or for the benefit of, the survivor of them during the survivor's lifetime, provided that ifeither JOSEPH B. DeANGELIS or JANET DeANGELIS should be admitted into a long-term care facility for a period of time greater than thirty (30) days, then the Trustees shall distribute all of the net income of the trust to, or for the benefit of, JOSEPH B. DeANGELIS or JANET DeANGELIS, whichever of them is not residing in a long-term care facility. In the event both JOSEPH B. DeANGELIS and JANET DeANGELIS should be residing in a long-term care facility for a period of time greater than thirty (30) days, the Trustees shall discontinue distribution of all income to both of them, and shall accumulate any and all of the net income of the trust, and shall add such net income to the principal of the trust. The Trustees shall make no distribution of principal to, or for the benefit of, the Settlors. 4.03. Princioal Distributions. Upon the death of both Settlors, the Trust shall terminate. Upon termination, the remaining trust estate shall be distributed to the Settlors' children, in equal shares, per stirpes. 4.04. General Power of Appointment. Settlors' children, GREGORY B. DeANGELIS, TODD A. DeANGELIS, DREW J. DeANGELIS, JODI D. DeANGELIS and TARAL YN J. BRADLEY, are hereby granted the general power to jointly appoint some or all of the principal of this Trust to themselves, their estates, their creditors, the creditors of their estate, in such proportions and upon such terms (in trust, outright gifts, or in any other manner) as they shall deem advisable, provided that this power shall not be exercisable under their Wills and that this power shall only be exercisable by a majority of the Settlors' then-living children. If the Settlors' children, GREGORY B. DeANGELIS, TODD A. DeANGELIS, DREW J. DeANGELIS, JODI D. DeANGELIS and TARALYN J. BRADLEY fail, either in whole or in part, to exercise this general power of appointment herein granted, the unappointed principal shall continue in trust and shall be administered according to the terms of this Trust. 3 , " ARTICLE V, POWERS OF TRUSTEES 5,01. General powers. In addition to such other powers and duties as may have been granted elsewhere in this Trust, but subject to any limitations contained elsewhere in this Trust, the Trustees shalJ have the following powers and duties: A. In the management, care and disposition of this Trust, the Trustees shall have the power to do all things and to execute such deeds, instruments, and other documents as may be deemed necessary and proper, including the following powers, all of which may be exercised without order of or report to any court: ( 1 ) To selJ, exchange, or otherwise dispose of any property, real, personal or mixed, wheresoever located, at any time held or acquired hereunder, at public or private sale, for cash or on terms as may be determined by the Trustees, without advertisement, including the right to lease for any term notwithstanding the period of the Trust, and to grant options, including an option for a period beyond the duration of the Trust. (2) To invest all monies in such stocks, bonds, secuntles, investment companies or trust shares, mortgages, notes, choses in action, real estate, improvements thereon, and other property as the Trustees may deem best, without regard to any law now or hereafter in force limiting investments of fiduciaries; except that the Trustees may not invest in any stock or securities issued by the corporate Trustee or issued by a parent or affiliate company of such Trustee. (3) To retain for investment any property deposited with the Trustees hereunder; except that the Trustees may not retain for investment any stock or securities in the corporate Trustee or in a parent or affiliate company of such Trustee. (4) To vote in person or by proxy any Corporate stock or other security and to agree to or take any other action in regard to any reorganization, merger, consolidation, liquidation, bankruptcy or other procedure or proceedings affecting any stock, bond, note or other security held by this Trust. (5) To use lawyers, real estate brokers, accountants and any other agents, if such employment is deemed necessary or desirable, and to pay reasonable compensation for their services. (6) To compromise, settle or adjust any claim or demand by or against the Trust and to agree to any rescission or modification of any contact or agreement affecting the Trust. 4 , '. (7) To renew any indebtedness, as well as to borrow money, and to secure the same by mortgaging, pledging or conveying any property of the Trust, including the power to borrow from the Trustees (in the Trustees' individual capacity) at a reasonable rate of interest. (8) To retain any business interest transferred to the trustee, as shareholder, security holder, creditor, partner or otherwise, for any period of time whatsoever, even though the interest may constitute all or a large portion of the trust principal; to comply with the provisions of any agreement restricting transfer of the interest; to participate in the conduct of the related business or rely upon others to do so, and to take or delegate to others discretionary power to take any action with respect to its management and affairs which an individual could take as outright owner of the business or the business interest, including the voting of stock (by separate trust or otherwise regardless of whether that separate trust will extend for a term within or beyond the term of the trust) and the determination of all questions of policy; to execute and amend partnership agreements; to participate in any incorporation., reorganization, merger, consolidation, sale of assets, recapitalization, liquidation or dissolution of the business, or any change in its nature, or in any buy-sell, stock restriction, or stock redemption agreements; to invest in additional stock or securities of, or make secured, unsecured, or subordinated loans to, the business with trust funds; to take all appropriate actions to prevent identify, or respond to actual or threatened violations of any environmental law or regulation thereunder; to elect or employ with compensation, as directors, officers, employees, or agents of the business, any persons, including a trustee of any trust held under this instrument, or any director, officer, employee, or agent of a corporate trustee of any trust held under this instrument, without adversely affecting the compensation to which that trustee would otherwise be entitled; to rely upon reports of certified public accountants as to the operations and financial condition of the business, without independent investigation; to deal with and act for the business in any capacity (including in the case of a corporate trustee any banking or trust capacity and the loaning of money out of the trustee's own funds) and to be compensated therefor; and to sell or liquidate the business or any interest in the business. (9) To register any stock, bond or other security in the name of a nominee, without the addition of words indicating that such security is held in a fiduciary capacity, but accurate records shall be maintained showing that the stock, bond or other security is a trust asset and the Trustees shall be responsible for the acts of the nommee. (10) To merge this Trust with any other trust created in my Will or otherwise, with similar provisions and purposes and the same beneficiary or beneficiaries, but only to the extent that the merger of the trusts will not cause the imposition of gift tax or generation-skipping tax, federal or otherwise. 5 , " (l I) To set aside as a separate trust, to be held and administered upon the same terms as those governing the remaining trust property, any interests in property, for any reason, including but not limited to a concern that such property could cause potential liability under any federal, state, or local environmental law. B. Whenever the Trustees are directed to distribute any trust principal in fee simple to a person who is then under twenty-one (21) years of age, the Trustees shall be authorized to hold such property in trust for such person until he becomes twenty-one (2 I ) years of age, and in the meantime shall use such part of the income and the principal of the trust as the Trustees may deem necessary to provide for the proper support and education of such person in the standard ofliving to which he has become accustomed. If such person should die before becoming twenty-one (21) years of age, the property then remaining in trust shall be distributed to the personal representative of such person's estate. C. In making distributions from the Trust to or for the benefit of any minor or other person under a legal disability, the Trustees need not require the appointment of a guardian, but shall be authorized to payor deliver the distribution to the custodian of such person, to payor deliver the distribution to such person without the intervention of a guardian, to payor deliver the distribution to the legal guardian of such person if a guardian has already been appointed, or to use the distribution for the benefit of such person. D. In the distribution of the Trust and any division into separate trusts and shares, the Trustees shall be authorized to make the distribution and division in money or in kind or in both, regardless of the basis for income tax purposes of any property distributed or divided in kind, and the distribution and division made and the values established by the Trustees shall be binding and conclusive on all persons taking hereunder. The Trustees may in making such distribution or division allot undivided interests in the same property to several trusts or shares. E. I f at any time after Settlors' death the total fair market value of the assets of any trust established or to be established hereunder is so small that the corporate Trustee's annual fee for administering the trust would be equal to or less that the minimum annual fee set forth in the Trustee's regularly published fee schedule, then the Trustee in its discretion shall be authorized to terminate such trust or to decide not to establish such trust, and in such event the property then held in or to be distributed to such trust shall be distributed to the persons who are then or would be entitled to the income of such trust. If the amount of income to be received by such persons is to be determined in the discretion of the Trustee, then the Trustee shall distribute the property among such of the persons to whom the Trustee is authorized to distribute income, and in such proportions, as the Trustee in its discretion shall determine. F. The Trustees shall be authorized to lend or borrow, including the right to lend to or borrow from the Settlors' estate, at an adequate rate of interest and with adequate security and upon such terms and conditions as the Trustees shall deem fair and equitable. 6 I " G. The Trustees shall be authorized to sell or purchase, at the fair market value as determined by the Trustees, any property to or from Settlors' estate, the estate of Settlor's spouse, or any trust created by Settlor or Settlor's spouse during life or by will, even though the same person or corporation may be acting as executor of Settlor's estate or the estate of Settlor's spouse or as trustee of any other such trusts and as the Trustees of this Trust. H. The Trustees shall have discretion to determine whether items should be charged or credited to income or principal or allocated between income and principal as the Trustees may deem equitable and fair under all the circumstances, including the power to amortize or fail to amortize any part or all of any premium or discount, to treat any part or all of the profit resulting from the maturity or sale of any asset, whether purchased at a premium or at a discount, as income or principal or apportion the same between income and principal, to apportion the sales price of any asset between income and principal, to treat any dividend or other distribution on any investment as income or principal or to apportion the same between income or principal, to charge any expense against income or principal or apportion the same, and to provide or fail to provide a reasonable reserve against depreciation or obsolescence on any asset subject to depreciation or obsolescence, all as the Trustees may reasonably deem equitable and just under all of the circumstances. I. The Trustees are hereby authorized and empowered to purchase such insurance policies as they deem appropriate. 5.02. V otin!! bv Trustees. When the authority and power under this Trust is vested in two (2) or more Trustees or Co- Trustees, the authority and power under this Trust or granted by law shall be vested in, and exercised by, each of the Trustees individually or all of the Trustees jointly, such that each Trustee may act independently, or the trustees may act jointly, in the administration or under the terms of the Trust agreement. 5.03. Trustees Power to Deal with Environmental Hazards. The Trustee shall have the power to use and expend the trust income and principal to (i) conduct environmental assessments, audits, and site monitoring to determine compliance with any environmental law or regulation thereunder; (ii) take all appropriate remedial action to contain, clean up or remove any environmental hazard including a spill, release, discharge or contamination, either on its own accord or in response to an actual or threatened violation of any environmental law or regulation thereunder; (iii) institute legal proceedings concerning environmental hazards or contest or settle legal proceedings brought by any local, state, or federal agency concerned with environmental compliance, or by a private litigant; (iv) comply with any local, state or federal agency order or court order directing an assessment, abatement or cleanup of any environmental hazards; and (v) employ agents, consultants and legal counsel to assist or perform the above undertakings or actions. Any expenses incurred by the trustee under this paragraph may be charged against income or principal as the trustee shall determine. 7 .. " ARTICLE VI. SPENDTHRIFT PROVISION 6.01. General Provision. No beneficiary shall have the power to anticipate, encumber or transfer his interest in the Trust Estate in any manner other than by the valid exercise ofa Power of Appointment. No part of the Trust Estate shall be liable for or charged with any debts, contacts, liabilities or torts of a beneficiary or subject to seizure or other process by any creditor of a beneficiary. ARTICLE VII. CONSTRUCTION OF TRUST 7.01. Choice of Law. This Trust shall be administered and interpreted in accordance with the laws of the Commonwealth of Pennsylvania. 7.02. Code. Unless otherwise stated, all references in this Trust to section and chapter numbers are to those of the Internal Revenue Code of] 986, as amended, or corresponding provisions of any subsequent federal tax laws applicable to this Trust. 7.03, Other Terms. Unless the context otherwise requires, the use of one or more genders in the text includes all other genders, and the use of either the singular or the plural in the text includes both the singular and the plural. 7.04. CaDtions, The captions set forth in this Agreement at the beginning of the various divisions hereof are for convenience of reference only and shall not be deemed to define or limit the provisions hereof or to affect in any way their construction and application. 7.05. Situs of Trust. The Trust shall have its legal situs in Cumberland County, Pennsylvania. ARTICLE VIII. COMPENSA TION OF TRUSTEES AND APPOINTMENT OF SUCCESSOR TRUSTEES 8.01. Compensation. The Trustees shall receive as their compensation for the services performed hereunder that sum of money, based on an hourly charge or percentage rate, which the Trustees normally and customarily charge for performing similar services during the time which they perform these services. 8.02. Removal of Trustees. Settlors, or the survivor of them, may remove the Trustees, or any of them, at any time or times, with or without cause, upon thirty (30) days' written notice given to the current Trustees. Upon the death of both Settlors, a majority of the current income beneficiaries may remove the Trustees, or any of them, at any time or times, with or without cause, upon thirty (30) days' written notice given to the Trustees. Upon the removal of the Trustees, a successor Trustee shall be appointed in accordance with the terms set forth in Paragraph 8.03. 8 # " 8.03. Appointment of Successor Trustee. The Trustees, or any of them, may resign at any time upon thirty (30) days' written notice given to the Settlors, or the survivor of them, or in the event of the death of both Settlors, upon thirty (30) days' written notice given to the current income beneficiary or beneficiaries (including a beneficiary's natural or legal guardian or legal representative), hereunder. Upon the death, resignation, removal or incapacity of the Trustees, then the Settlors' child, T ARAL YN J. BRADLEY, shall become the successor trustee. Upon the death, resignation, removal or incapacity of T ARAL YN J. BRADLEY, then additional successor trustees may be appointed by the Settlors or the survivor during Settlors' lifetimes, or, after Settlors' deaths, by a majority of the current income beneficiaries. Any successor trustee shall be a financially sound and competent Corporate trustee or issue of the Settlors. Any successor trustee thus appointed, or, if the Trustees shall merge with or be consolidated with another corporate fiduciary, then such Corporate fiduciary, shall succeed to all the duties and to all the powers, including discretionary powers, herein granted to the Trustees. 8.04. Exoneration of Trustee. No Trustee shall be liable for any loss or depreciation in value sustained by the Trust as a result of the Trustee retaining any property upon which there is later discovered to by hazardous materials or substances requiring remedial action pursuant to any federal, state, or local environmental law, unless the Trustee contributed to the loss or depreciation in value through willful default, willful misconduct, or gross negligence. 8.05. Indemnification of Trustee UOOD Distribution. Notwithstanding any contrary provision in this Trust Agreement, the Trustee may withhold a distribution to a beneficiary until receiving from the beneficiary an indemnification an agreement in which the beneficiary agrees to indemnify the Trustee against any claims filed against the Trustee as an "owner" or "operator" under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as from time to time amended, or any regulation thereunder. ARTICLE IX. PERPETUITIES CLAUSE 9.01. General Provision. Notwithstanding anything to the contrary in this Trust, each disposition J have made here, legal or equitable, to the extent it can be referred in its postponement of becoming a vested interest to a duration measured by some life or lives in being at the time of my death is definitely to vest in interest, although not necessarily in possession, not later that twenty-one (21) years after such lives (and any period of gestation involved); or, to the extent it cannot be referred in any such postponement to such lives, is to so vest not later than twenty-one (21) years from the time of my death. 9 , ARTICLE X. ACQUISITION OF UNITED STATES TREASURY BONDS ELIGIBLE FOR TAX PAYMENT; PAYMENT OF TAXES, FUNERAL EXPENSES, AND EXPENSES OF ADMINISTRATION 10.01. Acauisition of Bonds. The Trustees may, at any time, without the prior approval or direction ofthe Settlors and whether or not the Settlors are able to manage their own affairs, acquire United States Treasury Bonds selling at a discount, which bonds are redeemable at their par value plus accrued interest thereon for the pUrposes of applying the proceeds to the payment of the United States estate tax on the Settlors' estate; and the Trustee may borrow from any lender, including itself, with or without security, to so acquire these bonds. 10.02. Payment of United States Estate Tax bv Bond Redemotion. The Settlors direct that any United States Treasury Bonds which may be redeemed at their par value plus accrued interest thereon for the purpose of applying the proceeds to the payment of the United States estate tax imposed on the Settlors' estates, and which are held by the Trustees, shall, to the extent of the amount determined to be required for payment of the estate tax, be distributed to the legal representative of the Settlors' estates to be used by the legal representative ahead of any other assets and to the fullest extent possible to pay the estate tax. 10.03. Payment of Death Taxes and Other Estate Settlement Costs. After the Trustees have complied with paragraph 10.02, above, and ascertained from the legal representative that all such bonds have been redeemed in payment of the United States estate tax, the Trustees shall also ascertain from the legal representative whether the legal representative has sufficient assets to pay the remaining legacy, succession, inheritance, transfer, estate and other death taxes or duties (except the additional estate tax imposed by Section 2032(c), or corresponding provisions of the Internal Revenue Code of 1986 applicable to the Settlors' estates and imposing the tax) levied or assessed against the Settlors' estates (including all interest and penalties thereon), all of which taxes, interest and penalties are hereafter referred to as the death taxes, interest and penalties. If the legal representative advises the Trustees that insufficient funds exist to pay all the death taxes, interest and penalties, the Trustees shall then pay to the legal representative from the trust property, an amount equal to all the death taxes, interest and penalties in excess of the funds available to the legal representative for this purposes, which payments are to be made without apportionment. In making the payments, the Trustees shall use only those assets or their proceeds which are includable in the Settlors' gross estates for purposes of the United States estate tax and shall not impair the marital portion without first exhausting the entire non-marital Portion. If the Executors of the Settlors' Estates, in such Executor's sole discretion, shall determine that appropriate assets ofSettlors' estates are not available in sufficient amount to pay (I) the Settlors' funeral expenses, and (2) expenses of administering the Settlors' estates, the Trustees shall, upon the request of the Executor of the Settlors' estates, contribute from the principal of the trust estate the amount of such deficiency; and in connection with any such action the Trustees shall rely upon the written statement of the Executor of the Settlors' estates as to the validity and correctness of the 10 . " amounts of any such expenses, and shall furnish funds to such Executor so as to enable such Executor to di scharge the same, or to discharge any part of all thereof itself by making payment directly to the person entitled or claiming to be entitled to receive payment thereof No consideration need be required by the Trustees from the Executor of Settlors' estates for any disbursement made by the Trustees pursuant hereto, nor shall there be any obligation upon such Executor to repay to the Trustees aoy of the funds disbursed by it hereunder, aod ail amounts disbursed by the Trustee, pursuant to the authority hereby conferred upon it shall be disbursed without any right in or duty Upon the Trustees to seek or obtain contribution or reimbursement from any person or property on account of such payment. The Trustees shall not be responsible for the application of any funds delivered by it to the Executor of the Settlors' estates pursuant to the authority herein granted, nor shall the Trustees be subject to liability to any beneficiary hereunder on account of any payment made by it pursuant to the provisions hereof IN WITNESS WHEREOF, the Settlors and Trustees have hereunto set their hands and seals as of the day and year first above written. WITNESS: n c!27r;:-,_~ I~~r\ ~ ~~~-b~ ~ ~&..j""~EAL) /" iOSE~H B. DeANGELIS, SETTLOR ( ./r, ~', / \..../. (\ / (', /.- .'i \ I - r ~ \ It ' , J CL\t/ ' I c' e 'lIJ--t.L., (SEAL) .fAiNET DeANGELIS; SETTLOR .j 11 # " COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND On this, the cJJl!. day of April, 2000, before me, a Notary Public, the undersigned officer, personally appeared JOSEPH B. DeANGELIS and JANET DeANGELIS, his wife, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within Trust Agreement, and acknowledged that they executed the same for the purposes therein contained. SS: IN WITNESS WHEREOF, I have set my hand and official Seal. ){(i)(1jJ(U, Notary Public My Commission Expires:__ Notarial Seal Teri L. Walker, Notary Pu~ii(; l Lemovne Bore, Cumberlar;,d '-'OU;'lt~" t , My Commission Expires Ja". 20. ~OO." i , IvIC'7i:J9:, Pennsylvania ASSOCiation at Nct::nes The foregoing Trust Agreement was delivered, and is hereby accepted, at Mechanicsburg, Pennsylvania, on April r4(p ,2000. WrTNESS: ~A' \ \tf~ct~ c<~c<~~ (SEAL) PH B. DeANGELIS, TRUSTEE .6-JA~ (SEAL) RUSTEE 12 . ; i SCHEDULE" A" SCHEDULE REFERRED TO IN THE ANNEXED TRUST AGREEMENT DA TED APRIL 26th, 2000 FROM JOSEPH B. DeANGELIS AND JANET DeANGELIS, SEITLORS TO JOSEPH B. DeANGELIS AND JANET DeANGELIS, TRUSTEES PROPERTY DESCRIPTION: 13 EXHIBIT I 117172-2 .~ ~-/ I j ].."(.I{; TAX PARCEL NO. 42-28-2421-224 ~:!~<:~-,- ;-. -:;.~:~::~ p::::cc. .: i:- .- ~: ,.~ = S C C; t"1 3 E ;\ \;_~ 1"-, GO! 1 'T-' ........_\ ! '. i j - I ~ DEE D '00 flAY 9 PrJ Y 20 THIS DEED is made the i -Cday of May, in the year two thousand (2000). BETWEEN JOSEPH B. DeANGELIS and JANET DeANGELIS, his wife, now of 420 Kent Drive, Mechanicsburg, Cumberland County, Pennsylvania ] 7055, parties of the first part, GRANTORS, AND JOSEPH B. DeANGELIS and JANET DeANGELIS, husband and wife, Co-Trustees of THE DeANGELIS FAMILY IRREVOCABLE TRUST dated April 26, 2000, parties of the second part, GRANTEES. WITNESSETH, that said parties ofthe first part, for and in consideration of the sum of One ($1.00) Dollar, lawful money of the United States of America, well and truly paid by the said parties of the second part to the said parties of the first part, at or before the sealing and delivery of these presents, the receipt whereof is hereby acknowledged, has hereby granted, bargained, sold, aliened, enfeoffed, released, conveyed and confirmed, and by these presents does grant, bargain, sell, alien, enfeoff, release, convey and confirm unto the said parties of the second part, their heirs, successors and assigns, ALL THA T CERTAIN piece or parcel of/and situate in the Township of Upper Allen, County of Cumberland and State of Pennsylvania, bounded and described as follows: BEGINNING at a point on the northern line of Kim Acres Drive, said point being referenced westwardly a distance of six hundred fifty-two and fifty-two one-hundredths (652.52) feet from the center line ofMt. Allen Drive; thence along the northern line of Kim Acres Drive, South eighty-four (84) degrees fifty-three (53) minutes West, a distance of one hundred (100) feet to a point; thence North five (5) degrees seven (7) minutes West, a distance of one hundred thirty-two (132) feet to a point; thence North eighty-four (84) degrees fifty-three (53) minutes East, a distance of ninety-four and seventy-eight one-hundredths (94.78) feet to a point; thence South seven (7) degrees twenty- three (23) minutes East, a distance of one hundred thirty-two and ten one-hundredths (132.10) feet to a point on the northern line of Kim Acres Drive, the Place of BEGINNING. HA VING THEREON ERECTED a single brick dwelling known as No. 420 Kent Drive. BEING the same premises which Dean P Lorah and Dora R. Lorah, his wife, by their deed dated and recorded June 23, 1976, in the Cumberland County Recorder's Office in Book Q26, at Page 587, granted and conveyed to Joseph B. DeAngelis and Janet DeAngelis, his wife, Grantors herein. SUBJECT to restrictions as contained in prior deeds. ~ I. i' .I.".." ........ '",-., . , "'~.....I..i r" ..1 ,'.'-. ~~,.._ , I, '. ,:.&. ~}:Ji) - '. THIS IS A TRANSFER FOR NOMINAL CONSIDERA TION TO TRUSTEES OF A LIVING TRUST AND IS THEREFORE EXEMPT FROM THE PAYMENT OF REALTY TRANSFER TAX. TOGETHER with all and singular the buildings and improvements, ways, streets, alleys, driveways, passages, waters, watercourses, rights, liberties, privileges, hereditaments and appurtenances, whatsoever unto the hereby granted premises belonging, or in any wise appertaining, and the reversions and remainders, rents, issues, and profits thereof; and all the estate, right, title, interest, property, claim, and demand whatsoever of the said Grantors, as well at law as in equity, of, in, and to the same. TO HAVE AND TO HOLD, the said Jot or piece of ground above-described, with all and singular the buildings and improvements thereon erected, hereditaments and premises hereby granted, or mentioned and intended so to be, with the appurtenances, unto the said Grantees, their heirs and assigns, to and for the only proper use and behoof of the said Grantees, their heirs and assigns forever. AND the said Grantors, for themselves, their heirs, executors and administrators, do covenant, promise and agree, to and with the said Grantees, their heirs and assigns, by these presents, that they, the said Grantors, and their heirs, all and singular the hereditaments and premises hereby granted or mentioned and intended so to be, with the appurtenances, unto the said Grantees, their heirs and assigns, against them, the said Grantors and their heirs, and against all and every person and persons whomsoever lawfully claiming or to claim the same or any part thereof, by, from or under him, her, them or any of them, shall and will, subject as aforesaid, SPECIALLY WARRANT AND FOREVER DEFEND. IN WITNESS WHEREOF, the said parties of the first part have hereunto set their hands and seals, the day and year first above written. SIGNED, SEALED AND DELIVERED IN THE PRESENCE OF (SEAL) BOOK 220 ?~&i10 56 .. '. . COMMONWEAL TH OF PENNSYL VANIA COUNTY OF CUMBERLAND SS: On this, the ~ day of May, 2000, before me, a Notary Public for the Commonwealth of Pennsylvania, the undersigned officer, personally appeared JOSEPH B. DeANGELIS and JANET DeANGELIS, his wife, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within instrument, and acknowledged that they executed the same for the purpose therein contained. IN WITNESS WHEREOF, I have set my hand and notarial seal. i" 1':' J-fuJ {Jjjfv J Notary Public - My Commission Ex ires: Notarial Seal Teri L. Walker, Notary PUblic Lemoyne Bora, Cumberland County My Commission Expires Jan. 20, 2003 Member, Pennsylvania Association at Notaries ;'- . "".,,I.:f.~i~~!:rt<: . . L '~.. c" - ",I :: .' ..1~:~~( ;~.~ ')y' ~:~~~. /.l'~;-'~"Ii:l?~:<> -"":- \.~ ':,~~$;: .~~~~i .~,~. " :i",':-r.+ h COMMONWEAL TH OF PENNSYL VANIA COUNTY OF CUMBERLAND SS: RECORDED in the Office for Recording of Deeds, etc., in and for said County, in Deed Book No. d.:1C , Page i C~ WITNESS my hand and official seal this C1 day of 7Y7(~ . ~rr ,2000. Recorder of Deeds -Mar. 2:~ 1 QI PACe' (}57 . ' ~ CERTIFICA TE OF RESIDENCE I hereby certify that the present residence of the Grantees herein is as follows: Joseph B. DeAngelis and Janet DeAngelis Trustees of The DeAngelis Family Irrevocable Trust 420 Kent Street Mechanicsburg, PA 17055 RETURN DEED TO: The DeAngelis Family Irrevocable Trust Joseph B. DeAngelis and Janet DeAngelis, Trustees 420 Kent Street Mechanicsburg, PA 17055 BaDK 220 p~[i10 58 EXHIBIT J .. Tax Parcel No. THIS INDENTURE Made the and six (2006). day of in the year two thousand BETWEEN JOSEPH B. DeANGELIS and JANET DeANGELIS, his wife, of Upper Allen Township, Cumberland County, Pennsylvania, in their capacities of Co-Trustees of "THE DeANGELIS FAMILY REVOCABLE PROPERTY TRUST," Grantors, and the same said JOSEPH B. DeANGELIS and JANET DeANGELIS, his wife, in their individual capacities, Grantees. WHEREAS, by divers grants and conveyances a cloud has appeared upon the title to the hereinbelow described premises; and WHEREAS, in an effort to remove said cloud, the said Grantors and Grantees herein, have filed a PETITION FOR A RECORnABLE DECREE TO CLEAR CLOUDS FROM TITLE AND TO ELIMINATE EMINENT EXPOSURE TO THE HAZARDS OF POSSIBLE LITIGATION in the Court of Common Pleas of Cumberland County, Pennsylvania, Orphans' Court Division, which is docketed to No. 21-06- and which sets forth the background events leading to this deed more fully at large; and WHEREAS, after review of said PETITION, , 1. has issued an ORDER dated the day of , A.D. 2006, which provided for, inter alia, the delivering up and cancellation of a certain deed purporting to convey title into the Grantors herein, as Co-Trustees of the "DeANGELIS FAMILY IRREVOCABLE TRUST," dated May 1, 2000 and recorded May 9, 2000 in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed Book 220, Page 1055 (copy of said ORDER is attached hereto and recorded herewith); and WHEREAS, as per the terms of said ORDER, the said DeAngelises have executed a disclaimer of any interest in or to the said premises as Trustees of the "DeANGELIS FAMILY IRREVOCABLE TRUST" (copy of said Disclaimer is attached hereto and recorded herewith); and WHEREAS, the five (5) children of the said Grantors, to wit: Gregory B. DeAngelis, Todd A. DeAngelis, Drew 1. DeAngelis, Jodi D. DeAngelis, and Taralyn 1. Bradley, in an abundance of caution, have also executed Disclaimers of any interest in or to the premises by virtue of their having been named remaindermen in the aforesaid IRREVOCABLE TRUST (copies of said Disclaimers are attached hereto and recorded herewith); and WHEREAS, in accordance with the terms of said ORDER, the said Grantors are specifically authorized and empowered to make, sign, seal and deliver this deed from themselves, in their capacities as Trustees of the "DeANGELIS FAMILY REVOCABLE PROPERTY TRUST" aforesaid to themselves in their individual capacities, to create a complete or perfected good and marketable legal and equitable title and a title which will incorporate and include with it all rights of property in and to the said premises at 420 Kent Drive, Mechanicsburg, Upper Allen Township, Cumberland County, Pennsylvania. .. NOW, THEREFORE, THIS INDENTURE WITNESSETH, that the said JOSEPH B. DeANGELIS and JANET DeANGELIS, his wife, in their capacities as Trustees of the "DeANGELIS REVOCABLE PROPERTY TRUST,"; as aforesaid, for and in consideration of the sum of ONE and No/tOO ($1.00) DOLLAR and other good and valuable considerations, to them in hand paid by the said Grantees, at and before the ensealing and delivery hereof, the receipt whereof is hereby acknowledged, have granted, bargained, sold, aliened, released, and confirmed, and by these presents, by virtue of the power and authority in them vested by the Fiduciaries Act of the Commonwealth of Pennsylvania, and by virtue of their own inherent powers and authorities vested in them by the laws of this Commonwealth, do grant, bargain, sell, alien, release, and confirm unto the said Grantees, their heirs and assigns: ALL THA T CERTAIN piece or parcel ofland situate in the Township of Upper Allen, County of Cumberland and Commonwealth of Pennsylvania, bounded and described as follows, to wit: BEGINNING at a point on the northern line of Kim Acres Drive, said point being referenced westwardly a distance of six hundred fifty-two and fifty- two one-hundredths (652.52) feet from the centerline of Mt. Allen Drive; thence along the northern line of Kim Acres Drive, South eighty-four (84) degrees fifty- three (53) minutes West, a distance of one hundred (100) feet to a point; thence North five (5) degrees seven (7) minutes West, a distance of one hundred thirty- two (132) feet to a point; thence North eight-four (84) degrees fifty-three (53) minutes East, a distance of ninety-four and seventy-eight one-hundredths (94.78) feet to a point; thence South seven (7) degrees twenty-three (23) minutes East, a distance of one hundred thirty-two and ten one-hundredths (132.10) feet to a point on the northern line of Kim Acres Drive, the place of BEGINNING. HA VING THEREON ERECTED a single brick dwelling known as No. 420 Kent Drive. BEING THE SAME PREMISES which Dean P. Lorah and Dora R. Lorah, his wife, by their deed dated June 23, 1976 and recorded the same date in the Recorder of Deeds Office aforesaid in Deed Book "Q", Volume 26, Page 587, granted and conveyed the instant premises to the Grantors herein in their individual capacities. AND ALSO BEING THE SAME PREMISES or more particularly an interest in the title hereto, which the Grantors herein, in their individual capacities quit-claimed to "The DeAngelis Revocable Real Property Trust", Joseph B. DeAngelis and Janet DeAngelis, his wife (hereinafter called the Trustees)," by that certain quit-claim deed dated May 10,1995 and recorded June 8, 1996 in the Recorders Office aforesaid in Deed Book 123, Page 12. AND ALSO FURTHER BEING THE SAME PREMISES, or more particularly stated: an interest in the property of the premises and purportedly the title thereto which the Grantors herein, in their individual capacities, and not as Trustees of the said Revocable Real Property Trust nor in any other capacity related to the said Revocable Real Property Trust, by their deed dated May 1,2000 and recorded May 9, 2000 in the Recorder's Office aforesaid in Deed Book 220, Page 1055 attempted to grant and convey to themselves as Co-Trustees of the DeAngelis Family Irrevocable Trust. THIS TRANSACTION IS REALTY TRANSFER TAX EXEMPT AS BEING A TRANSFER FOR NO OR NOMINAL ACTUAL CONSIDERATION WHICH CORRECTS A TRANSFER PREVIOUSLY RECORDED AND REMOVES A CLOUD ON TITLE TO THE PREMISES HEREIN INVOLVED. TO HAVE AND TO HOLD the said message or tenement and tract of land, hereditaments and premises hereby granted and released, or mentioned and intended so to be, with ... . the appurtenances, unto the said Grantees, their heirs and assigns, to and for the only proper use and behoof of the said Grantees, their heirs and assigns, forever. AND THE SAID GRANTORS, Co-Trustees as aforesaid, their heirs, successors, and assigns do covenant, promise and agree to and with the said Grantees, their heirs and assigns, by these presents, that the Grantors have not done, committed any act, matter or thing whatsoever whereby the premises hereby granted, or any part thereof, is, are, shall or may be impeached, charged or encumbered in title, or otherwise howsoever. IN WITNESS WHEREOF, the said parties of the first part have hereunto set their hands and seals to this Deed dated the day and year first written above. Signed, sealed and delivered in the presence of: (SEAL) JOSEPH B. DeANGELIS, Co-Trustee of "THE DeANGELIS FAMILY REVOCAB1,E PROPERTY TRUST" (SEAL) JANET DeANGELIS, Co-Trustee of "THE DeANGELIS FAMILY REVOCABLE PROPERTY TRUST" ... " I " , COMMONWEAL TH OF PENNSYLVANIA COUNTY OF CUMBERLAND : SS. On this, the day of , A.D. 2006, before me the undersigned officer, personally appeared JOSEPH DeANGELIS and JANET DeANGELIS, his wife, known to me (or satisfactorily proven) to be the person whose names are subscribed to the within instrument, and acknowledged that they executed the same in the capacities therein set forth an for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. Notary Public CERTIFICATE OF RESIDENCE I HEREBY CERTIFY that the precise residence of the Grantees is: 420 Kent Drive, Mechanicsburg, PAl 7055. Attorney for Grantee