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HomeMy WebLinkAbout02-1757DOROTHY a. NALBANDIAN, Plaintiff VS, JOHN M. SULLIVAN, M.D., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY NOTICE TO DEFENDANT NAMED HEREIN: YOU HAVE BEEN SUED IN COURT. IF YOU WISH TO DEFEND AGAINST THE CLAIMS SET FORTH IN THE FOLLOWING PAGES, YOU MUST TAKE ACTION WITHIN TWENTY (20) DAYS AFTER THIS COMPLAINT AND NOTICE ARE SERVED, BY ENTERING A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILING IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. YOU ARE WARNED THAT IF YOU FAIL TO DO SO, THE CASE MAY PROCEED WITHOUT YOU, AND A JUDGMENT MAY BE ENTERED AGAINST YOU BY THE COURT WITHOUT FURTHER NOTICE FOR ANY MONEY CLAIMED IN THE COMPLAINT OR FOR ANY OTHER CLAIM OR RELIEF REQUESTED BY THE PLAINTIFF. YOU MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IMPORTANT TO YOU. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PENNSYLVANIA 17013 TELEPHONE: (717) 249-3166 DOROTHY A. NALBANDIAN, Plaintiff VS, JOHN M. SULLIVAN, M.D., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY NO. r"-/,57 COMPLAINT IN EQUITY AND NOW comes the above-named Plaintiff, by her attorney, Samuel L. Andes, and makes the following Complaint in this matter: 1. The Plaintiff is Dorothy A. Nalbandian, an adult individual who resides at 1901 Potato Valley Road in Harrisburg, Dauphin County, Pennsylvania. 2. The Defendant is John M. Sullivan, M.D., an adult individual who resides in Cumberland County and maybe served at 1001 South Market Street, Suite B, in Mechanicsburg, Cumberland County, Pennsylvania. 3. Although never married, the Plaintiff and Defendant were engaged to be married from August of 2000 through September of 2001. 4. In May of 2000, in contemplation of their marriage and while planning to be engaged and married, Plaintiff and Defendant purchased real estate in Monaghan Township, York County, Pennsylvania, improved with a single family residence known as 222 West Ridge Road, Dillsburg, Pennsylvania. 5. At the time Plaintiff and Defendant purchased the real estate described above, and in contemplation of their marriage, Plaintiff contributed almost all of the funds for the original purchase of the home. 6. Plaintiff and Defendant occupied and resided in the subject real estate from June of 2000 through September or early October of 2001, at which time Plaintiff moved from the residence. Following Plaintiff's move from the residence, Defendant continued to reside there for several weeks and he eventually vacated the property as well. 7. The engagement between the parties was terminated in September of 2001. 8. On 24 January 2002, Plaintiff and Defendant sold the real estate described herein for a gross sale price of t~400,000.00 and, after payment of the mortgage lien, the cost of sale, and other expenses incident to the sale and maintenance of the property, received net proceeds of $75,120.92. 9. Since the sale of the property the parties have been unable to agree upon the distribution or division of the net proceeds. Defendant has demanded that the net proceeds be divided equally, claiming that Plaintiff's greater contribution to the cost of 3urchasing the home was a gift to him which he is entitled to retain. Plaintiff contends that the contribution she made to the purchase of the home was not a gift or was a gift conditional upon the marriage of the parties which never occurred. 10. The funds representing the net proceeds of sale of real estate are currently ~eld in escrow by Samuel L. Andes, Esquire, who represents Plaintiff and James A. Miller, Esquire, who represents Defendant. The attorneys are acting as escrow agents for the parties and holding those funds. 11. Plaintiff needs the funds being held in escrow to return to her the funds she initially invested in the purchase of the property. Because the parties have not been able to agree upon a division of those funds, Plaintiff requests this court to determine and decree the proper division of those funds. 12. Because Plaintiff seeks the court to order an affirmative action, she has no adequate remedy at law. WHEREFORE, Plaintiff prays this court to order and direct Defendant to authorize the release of all of the funds now held in escrow by the parties' attorney to Plaintiff to compensate her for the funds she invested in the purchase of the real estate previously owned by the parties, and to take such other action and order such other remedies as the court deems fair and equitable. Attorney for Plaintiff Supreme Court ID # 17225 525 North 12th Street Lemoyne, Pa 17043 (717) 761-5361 VERIFICATION I verify that the statements made in this Complaint are true and correct. I understand that any false statements in this Complaint are subject to the penalties of 18 Pa. C.S. 4904 (unsworn falsification to authorities). DO~R~THY A. ~AI~IDIAN DOROTHY A. NALBANDIAN, Plaintiff VS, JOHN M. SULLIVAN, M.D., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY NO. 02-1757 EQUITY PRAECIPE TO THE PROTHONOTARY: Please reinstate the complaint in the above matter. Attorney for Plaintiff Supreme Court ID 17225 525 North 12th Street Lemoyne, PA 17043 (717) 761-5361 Dorothy A. Nalbandian, Plaintiff John M. Sullivan, Defendant In the Court of Common Pleas Cumberland County, Pennsylvania No: 02-1757 Equity Civil Action - Equity NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PA 17013 (717) 249-3166 Law Offices of James A. Miller BY:~e BY: Christopl~r J. Keller, Esquire Attorney for Defendant Dorothy A. Nalbandian, Plaintiff John M. Sullivan, Defendant In the Court of Common Pleas Cumberland County, Pennsylvania No: 02-1757 Equity Civil Action - Equity ANSWER, NEW MATTER~ AFFIRMATIVE DEFENSES AND COUNTERCLAI..~. NOW COMES, Defendant, John M. Sullivan, by and through his attorneys, Law Offices of James A. Miller and James A. Miller, Esquire, and Answers Plaintiff's Complaint as follows: 1. Admitted. 2. 3. 4. Admitted. Admitted. Denied. Defendant denies the implication that the parties purchased 222 West Ridge Road, Dillsburg, Pennsylvania (the "property") in contemplation of marriage. By way of further answer, Plaintiff's own admissions in her complaint nullifies any basis under the law with regard to conditional gifts in that !Plaintiff admits that the parties were engaged in August 2000 (Plaintiffs averment number 3) and yet, in May 2000 the parties purchased the property. By way of further response, Defendant has insufficient knowledge to form the basis of a response and proof thereof is demanded at the time of trial. Denied. Defendant hereby incorporates preceding paragraph 4 as if fully set forth herein. By way of further response, Defendant contributed to the parties jointly titled Commerce Bank account number 0513173310 in excess of $163,1000 towards the preservation of the equity in the property held ~s joint tenants with the right of survivorship and not as tenants in common (see attached Exhibit A, May 24, 2000, transfer deed from Robert Mentzer and Charlotte A. Mentzer, his wife to J¢ ,hn M. Sullivan and 10. 11. 12. Dorothy A. Nalbandian, single persons, as joint tenants with the right of survivorship and not as tenants in common). By way of further answer, Plaintiff asserts that she contributed the down payment entirely yet has been unable to provide Defendant with satisfactory documentation of her contribution (see attached Exhibit B, October 9, 2001, letter to Defendant from counsel for Plaintiff and January 15, 2002, letter to the undersigned from counsel for Plaintiff.) Admitted in part and denied in part. By way of further response, shortly after Plaintiff's departure, Defendant also departed. Admitted. Admitted. Admitted in part and denied in part. Title to the property was taken as joint tenants with the right of survivorship and not as tenants in common, see attached Exhibit A. As a matter of law, the parties have an equal interest in the property and the net proceeds from sale. Admitted. Denied. To the extent that this allegation is deemed to be factual, it is denied in that, Defendant avers that after reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the allegation therein. Plaintiff's averment is a conclusion of law to Which no responsive pleading is required. To the extent an answer is required, Defendant denies Plaintiff's averment in that there is an adequate remedy at law. See Teacher v. Kiiurina, 76 A.2d 197, 365 Pa. 480 (1950). NEW MATTER 13. Defendant hereby incorporates preceding paragraphs one through 13 as if fully set forth herein. 14. During all relevant times, Defendant contributed in excess of $163,000 to the parties joint Commerce Bank account. 15. Defendant's contributions as stated above were used for the acquisition and preservation of the property. 16. By way of agreement reached between the parties through their counsel, the parties were to equally share towai'ds the contributions in preserving the property pending settlement as defined in paragraph 8 above. 17. In addition to the amount(s) identified in preceding paragraph 14, Defendant in furtherance of said agreement contributed in excess of $12,000 towards such preservation stateU in the preceding paragraph. 18. Plaintiff has failed to, pursuant to the terms of said agreement, reimburse Defendant her fifty (50%) percent share of the contribution. 19. Seven months after the parties purchased the property, Plaintiff entered an Agreement on December 19, 2000, for the purchase of real property known as Lot 6, 900 Bent Creek Boulevard, Silver Spring Township, Cumberland County, Pennsylvania 17055 ("Bent Creek") for the price of $265,000. 20. On March 15, 2001, Plaintiff assigned her interest in Bent Creek to Defendant. 21. At the same time, Defendant assigned his interest in Bent Creek to D J Realty Associates, L.L.C., a Pennsylvania limited liability company. 22. On March 19, 2001, Bent Creek was transferred from RSM Associates, L.P. a Pennsylvania limited partnelship to D J Realty Associates, L.L.C. 35. 36. 23. D J Realty Associates, L.L.C. executed a Mortgage Note in favor of RSM Associates, L.P. as payee in the amount of $165,000. 24. Defendant was and is a member of D J Realty Associates, L.L.C. 25. Aris Trust Company, Trustee for the Dorothy Nalbandian Individual Retirement Account is the other member of D J Realty Associates, L.L.C. 26. Defendant has contributed in excess of $40,000 towards the preservation of this asset held by the parties. 27. At the time of the parties engagement, Defendant gave to Plaintiff in contemplation of marriage a diamond engagement ring in excess of $15,000. 28. While Defendant has made numerous and repeated request that Plaintiff return such diamond engagement ringi and other personal property matters including, but not limited to a ipassport, Plaintiff in direct contravention of the law refuses to return such to Defendant. See Lindh vs. Surman, 560 Pa. 1,742 A.2d 643 (1999). AFFIRMATIVE DEFENSES 29. Defendant hereby incorporates preceding paragraphs one through 27 as if fully set forth herein. 30. Plaintiff's claim is barred by the doctrine of unclean hands. 31. Plaintiff's claim is barred by the doctrine of laches. 32. Plaintiff's claim is barred by waiver and/or estoppel. 33. Plaintiff's claim is barred as a result of the manner in which the parties took title to the property. 34. Defendant is entitled to an equal division of the net proceeds placed in escrow as a result of the manner by which the parties took title to the property. COUNTERCLAIM -ACTION IN REPLEVIN Defendant hereby incorporates preceding para Iraphs one through 34 as if fully set forth herein. Plaintiff on the counterclaim is John M. Sullivan "Sullivan"). 46. 37. Defendant on the counterclaim is Dorothy A. Nalbandian ("Nalbandian"). 38. Sullivan, in contemplation of marriage, gave Nalbandian a diamond engagement ring. 39. The ring is valued in excess of $15,000. 40. It is believed and therefore averred that the ring is in the possession of Nalbandian. 41. Despite repeated demands by Sullivan upon Nalbandian, Nalbandian in direct contravention of law has refused to return said ring to Sullivan. 42. Nalbandian has refused to confirm the whereabouts of the ring. 43. At the time of the parties' separation, Nalbandian removed the following property belonging to Sullivan: a. 6 Waterford Crystal Goblets and 5 cordial glassware b. German beer steins c. passport d. CD's and VCR tapes e. Socks f. Laserpointer g. Leather sofa and easy chair with ottoman h. Wooden queen size bedroom suite i. Linens, bed cover/spread and pillows j. 2 white rattan dressers k. Tuner/Amplifier 44. The value of those items in preceding paragraph 43 are not precisely known but the aesthetic value is irreplaceable. 45. Despite repeated demands upon Nalbandian I~y Sullivan, none of those items identified in preceding paragraph 43 have been returned. Nalbandian has refused to disclose the whereal)outs of those items in paragraph 43. WHEREFORE, Defendant on the Complaint and Plaintiff on the Counterclaim, John M. Sullivan ("Sullivan"), respectfully requests that your Honorable Court: a. Deny Nalbandian's requested relief; b. Award Sullivan an equal division of the escrow account, or in the alternative; c. Award Sullivan his proportionate share of Ithe escrow account based upon the parties contributions to ~the acquisition and preservation of the property; and, d. Require Nalbandian to return all items df personal property identified in the Sullivan's Counterclaim. Respectfully submitted, LAW OFFICES OF jAMES A. MILLER BY: ~....~_ _tto[n_e_y l~or I~efendant ~ 2010 Market Street _~- Camp Hill, PA 17011 (717) 737-6400 BY: Christopher JL Keller, Esquire Attorney for Defendant 2010 Market Street Camp Hill, PA 17011 (717) 737-6400 VERIFICATION I verify that the statements made in the attached financial statement are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unsWorn falsification to authorities. ' Date: Sullivan Dorothy A. Nalbandian, Plaintiff John M. Sullivan, Defendant In the Court of Common Pleas Cumberland County, Pennsylvania No: 02-1757 Equity Civil Action - Equity Certificate of Service I, Christopher J. Keller, Esquire, hereby certify that I havei forwarded to the person(s) on the date and in the manner indicated below a copy!of the preceding Answer, New Matter, Affirmative Defenses and Counterclaim. Date: June 17, 2002- HAND DELIVERY Dorothy Nalbandian, Plaintiff/Defendant c/o Samuel L. Andes, Esquire 525 North Twelfth Street P.O. Box 168 Lemoyne, PA 17043 Christopher J'. Keller, E~quire 2010 Market Street Camp Hill, PA 17011 (717) 737-6400 CERTIFIED TO BE A j~ iRUE AND CORREC]' COPY ~.,~- Oi= 'i'HE ORIGII'L~d.. DEED TAX PARCEL NO.: B%- OC . This Indenture, Made the TWO TIIOUSANO (2000) day of ~ , in theyear of Between: ROBERT MENTZER and CHARLOTTE A. MENTZER, his ~vife, of Dilisburg, York Co., PA part, and (hereinafter called the Grantor(s), of the one JOHN M. SULLIVAN aud DOROTHY A. NALBANDIAN, single persons, as Joint Tenants with Rights of Survivorship and NOT AS TENANTS IN COMMON secolld part, (hereinafter called the Grantee(s), of the WITNESSETH, that the said Grantor(s), fi)r and in consideralion &the sum of Three Hundred Seventy Thousand Five Hundred ($370,500.00) Dollars, lawful money 0fthe United Stales of America, unto flmm well and truly paid by Ihe Granlec(s), al or bclbre flic sealing and delivery hcreol; the receipt whereof is hereby acknowledged, have granted, bargained and sold, released and confirmed, and by these presents, grant, bargain and sell, release and confirm unto the said Grantee(s), their heirs and assigns: ALL THAT CERTAIN piece or parcel of land situate in Monaghan Township, Cot,nty of York and Commot~wealth of Pennsylvania, more pa,'tict, larly bot,ndcd and described as follows, to wit: BEGINNING at a common corne,- of Lot//5 and #SB, said re-bar being on the eastern li,~e of the lands now or formerly of Andrew Smith, and being North 15 degrees 30 ~5~inuets 26 seconds West, 43 !.61 feet fi-om a co,~cretc monumc,~t on the norther,~ dedicated ri~ht-of-way lithe of West Ridge Road, (T-893), 60 feet wide; thence along tile eastern line of tile lands now or fom~erly of Andrew Smith, North 15 degrees 30 mimltcs 26 seconds West, a distance of !, 194.89 feet to a steel re-bar set on the southern line of the lands how or fom~erly of Kenneth W. Jones and Priscilla E. Jones, his wife; thence along the aforesaid lands and the lands now or formerly of Ven~on R. Sealover and Dorothy It. Sealover, his wife, North 63 degre~es 45 minutes 34 seconds East, a distance of411.74 feet to an existing stone pile, a conler of the lands now or formerly of Daniel L. Witmer and Joanne E. Witlner, his wife; thence along the aforesaid lands, South 38 od;gt;17~a~:fi,~ot~e;r3 ifo;~::dSo~;;td, istance of 826.88 feet to an existing steel re-bar on the line ' Y ' . Park; thence along the aforesaid lands the following two courses and distances: 1) South 59 degrees 27 minutes 14 seconds Wesl, a distance of 314.63 feet to a coucrete monument; 2) South 15 degrees .3.0 minutes 26 minutes E~Ist, a distance of 1,019.07 feet to a concrete monument on the northern dedicated right-of-way lin~ of West Ridge Road (T- s89ec32;n~e~Cees~,la°l~t~st~a~caef°or~a(~.d00d efdc~;~d rig hr-° f-way I i n c S o u t h 75 d~grees 20 minutes 31 ' . a steel re-bar, the southeastenl corner ofLot#5A; theuce along the eastern line of Lot #5A, North 15 degrees 30 mim~tes 26 seco ids West, a distance of 591.86 feet to a steel re-bar, the northeastern corner of Lot #5A; thence dong the northern line of Lot #SA and Lot #5B, South 74 degrees 29 minutes 34 seconds West, a distance of 368.24 feet to a steel re-bar on the eastern line of the lands now or formerly ofAndrev Snfith, the Place of BEGINNING. CONTAINING IN AREA, 639,499.6 SQUARE FEET, or 14.6808 acre§ and being designated as Lot No. 5 on a Final Subdivision Plan for Robert lt. Mentzer prepared I~y Robert L. Reed Engineering Inc. Said Plan is recorded in York County Records in Plan] Book OO~ at page 971. UNDER AND SUBJECT to all rights-of-way, easements, restrictions, c~nditions and/or set-back lines set forth in the above referred to plan and of prior record. SUBJECT to a twenty (20.00') foot wide utility easement centered on thi line identified by a bearing of SoUth 15 degrees 30 mim~tes 26 seconds East, and a distance >f 591.86 feet. IT BEING a portion of the premises which Andrew P. Smith by his dee~J of June 9, 1989, and recorded in York Cottnty Records in Deed Book 103 B at page 509, graI:ted and conveyed unto Robert Mentzer and Charlotte A. Mentzer, his wife, the Grantors herein. AND the said grantor/grantors do hereby SPECIALLY I~VARIL4NT the property hereby conveyed. , IN }VITNESS }VHEREOF, I/We set our hands and seals the day and year first above written. Sealed attd Delivered ht the presence of: -~~ ~-~ (SEAL) ROBERT MEN COMMONWEALTH OF PENNSYLVANIA: COUNTY OF ',. .~,~. : ss On this the ~qq~'day or undersigned officer, personally allbeared: ,2000, before me, alNotary Public, tile ROBERT MENTZER. and CItARLOTTE A. MENTZER, his wife known to me, or satisfactorily proven to be the person(s) whose Name(s)iis'/are subscribed to the within instrument, and acknowledged that they executed the same for the purposes therein contained. , IN WITNESS WHEREOF, I have hereuuto set my hand and nolarial seal. NOTARY PUBLI(~ MY COMMISSION EXPIRES; NOTARIAL SEAL CONNIE L. ltOFFMAN t, lolaet' Public Camp ttill Boro. Ctsmbodand County My Commission Expires A~.rit 8. 2002 _CERTIFICATE OF RESIDENCE: I hereby certify the precise residence nfthe Grautee(s) herein is as foil . " ) j[ ' '. / -- . OWS' \... V,,,%,_ p, Office of the Recording of Dceds ill and roi' York County,. Peunsylvania, R ' ' ecorders Certificate: 15 January 2002 James A. Miller, Esquire 2010 Market Street Camp Hill, PA 17011 RE: John SuE/van. M.D. /Dorot. h¥ Nalbandian Dear James: Now that the house is scheduled to settle on 24 January 2002, I hope we can make more progress in resolving the disputes between the! parties. You told me on Thursday that you had obtained documents from your client which would verify the disbursements he made on behalf of the LLC. That really should not be very difficult, since all we need are copies of thel statements from the checking account that he controlled and the LLC only operatedithat account for a few months. As soon as you get them, please provide copies 4o me so each of us can review that and try to see where the LLC stands. I hope that we can agree upon the qlistributions of the proceeds of the sale of the residence so the distribution can be made at the time of ~Settlement. Mrs. Nalbandian contributed the majority of the funds used for the dbwn payment and she is going to get me some documents to confirm that. I belidve that she contributed $65,000.00 in that fashion. Each of the parties made contributions to the payment of the mortgage, with Dorothy contributing about 15650.00 and your client contributing about $2,000.00 per month. I hope to get sbme documents to confirm that. I propose that we agree upon a distribution that Will repay to each of them their contributions, at least to the initial down payment, ahd that we agree to divide the balance of any proceeds equally. You have stated previously that you believe, that because the parties own the property together, each of them is entitled to one half of the sale proceeds. Although that would be true if they were married, and owned the property as tenants by the entireties, it!is not true with co- tenants who are not married. That is because the contribution ~nade by each party to the original purchase price is not a gift to the marital estate 0r to the other party. Thus I believe it is quite clear that my client is entitled to receiw a refund of her James A. Miller, Esquire 2 15 January 2002 initial investment or that the proceeds should be divided in proportion to each party's initial investment. If you agree, we can probably negotiate a distribution of the proceeds of the sale so we can accomplish that immediately upon the - settlement. That will disengage the parties from that property/and leave us only with the LLC. There is the remaining issue of the personal property. I irecognize that your client has requested some items in my client's possession, but~ he must recognize that he has some of her items in his possession. We have to agree upon what those items are and exchange them and that will resolve the p~ersonal property issues. Frankly, with a little cooperation, I think we can do that quite easily. Please get me the LLC documents and get back to me With your ideas about the division of the proceeds of the sale of the residence. Thank you for your cooperation. Sincerely, Sa s amh cc: Dorothy Nalbandian 717-761-14Z5 SAM ANDES 594 P03/05 OCT 10 '01 1Z:26 9 October 2001 John M. Sn~!!van, M.D. 1001 South Market Street Mechanicsburg, PA 17055 Dea~ Dr. S,,~!ivan: Dorothy N~]bandian has asked me to assist her in ~mt~rtg]~!ng your financial ~ffairs. ! write to lay out a proposal for an orderly Way to do that. First, with regard to the residence at 222 West Ridge Road, we propose as follows: a) The two of you list the property for sale with a real estate agent as promptly as possible, You will have ~o agree upon a sale price, but we recommend that you list t___h~ properW for a realistic sale price in an effort to get it sold promptly. If we hold out for a higher price, any extra proceeds will ~!l~ely be consumed by payments made on the mortgage in the mean*_-!?ne. b) Dorothy will move out of the house and you Can continue to reside there. In exchange for that, we expect you Ko continue to pay the mortgage, the utilities, and the other expenses of occupying the properW. c) When the house is sold, Dorothy should be Zepaid the $80,000.00 which she contributed to the in/rial purchase price. The balance of the proceeds can be divided between the two of you equally. We make this proposal on the assumption that you will want to sell the house to end the financial obligation of the mortgage, If you wo~ ld like to ret~i~ the house as your own, and are willing to repay Dorothy what she has invested in the property, we will certainly be willlng to discuss that p >ssibility with you. 717-761-1435 SAM ANDES 594 P04/05 OCT 10 '01 13:26 John M. S,.~ltv~n~ M.D. 2 9 October 2001 Second, with regard to DJ Realty Associates, L.L.C., I understand that you own a 50% interest in ~b~s enti~ and that Dorothy's Individual Retirement Account owns the other 50% and that the L.L.C. owns a buil~ting lot Lu Bent Creek, Silver Spring Township, which the two of you intended to improve with a commercial b~ld~ng which would house your office. I further understand that Dorothy's IRA contributed $100,000.00 to the fo~mationbf the L.L.C. and the purchase of the real estate, that you have given the L.L,¢. a Promissory Note for $90,000.00, which represents your future contributions to the entity, and that you have been m~ing payments on the debt which represents the b.~l~nce owed for the purchase of the real estate. With regar~ls to the L.L.C., we propose aa follows: 1) Dorothy will purchase your interest in the L.L~C., or arrange .~...have a t_~rd party purchase it, by assumingdirect responsibility for pa¥~-,~ent of the Note you gave the L.L.C. and the payments owed for the balance of the purchase price of the real estate. 2) You and Dorothy will amend ~he operating agreement of the L.L.C. to transfer control of the entity to Doroth3~s IRA or its representative. 3) You will then transfer the balance of your interest in the L.L.C. to whoever ass~_]_..m__es the debts for you (which wilt either be Dorothy's IRA or a th/rd par~ investor). You will then iwithdraw entirely from participation in the L,L.C. Again, Dorothy is w~lling to be somewhat flexible with regaz~ to the L.L.C. She thinks that her investment advisor can find a third pazty your interest ~d assume that debt, so that you will be relea liability on it. If that c_~_~_t3ot be done, we believe that her IR~ interest and assume sole responsibility for the debt. That more complicated transaction from a tax point of v~ew, but to consider either of these that are acceptable to you. w~!1~ng to accp~_~re ~ed from ~_~y can acquire your ~y be a somewhat orothy is willing Dorothy's health problems make it d~cu~t for her to d, time and energy to these matters to resolve them herself. T~ asked me to assist her in resolving these mattors. As far as .,vote s-~cient .at is why she has i am awaze, these 717-761-143S SAM ANDES 594 P05/05 OCT 10 '01 13:27 John M. Sullivan, M.D. 3 9 October 2001 two assets are the only ones that you ~nd Dorothy own together and ate the only assets _-nd ob]/gations which we must resolve at this point. If you disagree --d feel there are other matters we should addresS, I will be happy to discuss them with you or with your attorney. We hop. we c= rely upon your and goo w to get thess matters resolved with as little delay and ! 'culty as possible. We have t~ied to formulate a plan which will e~tract you from the fm.nciallbu~den these two assets have crea~ed and will simplify th~ process of parting !for both you and Dorothy. We realize, of course, that these are complicated ~atters and they are ~-~po~tant to you as well as to Dorothy. For that reason, lwe are cercain~y receptive to any proposals or suggestions you have to mske~ However, the sooner we o~ get this process star~ed, the sooner both youl-nd Dorothy will be disengag.ed f~om these matters and the sooner you wi/~e relieved of the financial obligations they represent. Accordingly, ! ask tha~ ! hear from you or you~ attorney, with your response to these propos-~-% as sodn as possible. Thank you for your anticipated cooperation. Sincerely, Dorothy A. N~lhand~- Samuel L. Andes DOROTHY A. NALI3ANDIAN, Plaintiff VS. JOHN M. SULLIVAi~], M.D., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION ~ EQUITY NO. 02-1757 EQUITY TO THE PROTHONOTARY: PRAECIPE Please mark the docket in the above-captioned matter "settled and discontinued with prejudice." Attorney for Plaintiff Supreme Court ID # 17225 525 North 12th Street Lemoyne, Pa 17043 (717) 761-5361 ! Jam c~(~.-~ller- ~Att~d'ey for Defendant ~rupreme Court ID # ~u/I~arket Street Camp Hill, PA 17011 (717) 737-6400