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HomeMy WebLinkAbout94-03061 " L.. _'ll - j ciJ o . -;ft ~l g I ~ J E € ~ - '- - (:) <J --. . - <.) \--~)~ "'~-'.- .. . I I I I CIVIL ACTION - LAW I I : I NO. 94-3061 Civil Term I I : THE COURT OF COMMON PLEAS OP CUMBERLAND COUNTY, PENNSYLVANIA Arthur T. McDermott, Esquire, and Arthur T. McDermott and Associates a Professional Corporation, Plaintiffs vs. Richard C. Detwiler and Callison, Tighe, Robinson, and Anastasion, Defendants AFFIDAVIT OF SBRVICB BY MAIL PURSUANT TO Pa. R.C.IP. 1920.4(a)(1)(ii) COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND . . : SS : Arthur T. McDermott, Esquire, being duly sworn according to law, deposes and says that he is the Plaintiff, Arthur T. HcDe%mOtt, Bsquire, and that he did serve a true and correct copy of the Notice and Complaint filed in the above matter, by mail certified, return receipt requested, to the Defendant, Callison, Tighe, Robinson, and Anastasion on June 13, 1994. 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";DIC.mblr1881 1>UACII'O:I___71... ~pMEsnc RETUR~~~CEI1i~~ '.'~ .~,~~,,~..:i_,~~;:~.;,};_:~..<:..;, Ii. ~ ,r,. ~ :'_,J~:: ( \,a \ SEP 3 0 1994 ~ d.-e-- The Law Offices of SPERO T. LAPPAS 205 State street Post Office Box 808 Harrisburg, Pennsylvania 17108-0808 Telephone (7l7) 238-4286 FAX (717) 238-4826 By: SPERO T. LAPPAS, ESQUIRE Pa. Supreme Court Identification No. 25745 ATTORNEYS FOR THE PLAINTIFFS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Arthur T. McDermott, Esquire, and Arthur T. McDermott and Associates a Professional Corporation, Plaintiffs CIVIL ACTION - LAW . . v. , . NO. <:(l.( ~ ~c:2:. ( C(Ut L. Richard C. Detwiler and Callison, Tighe, Robinson, and Anastasion, Defendants JURY TRIAL DEMANDED PLAINTIFF'S BRIEF IN OPPOSITION TO DEFENDANTS' PRELIMINARY OBJECTIONS I, FACTS This lawsuit was initiated by the filing of a six count complaint which brought counts of breach of contract, unjust enrichment, and quantum meruit against each Defendant. Defendant Detwiler is an attorney licensed to practice in South Carolina; Defendant Callison, Tighe, Robinson, and Anastasion is the law firm with which he practices. The facts giving rise to these causes of actions are as follows. After the death of one Nicholas W. Lagaza there arose a dispute as to whether he died a domiciliary of Pennsylvania or of The Law Offices of SPERO T, LAPPAS Page 1 North Carolina, This issue was important to determine where Mr. Lagaza's estate would be established, and to determine who would represent that estate in connection with a potentially lucrative wrongful death/survival action. The proponents of the Pennsylvania estate were represented by Plaintiffs; the proponents of the North Carolina estate were represented by Defendants. In order to determine the domicile question, Plaintiffs filed an action for declaratory judgment in the Court of Common Pleas of Cumberland County on behalf of their clients. A hearing on this action was convened in May, 1993. Prior to this hearing, Attorney McDermott (one of the Plaintiffs) had begun to perform the investigation and preparation necessary to the prosecution of the wrongful death/survival actions. Naturally, the court's decision as to domicile governed the identity of counsel who would handle the death claims for the Plaintiff. Therefore, on or about May l4, 1993 Plaintiffs (through Attorney McDermott) and Defendants (through Attorney Detwiler) entered into a contract in Cumberland County. The terms of that contract are set out in paragraphs 13 and 14 of the complaint and basically provided that Attorney McDermott would turn over to Attorney Detwiler the file material which Plaintiffs had produced, generated, and accumulated in connection with their investigation and preparation of the Lagaza case. Attorney McDermott further promised that he would turn that material over to the defendants voluntarily and without the need for any litigation or compulsory process and that he would make his file available to The Law Offices of SPERO T. LAPPAS Page 2 Attorney Detwiler and the Defendants for their use in the Defendants' continued representation of the Lagaza Plaintiffs. In consideration and exchange for Attorney McDermott's promises, Attorney Detwiler, and through him The Callison Law Office, agreed to compensate the Plaintiffs at plaintiffs' hourly rate for all work which they had done in anticipation, preparation, and investigation of the anticipated Lagaza death litigation. This contract was negotiated and entered into in Cumberland County, Pennsylvania; and it related to the exchange of materials which were at that time located at Attorney McDermott's office in Cumberland County, Pennsylvania. Furthermore, the "litigation or compulsory process" which Attorney McDermott agreed to waive in exchange for Attorney Detwiler's promises would have had to have been brought in Cumberland County. Attorney McDermott then complied with all of his obligations under the contract and turned over his Cumberland County files to Attorney Detwiler who confirmed that those materials "were valuable and necessary to the Defendants and their clients in the continued procecution of the Lagaza claim" (paragraph 16 of the complaint). However, the Defendants, despite numerous demands have failed and refused to comply with their obligations under this contract. Hence this suit. The Defendants have raised three preliminary objections to the complaint. First, they have moved to dismiss the complaint for lack of personal jurisdiction over the Defendants. Second, they have The Law Offices of SPERO T. LAPPAS Page 3 moved to dismiss the complaint because of the pendency of a prior action brought in the General Court of Justice, Superior Court Division of North Carolina.' Third, the Defendants demurrer to counts 3, 4, and 5 of the complaint. This brief is respectfully submitted in opposition to the Defendants' preliminary objections. II. ARGUMENT l. This Court has personal jurisdiction over the Defendants for this cause of action. As noted in the complaint and recitation of facts, suora, the causes of actions pleaded in this complaint are inexorably bound and connected to Cumberland County, Pennsylvania. The Defendants traveled to Cumberland County Pennsylvania for the sole purpose of participating in the litigation of the declaratory judgment action. They did so to establish an estate in North Carolina after which they would be able to represent the Defendants and collect a healthy fee for that representation. In pursuit of that representation (and in pursuit of such a fee) they entered into a contract in Cumberland County, Pennsylvania after negotiating the terms of that contract in Cumberland County, Pennsylvania. The corpus of the contract (Attorney McDermott's litigation file) was Cumberland County property at the time of the negotiation and · Although the preliminary objections request a dismissal of the complaint, the brief in support of those preliminary objections acknowledge that the dismissal of the complaint is not appropriate. The Law Offices of SPERO T. LAPPAS Page 4 making of the contract. The terms of the contract provided that Attorney McDermott would waive the need for litigation and compulsory process in order to obtain that file, which compulsory process or litigation which would have had to have been brought in Pennsylvania. Pennsylvania. "When preliminary objections, if sustained, would result in And the file was delivered to the Defendants in the dismissal of an action, such objections should be sustained only in cases which are clear and free from doubt." Barber v, Pittsburoh cornino Corooration, 317 Pa. Super. 285, 302-03, 464 A.2d 323, 332 (1983), cert. denied, 467 U.S. l205, 104 S.Ct. 2387, 8l L.Ed.2d 346 (l984). "Moreover, when deciding a motion to dismiss for lack of personal jurisdiction the court must consider the evidence in the light most favorable to the non-moving party." Barber v, Pittsburoh Cornin9 Corooration, suora, ouoted in Kenneth H, Oaks. Ltd. v. Joseohson, 390 Pa. Super. 103, 105, 568 A,2d 215, 216 (1989) , In ~, suora, the Superior Court reversed a lower court's finding that Pennsylvania courts did not have personal jurisdiction over the Defendants. The Superior Court found that the Pennsylvania courts had jurisdiction over the Defendants in that case based in part upon the following factors: "In connection with the contract, Josephson mailed and faxed bid specifications to Oaks at his place of business in Northhampton County, Pennsylvania. Oaks prepared its bid quotation The Law Offices of SPERO T. LAPPAS Page 5 in Pennsylvania in response to Josephson's solicitation, and purchase orders by Josephson were mailed to Oaks in Pennsylvania. Numerous telephone calls between the parties' offices in Pennsylvania and New Jersey were exchanged and an employee of Josephson visited the Oaks plant in Pennsylvania on at least one occasion to review proofs in connection with the parties' contract. All of the work on the contract was performed in Pennsylvania." ~, suora, 390 Pa.Super 107, 568 A.2d 217. In ~, which like the present case involved a claim for breach of contract, these factors were sufficient to establish personal jurisdiction in Pennsylvania. In the present case, like in ~, the Defendant or its representative traveled to Pennsylvania; the contract was made in Pennsylvania; and all of the work on the contract was done in Pennsylvania. In the present case as in ~, the party breaching the contract had "purposely availed itself of the privilege of conducting its business activities within Pennsylvania." zg. Therefore, here as in ~, the Defendant's "contacts with the forum [are] sufficient to meet the due process minimum contacts test." 1!l. In Kinaslv and Keith v. Mercer International Corooration, 291 Pa. Super. 96, 435 A.2d 585 (1981) the Superior Court reiterated and re-approved the test announced in Proctor and Swartz. Inc. v. Cleveland Lumber Comoany, 228 Pa.Super 12, 19, 323 A.2d 11, 15 (1974) which included a three part test: "First, the defendant must have purposefully availed itself of the privilege of acting within the forum state less invoking the benefits and protection of its laws.. . Secondly, the cause of action must arise from The Law Offices of SPERO T. LAPPAS Page 6 the Defendant's activities within the forum state. . . . Lastly, the acts of the defendant must have a substantial enough connection with the forum state to make the exercise of jurisdiction over it reasonable. . . . " Kinaslv and Keith, suora, 29l Pa. Super. 104, 435 A.2d 589. In discussing the first part of the Proctor and Swartz test, the Kinaslv and Keith court ruled that "a nonresident defendant purposely avails itself of the privilege of acting within [Pennsylvania] when it enters into a contract" in Pennsylvania. Kin9s1v and Keith, suora, quotina Koenia v. International Brotherhood of Boilermakers Etc., 426 A.2d 635 (Pa.Super 1980). In the present case, the first prong of the Proctor and Swartz test is satisfied by the fact that the contract was entered into in Pennsylvania. The Kinaslv and Keith court further stated that "the second part of the Proctor and Swartz test may be satisfied by pleading a contract having a significant connection with Pennsylvania . . and a breach of that contract." Kinaslv and Keith, suora, 291 Pa.Super 108, 435 A.2d 591. The contract between these Plaintiffs and these Defendants did have "a significant connection with Pennsylvania" in that it was formed in Pennsylvania, and a crucial part of it was that the Plaintiff agreed to waive future litigation which would have necessarily been brought in Pennsylvania and before the courts of Pennsylvania. The Defendants acknowledged in their brief that the Lagaza file (prior to Attorney McDermott's contract with Attorney Detwiler) was the property of Attorney The Law Offices of SPERO T. LAPPAS Page 7 McDermott and his Pennsylvania clients and that he could have retained it forever if he had chosen to do so.' . The third prong of the Proctor and Swartz test focuses on the question of whether "the exercise of jurisdiction in this particular case [would] be fair and reasonable under the circumstances." Proctor and Swartz, SUDra, 228 Pa. Super 20, 323 A.2d 16. In the present case, the this prong has been satisfied. The entire nature of the contract upon which the Plaintiffs sued is related to Cumberland County litigation. The contract itself was precipitated by the litigation of the Cumberland County Declaratory Judgment Action in Laoaza v. The ADDointed Administrator of the North Carolina Estate of Nicholas w. Laoaza (Cumberland County Orphan's Division Number 2l-92-703), and the purpose of the contract was to settle the exercise of certain rights under , The Defendants at page 10 of their brief concede that the files in this case "ultimately belong to the client" and that the attorney (McDermott) "would have right to retain the files until. . . payment was rendered". The Defendants also state that plaintiffs "transferred a piece of property they were apparently holding as security" and that they "knowingly transferred the files to the Defendant", Although plaintiffs disagree with the defendants' characterization of this transaction (for the reasons stated in the complaint) the defendants do acknowledge that plaintiffs (and the Pennsylvania clients) had a possessory right to retain that file. The defendants further acknowledge that by transferring the file to the defendants, the plaintiffs abandoned "an attorney's lien [which] being possessory can not be enforceable after possession has been relinquished. " Accordingly, the defendants recognize that by transferring this file to the defendants pursuant to the contract which was entered into between Attorney McDermott and Attorney Detwiler, the plaintiffs bargained away valuable Pennsylvania rights and avoided the need to litigate, in Pennsylvania, the question of who would have been ultimately entitled to possess the Lagaza file. The Law Offices of SPERO T. LAPPAS Page 8 Pennsylvania law which would have needed to be litigated in Cumberland County. In Kingslv and Keith, the Superior Court upheld Pennsylvania jurisdiction inter liill. because "this state has an interest in insuring that contracts affecting its domiciliary . . . were not breached." 29l Pa.Super at 109, 435 A.2d at 592. The same considerations apply here with equal force. Furthermore, collateral considerations of the contract should also be considered. In Kinaslv and Keith, the court indicated that Pennsylvania "has an interest in. . . safeguarding the transport of chemicals over its highways." I,g. In the present case, Pennsylvania has an interest in insuring the sanctity of counsel's agreements to forego the exercise of valuable Pennsylvania rights as well as agreements to settle litigation, The Defendants also argue, generally, that they did not have sufficient contacts with Pennsylvania to warrant the exercise of personal jurisdiction. They argue that Attorney Detwiler was only here once and that while here he only attended the Lagaza hearing although (it is said) that he did not participate as counsel. The law is clear, however, that "even a single act can support jurisdiction [in Pennsylvania], so long as it creates a substantial connection with [Pennsylvania], provided the nature, quality and circumstances of the act's commission create more then a mere attenuated affiliation with [Pennsylvania]." Buraer Kina v. Rudzewicz, 471 U.S, 462, 475, N.l8, 105 S.ct. 2174, 2184, citina, McGee v. International Life Insurance Comoanv, 355 U.S. 220, 223, The Law Offices of SPERO T. LAPPAS Page 9 78 S.ct. 199, 20l (1957), International Shoe Companv v. state of washinaton, 326 U.S. 310, 3l8, 66 S.ct. 154, l59 (l945); quoted in C,J, Betters Corooration v. Mid South Aviation Services. Inc., 407 Pa. Super. 511, 517, 595 A.2d 1264, 1267 (l99l). In the present case, as noted above, the contract which the Defendant negotiated and made in Pennsylvania had future consequences with respect to the delivery of the Lagaza file (which was Pennsylvania property), the waiver of important Pennsylvania rights by the Plaintiffs, and the necessary avoidance of Pennsylvania litigation. Furthermore, the fact that the Defendants have no permanent or continuing presence in Pennsylvania does not defeat the jurisdiction of this court. In Controlled Metals. Inc. v. Non-Ferrous International Corooration, 410 F.Supp 339 (E.D.P.A. 1976), cited with approval in Oaks v. Joseohson, Suora, 568 A.2d at 218, the court held that the fact that a New York corporation had no office or business facility in Pennsylvania, no bank accounts for mailing address, no telephone listing or employees within Pennsylvania was "not significant" in light of the other factors involved. Accordingly, this court has jurisdiction over the Defendants and this case and the Defendants' motion to dismiss for lack of jurisdiction should be denied. 2. The Plaintiffs have not failed to state a claim for relief and accordingly the Defendants' demurrer to counts 3, 4, and 5 for unjust enrichment should be denied. The preliminary objection in the nature of a demurrer states (at page 3, paragraph l2 of the Defendants' preliminary objections c The Law Offices of SPERO T. LAPPAS Page lO that "Plaintiffs failed to state a legally sufficient claim against Defendants in counts 3, 4, and 5 of the complaint for unjust enrichment, nor do they state a claim for damages in quanta meruit." Paragraph 3 brings a claim of unjust enrichment against Defendant Detwiler; count 4 brings a claim of unjust enrichment against the Callison Law Office; count 5 brings a claim for quantum meruit against Defendant Detwiler. Count 6 of the complaint brings a quantum meruit claim against Callison Law offices; and the Defendants have not objected to the claim brought in count 6. In support of the objections which they have brought, the Defendants make two arguments: (1) The Defendants have not received any benefit from Attorney McDermott's performance of his terms of the contract; and (2) "[t]he Plaintiffs have failed to adequately protect their own interest". It is axiomatic that in deciding preliminary objections the court must read the pleadings in the light most favorable to the non-moving Plaintiff, Accordingly, it is admitted for the purposes of the preliminary objections litigation that "Attorney Detwiler confirmed to Attorney McDermott that the work which Attorney McDermott had done and the file materials which Attorney McDermott promised to, and did, turn over to Attorney Detwiler were valuable and necessarv to the Defendants and their clients in the continued orosecution of the Laaaza claims." (Complaint at paragraph 16; emphasis added). Furthermore, all materials which the Defendants obtained from the Plaintiffs were all "valuable investigative and The Law Offices of SPERO T, LAPPAS Page 11 other materials which were all reasonable, necessary, proper, and valuable with respect to the litigation of claims resulting from the death of Nicholas W. Lagaza, deceased." (Complaint at paragraph 9). In their brief, the Defendants seem to argue that because the ultimate beneficiary (or at least one ultimate beneficiary) of the Lagaza litigation are the clients of Attorney Detwiler and the Callison Law Office, that the Defendants themselves received no benefit by virtue of Attorney McDermott's delivery of the files. However, the files were important and valuable enough to the Defendants that they "agreed to compensate the Plaintiffs at an hourly rate for all work [the Plaintiffs] had done in anticipation, preparation, and investigation of this anticipated Lagaza death li tigation." (Complaint at paragraph 14). Furthermore, Detwiler confirmed to McDermott that the files were "valuable . . . to the Defendants " (complaint at paragraph 16). It is clear that an attorney representing a client in any civil case, including the Lagaza death claim, is required to perform a considerable amount of investigation and preparation for that litigation. Detwiler and his firm would have had to do this themselves, but for the fact that McDermott turned over his files to them. By obtaining the files from McDermott (upon their breached promise to pay for them) Detwiler saved himself and his firm a considerable amount of work, time, and expense. This -- in and of itself -- is a benefit which was received by and which accrued to the Defendants. The Law Offices of SPERO T. LAPPAS Page l2 Furthermore, the Defendants apparently misapprehend the nature of the Plaintiffs' case when they speak of themselves as being "agent[s] for a disclosed principle" (Defendants Brief at page 8). The Plaintiffs are not suing the Defendants as agent for the Lagaza estate or as agents for anyone else. The Plaintiffs contract was with Detwiler and The Callison Law Office directly. The contractors were the Plaintiffs on the one hand and the Defendants on the other hand. It is the Defendants who made promises as to what they themselves would do (pay McDermott's fee) and it is the Defendants who breached that promise. with respect to the "failure to adequately protect rights" argument the Defendants rely on the Superior Court's decision in stver v. Huao, 442 Pa. Super. 262, 619 A.2d 347 (1993). The facts of Stver are so far different from the present facts, and its ruling so inapposite to the present case, that a brief summary of the Stver case is appropriate. Styer was the first attorney who represented a client named Piccinino ("the client") in a personal injury action. After Styer had let the client's case to "languish[] with no progress towards settlement at all during . . . four years" (619 A.2d 35l), the client fired Styer and hired an attorney named Brill to take over. Brill made some sort of ambiguous agreement with styer in which Brill promised "to equitably divide any attorney fee realized in this case along the lines we discussed" (6l9 A.2d 348). Evidently Brill felt that this equitable division would result in styer receiving "at a minimum one third of the The Law Offices of SPERO T. LAPPAS Page 13 attorney fee realized" in the event of a settlement (~.). Brill did not get along with the client (evidently they disagreed about the' value of the case), he told the client to find another lawyer, and he waived any entitlement which he had to receive any fee. The client then retained Hugo who knew nothing about styer and nothing about the agreement between styer and Brill. Hugo settled the case for $l05, 000.00 and styer sued, claiming that because Hugo had Styer's investigative files available to him he had been unjustly enriched. The Superior Court disagreed and found no unjust enrichment. Specifically, the court found that the record did not "support the conclusion that without Styer's efforts the highly favorable resolution of the case would not have been achieved." 619 A.2d 351. Further, the court held that Brill and the client had both compromised Styer's rights to any recovery by their later actions: the client by discharging styer and replacing Brill with Hugo; and Brill by waiving any fee entitlement he had, thereby waiving any derivative right which Styer enjoyed through Brill. With respect to the Defendant's self-protection argument, the Styer court simply stated that: ". . . The reason Styer has not been paid is that he first failed to avail himself of the right to compensation from [the client] that the law provided him, and then relied on his agreement with Brill, which through no fault of Hugo's, ultimately yielded styer nothing. ~, Meehan [v. Cheltenham Township, 410 Pa. 446, 189 A2d. 593 (1963)] (Where a party inadequately protects its right to compensation from the direct recipient of its The Law Offices of SPERO T. LAPPAS Page 14 services, it can not seek restitution against one indirectly benefitted by those services who in no way induced the provision of services)." stver v. Huao, suora, 619 A.2d at 352. In the present case, to the contrary of Stver, the Plaintiff's nonpayment does not arise "through no fault" of the Defendants. The only reason the Plaintiff has not been paid is the direct fault of the Defendants who have breached their contract with him. Furthermore here, unlike in Stver, the Plaintiff is not trying to assert rights which arise because of the Plaintiff's agreements with a third party (Brill); rather, he is asserting contractual rights which arise by virtue of a direct contract between the Plaintiffs and the Defendants. Finally, the Plaintiff has not "failed" to protect himself at all. He entered into a specific and detailed contract with these Defendants. Unlike the vague and unenforceable language of the Styer/Brill contract, the McDermott/Detwiler contract was precise: "In consideration and exchange for Attorney McDermott's promises, Attorney Detwiler, and through him The Callison Law Office agreed to compensate the Plaintiffs at an hourly rate for all work which they had done in anticipation, preparation, and investigation of this anticipated Lagaza death litigation." Complaint at paragraph 14. Furthermore, Detwiler acknowledged the value of the files to himself and his law firm (Complaint at paragraph 16). At the time Hugo made his agreement with the client he had no reason to know that styer even existed let alone that he would assert some claim against the final recovery; Detwiler dealt The Law Offices of SPERO T. LAPPAS Page 15 face to face with McDermott and made him specific, concrete, and precise promises. styer's agreement was with a third party who could in no way bind Hugo; McDermott's contract was directly with the Defendant Detwiler. styer's agreement with Brill was vague and "notably. . . made no provision if Brill did not see the case through to judgment or settlement" (6l9 A,2d 35l); McDermott's and Detwiler's contract was precise and concrete and did not require the occurrence of any future contingencies before the Defendants' obligations arose. Accordingly, the stver v. Hugo decision provides no support to the Defendants and the objections to counts 3, 4, and 5 should be dismissed. Furthermore, because the Defendants acknowledge that "unjust enrichment and quanta meruit are similar equitable doctrines" and because count 6 of the complaint remains viable no matter how the court decides this preliminary objection, the preliminary objections should be ,dismissed as moot: McDermott will still have an unjust enrichment claim against The Callison Law Offices even if the Defendants' objections are granted. However, for the reasons stated above, the objections should be dismissed. 3. Dependence of the North Carolina action does not require that the litigation on the present case be stayed pursuant to Pa.R.C.P l017(b) (5). In the preliminary objections filed with this court, the Defendants wanted to have the complaint dismissed because of the The Law Offices of SPERO T. LAPPAS Page l6 pendency of the North Carolina lawsuit. In their brief, "[t]he Defendants admit that the prior pending action would not entitle the Defendants to dismissal" (Defendant's Brief at page 11). In support of this position, the defense relies on Penox Technoloav v. Foster Medical, 376 Pa.Super 450, 546 A.2d 114 (1988) which establishes a four part test to the defense of a prior action or lis pendens: (1) The pendency of a prior action must be shown; (2) It must be shown that the prior case is the same as the present case, the one which is sought to be dismissed or stayed; (3) The parties must be the same in both actions; (4) The relief requested must be the same in both actions. In the present case, the second, third, and fourth prongs of this test can not be satisfied. Same case: The present case is a contract/unjust enrichment case between Arthur McDermott and his law office and Richard Detwiler and his law office. The North Carolina case is a declaratory judgment action brought by W. Herbert Brown, Jr, administrator of the estate of Nicholas W. Lagaza deceased, as well as Detwiler and Callison. No part of the North Carolina case seeks a declaratory judgment that the Plaintiffs' claim is time barred under the laws of North Carolina. Same oarties: As noted above, the parties are not the same in that the North Carolina case includes an additional plaintiff, namely W. Herbert Brown, the North Carolina administrator of the The Law Offices of SPERO T. LAPPAS Page 17 Lagaza estate. Same relief: The relief requested in the present case is a judgment of money damages against the Defendants; the relief requested by the North Carolina case is a declaratory judgment. Accordingly, three fourths of the penox Technology factors are absent in this case. However, the Defendants also argue that "the granting of a stay is totally within the discretion of the court" and argue in favor of the exercise of this discretion by stating that "once the North Carolina decision reaches jUdgment, the judgment will be binding upon Pennsylvania". There is no authority at all cited for the proposition that this court would be bound by a declaratory judgment in North Carolina. specifically, the Plaintiffs point out that the North Carolina declaratory jUdgment action misconstrues (perhaps intentionally) the nature of the contract between McDermott and Detwiler as being "a claim against the estate of Nicholas W. Lagaza" (North Carolina complaint at paragraph l7, page 3. This complaint is attached to the Defendants' brief as Exhibit C.) A declaratory judgment in North Carolina or elsewhere that the Plaintiffs are not entitled to recover "for legal services rendered [to] said estate" would be irrelevant to the question of whether Detwiler and Callison owe money to the Plaintiffs because of a contract which they entered into with the Plaintiffs and which they breached. Accordingly, the Defendants' preliminary objections should be dismissed. The Law Offices of SPERO T. LAPPAS Page 18 III. Conclusion For all of these reasons, the Plaintiffs request that the preliminary objections of the Defendants be dismissed and that the Defendants be ordered to file an answer. RESPECTFULLY SUBMITTED, of SPERO T. LAPPAS SPE LAPPAS, ESQUIRE Pa. Supreme ct. 10 No. 25745 205 State Street P.O. Box 808 Harrisburg, PA 17108-0808 (717) 238-4286 ATTORNEYS FOR THE PLAINTIFFS By: DATE: :t( <,a 11!J The Law Offices of SPERO T. LAPPAS Page 19 . I . ;:~l ;j LAW OFFICES FLpWER, MORGENTHAL. FLOWER &. LINDSAY ~,: '\.. A PROFESSIONAL CORPORATION , 11 EAST HICH STREET, CARLISLE. PENNSYLVANIA 17013-3016 ~~. '.~."i'~ " ..,. ~EP 26 19940'",- . ARTHUR T. McDERMOTI, ESQUIRE, and ARTHUR T. McDERMOTI and ASSOCIATES, a Professional Corporation, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Plaintiffs v. NO. 94.3061 CIVIL TERM RICHARD C. DETWILER and CALLISON, TIGHE, ROBINSON, and ANASTASION, Defendants JURY TRIAL DEMANDED I. FACTUAL BACKGROUND The Plaintiffs, Arthur McDermott and his law firm, practice law in Carlisle, Pennsylvania. (Complaint, Para. 1). The Defendants are an attorney, Richard Detwiler, and his law firm, Callison, Tighe, Robinson and Anastasion. (Complaint, Para. 3-4) Detwiler and his firm both practice exclusively in South Carolina. (Complaint, Para. 3-4) This case has its factual background in an estate which was opened in Cumberland County, Pennsylvania on or about August 17, 1992 to the No. 21-92-703, the Lagaza Estate. Nicholas W. Lagaza, a North Carolina resident, died in an automobile accident in South Carolina on August 14, 1992.1 Plaintiffs were retained by the decedent's father to open an estate in Cumberland County, Pennsylvania. (Lagaza, Para. 4.) On behalf of the Estate, then, Plaintiffs filed a wrongful death action in the Federal Court in South Carolina. (Lagaza, Para. 5) I The facts outlined in this paragraph are contained in a Complainl in an action for declaratory judgment flied to the No. 21-92.703, the Estate oC Nicholas W. Lagaza. The facts concerning the death of Nicholas W. Lagaza are contained in Paragraph 3 oC the Complaint, a copy of which is attached to this BrieC as Exhihit "A" for ease oC reference. Further references in this BrieC will be noted as Lagaza, Para. c:lwp.lllcll\dclwilu.brf r... '439)'94-01 . .. The only heir of the Estate was the decedent's minor son who was In the custody of his mother, decedent's ex-wife, (Lagaza, Para, 8) On behalf of her son, decedent's ex-wife retained North Carolina counsel, W, Herbert Brown, Jr" Esquire, to open an estate In the County of decedent's residence, Mecklenburg County, North Carolina. (Lagaza, Para. 11, exhibit A) Attomey Brown, the administrator, hired Defendants In the Instant case to represent the North Carolina estate In the wrongful death action, (Lagaza, exhibit A) Thus, by January, 1993, there were two estates open, one In Pennsylvania and one In North Carolina, both claiming to be the primary estate for Nicholas W, Lagaza, and both clalmlng the right to prosecute the wrongful death action. To resolve the Issue, Plaintiffs In the Instant case, on behalf of the Pennsylvania estate, filed an action for declaratory judgment on January 29, 1993 In the Court of Common Pleas of Cumberl8nd County. The outcome of that action tumed on domicile of the decedent as of the date of death. A hearing was held before the Honorable Harold E. Sheely on April 28 and 29, 1993. At the hearing, Defendants In the instant case "attended", (Plaintiffs' Answer to Preliminary Objections, Para. 3) Defendants have no place of business In Pennsylvania, (Reply to Preliminary Objections, Para. 3) Except for Defendant Detwiler's attendance at the April 28th and 29th hearing before Judge Sheely, where he neither represented the North Carolina estate nor gave testimony as a witness, the only contact with the state of Pennsylvania alleged by the Plaintiffs Is a contract for the acquisition of Plaintiffs' personal injury file made In Pennsylvania. 2 c:\wpSIIojl\<ldWikr.bd 1Uo' 439J.M.01 .. Ultimately, Judge Sheely found for the North Carolina Estate, A copy of his decision and opinion Is attached hereto as exhibit "B", The Defendants, then, represented the Estate In the wrongful death action filed In South Carolina. On March 14, 1994, In the General Court of Justice, Superior Court OMslon, the Defendants herein and the North Carolina Estate brought a declaratory judgment action against the Plaintiffs In the Instant C8se, The sole Issue raised by the North Carolina action Is the liability of the Oefendants herein for the same claim asserted In the Instant action, (Reply to Preliminary Objections, Para, 9) A copy of the Complaint was attached to Preliminary ObJections, and It Is attached to this Brief for ease of reference as exhibit "Co. Plaintiffs herein answered the Complaint. A copy of the Answer filed by the Plaintiffs Is attached hereto for ease of reference as exhibit "0'. The matter In North Carolina Is still pending. (Reply, Para. 11) 11. ISSUES 1, Whether the Plaintiffs' complaint should be dismissed where the Defendants' only contact with Pennsylvania was the acceptance of a file accumulated In Pennsylvania, and attendance at a hearing In Cumberland County? 2. Whether the Complaint should be dismissed or the Instant action stayed where a declaratory Judgment action Is currently pending in North Carolina to determine the potential liabilities arising from the alleged transaction. 3. Whether Plaintiffs state a claim In quantum meruit or unjust enrichment. 3 e:lwpSllcjl\d<lWUcr,brf rtl< 14393.Ilol.o1 . III. DISCUSSION: The Plaintiff's complaint should be dismissed because the Pennsylvania courts lack Jurisdiction over the Defendants and because the Plaintiffs have failed to state a claim upon which relief could be granted. If not dismissed, the complaint should be stayed pending the outcome of the North Carolina declaratory judgment action. A, PENNSYLVANIA COURTS LACK IN PERSONAM JURISDICTION OVER THE DEFENDANTS. A three-part test determines whether the Commonwealth may exercise In personam Jurisdiction over a non-resident Defendant: 1, The Defendant must have purposefully availed itself of the privilege of acting within the forum state thus invoking the benefits and protection of its laws, 2. The cause of action must arise from Defendant's activities within the forum state. 3. The acts of the Defendant must have a substantial enough connection with the forum state to make the exercise of jurisdiction over it reasonable, Proctor & Schwartz. Inc. v. Cleveland Lumber Co., 323 A,2d 11, 228 Pa, Super 12 (1974). In this case, the Plaintiffs assert only two possible contacts between Defendant and Pennsylvania. The oral agreement to transfer the files to the Defendants was allegedly made In this state and Defendant Detwiler observed a hearing in Judge Sheely's courtroom. 4 c:lwpSllcjI\lIcrOIllc,.btf llIo '4]9].94-01 . Even If the existence of the oral contract could be shown. the courts of Pennsylvania have traditionally held that merely entering Into a contract with a Pennsylvania resIdent is not sufficient to give rise to personal Jurisdiction. In Enele v, Enele. 603 A.2d 654, 412 Pa, Super, 425 (1992) the Superior Court refused to allow personal Jurisdiction over a non-resident Individual who was simply a passive purchaser of assets, In EnQle. a wife attempted to join her husband's brother In a divorce action based on the brother's purchase of rights to proceeds from a piece of real estate, Jd. The court stated that "[alpellant's contacts with Pennsylvania, two or three isolated telephone conversations with Defendant In Pennsylvania, his purchase of Defendant's right to residual proceeds form the sale of out.of.state real property. and the transfer of payment, do not establish sufficient contact and connection with Pennsylvania that appellant could reasonably anticipate being brought Into court here." Jd. at 658. Similarly, In GrOUD Two Advertllilinq v. Arst Investment CorD.. 27 D, & C.3d 687 (1983). the court refused personal Jurisdiction over a non-resident Defendant based on an alleged breach of an agreement with a resident company to print brochures. In GrOUD Two, the court stated that "the mere existence of a sales contract between the non.resldent Defendant and resident Plaintiff is not, In itself, sufficient to establish Jurisdiction where the non-resident Defendant has not solicited or conducted any other business In this state and the performance of the contract had a nominal economic impact." !d.. at 693. In this case, the Defendants have not had sufficIent contacts with Pennsylvania to allow the court to exercise personal jurisdiction. The only contacts alleged by the Plaintiffs are the alleged oral contract with the Plaintiffs and Defendant Detwiler's visit to Carlisle. As noted above, the sales contract alone is not sufficient to establish the necessary contacts, While the oral contract was 5 o:\wpSl\cjl\d<cwiJcr.btf r&lc 1439).NollI . allegedly negotiated In Carlisle, Pennsylvania, the files themselves were delivered to South Carolina to be used solely In South Carolina by a South Carolina resident, Therefore, the contract for transfer of the files was to be almost wholly performed in South Carolina. The alleged oral contract could not constitute sufficient contacts with Pennsylvania to give rise to personal Jurisdiction, Similarly, Defendant Detwiler's visit to Carlisle, Pennsylvania, did not constitute minimum contacts, Detwiler simply was observing the Pennsylvania proceedings. He did not appear before the court in any official capacity, he did not act as a witness. In fact, Mr. Detwiler simply sat as a member of the audience and observed the proceedings. Time Share Vacation Club v. Atlantic Resorts Umlted, 735 F. 2d 61 (3d Clr. 1984) supports the argument that in personam Jurisdiction in Pennsylvania over Defendants Is Improper, As In Grouo Two. Time Share Vacation Club involved a Pennsylvania plalntlff's attempt to hall an out.of- state (Maryland) defendant into a Pennsylvania Court. The plaintiff and the defendant had executed a contract whereby the plaintlff had agreed to promote the defendant's Maryland resort. .Id. at 62, The plaintiff claimed that the defendant breached this agreement by failing to reimburse it for expenses totalling $74,000.00. The court held that in determining whether the defendant had sufficient contacts with the forum to support jurisdiction, the first element of the test Is whether the defendant .purposefully availed. itself of the privilege of conducting activities in the form state. .Id. at 63. Moreover, in determining purposeful availment, the proper inquiry Is "whether the defendant ... has performed acts for or by which It could reasonably expect to be haled into count in Pennsylvania,. Id. at 65. The court held that despite the defendant's contract with the Pennsylvania plaintiff, the evidence was .simply Insufficient to prove, by a preponderance of the evidence that, by entering Into the contract, any of the defendants could foresee economic Impact in Pennsylvania. 6 c:lwplllcjlldcIWUc,.brf r~., 4393.N.(J1 . .!Q. at 66. The court held that the defendant could not be held to have foreseen economic Impact in Pennsylvania by virtue of this contract. Id. at 67. The Time Share court also held that the second requirement of in personam jurisdiction, that the cause of action arose from the defendant's activities in the form state, had not been satisfied. .!Q. Having advertised its resort in the Philadelphia Inquirer and have sent an airplane to bring potential customers to its resort, the defendant had some contacts with Pennsylvania. Nevertheless, in personam jurisdiction was stllllmproper because the plaintiff's cause of action did not arise out of those activities, Similarly, in the instant case, Defendant Detwiler's act as an observer of the Cumberland County hearing, the only other contact with Pennsylvania, Is unrelated to the making of the alleged oral contract. Plaintiffs' cause of action, therefore, did not arise out of any contact with Pennsylvania other than the making of the contract itself. In all, the Defendant's actions do not rise to a level sufficient to give Pennsylvania personal jurisdiction. The Defendants have never appeared before the courts of Pennsylvania or, In any way, sought the benefits of the Commonwealth's legal protection. Further, while the Defendant allegedly negotiated the contract in Pennsylvania, the file was actually delivered to North Carolina to be used solely in North Carolina. Finally, a one-time contract for the "sale" of a file to be used in North Carolina would not be sufficient enough to inform the Defendants of their possible liability in Pennsylvania. Therefore, Pennsylvania does not have personal jurisdiction over the Defendants. B, PLAINTIFFS FAIL TO STATE A CLAIM FOR RELIEF The Plaintiffs have alleged that, absent an oral contract, they are entitled to damages based on the theory of unjust enrichment or quantum meruit. However, under the theory, the Defendants are not the party liable to the Plaintiffs because they were acting as an agent for the estate, Further, 7 c:lwpSll<jlldccwilcr.brf r.101439J.94-01 the Defendants retention of the files would not be "unjust" given that the Defendants have failed to adequately protect their rights, 1. No Receipt of Benefit: Unjust enrichment and quantum meruit are similar equitable doctrines, The elements of unjust enrichment are 'benefits conferred on Defendant by Plaintiff, appreciation of such benefits by Defendant, and acceptance and retention of such benefits under such circumstances that it would be inequitable for Defendant to retain the benefit without payment of value." Styer v. Huao. 619 A.2d 347, 442 Pa, Super, 262 (1993), In case at bar, the Defendants were agents of their clients, the North Carolina Estate, and were acting for their client's benefit when they obtained the records. Therefore, the Defendants in their role as counsel did not in fact receive the benefit. It is the general principle that an "individual acting as an agent for a disclosed principle is not personally liable on a contract between the principle and a third party unless the agent specifically agrees to assume liability." Vernon D. Cox. Inc. v. Giles. 406 A.2d 1107, 1110, 267 Pa. Super. 411 (1979), An agent is deemed to have assumed personal liability if he has consummated a contract without disclosing either the fact of agency or the identity of the prlnclple..lQ. A principle Is disclosed if the other party to a transaction has notice that the agent is acting on behalf of a principle and has notice of the principle's Identity, In this case, the Plaintiffs admit in their complaint that they had actual knowledge that the files were to be used for the benefit of the Defendant's client. (Complaint, Para. 13), Therefore, the Plaintiffs have actual knowledge that the transfer of the property was for the exclusive benefit of the Defendant's client. Furthermore, the clients were the party actually benefitted by the files. Therefore, the Plaintiffs did not "confer on the Defendant" a benefit and the benefit was not 8 c:1..,.sllcjllddwilct.brf r... . 439J.94-01 appreciated by the Defendant. The benefit of the Plaintiffs actions was directed towards the Defendant's estate, Absent actual benefit, the Defendants should not be held liable for either unjust enrichment and quantum meruit. 2. Failure to Adequately Protect Rights: As a matter of law, "a party who falls to adequately protect its right to compensation from the direct recipient of Its services cannot thereafter seek restitution against one Indirectly benefitted by those services who In no way Induced the provision of services." Styer v. Huao. 619 A.2d 347, 442 Pa. Super, 262 (1993), Therefore, by falling to seek compensation from the Plaintiff's original client, the Plaintiffs have failed to adequately protect their own Interest and, therefore, the Defendant's retention of the files Is not unjust. In Styer v. Huoo, the Superior Court granted judgment N,O.V. In favor of an appellant on the grounds that the trial court committed a clear error of law in applying unjust enrichment. In the case, an attorney completed some Initial work for a client on a personal Injury claim. Upon being discharged by his client, the attorney agreed with the client's new attorney to forebear from seeking a fee from the clients and, Instead, agreed to share In any contingent fee ultimately received by the second lawyer. Subsequently, a third attorney was retained and obtained a recovery but refused to share his fee with the first attorney,. The first attorney sought recovery under unjust enrichment claiming that the final attorney had received the benefit of the first attorney's Initial work. In refusing the unjust enrichment claim, the court stated: Assuming arguendo, that [Defendant] realized some benefit from [Plaintiffs] work in collecting ... medical records, we nevertheless find that his retention of this benefit Is not unjust. Rather, we find that [Plaintiff] did not adequately protect whatever right to compensation he might have had vis-a.vis his clients, and that the 9 c:lwpSllojl\dolwilct.brf flIo' 4]9).~1 actions of both [the intervening attorneys] further compromised [Plaintiffs] ability to receive compensation, Styer, 619 A.2d at 351, In the current case, the Plaintiffs have similarly given-up their right to recovery against the original client, the Pennsylvania Estate, and, therefore, may not proceed against the Defendants. The Plaintiffs were retained by the estate of Nicholas W, Lagaza, (Complaint, Para, 6), In the course of representing the estate, the Plaintiffs compiled a litlgatlon file, (Complaint, Para, 9), It is a matter of law that such files ultimately belong to the client. Carb v. Allen. 120, & CAth 630 (1993), Unquestionably, the Plaintiffs had the right to recover their fee from the original client and the Plaintiffs would have the right to retain the files until such payment was rendered..l2.. However, for whatever reason, the Plaintiffs failed to seek payment from their original clients, Further, the Plaintiffs knowingly transferred the files to the Defendant. An attorney's lien, being possessory cannot be enforceable after possession has been relinquished. Jones v. MIller, 203 F,2d 131 (C.A. Pa. 1953). Now, after seemingly giving up ail their rights against their client, the Plaintiffs seek recovery in equity agaln~t the Defendants, The Plaintiffs, a sophisticated law firm, transferred a piece of property they were apparently holding as security without protecting their rights in any way, thereby simply gMng away their security for payment by the clients. As the Superior Court held in styer, by gMng up their claim against the original clients, the Plaintiffs failed to adequately protect their interest and should be forbidden from recovering against the Defendants, 10 o:\wpSllcjl\dclwiler.bd llIo, 4393-94-01 3. The Pending Prior Action: Under 42 Pa,C.S,A. Rule 1017(b)(5), a party may file a preliminary objection based on the pendency of a prior action, "In order to plead successfully the defense of lis pendens, I,e., the pendency of a prior action, it must be shown that the prior case is the same, the parties are the same, and the relief requested Is the same," PenoxTech. v. Foster Medical, 546A.2d 114,115,376 Pa. Super, 450 (1988), "Once the defense Is raised under Pa,R,C,P, 1017(b)(5), a court may dismiss or stay the subsequent proceedings." .ld... In this case, a previous action was filed in North Carolina. The North Carolina action was filed as a declaratory judgment to determine the relative rights and duties regarding the same files at issue in the instant case between the Plaintiffs, Defendants and the estate, (Preliminary Objection, Exhibit "A"). Although the Defendants admit that the prior pending action would not entitle the Defendants to dismissal, the Defendants believe that the court should stay the proceedings pending the final outcome of the North Carolina action, A trial court does have the inherent power to stay the proceedings In a second suit during the pendency of the first. Klein v. Citv of Philadelphia, 465 A.2d 730, n Pa. Commw. 251 (1983), "The trial court need not ... sanctlon the duplication of effort and waste of judicial resources that would result from allowing both cases to proceed simultaneously, in a race to judgment," .ld... at 731, The court in Sinaer v. Dona Suo Cha, 550 A.2d 793, 379 Pa. 556 (1992) while rejectlng the complete bar of a subsequent action, suggested that the trial court should consider staying a proceeding pending the outcome of any prior proceedings. See also Norrlstown Automobll~ CO..lnc. v. Hand. 562 A,2d 902, 386 Pa. Super. 269 (1989). 11 .:lwpllltjll4t<wilct.blf lUo 14393-\14.01 Generally, the grantlng of a stay Is totally within the dlscretlon of the court, However, the court should be willing to grant a stay if the prior proceeding will be binding upon the subsequent action, See Slnoer. 550 A.2d at 793. In this case, once the North Carolina decision reaches judgment, the judgment will be binding upon Pennsylvania and will fix the rights and liabilities of the parties to this suit. Therefore, the Pennsylvania case should be stayed pending the outcome of the North Carolina decision. IV, CONCLUSION: In all, the Plaintiffs' complalnt should be dismissed because the Pennsylvania courts lack personal Jurisdiction over the Defendants, The only contacts between the Defendants and the Commonwealth were an alleged oral contract and a one-tlme personal visit. However, while the contract was consummated in Pennsylvania, the files were to be delivered to North Carolina for use totally In North Carolina. Further, the one-time visit by the Defendant was simply for the purpose of observing a court proceeding, The Defendant did not in any way use the rights and privileges of Pennsylvania law, Therefore, the alleged contacts are not sufficient to lead to personal Jurisdiction and the case should be dismissed. Additionally, the Plaintiffs' clalms that they are entitled to recovery under Quantum Meruit or Unjust Enrichment should be dismissed. First, the Defendants were not the party benefitted by the Plaintiffs action, Secondly, the Plaintiffs decision to give-up their rights agalnst the estate should not lead to liability by the Defendants. If the Defendants gained any benefit from the Plalntiffs' actions, it was as a result of Plaintiffs' miscalculation. Therefore, the Plaintiffs should only be allowed to 12 ,~~;: 02 .?3 1~: 1S vIHIT:: ~ r'AL ':",:H E;;;::\ ..;=r. r Ie =...:. .2.!' '. , . vs. IN THE ORPHANS' COORT DIVISION OF '.I!BE COU'RT or COMKON PLEAS POR CUMBBRLAND COUN'fi, PENNSYLVANIA 2. I <;;,-703 NO . ~ 6ftflWiS' ~9UM lP l.l3 NI~I'IT...S LAGAZA, ADHINIS- TRA'J!OR OP PBHNSYLVANIA BSTA'l'Z OF NICHOLAS W. LAGAZA, APPOIHDD ADMINISTRATOR OF NOR'.1'H CAROLIHA BSTATE OF NIcaI'lY.~ W. LAGAZA, Defendant ACTION FOR DECLAR.ATORY JUDGHENT l"nVPTiATN'P CODS NOW, Plaintiff Nicholas LaqIlZII, tlw Admini.txator of the pennaylvlUlia Estate of Nichollls W. Laqllza, by and throuqh his attorney. Arthur T. McDermott and AIIsociatee, by Arthur T. McDez:mott and patricia R. Brown, Eequire, and reque8ts II declaratory judgment pureuant to Pa. R.Civ.l', Section 1601 ae to the proper domicile of Richolas W. Lagaza (deceased) for the purpose of Administration of eaid Estllte, and stlltes as follows: 1. Nichola. W. Lagllza died intestate liS a result of an automobile accident in Gaffney, South Carolina on August 14, 1992. 2. Nicholas Lagaza, Plaintiff herein, opened an Intestate Estate and WIIS granted Letters of Administration based on the fact thllt Nicholas W. Lagaza (hie eon) WIIS domiciled in Pennsylvania, and owned personal property located within the ComIIlOnwealth of Pennsylvania. 3, At the time of hie death, Nichola8 W. LagalBa resided in Charlotte, North Carolina, IInd was 8IIIployed as a salesman by Althin C.D. Medical, Inc. (Employer). 1 11t-1t:' O~-,.~,,;, '1;"'1~ "HI-- ," ....I'".LT.,~ _ __, h" .. ~ It. ~ "'I.... 1.'11 BPE:VAR[I r.v: . . On or abOut. Auguat 17, 1992, Hicholaa Lagasa reta1nadt.he law UXII of Arthur T, KeDemot.t and Aaeociates (the !'irlD) to :render legal aervicas in administer1ni the Bstate of Nicholaa W. Lagaza. S. In conjunction with the 1l_4niatratlon of the Zaute, and at -ehe request of the Il_iniatrator (NiCholaa Laga21a), the PiXII filed a wrongful death action in the united Stataa Dietrict. Court for the District of South Carolina on November 3, 1992. 6, Tha eole heir of the Intestate sstata 1a Hicholas W. Lagaza, II, the minor son of the daceaaed. 7. on November 20, 1990, the cleceaaed waa divorced from Marilyn Laqaza, the JlIOther of the child, Nicholas W. Lagaza, II. B. The fo~ Marilyn Laga21a, now Marilyn Chapman, remarriad, and rasides at Star Route Box 110, Roeman, North Carolina 2B722. She ia the guardian of the parson of the child and heir. 9. Marilyn Chapman has retained the services of the Brevard, North carolina law f11:m of White and Dalton, by William R. White, Esquire, who opened an Zatate in North Carolina on the mistak8n belief that the deceased -wae domiciled in North carolina. 10. The facta available to the PiXII of Arthur T. KeDeXllott and Aaaociatas regardinq the domicile of Nicholas W. Laga21a on tbe date of hia death ue as follOWS' (a) on July 5, 1959, Nicholas W. Lagaza was born in QuantiCO, Virginia, of parants whose home of record was Pennaylvani.a, while his father, Nicholas Lagaza, waa on 2 11HR 0:. ":t:l P.e..'U SRE',''''f;'[. n: , . r:rhis the active duty with the O. S, Harine Corps. established in the State of pennaylvania aa domicile of oriQin of !Jiaholaa W. Lagan. (b) In or about 1980, Nicholas H. Laqaza enlisted in the O.S, Navy at Hauisburg, PennaylvarUa, ancl pennsylvania remained his hOlll8 of ~cord during his se"ice in the Navy. (C) Opon his honorable discharge from the U. S. Navy in 1984, Nicholaa W. Laqaza returned with his wife ancl child and estabUshed his residence/domicile in LeIIIOy1\8, Penney 1 vanJ.a. (d) The couple was divorced November 20, 1990, as citizens of pennsylvania, and the former wife moved to North Carolina, During the period of the divorce, Nicholas W. Lagaza attempted to encourage a reconciliation and aaked his then spouse to return to the marital home in Pennsylvania. (e) Subsequent to the divorce, Nicholas W. Lagaza secured employment with Althin C.D. Medical, Inc. (the Bmployer) who offered him a sales territory in North Cm:olina or !Jew Orleans. (f) The future supervisor adviaed Nicholaa H. Lagaza that he should retain his home of record in pennsylvania until followiDg his training and establishment of hie employment with the Employer, to which Nicholas W. Lagaza agreed. 3 11':';: ~~ .~- l\':~O :."I7t: ;. D;:'L7OfI BRE:V;:.R[I NO: P.7,'22 (g) Nicholas W. Lagaza, in his own handwriting on the Employer'S letter dated November 4, 1991, regaxding approval ot hJ.a employment, indicatecl his intent to retain hi8 checking accounts and ham8 address in pennsylvania until late 1992. (h). Nicholas W. Lagaza, at the time of his death, retainecl his Pennsylvania bank accounts, and had stored much of his personal property and personal papers at his father'S home in Pennsylvania. (i) At the time of his death, Nicholas W. Lagaza had / valid drivers' licenses in both PennsylVania and North Carolina. A telephone call to the State of Norch Cuolina Department of Motor Vehicle deteJ:mined that a North Carolina Driver's Licenae is required by North Carolina of any per. on who "resides" in North Carolina over a period over thirty (30) days, (:1) A check of the Voter's RegJ.atration Office in Charlotte, North Carolina, indicated that NicholAS W. Lagalla never regiatered to vote in North Carolina. 11. correspondence from a South Carolina law f~ (Exhibit A) indicated that the ,~~f~istrator of the North Carolina Eatate has threatened to file A Motion to Sub.titute the North Carolina Bstate as the Plaintiff in the South Carolina federal lawauit in place of the Administrator of the pennsylvania Estate. v J 4 .1Mi' 0.:: ''''3 lSI,11 WHITE 3. DI'lLTON BREVARD tiC F.3/22 12. A declaratory jud;ment as to the domJ,cile of !Ucholu W. Lagau at tM tillla of his deAth is necelS8ary to determine the valicU.ty of the granting of Letters of AdIIIininration by the Rac;r18ter of Wills, Cumberlancl County, peDJUlylvania, and to prevent l1tiqation of the matter in the U.S. District Court in South carolina. WHBRBFORB, Plaintiff ~quesU this Honorable Court, after hearinCJ and pursuant to Pa. R.Civ.P. section 1601, to deterJll1ne that the domicile of Nicholas W. LagazA, on the date ot hi8 deAth, was Pennsylvania, and Iluch other relief as J!lAY be appropriat:e. Respectfully submitted, ARomtJR 'J!'. MCDBlUIO'J!"l AND ASSOCIATES ~2~O <:: ~ur oi. HcDexmott, Bs~e Fifty EAst B1gh Street P. O. Box 24& Carlisle, PA 17013 (717) 243-7807 5 nAP ()2 .S':; 1~:21 ~..HITE 1. ...=.LTi)r; 8PE'JARD NC P.~-<::Z ~w. T..... ~c. /DIIIllCN. JII. lIlI'Nl"'--- Jb".~ It. H.Wt1GNI __w.__J" llUI", UIllt lIICIWID Colll1'MUtl .. IWlOUlIWUI CALUSON TIOHE P.QBINSON '" ANASTASION , it1'IoaHm"" l..w 1101 '16\1'". DlIrRIIT COL\lWIIA, SocnIl Co,... "''' 29101 ~1M4m MIlt CoD& 80S Ttl m Ill'lIIHol31 MIltc-80S POIfOMCll-11lllI ZlPCOO&"- December 30, 1992 PMIIONH.('.'I~ 01 COU~. R~~mI? DEe 3 0 1992 .. . :. MULLINS. RU..E.V Cll SCARBOROUGH 't\III.UC& E. TlCIioI JlITINIl VIA FACSIMILE 256.7500 AND VIA MArL Jeffery A. 3acobs, Esq. Nelson, Mullins, Riley and scarDorouqh, P.A.. Post otfice BoX 11070 Columbia, .SC 292~1 RE: Nicholas Lagaza, as Administrator of the Es~a~e of Nicholas W. LagazA, cecea.ed, and on behalf of NiCholas W. Laqaza, II, a m~nor vs. Brian cru~cnfield and Michael B. sangwin Case Number 7:92.3150.3 Dear Mr, Jacobs: The purpose of 'Chis lettE!':' is to confirm our l:elepnone conversa1:ion of today' 15 da~., J.n which I advised you that we represen~ W. Herber1: Brown, Jr., who has been appointed Administra~or of the Estate of Nicholas W. Laqaza ~y letters of Administra~ion issued by the General Cour1: of Justice, superior Court Division, for Mecklenburg County, North carolina. We understand ~ha1: the decedent was a resident of Charlotte, N.C. at ~h8 time of death. W. in1:en~ to make an appropriate ~ot1on in the 8Dove reterenced case '1:.0 sul:ls'l:i1:U1:e Mr. Brown as a Plaintift, in the place and s~ead ot Nicholas Laqaza. Additionally, we will contest the right of Mr. Laqaza and hi~ counsel to represent Nicholas W. Lagaza, II, a minor. ," . Please be guided by this inforl\l&tion as you may see tit. Wi~h kind regards, I am very truly, ROBINSON SMA/skt: cc: William R. White, Esq, (via fax) Exhibit "A" -----..... - .- . ..-----.--.-- p, 11.'22 . . C&M'Xl'ICAD 0. SBRVICB I hereby certify that a true copy of the foregoing Complaint wall 118:r:v8d .on the below named person(II), by Reqilltered Pirst- clalls mail, pOlltage prepaid, addrelllled tOI Villi_ a. 1Ih1ta, ~ WMta aDd Da1.taD 602 8cmth Cal-' 1 Btz8et: Bl:'e9axd, JIoz1:h Ca:ollDa 28712 w. v.....-rt BI:olwn, Jr. c/o VillJ.aa a. White, bquixe 602 8cmt:h Cal-.ll St:z8et BJ:8vaxd, IIorth CazoliDa 28712 Jeffrtly A: Jac"b8, bqu1re P.O. IIoz 11070 COlabla, S.C. 29211 vfc.oh.el W. !l!J.qu, BaIq\1J.ztI 1208 WuhJ.Dgt:cm 8ez.et: COlmabJ.a, S.C. 29201 Date 11'21 /f3 I I ~ ~O ~_ - Arthur T. Ml:IDermatt, Bsq. 50 Baai: Higb Street P. O. Box 246 . Carliele, PA 17013 (717) 243-7807 NICHOLAS LAGAZA, ADMINISTRATOR OF THE PENNSYLVANIA ESTATE OF NICHOLAS W. LAGAZA plaintiff V THE APPOINTED ADMINISTRATOR OF THE NORTH CAROLINA ESTATE OF NICHOLAS W. LAGAZA Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION NO. 2l-92-703 ACTION IN DECLARATORY JUDGMENT IN REI PLAINTIFF'S ACTION IN DEt"T.lI.lII1.TORY JUDOMEN': BEFORE SHEELY, P . J. ORDER OF COURT AND NOW, this C'{ rlJ::. day of , 1993, we hereby find that the proper domicile of Nicholas W. Lagaza as of the date of his death was Charlotte, North Carolina. By the Court, I~ e-/!~. ~ Harold E. Sheely, P.J. ./' Arthur T. McDermott, Esquire For the Plaintiff . C~~ol J. Lindsay, Esquire VFor the Defendant :pbf A TRUE COpv FRO~ In Test/molrl;' wiler;,,;, I:' .'" RECORD an:! the Sil:!/ of . _1-' I~_: ;r~unto ~3t m:t hllnd Thl t4.. --- ~ .!. ~t Carl/s/a. PA. s c:--,,' ,0 ~ ..... 19~ Clerk of the 0 anll Co rt Cumtierland Coun~y NICHOLAS LAGAZA, ADMINISTRATOR OF THE PENNSYLVANIA ESTATE OF NICHOLAS W. LAGAZA Plaintiff V THE APPOINTED ADMINISTRATOR OF THE NORTH CAROLINA ESTATE OF NICHOLAS W. LAGAZA Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION : NO. 21-92-703 : ACTION IN DECLARATORY JUDGMENT IN RE r PLAINTIFF'S ACTION IN DECLARATORY JUDGMENT BEFORE SHEELY, P.J, OPINION AND ORDER OF COURT Here we are asked to determine the decedent's proper domicile at the date of his death. Hearings were held April 28 and 29, 1993. FINDINGS OF FACT l. Nicholas W. Lagaza (the decedent) died August 14, 1992 in South Carolina. He was thirty-three years of age, having been born on July 5, 1959. 2. Nicholas Lagaza (the decedent's father) is a resident of Cumberland County, Pennsylvania. He received letters of administration for the decedent's Pennsylvania Estate, on September 2, 1992. 3. Marilyn Chapman (the decedent's ex-wife) is the mother and guardian of decedent's son, Nicholas W. Lagaza. 4, W. Herbert Brown was asked by Ms. Chapman to serve as administrator of the North Carolina estate and received NO. 21-92-703 letters of administration in North Carolina, December 22, 1992. 5. The decedent was born in Quantico, Virginia, where his father was stationed with the United States Marines. 6. In 1973, the family returned to Pennsylvania where the decedent was raised. 7. In 1977, the decedent graduated from high school in Pennsylvania. He went to college for two years in New Hampshire. 8. The decedent returned to Pennsylvania and enlisted in the Navy in 1979. 9. While in the Navy the decedent married Ms. Chapman and was stationed in Virginia and then in Mississippi. 10. Ms. Chapman returned to Virginia in January of 1983, and when decedent was discharged the next month, he returned to Virginia also. ll. The couple moved to Louisiana in October of 1984. 12. They moved to Georgia in the middle of 1987, and then returned to Virginia in May of 1988. 13. The couple separated in 1988, the decedent moved in with his father in Pennsylvania and Ms. Chapman stayed in Virginia. 14. In March of 1989, the couple reconciled and lived with the decedent's father until they found an apartment in Camp Hill, Cumberland County, Pennsylvania. 15. The couple separated again in July of 1990, she 2 NO. 21-92-703 moved to North Carolina with their son and he remained in the Camp Bill apartment. 16. The decedent got a job with Althin Medical Incorporated in North Carolina and moved to Charlotte, North Carolina, March 2, 1992, where he lived until his death. DISCUSSION The decedent died in South Carolina, August 14, 1992, in an automobile accident. Bis father filed for and received letters of administration in Pennsylvania where the decedent was raised. The decedent's ex-wife, who is the mother and guardian of the decedent's son, asked Attorney W. Herbert Brown, Jr., to serve as administrator to the North Carolina estate where the decedent was residing. Mr. Brown filed for and received letters of administration in North Carolina. Mr. Lagaza, the decedent's father, acting as the administrator of the Pennsylvania estate; has sued Mr. Brown in his capacity as the administrator of the North Carolina estate, in a declaratory judgment action to determine where the decedent was domiciled at his death. Once the proper domicile is established, the proper estate may proceed as plaintiff in the wrongful death action. When seeking declaratory relief, one must proceed in accordance with the Uniform Declaratory Judgment Act adopted in Pennsylvania under 42 Pa. C.S.A. 57531 et seq. The purpose of awarding declaratory relief is to settle and make certain the rights and legal status of the parties. Geisinoer Clinic v. 3 NO. 2l-92-703 DiCucciq,' 414 Pa. Super. 85, 606 A.2d 509 (l992). The presence of a real controversy indicating imminent litigation coupled with a clear manifestation that the relief sought will help in ending the controversy, are essential to granting declaratory relief. Gulnac v. South Butler Countv School District, 526 Pa. 483, 487, 587 A.2d 699, 70l (1991). The affairs involving the administration of an estate fall directly under the purview of the Uniform Declaratory Judgment Act under 42 Pa. C.S.A. 57535. Furthermore, declaratory relief is a matter of discretion rather than a matter of right. Gu1ac, at 488, 587 A.2d at 701 (l991). We are satisfied that a determination of the decedent's domicile will make certain the parties' status by settling the controversy of the proper domicile. The domicile of a person is a place where he has fixed voluntarily his habitation with a present intention to make either his permanent home or his home for the indefinite future. In re Estate of Getz, 148 Pa. Commw. 393, 397, 61l A.2d 778, 78l (1992). Domicile of origin is that which one acquires at birth and it is presumed to continue until another domicile is affirmatively proven. Greenwood v. Hilderbrand, 357 Pa. Super. 253, 259, 515 A.2d 963, 965 (1986); appeal denied, 515 Pa. 594, 528 A.2d 602 (1987). To effect a change of domicile, there must be a concurrence of two factors: physical presence where the new domicile is alleged to have been acquired and the intention to make it one's home without any fixed or certain purpose to return 4 NO. 2l-92-703 to the former place of abode. ~,at 398, 611 A.2d at 781 (1992). Residence in a new locality with intent to make that residence a permanent home, along with the manifested intent of abandoning the former domicile must be shown by clear and convincing evidence by the person making the allegation of a change of domicile. ~ Plaintiff, as the moving party, had the initial burden of proving that the decedent's domicile of origin was Pennsylvania. The decedent was born at the United States Naval Hospital in Quantico, Virginia where father was stationed as a United States Marine in 1959. In 1965, the decedent's father retired from the military and returned to Pennsylvania to stay in 1973. Decedent graduated from high school in Pennsylvania in 1977, and attended college in New Hampshire. In 1979, decedent returned to Pennsylvania and enlisted in the Navy. We are satisfied from these facts that decedent's domicile of origin was Pennsylvania. We must now examine whether the defendant has affirmatively proven by clear and convincing evidence that the decedent changed his domicile. There is no question that defendant has met the first element, the change in the decedent's residence. until he moved, the decedent was living in an apartment without a lease on a month to month basis in Camp Hill, Pennsylvania. On February 20, 1992, the decedent signed a yearly lease for an apartment in Charlotte, North Carolina. He sent notice of a change of address 5 NO. 21-92-703 to the United States Post Office indicating his old address as Camp Hill, Pennsylvania and his new address as Charlotte, North Carolina. The decedent surrendered his Pennsylvania driver's license in exchange for a North Carolina driver's license. His new phone number is listed in the 1992-93 Charlotte Southern Bell Phone Directory. The decedent's position with Althin Medical, Inc., was located in North Carolina. The North Carolina Industrial Commission recognized the decedent as a North Carolina resident and awarded an amount of $38l.33 per week in Worker's Compensation Benefits to the decedent's son. We are satisfied that the defendant has proven that the decedent changed his residence by clear and convincing evidence. Having determined that the first factor of proving a change in domicile has been met, we turn to the second factor; the decedent's intent to make the new residence his new home for the indefinite future along with the intent of abandoning the former domicile. The defendant presented two friends of the decedent from Camp Hill, Pennsylvania, Peter Kahoonei and Shirley Kaaiawaawa, to testify in regard to the decedent's intent. They both testified that the decedent took a job in North Carolina to be with his son and that the decedent intended to live in North Carolina indefinitely, Ms. Kaaiawaawa recalled the decedent specifically stating that in addition to staying in North Carolina, he did not plan on returning to Pennsylvania because there was nothing left for him in Pennsylvania. Ms. Chapman 6 NO. 21-92-703 testified that the decedent moved to North Carolina to be with his son. She testified that the decedent had no intention of staying in Pennsylvania because he wanted to be with his son. Even Mr. Lagaza testified that his son was a devoted father and would have moved to Louisiana, if need be, in order to continue to stay involved in the raising of his son. The plaintiff introduced evidence to rebut the evidence of the decedent's' intent to remain in North Carolina. A letter was introduced where the decedent indicated his "home of record" was Camp Hill, Pennsylvania. However, the letter was written several months prior to his moving to North Carolina. The letter states that the decedent's Pennsylvania address is to remain intact until the training for his North Carolina job is over and the confirmation of the North Carolina location is completed. If anything, the letter reaffirms the fact that the decedent intended to obtain employment in North Carolina. Plaintiff introduced bank statements from a Pennsylvania bank showing a positive balance at the time of decedent's death. This evidence is hardly dispositive of the decedent's intent. particularly in light of the fact that the decedent had a positive balance in his North Carolina bank account. We are satisfied that the defendant has proven that the decedent intended to make his North Carolina residence his new home for the indefinite future and intended to abandon his Pennsylvania domicile by clear and convincing evidence. Having determined that both factors improving a change 7 NO, 21-92-703 in domicile have been met, we conclude that the decedent's proper domicile at the date of his death was Charlotte, North Carolina. ORDER OP COUR~ 1993, we AND NOW, this q.tJ. day of hereby find that the proper domicile ~ ' of Nicholas W. Lagaza as of the date of his death was Charlotte, North Carolina. By the Court, Isl Harold E. Sheelv Harold E. Sheely, P.J. Arthur T. McDermott, Esquire Por the Plaintiff Carol J. Lindsay, Esquire Por the Defendant :pbf 8 .- STATE OF NORTH CAROLINA COl1N'1'Y OF Hl!:C1a.ENB1lRGI I:' "\ i ~'. -.. " . ... '.. IN '1'IIE GENERAL COUR'1' OF JUSTICE SUPER%OR COURT DIVISION 94-CVS- 3;!S'~ ....., W. HERBERT BROWN, JR., ADH1:NIS'l'RA'1'OR OF ESTATE OF NICHOLAS W. LAaAZA, D.c....d, RICHARD c. DE'l'NXLER .nd CALLISON TIGRE ROBINSON , ANAS'1'ASION, . South Carolina Gen.ral Partn.r.hip, . : :'. .,' .:;. : v.. ) - +.._-' - ,---- ) ) ) ) ) Plaintiffs, ) ) ) ) ) ) ) ) D.f.ndant., ) COMPLAINT (Jury Tri.l Waiv.d) ARTHUR '1'. HcDERHO'1"l' and ARTHUR T. HCDERHO'1'T , ASSOCIATES, . Prot...ion.l Corpor.tion, pur.u.nt to Article 26 entitled "D.clar.tory Judgm.nt." ot Ch.pter 1 of the North C.rolina Gen.r.l st.tut.a, the Pl.intiff. inatitute thi. .ction .nd .ccordingly .lleg. .nd ..y: 1. Th. Plaintiff, W. aerbert Brown, Jr. (h.rein.tter c.lled Plaintiff Brown), i. · citizen .nd r..id.nt of Heckl.nburg county, North Carolina. 2. '1'h. Pl.intiff, Richard c. D.twil.r (hereinafter c.lled Pl.intift Detwiler), ia · citizen .nd r..ident of Kerah.w County, South Carolina. 3. '1'h. Pl.intiff, c.lliaon Tighe Robin.on , An.at..ion (herein.tter c.ll.d Pl.intiff C.lli.on), i. . South Carolina gener.l Partner. hip with .n office .nd princip.l pl.ce of bu.ine.. in columbi., South Carolin.. 4. Th. Pl.intiff. are informed .nd believe and therefore .llege th.t the Detendant, Arthur '1'. HCDermott (hereinafter c.lled Defend.nt HCDermott), i. . citizen .nd re.ident of cumb.rl.nd County, Penn.ylvani.. 5. The Pl.intiff. are inform.d and believe and therefore .ll.ge th.t the Defendant, Arthur '1'. McDermott' Ae.ociate. (h.reinafter called corporat. Defendant), i. a penn.ylvania profe..ional corporation with an office and principal place of bu.inee. in Carli.le, P.nn.ylvania. 6. Plaintiff Detwiler ia, and .t .11 time. herein alleged, an attorney at law duly licensed by'the state of South Carolina and is a partner in the law firm of Plaintiff Callison. Plaintiff callison i., and at all times herein alleg.d, . law firm engaged in the prsctic. of law in the State of South Carolina. 7. Plaintiffs are informed .nd b.lieve and therefor. allege Defendant HcDermott is, and at all time. herein alleged, an attorney at law duly licensed by the Commonwealth of Pennsylvania .nd is, and at all tim.. h.rein all.ged, an officer, director and managing agent of the Corporat. Defendant. 8. Nichola. Wa.il Lagaza (same person as Nicholas W. Lagaza) died August 14, 1992, as a r.sult of injuries sustained in an automobile .ccid.nt in cherokee county, South carolina. At the time of his death, Nicholas Wasil Lagaza w.s domiciled in the State ot North Carolina and w.s a citizen and resident of Hecklenburg County, North Carolina. The civil action entitled Brown vs. crutchfield, as hereinafter set forth more fully, w.s an action instituted as a re.ult of injuriee to .nd death of Nicholas Wasil Lagaza which arose out of the aforesaid automobile .ccident. .- .- 9. On or about september 2, 1992, Nichola. Lagaza, the decedent.. father, w.. appointed Admini.trator of the E.tate of Nicholas W. Lagaza by L.tter. of Admini.tration i..u,d by the Regi.ter of Will. for cumb.rland county, p.nnsylvania. 10. On Novemb.r 3, 1992, Nichola. Lagaza, a. Admini.trator of B.tat. of Nichol.. W. Lagaza, d.c....d, and on behalf of Nichol.. W. Lagaza, II, a minor, in.tituted . civil action in the unit.d stat.. Di.trict Court for the Di.trict of South carolin., Spartanburg Divi.ion, ind.x.d a. Ca.. No. 7-92-3156-3, wh.rein the plaintiff in ..id action .ought to r.cov.r damag.. for the injuri.. and wrongful d..th of Nichol.. W. Lagaza .nd for the injuri.. to Nichola. w. Lagaza, II. Th. attorn.y. of record for the plaintiff. in .aid civil action included Arthur T. McDermott , As.ociat.. (th. Corporate Def.ndant h.r.in) by Arthur T. McD.rmott (Def.ndant McD.rmott h.rein) and Benjamin A. C.ro. 11. On Dec.mber 22, 1992, Plaintiff Brown was appoint.d Admini.trator of the B.tat. of Nichola. w. Lagaza by the cl.rk of sup.rior court for M.ckl.nburg county, North carolina. sinc. hi. .aid appointm.nt, Plaintiff Brown continuou.ly has r.main.d the duly qualified and acting Administrator of the B.tat. of Nichola. W. Lagaza .nd curr.ntly i. the .aid duly qualifi.d and acting Admini.trator of the B.tat. of Nichola. W. Lagaza. 12. Sub.equent to Dec.mb.r 22, 1992, Plaintiff Brown, by and through hi. attorney. of record, Plaintiff. Detwil.r .nd calli.on, fil.d a motion in .aid United Stat.. District Court civil action to int.rvene as party plaintiff, which said motion was contested by Defendant MCDermott but, aft.r b.ing h.ard by the court, was allowed. No appeal was tak.n from said ord.r allowing interv.ntion. 13. On January 29, 1993, Nichola. Lagaza, a. said Penn.ylvania Administrator, by and through hi. attorney, Arthur T. McD.rmott and A..ociates (the Corporate Defendant herein) by Arthur T. McD.rmott (Def.ndant McDermott h.rein), institut.d an Action for D.claratory Judgment in the orphan.' Court Division of the Court of Common pl.as. for Cumberland county, Pennsylvania, index.d a. Cas. No. 21-92-703, again.t Plaintiff Brown wh.rein the .aid P.nnsylvania Administrator sought a d.claratory judgment as to the domicil. of Nichola. w. Lagaza at the time of hi. death, wher.upon the said declaratory judgment action was heard April 28 and 29, 1993, before The Honorable Harold E. Sheely, Presiding Judg.. The Plaintiffs her.in, in order to prot.ct their rights and status in said wrongful d.ath action, were required to r.tain Pennsylvania coun.el and travel to carlisle, pennsylvania, at substantial expense, for the purpose of att.nding said hearing and being heard on the is.ue raised therein. on June 9, 1993, Judge Sheely entered his Order adjudicating the proper domicle of Nichola. W. Lagaza a. of hi. data of d.ath was Charlott., North carolina. No ~pp.al was tak.n from said Ord.r. 14. Sub..quent to the afor..aid p.nn.ylvania adjudication of domicil., plaintiff Brown fil.d a motion in .aid Unit.d states District Court to be mad. .01. plaintiff in the wrongful d.ath cau.. of action, which said motion was allow.d by the Court. No appeal was tak.n from the Order allowing said motion. 15. Plaintiffs D.twiler and callison, a. co-counsel with William R. White, Attorney at Law, repres.nted Plaintiff Brown in connection with all proc..ding. in the aforesaid wrongful death action in the United stat.. District Court which was concluded November 1, 1993, by ord.r Approving Settlement signed and .nt.r.d by The Honorabl. G. Ross Anderson, Jr., Unit.d stat.. District Judge. ~ 16. At all tim.s and at all .tag.s of the numerous court proc..dings, an adversarial relationship existed between the Plaintiffs her.in and the D.fendants herein. At no time did the Defendants, or eith.r of them, .ver repr.sent the Plaintiffs, or any of th.m, in connection with the aforesaid wrongful d.ath proceeding, the aforesaid d.claratory jUdgment proc.eding or in connection with any oth.r matter concerning the Estate of Nicholas W. Lagaza, d.ceased. 17. On or about S.ptember 27, 1993, Plaintiff Brown receiv.d from the Defendants a letter dat.d S.ptember 21, 1993, a copy of which is attached hereto, marked "Exhibit -' 2 .- A-1", and incorporated herein by reference, assertinq a claim aqainst ths Estate of Nicholas W. Lagaza in the amount of $24,611.80 for legal services rendered said Estate and expenses incurred primarily in conneotion with representation of said Estate in the aforesaid litigatio~ of the wrongful death action. Attached to said "Exhibit A" was an invoice consisting of twenty-five (25) pages billed to Nicholas , candace Lagaza, 141 Juniper Drive, Etters, PA 17319. OIIly paqe 10 of said invoice, which sets forth the invoice sUlllDlary, is attached hereto, marked "EXhibit A-2", and incorporated herein by reference. The Defendants presented the aforesaid claim to plaintiff Brawn, and Plaintiff Brawn received the said claim fram the Defendants, at his residence in charlotte, Mecklenburg county, North carolina, which said act by Defendants has invoked personam jurisdiction of the North carolina Courts aver the Defendants. 18. on october 27, 1993, plaintiff Brown unequivocally rejected the aforesaid claim in its entirety in writinq as evidenced by his letter of rejection dated october 27, 1993, a copy.of which is attached hereto, marked "Exhibit B" and incorporated herein by reference. Plaintiff Brown delivered said letter of rejection to the Defendants on october 27, 1993, by transmitting a copy of the same via facsimile to Defendants' telefax number as printed on Defendants' letterhead stationery. Also, plaintiff Brown delivered a copy of said letter of rejection to the Defendants by mailinq a copy thereof in an envelope, postage paid, first class mail, addressed to the Defendants at their office address printed an said "EXhibit A-1", deposited on october 27, 1993, with the united States postal service at Charlotte, North carolina, 19. NO reference of the said claim has been made pursuant to the provisions of North carolina ceneral statutes section 28A-19-15, and no action was instituted by the Defendants, or either of them, for the recovery of said claim, or any portion thereof, within three months of Defendants' receipt of plaintiff Brawn's aforesaid written notice of rejection as required by North carolina General statutes section 28A-19-16. 20. The Plaintiffs are informed and believe and therefore alleqe that recovery of the Defendants' aforesaid claim in the amount of $24,611.80 (or any lesser amount thereof) is hereby forever barred as against the Plaintiffs for failure to institute an action for recovery within the three-month statute of limitations prescrined by North carolina General statutes section 28A-19-16, which said statute of limitations the Plaintiffs hereby affirmatively plead in bar of the Defendants' right of recovery against the plaintiffs on account of the aforesaid claim. 21. The aforesaid notice of rejection inures to the benefit of all Plaintiffs in this declaratory judgment action. 22. On or about March 7, 1994, the Defendants, throuqh their iegal counsel in Harrisburg, Pennsylvania, notified the Plaintiffs in writing by letters dated March 2, 1994, that they intend to pursue the aforesaid claim aqainst the Plaintiffs throuqh litiqation in the court of common pleas in cumberland county, pennsylvania, by filinq a civil action against the plaintiffs for recovery of said claim by April 1, 1994. The Defendants, throuqh their counsel, after creditinq prior payments on the account by Nicholas and candace Lagaza, reduced the aforesaid monetary claim to $24,126.23. Pursuant to receipt of said recent demand for payment by Defendants' counsel, it appears to these plaintiffs that litigation is unavoidable. 23. The Plaintiffs adamantly deny that they, either singularly or collectively, owe the Defendants any portion of the claim whatsoever, however, the Plaintiffs are informed and believe and therefore allege their denial of liability should be moot in this action for the reason that the Defendants' aforesaid claim has been barrecr, in its entirety, against the Plaintiffs, 24, The Plaintiffs are informed and believe and therefore allege an actual controversy exists between the plaintiffs and the Defendants ss to whether or not the aforesaid claim is barred by statute. Pursuant to the provisions of North carolina General statutes section 1-255, the Plaintiffs have standinq to institute this action. 25, The only asset which has come into the hands of plaintiff Brown, as Administrator of the Estate of Nicholae W. Lagaza, has been wronqful death recovery -- 3 .- proceeda, the uae and diapoaition ot which are governed and reatricted by Horth carolina General statutea section 2BA-1S-10(C) and section 28A-18-2. WBERD'ORE, the plaintiffa hereby waive oS trial by jury in thb action and reapecttully pray the Court tor the tollowing reliet: 1. That the cou..-t adjudicate whether or not the Detendanta' doreaaid claim b barred aa againat the plaintiff a purauant to the proviaioM ot Horth carolina General statute.. 28A-19-U, and . 2. It the atoreaaid clailll b not barred, that the court adjudicate the dor..aid clailll ia not a debt or obligation ot any ot the P1aintifts, and 3, That the costs ot this action be taxed u the court detllllll app;"opriate, and 4. That the plaintiffs have and recover such other and turther reliet u the Court may deem just and proper. This the //~ day ot Karch, 1994. WITZ '~AL~~ ," / By: _~~ W.1U R1:rJte Attorneys tor plaintitts P. O. Box 1589 602 South Caldwell street Brevard, North carolina 28712 704/884-2334 STATZ OF HOR'rH CAROLINA COUN'rY OF KECXLEHBlJRG W. BERBER': BROWN, JR" being tirst duly sworn, deposes and saya that he is one ot the plaintitts in the toregoing complaint' that he hu read the toregoing complaint and knowe the contents thereot, and that the Slllllll is true ot his own knowledge except as to thoee matters therein etated upon intoxmation and beliet and as to thoee matters he believea it to be true. JII/~~j W. B~ert Brown,~r., Pluntiff subecribed and aworn to betore me thie ~day ot Karch, 1994. ~ ;1t~ J/: .<1tit~ Notary Public I" My cOllllllisaion expires: 144.:l-tf.r ." 4 .- ARTHUR T. McDERMOTT & ASSOCIATES A Plar.nlanal Calpollllan Atlorneys and Counsellors.al.Law Fifty East High Street P .0, Box 246 Carlisle, Pennsylvania 17013-0246 (717) 243-7807 Anhur T. McDermou. Telefax 243.9766 Of Counsel Richard A, Burr. Esquire James J, !Cayer Palrlcla R, Brown Salira M, Quarles.. .. AdmIllrd 10 pllClicc In Callrarala . AGlnlllrd 10 Pnalcc In P_,I.anIa and .be DillricI or Columbia Scptcmber21,1995 W, Herbert Brown, Esquire 4009 River Ridge Road Charlotte, N,e. 28226 Re: Legal feca - Lagaza Estate Dear Mr. Brown: 10 accordance with your request for information regarding the lime spent by this law firm on the Lagaza .........r (less the auit regarding domicile) the aaached invoice II hereby submitted. It II my unden12ntll'1g that we will be reimbuned for fea and expenses ona: the wrongful death action seales. For your information, we have billed all hours at the r.ue of $100.00 per attorney hour regardless of which attorney logged them. On the invoice DC uands for Benjamin Cero, DP stands for Desiree Peaus. JK stands for James Kayer, and PB SIallds for Pauicia Brown. A1Ili1ling not identified refer to my lime. The normal billing rates for those attorneys are: McDermott $150,00 per hour, Cero $125.00 per hour, Kayer $100,00 per hour, Petnll $100.00, Brown $100,00, I have purged all references to lime spent on the domicile contest. and the hours claimed reflect time ......,..I\y spent and required on the wrongful death action. If there are any questions regarding those hours. please conlaCt me, I know that Marilyn Chapman questions my trip to the Nonh Carolina Worker's Compensation maacr, howeW!J', there were two reasons for doing thai. F'mt was the funeral expenses. Second was the faa that the carrier was placing a lien against the wrongful death recovery. I believe, and I conlaCted a Nonh Carolina anorney who confirmed my belief, that the lien can be II........"u11y challenged. If you desire I can give you the name of that attorney. Lastly, anached to the invoice are the charges related to the services of Nelson, Mullins, Riley and Scarborough billed to and owed by this office in that JDaUeI:. I hope that these meet your requirements. . Very trUly yours. ARTHUR T. MCDERMOlT AND ASSOCIATES .. ~~d~ ur'T.l'dcDennott ATM/IS cc: Nelson, Mullins, Riley & Scarborough P.O. Box 11070 Columbia, S.e. 29211 -' EXHIBIT A-1 /" .- NICHOLAS' CAHDAHCB LAGAZA Dat. 09/03/93 Palle 10 AkOUM, .-...-- - 05/11/93-Bxpense for transcript of KAren FiDkenbender - $25.00 ----- 'total costs 'total time and expense charges 08/28/92 Payment from account 11/14/92 Payment from account 11/30/92 Payment - thank you 02/21/93 Payment - thank you 04/29/93 Payment - thank you 'total Payments ( ( ( ( ( ( $5855.30 $24611.80 3.00) 247.00) 22.21) 28.00) 185.36) -------- $485.57) Balance Due .----.--. $24126.23 ...--.--..............................................-.- Previous balance of retainer account Payments made from retainer account Payments made into retainer account ( $0.00 $250.00) $250.00 ***EXPLANAT.ION OF RETAINER ACCOUNT Nicholas Lagaza paid $500 retainer to the firm to be used for expenses incurred to 9pen the estate and initiate wrongful death action in South Carolina. Therefore, the $500 retainer was split with one hall in estate account and one hale in wrongful death action IIccount. -' EXHIBIT A-2 .- W, HERBERT BROWN, JR. AmlIHIY AT L\w ("aue--.. BlowN IIcltlPfNG 301 SoUTH McDDww. Snur, SUm 609 CH.w.am. NC 2lI2IN 171M) 33W67I . F.u ~ OCtober 27, 1993 - , TRAHSMr~D ~A PACSIMrLE 717/243-9766 Hr. Arthur '1'. HcDenlOtt Arthur '1', HcDenlOtt , Auoci.t.. Attorn.y. and coun..llor.-.t-Law P. o. Box 246 carli.l., PA 17013-0246 Ra: ..t.ta of Hichol.. w. Lag... (dac....d 8/14/921 D.ar Hr, HcD.nIOttl , I am in r.c.ipt of your l.ttar of ..ptamhar 21, 1993, tog.th.r with. copy of your invoic. to Hicbol.. , candac. Lag... in 1:ha total &mount of $24,611.80 for l.gal f... .nd co.ta in conn.c1:ion with th. ~.-nfar.nc.d ..1:&1:&. Attar h.vinll oar. fully r.vbwad th... dolllllllllnt., I do aat. ball.". any of th. 1.9al f... or co.t. incurr.d 18 the oblig.tion of 1:ha Harth carol1Da ......lnl.tr.tor of th. ..1:&ta of Hichol.. w. Lagu.. 'l'o clarify my po.itian, you and I h.". aa".r had any .~nt far you to repr..en~ th18 E.1:&t. in .ny matter. You ware hired by th. Pel1D.ylvania ......lnl.tr.tor who opened .nd c_nced adIIIiDi.tr.1:ion of an e.1:&1:& in an iIIIproper juriadiction, We h.v. nev.r had an UDder.tanding th.t th. Harth carolina ..1:&te would ba re.pon.ible for th. p.yunt of any of your fe.. or co.t.. My only .gre_nt for p.yunt of legal fee. 18 with william R. lfhita, Attorn.y .t Law, Brevard, Harth carolin., and cal1i.on '1'ighe Robin.on , ADa.ta.ion, Attorn.y. .t LaW, columbi., 80uth Carolin., in cOllllection with the wrongful da.th litig.tion. I wiah to point out th.t th... legal f..., e".n though .greed to, are .ubject to 1:ha .pproval of th. court for the nuon th.t the .01. beneficiary 18 . mnor. I al.o wiah to point out th.t 1:ha only ....t in th. Harth carolin. ..t.ta i. . wrongful'da.th c.u.e of action which i. non-prob.t. property. '1'har. 18 no .ourc. of funda .vailab1e in the Harth carolina E.t.t. for tb. p.yunt of your fe.. and co.t. which .pparently war. contr.ct.d for by Hr. L.g.za, sr., probably on . contingent f.. bad.. If you took thi. mattar on . contingent f.. b..18 pur.u.nt to your contract with Hr. Laga.., Sr., you would bave don. .0 .t your own peril in th. event 110 recovery w.. oht:&1n.d by th. Pellll.ylvani. E.t.ta. . My purpo.e for writing you thi. lettar certainly 18 not to irritate youl however, I f.al I need to clarify my polition for th. r.cord. '1'her.fore, I, .. Adm1ni.trator of th. E.tat. of Nichola. W. Lagua, b.r.by rej.ct all charg.. contained in your afor..aid .tatement, inCluding tho.e rel.ting both to legal .ervic.. and co.te incurred. ~ W. Berbe~ Brown, Jr. ~ WHBjr:kb cc: Hr. william R. White (via Fax 704/884-65271 Attorn.y .t Law Hr. Richard c. Detwil.r (via Fax 803/256.64311 Attorney at Law -' EXHIBIT B (' 9. Admitted. 10. Admitted in part and denied in part. It is admitted that Nicholas Lagaza, the deceased's father instituted the civil action in the U. S. District Court for the District of South Carolina. The lawsuit was filed on behalf of the Estate. Nicholas W. Lagaza, II was listed as a plaintiff in order to assure his riqhts were protected, not as a plaintiff/client, 11. Admitted in part and denied in part, It is admitted that Plaintiff Brown was appointed Administrator of the domiciliary North Carolina estate of Nicholas W, Laqaza~ it is further noted and averred that Nicholas Lagaza, father of the deceased was duly appointed and determined by Court Order to be the Administrator of the ancillary Pennsylvania estate of Nicholas W. Lagaza. 12. Admitted. 13. Admitted in part and denied in part. It is admitted that an Action for Declaratory Judgment was instituted in the Orphans Court Division of the Court of Common Pleas of Cumberland County, Pennsylvania, and that the Court entered judgment that the proper domicile of Nicholas W. Lagaza was Charlotte, North Carolina on the date of his death. No appeal was taken from that Order. Defendants believe and therefore aver that the Plaintiffs were not reauired to appear in the proceedings, and in fact did not provide testimony therein. Local counsel capably represented the North Carolina estate and its Administrator Herbert Brown, Esquire. Mr. Brown was the only plaintiff whose presence was appropriate in the Pennsylvania proceedings. (' 14. Admitted. 15. Admitted in part. It is admitted that Plaintiffs Detwiler and Callison represented Plaintiff Brown in some of the legal work in the wrongful death action1 however, the Defendants subsequent to filing the Complaint in that action, also did significant quantities of legal work in the procsedings, and retained local counsel in South Carolina who also provided significant assistance in prosecuting the action. Defendants provided Plaintiffs Detwiler and Callison the complete files in the matter in order to assist Plaintiffs in settling the case. Defendants incurred significant expenses in developing those files. Plaintiff Detwiler assured Defendant McDermott that McDermott would be paid on a "quantum meruit" basis for the legal work done by McDermott and McDermott Associates, to include the expenses incurred in retaining the law f~ of Nelson, Mullins, Riley and Scarborough as local counsel. Defendant has no knowledge as to the settlement Order entered by the U.S. District Judge. 16. Denied that an adversarial relationship existed between Plaintiffs Detwiler and Callison and Defendants subsequent to the determination of the domiciliary estate. After Plaintiff Detwiler requested Defendants' files, those files were provided on the understanding that Defendants would be re.iJllburs'Eld on a ouantum meruit basis for work performsd and expenses incurred in the wrongful death action. A bill was prepared by Defendants for said legal work and is attached as Exhibit "A-l" to the Complaint in this action. The Defendants also performed significant legal work on the ancillary Estate of Nicholas W. Laqaza in Pennsylvania. I! , j: f'" c 17 . Denied that an adversarial relationship existed between .Plaintiffs Detwiler and Callison and Defendants subsequent to the determination of the domiciliary estate. After Plaintiff Detwiler requested Defendants' files, those files were provided on the understandinq that Defendants would be reimbursed on a auantum meruit basis for work perfo:cDed and expenses incurred in the wronqful dea~h action. A bill was prepared by Defendants for said leqal work and is attached as Exhibit "A-l" to the Complaint in this action. 18. Admitted, 19. Admitted in part. 20. This paraqraph is a conclusion of law and requires no Answer 7 however, to the extent an Answer may be required it is noted that the statute of limitations referred to relates to claims aqainst Estates and does not bar a claim against Defendants Detwiler and Callison, 21. This paraqraph is a conclusion of law and requires no Answer 7 however, to the extent an Answer may be required it is noted that the statute of limitations referred to relates to claims aqainst Estates and does not bar a claim against Defendants Detwiler and Callison. 22. Admitted in part and denied in part. The notice of rejection may inure to the benefit of the Estate, but ont to the benefit of Detwiler and Callison. 23. This paraqraph is a conclusion of law and requires no Answer 7 however, to the extent an Answer may be required it is denied that the statute of limitations referred to relates to ~ (" e . . CKR-:rrp:lCAft OP S15KV.LCB I hereby certify that a true copy of tlie foreqoing Answer WIlS served on the below named person(s), by first class mail, postage prepaid, addressed toe William R. White, Isquire P.O. Box 1589 602 South Caldwell Street Brevard, HC 28712 Date 1/..-/1"-'1'1 ~~~Sq. 50 East High Street Carlisle, PA 17013 (717) 243-7807 . " ." ?; := ..... ..... -::r ~ ,~.,. >>- '0', '",. ,- ..... .J '.r-~, ... .-' ~ ,', L~'"") ';'1 }'" ~ .... :.~ ,:;;.;. >:.~ . .:a 21 ij~ .., ... .... . ij .. !J i!i . ... ... t<.tl; '" 0 t- O'" ... I: lJlZ I: ..i z t- ... N 3! .u '01 "'0 ~ en ~ ~~ t;j; ~ l:l g . .:l,... I: ..I t- ... ... i5~ 21 0 N<( N ... "'::JI: Ilo 'r< 1-lJ)<~lJ.lZ ~X -0 ::> 0 ... ZCl~:S~~ -0.... . .. IlolJl ffi g'",!J ",::J u o Z ~ .. ;m ~ ClI r.l ij ~ ij~ 'n ljZ"l-en...J eo:UJci>- ~ -0< UJl.:lUJ<( . 0 o::...Ju",X>- 8ci~~~ ~a: e- l>:'" O~~l:i!:2~ ~eo:~U'l ~ ij ~ 0000 f:i ~ I U ~ ~~8 ... :Eo::z~xz ..I::E...:?: ~l!'5 I: . J.Ll Q 0 ....lJ.l u.. . s.a..... r.lr.l... , 'g '::E . . o r.l t:l t:l III :- r.llJl o::~::ll:enc. o eo: 03' tluz...t:l U U I: t:lj!'j .r< ~o~<~~ OlD :E::E:o ... U'lUJU'lO ::>t:l...o:;il ... 'Ill fl UJl.:lUJeo: 8~~~li! ' , en u@ ...J .. ... en ::Eo::E<( E-<E-<en Ilo Ou.,"- ...- !H;~ lil ...J < ..I ~eo:~u ~r.l.:l"'E-< . u., eo: e 15m <( ---- z~5ci~ ~~: u l< ---- ...u z li!~ ",' c:\wp5lIcjlldttwllct..... file '4393-94-01 ... ARTHUR T. McDERMOTT. ESQUIRE. and ARTHUR T. McDERMOTT and ASSOCIATES, a Professional Corporation, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Plaintiffs v. NO, 94-3061 CIVIL TERM RICHARD C, DETWILER and CALLISON, TIGHE, ROBINSON. and ANASTASION, Defendants JURY TRIAL DEMANDED NQIlCE YOU ARE HEREBY NOTIFIED to plead to the within Preliminary Objections within twenty (20) days after service of these Preliminary Objections. FLOWER, MORGENTHAL, FLOWER & LINDSAY Attorneys for Defendants By: Date: ~11J1 f1t11 c:\wp.llleJllddwllot...... llIo '4393-94-01 ... ARTHUR T. McDERMOTT, ESQUIRE, and ARTHUR T. McDERMOTT and ASSOCIATES, a Professional corporation, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW Plaintiffs v. . , NO, 94-3061 CIVIL TERM RICHARD C. DETWILER and CALLISON, TIGHE, ROBINSON, and ANASTASION, Defendants JURY TRIAL DEMANDED NOW COMES Richard C. Detwiler, and Callison, Tighe, Robinson and Anastasion, Defendants, by and through their counsel, FLOWER, MORGENTHAL, FLOWER & LINDSAY, and file these preliminary objections in the captioned matter for the following reasons: I, MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION 1. Defendant Richard C. Detwiler is an adult individual residing in South Carolina with a business address of 1208 Washington Street, Columbia, South Carolina 29201. 2, Defendant Callison, Tighe, Robinson and Anastasion (hereinafter Callison Law Office) is a partnership organized and existing under the laws of the State of South Carolina, with its principal place of business at 1208 Washington Street, Columbia, South Carolina 29201. 3. Neither Defendant Detwiler nor Defendant Callison Law Firm has a place of business in the Commonwealth of Pennsylvania. ' 4. Service has been made on the Defendants at their offices In South Carolina by registered mail. c:\wp51Icjl\d<lwlkr,pob role' 439).94.()1 '. 5, Defendants do not conduct business In the Commonwealth, nor have they availed themselves the privilege of conducting activities within the Commonwealth. 6. Defendants do not have minimum contacts with the Commonwealth which would permit exercise of personal Jurisdiction. 7. Defendants on no occasion made a contract with Plaintiffs In Pennsylvania. 8. Even if this Court found that the Defendants did make a contract with Plaintiffs in Pennsylvania, this Court would not have personal jurisdiction over the Defendants. WHEREFORE, Defendants pray this Honorable Court to dismiss the Complaint for lack of personal Jurisdiction. II. MOTION TO DISMISS BECAUSE OF PENDENCY OF PRIOR ACTION 9. On March 14, 1994, in the General Court of Justice, Superior Court Division, to the number 94-CVS-3254, the Defendants herein, and others, brought a Declaratory Judgment Action against Plaintiffs herein. The sole Issue raised by the North Carolina Complaint Is the liability of Defendants herein for the same claim asserted in the instant action, A copy of the Complaint is attached hereto as Exhibit "A". 10. Plaintiffs herein, on April 13, 1994, answered said Complaint, thus submitting the issue in the present case to the jurisdiction of the Court in North Carolina. A copy of the Answer filed by the Plaintiffs is attached hereto as Exhibit "B", 11. No judgment has been rendered by the North Carolina Court and the matter is still pending. 2 c:\wp5llejl\dtlwilcr.pob file , 4393-'Jo4.()1 WHEREFORE, Defendants pray this Honorable Court to dismiss the Complaint because the parties have submitted it to the North Carolina courts for decision. III, DEMURRER 12. Plaintiffs failed to state a legally sufficient claim against Defendants in Counts III, IV and V of the Complaint for unjust enrichment, nor do they state a claim for damages in quantum meruit. WHEREFORE, Defendants pray this Honorable Court to dismiss Counts III, IV and V of the Complaint for failure to state claim cognizable in the law. FLOWER, MORGENTHAL, FLOWER & LINDSAY Attorneys for Defendants By: ~J Carol J. U dsay, Esquire ID # 446 11 East High Street Carlisle, PA 17013 (717) 243-5513 Date: ?J4 ~//qqr 3 ~ I, Richard C. Detwiler, Esquire, the undersigned, hereby verify that the statements made in the foregoing Preliminary Objections are true and correct. 1 understand that false statements herein are made subject to the penalties of 18 Pa. C.S. ~ 4904, relating to unsworn falsification to authorities. <;f!~f J1J/+ Richard C. Detwiler, Esquire Date: b, So - r,l STATE OF NORTH CAROLINA COUNTY OF MECKLENBURG I ,", II '. I . " IN THE GENERAL COURT OF JUSTICE SUPERIOR COURT DIVISION 94-CVS- 3~Sfl' , '. , ' . t.' * VB, W. HERBERT BROWN, JR., ) ADMINISTRATOR OF ESTATE I, OF NICHOLAS W. LAaAZA, DBceaBBd, RICHARD C. I DETWILER and CALLISON ) TIGHE ROBINSON , ANABTABION, I a South Carolina Genaral I partnBrship, , ) ) I ) I ) ) I ) COMPLAINT (Jury Trial waivBd) plaintiffs, ARTHUR T. McDERMOTT and ARTHUR T. McDERMOTT , ASSOCIATES, a ProfBssional Corporation, Dafandants, Pursuant to Articla 26 Bntitlsd "DBclaratory JudgmBnts" of chaptBr 1 of thB North Carolina GBnaral statutas, ths Plaintiffs institutB this action and accordingly a11BgB and Bay: 1. Tha Plaintiff, w. Harbsrt Brown, Jr. (hBrBinaftBr callBd Plaintiff Brown), is a citizBn and rasidsnt of Macklanburg county, North carolina, 2. ThB Plaintiff, Richard C, DstwilBr (hBrBinaftBr callBd Plaintiff DBtwilBr), is a citizBn and rasidant of Karshaw county, South Carolina, 3. Tha Plaintiff, callison Tighe Robinson' AnastaBion (hBrBinaftBr callBd Plaintiff callison), is a South Carolina ganBra1 partnBrBhip with an officB and principal place of busina.s in Columbia, South Carolina, 4, ThB P1aintiffB arB informed and bB1iBvB and thBrBforB a11BgB that thB DBfandant, Arthur T, MCDarmott (herBinaftar ca11Bd DBfBndant McDBrmott), iB a citizBn and rasidant of Cumbarland county, Pannsylvania. S. The Plaintiff. ara informad and baliBvs and thBrBfore a11egB that thB Dsfendant, Arthur T. McDarmott , A.sociatas (herBinaftBr called corporate DBfendant), iB a pann.ylvania profa.Biona1 corporation with an officB and principal place of business in car1isla, pann.ylvania, 6. Plaintiff DBtwilar is, and at all timBs hsrBin alleged, an attornBY at law dUlr licansBd by tha Stata of South Carolina and iB a partnBr in thB law firm of Pla ntiff Callison. Plaintiff Calli Bon is, and at all times herB in allBgBd, a law firm Bngagsd in tha practica of law in thB State of south Carolina. 7. Plaintiff. ara informed and bBliBve and thBreforB allBge DBfendant McDBrmott is, and at all timas hsrain a11Bgsd, an attornBY at law duly 1icBnsBd by thB Commonwealth of pann.ylvania snd is, and at all timBs herein allBged, an officer, diractor and managing agant of the corporate DBfsndant. 8, Nichola. Wa.i1 Lagaza (Bams pBrBon aB NicholaB w, Lagaza) diBd AUgUBt 14, 1992, a. a ra.ult of injuriBs .ustainBd in an automobilB accidBnt in chBrokeB county, South Carolina, At the timB of hiB dBath, Nicho1aB WaBi1 Lagaza waB domicilBd in the stata of North Carolina and was a citizBn and rBBidBnt of MBck1Bnburg County, North Carolina. Tha civil action antitlBd Prown vs, crutchfield, aB hBrBinaftBr BBt forth morB fully, wal an .ction inBtitutBd aB a rBBult of injuriBB to and dBath of NicholaB WIIIH LBga.. which BrOIB out of thB aforBsaid automobHB accidBllt. 9. On or about september 2, 1992, Nicholas Lagaza, the decedent's father, was appointed Administrator of the Estate of Nicholas w. Lagaza by Letters of Administration issu,d by the Register of wills for cumberland county, pennsylvania. 10. On November 3, 1992, Nicholas Lagaza, as Administrator of Estate of Nicholas W. Lagaza, deceased, and on behalf of Nicholas W. Lagaza, II, a minor, institut.d a civil action in the united states District court for tha District of south carolina, spartanburg Division, indexed as Case No. 7-92-3156-3, wherein the plaintiff in said action sought to recover damages for the injuries and wrongful death of Nicholas W. Lagaza and for the injuries to Nicholas W. Lagaza, II. The attorneys of record for the plaintiffs in said civil action included Arthur T. McDermott , Associates (the corporate Defendant herein) by Arthur T. McDermott (Defendant McDermott herein) and Benjamin A. Cero. 11. On December 22, 1992, Plaintiff Brown was appointed Administrator of the Estate of Nicholas W. Lagaza by the Clerk of superior court for Mecklenburg county, North carolina. since his said appointment, Plaintiff Brown continuously has remained the duly qualified and acting Administrator of the Estate of Nicholas W. Lagaza and currently is the said duly qualified and acting Administrator of the Estate of Nicholas W. Lagaza. 12. subsequent to December 22, 1992, Plaintiff Brown, by and through his attorneys of record, Plaintiffs Detwiler and callison, filed a motion in said United states District court civil action to intervene as party plaintiff, which said motion was contested by Defendant McDermott but, after being heard by the Court, was allowed. No appeal was taken from said order allowing intervention. 13. On January 29, 1993, Nicholas Lagaza, as said pennsylvania Administrator, by and through his attorney, Arthur T. McDermott and Associates (the corporate Defendant herein) by Arthur T. McDermott (Defendant McDermott herein), instituted an Action for Declaratory Judgment in the orphans' Court Division of the court of common please for Cumberland county, Pennsylvania, indexed as case No. 21-92-703, against Plaintiff Brown wherein the said Pennsylvania Administrator sought a declaratory judgment as to the domicile of Nicholas w. Lagaza at the time of his death, whereupon the said declaratory judgment action was heard April 28 and 29, 1993, before The Honorable Harold E. Sheely, presiding Judge. The Plaintiffs herein, in order to protect their rights and etatus in said wrongful death action, were required to retain Pennsylvania counsel and travel to carlisle, Pennsylvania, at substantial expense, for the purpose of attending said hearing and being heard on the issue raised therein. On June 9, 1993, Judge sheely entered his Order adjUdicating the proper domic1e If Nicholas w. Lagaza as of his date of death was Charlotte, North Carolina, No appeal was taken from said Order. 14, subsequent to the aforesaid Pennsylvania adjudication of domicile, Plaintiff Brown filed a motion in said United states District court to be made sole plaintiff in the wrongful death cause of action, which said motion was allowed by the Court. No appeal was taken from the Order allOWing said motion. 15. Plaintiffs Detwiler and callison, as co-counsel with william R. White, Attorney at Law, represented Plaintiff Brown in connection with all proceedings in the aforesaid wrongful death action in the United states District Court which was concluded November 1, 1993, by Order Approving Settlement signed and entered by The Honorable G. Ross Anderson, Jr., United States District Judge. 16. At all times and at all stages of the numerous court proceedings, an adversarial relationship existed between the Plaintiffs herein and the Defendants herein. At no time did the Defendants, or either of them, ever represent the Plaintiffs, or any of them, in connection with the aforesaid wrongful death proceeding, the aforesaid declaratory judgment proceeding or in connection with any other matter concerning the Estate of Nicholas W, Lagaza, deceased. 17. On or about september 27, 1993, Plaintiff Brown received from the Defendants a letter dated september 21, 1993, a copy of which is attached hereto, marked "Exhibit 2 A-1", and incorporated herein by reference, aeeerting a claim againet the Eetate of Nicholae w. Lagaza in the amount of $24,611.80 for legal eervicee rendered eaid Zetate and expeneee incurred primarily in connection with repressntation of eaid Eetate in ths aforesaid litigatio~ of the wrongful death action. Attachsd to said "Exhibit A" was an invoice coneieting of twenty-five (25) pagee billed to Nicholae , candace Lagaza, 141 Juniper Drive, Etters, PA 17319. only page 10 of eaid invoice, which eete forth the invoice summary, is attached hereto, marked "Exhibit A-2", and incorporated herein by reference. The Defendante preeented the aforeeaid claim to plaintiff Brown, and Plaintiff Brown received the eaid claim from ths Defendante, at hie reeidence in charlotte, Mecklenburg county, North carolina, which eaid act by Dsfendante hae invoked pereonam juriediction of the North carolina courte over the Defendante. 18. On oct~ber 27, 1993, Plaintiff Brown unsquivocally rejected the aforesaid claim in ite entirety in writing as evidenced by his lettsr of rejection dated october 27, 1993, a copy of which is attached hereto, marked "Exhibit B" and incorporated herein by rsference. Plaintiff Brown delivered eaid lettsr of rejection to the Defendants on october 27, 1993, by tranemttting a copy of the same via faceimile to Defendants' telefax number ae printed on Defendants' lettsrhead stationery. Also, Plaintiff Brown delivered a copy of said lstter of reJection to the Defendants by mailing a copy thereof in an envelope, postage paid, first class mail, addressed to the Defendants at their offics address printed on said "Exhibit A-1", depositsd on october 27, 1993, with the United states Postal service at Charlotte, North carolina. 19, No reference of the said claim has been made pursuant to the provisions of North carolina General statutes section 28A-19-15, and no action was instituted by the Defendants, or either of them, for the recovery of said claim, or any portion thereof, within three months of Defendants' receipt of plaintiff Brown's aforesaid written notice of rejection as required by North carolina Gensral statutes Section 28A-19-16. 20. The Plaintiffs are informed and believe and therefore allege that recovery of the Defendants' aforesaid claim in the amount of $24,611.80 (or any lesser amount thereof) ie hereby forever barred as against the Plaintiffs for failure to institute an action for r~covery within the three-month statute of limitations prescribed by North carolina Gensral Statutes Section 28A-19-16, which said statute of limitations ths Plaintiffs hsreby affirmatively plead in bar of the Dsfendants' right of recovery against ths Plaintiffe on account of the aforesaid claim. 21. The aforesaid notice of rejection inures to the benefit of all Plaintiffs in this declaratory judgment action. 22. on or about March 7, 1994, the Defendants, through their legal counsel in Harrisburg, pennsylvania, notified the Plaintiffs in writing by letters dated March 2, 1994, that they intend to pursue the aforesaid claim against the Plaintiffs through litigation in the Court of Common ploas in Cumberland county, pennsylvania, by filing a civil action against the Plaintiffs for recovery of said claim by April 1, 1994. The Defendants, through their counsel, after crediting prior payments on the account by Nicholas and candece Lagaza, reduced the aforesaid monetary claim to $24,126.23. Pursuant to receipt of said recent demand for payment by Defendants' counsel, it appears to these Plaintiffs that litigation is unavoidable. 23. The Plaintiffs adamantly deny that they, either singularly or collectively, owe the Defendants any portion of the claim whatsoever I however, the Plaintiffs are informed and believe and therefore allege their denial of liability should be moot in this action for the reason that the Defendants' aforesaid claim has been barred, in its entirety, against the Plaintiffs, 24. The Plaintiffs are informed and believe and therefore allege an actual controversy exists betwesn the Plaintiffs and the Defendants as to whether or not the aforeeaid claim is barred by statute. Pursuant to the provisions of North carolina General statutes Section 1-255, the Plaintiffs have standing to institute this action. 25. Ths only asset which has come into the hands of Plaintiff Brown, as Administrator of the Estate of Nicholas w. Lagaza, has bsen wrongful death recovery ~ 3 proceeds, the use and disposition of which are governed and restricted by North carolina General statutes section 28A-1S-l0(c) and section 28A-18-2. WHEREFORE, the Plaintiffs hereby waive a trial by jury in this action and respectfully pray the court for the following relief: 1, That the court adjudicate whether or not the Defendants' aforesaid claim is barred as against the Plaintiffs pursuant to the provisions of North carolina General statute~28A-19-16, and 2. If the aforesaid claim is not barred, that the Court adjudicate the aforesaid claim is not a debt or obligation of any of the Plaintiffs I and 3. That the costs of this action be taxed as the court deems app~opriatel and 4. That the Plaintiffs have and recover such other and further relief as the Court may deem just and proper. This the //~ day of March, 1994, lfHI'l'E '~ALT,~ I _ / By: _ ,# ~ Will R~hlte Attorneys for Plaintiffs P. O. Box lS89 602 south caldwell street Brevard, North carolina 28712 704/884-2334 STATE OF NORTH CAROLINA COUNTY OF MECKLENBURG W. HERBERT BRONN, JR., being first duly sworn, deposes and says that he is one of the Plaintiffs in the foregoing complaint I that he has read the foregoing complaint and knows the contents thereof, and that the S8me is true of his own knowledge except as to those matters therein stated upon information and belief and as to those matters he believes it to be true. J111J:~ W. Her rt Brown, r., Plaintiff SUbscribed and sworn to befors me this ~day of March, 1994. /Jt~ y: ,8~ Notary Public ~" My commission expires: I~ 4.:l-74' " 4 ARTHUR T. McDERMOTT & ASSOCIATES A Prol...lo..1 Corporlllon Allorneys and Counsellors-al.Law Fifty East High Street P ,0, Box 246 Carlisle, Pennsylvania 17013-0246 (717) 243-7807 Arthur T. McDermouo Telefax 243-9766 Of Counsel Richard A, Burr, Esquire James J, Kayer Patricia R. Brown Sallra M, Quarlcs" .. Admiucd 10 prlakc In CIUlornla . AlIlnillcd 10 PrlClkc In Penn.ylvanll and the Dbllla 01 Columbll Sep~ber21,I99S W. Herben Brown, Esquire 4009 River Ridge Road C1wlotte, N,C. 28226 Rc: Legal fees - Lagaza Estate Dear Mr, Brown: In accordance with your request for information regarding the time spent by this law firm on the Lagaza matter (less the suit regarding domicile) the attached invoice Is hereby submitted, It Is my underslanding that we will be reimbursed for fees and expenses once the wrongful death action settles, For your information, we have billed all hours at the rate of $100,00 per attorney hour regardless of which attorney logged them, On the invoice Be slands for Benjamin Cero, DP stands for Desiree Petrus,JK slands for James Kayer, and PB slands for Patricia Brown, All listing not identified refer to my time, The nonnal billing rates for those attorneys are: McDermott $150,00 per hour, Cero $125.00 per hour, Kayer $100,00 per hour, Petrus $100,00, Brown $100,00, I have purged all references to time spent on the domicile contest, and the hours claimed reJlect time actually spent and required on the wrongful death action, If there are any questions regarding those hours, please contact me. 1 know that Marilyn Chapman questions my trip to the Nonh Carolina Worker's Compensation matter; however, there were two reasons for doing that. FIrst was the funeral expenses. Second was the fact that the carrier was placing a lien against the wrongful death recovel}'. I believe, and 1 contacted a Nonh Carolina attorney who confirmed my belief, that the lien can be successfully challenged. If you desire 1 can give you the name of that attorney, Lastly, attached to the invoice are the charges related to the services of Nelson, Mullins, Riley and Scarborough billed to and owed by this office in that mauer, 1 hope that these meet your requirements, Vel}' truly yours, ARTIlUR T, MCDERMOIT AND ASSOCIA~ ~W~ .---:;....--'. - - J\JU\ur,1':1dcDermott - ATM/ss cc: Nelson, Mullins, Riley &: Scarborough P,O, Box 11070 Columbia, S.c. 29211 EXHIBIT A-I NICHOLAS , CAHDANCB LAGAZA Date 09/03/93 Pafjle 10 AMOUH'r ------ ~ 05/11/93-Bxpense for transcript of Karen Pinkenbender - $25.00 --------- Total costs Total time and expense charges 08/28/92 payment from account 11/14/92 Payment from account 11/30/92 Payment - thank you 02/21/93 Payment - thank you 04/29/93 Payment - thank you Total Payments ( ( ( ( ( ( $5855.30 $24611.80 3.00) 247.00) 22.21) 28.00) 185.36) --------- $485.57) ......... Balance Due $24126.23 ..................---.................................... Previous balance of retainer account Payments made from retainer account Payments made into retainer account ( $0.00 $250.00) $250.00 ***EXPLANATION OF RETAINER ACCOUNT Nicholas Lagaza paid $500 retainer to the firm to be used for expenses incurred to 9pen the estate and initiate wrongful death action in South Carolina. Therefore, the $500 retainer was split with one holf in estate account and one ho1f in wrongful death action fteeoun t , " EXHIIlIT ^-2 (- .' W, HERBERT BROWN, JR. AT10INIY AT LAw CuuION IlooWN Bu.LDIHC 301 SourH McDowau STUIT. SUln 609 CH.uLOTTl, NC 282lH 171M) 334-8678 . FAI moOOW october 27, 1993 TRAN8MI~D V%A PACSIMILE 717/243-9766 Hr. Arthur '1'. McDermott Arthur '1'. McDermott , A..ociatea Attorneya and Counaellora-at-Law P. O. BOX 246 carliale, PA 17013-0246 ReI Eatate of Nicholaa W. Lagaxa (deceaaed 8/14/92) Dear Hr. McDermott: . I am in raceipt of your letter of september 21, 1993, together with a copy of your invoice to Nicholea , Candace Lagaxa in the total amount of $24,611,80 for legal feea and coata in ccnnection with the above-referenced eatate. After having carefully reviewed theae documenta, I do not believe any of the legal feea or coata incurred ia the obligation of the North carolina Adminiatrator of the Eatate of Nicholau W. Lagaxa. '1'0 clarify my poaiticn, you and I have naver had any agreement for you to repreaent thia Eatate in any matter. YOU ware hired by the Pennaylvania Adminiatrator who opened and commenced adminiatration of an eatate in an improper juriadicticn. We have never had an underatanding that the North Carolina Eatate would be reaponaible for the payment of any of your fee a or coata. My only agreement for payment of legal feea ia with william R. white, Attorney at Law, Brevard, ~orth carolina, and Calliaon Tighe Robinaon , Anaataaion, Attorneya at Law, Columbia, South carOlina, in connection with the wrongful death litigation. I wiah to point out that thaae legal feea, even though agreed to, are aubject to the approval of the court for the reaaon that the aole beneficiary ia a minor. I alao wiah to point out that the only aaaet in the North Carolina Eatate ia a wrongful 'death cauae of action which ia ncn-probate property. There ia no aource of funda available in the North carolina Eatate for the payment of your fee a and ccata which apparently were contracted for by Hr. Lagaxa, sr., probably on a contingent fee basis. If you took thia matter on a contingent fee basia purauant to ycur contract with Hr. Lagaxa, sr., you would have done ao at your own peril in the event no recovery waa obtained by the Penneylvania Eatate. My purpoae for writing you this letter certainly is not to irritate you; however, I feel I need to clarify my poaition for the record. Therefore, I, aa Adminietrator of the Estate of Nicholaa W. Lagaxa, hereby reject all charges contained in your aforeeaid atatement, including thoae relating both to legal aervices and costa incurred. Youre trUlY,,", ~ ~ W. Herbert Brown, Jr. WHBjrlkb cc: Hr. William R. White (via Fax 704/884-6527) Attorney at Law Hr. Richard C. Detwiler (via Fax 803/256-6431) Attorney at Law 0" EXHIBIT B , ",.." ~.3:,~.!~;"llt h~':~';;iy,;::~;,c- :~>".' .~,. EXHIBIT "B" (- (' STATE OP NORTH CAROLINA COUNTY OP MECKLENBURG I IN THE GENERAL COURT OP JUSTICE I SUPERIOR COURT DIVISION I 94-CVS-3254 ~ W. HERBERT BROWN, JR., ADMINISTRATOR OP ESTATE OP NICHOLAS W. LAGAZA, Deceased~ RICHARD C. DETWILER and CALLISON, TIGHE, ROBINSON & ANASTASION, a South Carolina General Partnership, vs. I I I I CDlilIi \D ~I~ ~R I Ii ;g '"T1 Ie: _ Ijgw, Ig =- m Ie: ::E: :c... ro-t c;? "-' ;< n C U. 0'\ Defendants Arthur T. HcDeJ:mott and A:fthur T. . '. Plaintiffs ARTHUR T. MCDERMOTT and ARTHUR T. MCDERMOTT ASSOCLATES, a Professional corporation, Defendants and COKE NOW, HcDeJ:mott and Associates, a professional corporation and Answers Plaintiffs' Complaint and aver as followsl 1. Admitted. 2. Admitted. 3. Admitted. 4 . Admitted. 5. Admitted. 6. Admitted. 7. Admitted. B. Additionally it is stated that Nicholas W. , Admitted. Laqaza's domicile' was unclear and that he had assets and.- liabilities of his estate in the Commonwealth of Pennsylvania. " " . ( ; i '1 I I I \ 9. Admitted. 10. Admitted in part and denied in part. It is admitted that Nicholas Laqaza, the deceased's father instituted the civil action in tne u.s. District Court for the District of South Carolina. The lawsuit was filed on behalf of the Estate. Nicholas W. Laqaza, II was listed as a plaintiff in order to assure his riqhts were protected, not as a plaintiff/client. 11. Admitted in pllrt and denied in part. It is admitted that Plaintiff Brown was appointed Administrator of the domiciliary North Carolina estate of Nicholas W. Laqaza~ it is further noted and averred that Nicholas Laqaza, father of the deceased was duly appointed and determined by Court Order to be the Administrator of the ancillary Pennsylvania estate of Nicholas W. Laqaza. 12. Admitted. 13. Admitted in part and denied in part. It is admitted that an Action for Declaratory Judgment was instituted in the Orphans Court Division of the Court of Common Pleas of Cumberland County, Pennsylvania, and that the Court entered judgment that the proper domicile of Nicholas W. Laqaza was Charlotte, North Carolina on the I I; i , I I: I date of his death. No appeal was taken from that Order. Defendants believe and therefore aver that the Plaintiffs were not reauired to appear in the proceedinqs, and in fact did not provide testimony therein. Local counsel capably represented the North Carolina estate and its Administrator Herbert Brown, Esquire. Hr. Brown was the only plaintiff whose presence was appropriate in the Pennsylvania proceedinqs. " (' 14. Admitted. 15. Admitted in part. It is admitted that Plaintiffs Detwiler and Callison represented Plaintiff Brown in some of the 1eqal work in the wronqful death action~ however, the Defendants ~ subsequent to filinq the Complaint in that action, also did siqnificant quantities of leqal work in the proceedinqs, and retained local counsel in South Carolina who also provided siqnificant assistance in prosecutinq the action. Defendants provided Plaintiffs Detwiler and ~allison the complete files in the matter in order to assist Plaintiffs in settlinq the case. Defendants incurred siqnificant expenses in developinq those files. Plaintiff Detwiler assured Defendant McDermott that McDermott would be paid on a "quantum meruit" basis for the 1eqal work done by McDermott and McDermott Associates, to include the expenses incurred in retaininq the law firm of Nelson, Mullins, Riley and Scarborouqh as local counsel. Defendant has no knowledqe as to the settlement Order entered by the U.S. District Judqe. 16. Denied that an adversarial relationship existed between Plaintiffs Detwiler and Callison and Defendants subsequent to the determination of the domiciliary estate. After Plaintiff Detwiler requested Defendants' files, those files were provided on the understandinq that Defendants would be reimburnd on a auantum meruit basis for work performed and expenses incurred in the wronqful death action. A bill was prepared by Defendants for said , leqal work and is attached as Exhibit "A-1" to the Complaint in this action. The Defendants also performed siqnificant leqal work on the ancillary Estate of Nicholas W. Laqaza in Pennsylvania. " (' c 17. Denied that an adversarial relationship existed between .Plaintiffs Detwiler and Callison and Defendants subsequent to the determination 'of the domiciliary estate. After Plaintiff Detwiler requested Defendants' files, those files were provided on the ~ understandinq that Defendants would be reimbursed on a auantum meruit basis for work performed and expenses incurred in the wronqful death action. A bill was prepared by Defendants for said leqal work and is attached as Exhibit "A-1" to the Complaint in this action. lB. Admitted. 19. Admitted in part. 20. This paraqraph is a conclusion of law and requires no Answer~ however, to the extent an Answer may be required it is noted that the statute of limitations referred to relates to claims aqainst Estates and does not bar a claim aqainst Defendants Detwiler and Callison. 21. This paraqraph is a conclusion of law and requires no Answer ~ however, to the extent an Answer may be required it is noted that the statute of limitations referred to relates to claims aqainst Estates and does not bar a claim aqainst Defendants Detwiler and Callison. 22. Admitted in part and denied in part. The notice of rejection may inure to the benefit of the Estate, but ont to the benefit of Detwiler and Callison. 23. This paraqraph is a conclusion of law and require~ no Answer~ however, to the extent an Answer may be required it is denied that the statute of limitations referred to relates to " f The Law Offices of SPERO T. LAPPAS 205 State Street Post Office Box 808 Harrisburg, Pennsylvania 17108-0808 Telephone (717) 238-4286 FAX (717) 238-4826 By: SPERO T. LAPPAS, ESQUIRE Pa. Supreme Court Identification No. 25745 ATTORNEYS FOR THE PLAINTIFFS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Arthur T. McDermott, Esquire, and Arthur T. McDermott and Associates a Professional Corporation, Plaintiffs . . CIVIL ACTION - LAW v. NO. c}~.30~1 ~ ~ Richard C. Detwiler and Callison, Tighe, Robinson, and Anastasion, Defendants . . JURY TRIAL DEMANDED NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR 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. Court Administrator Cumberland County Courthouse 4th Floor One Courthouse Square Carlisle, PA 17013 (717) 240-6200 The Law Offices of SPERO T. LAPPAS Page 1 NOTICIA Le han demand ado a usted en la corte. Si usted quiere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demand a y la notificacion. Usted debe presentar una apariencia escrita 0 en persona 0 por abogado y archivar en la corte en forma escrita sus persona. Sea avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso 0 notificacion y por cualquier quaja 0 alivio que es pedido en la peticion de demanda. Usted puede perder dinero 0 sus propiedades 0 otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO INMEDIATAMENTE. SI NO TIENE ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA SE PUEDE CONSEGUIR ASISTENCIA LEGAL. Court Administrator Cumberland County Courthouse 4th Floor One Courthouse Square Carlisle, PA 17013 (717) 240-6200 RESPECTFULLY SUBMITTED, By: Law Offi"a r SPERO T. LAPPAS ~A.AA SPERO T. LAPPAS, ESQUIRE Pa. Supreme Ct. ID No. 25745 205 State Street P.O. Box 808 Harrisburg, PA 17108-0808 (717) 238-4286 ATTORNEYS FOR THE PLAINTIFFS The DATE: The Law Offices of SPERO T. LAPPAS Page 2 The Law Offices of Spero T. Lappas 205 State street Post Office Box 808 Harrisburg, PA 17108-0808 (717) 238-4286 By: SPERO T. LAPPAS, ESQUIRE Pa. Supreme Court identification no. 25745 ATTORNEYS FOR THE PLAINTIFFS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA Arthur T. McDermott, Esquire, and Arthur T. McDermott and Associates a Professional Corporation, . . . . CIVIL ACTION - LAW plaintiffs . . v. . . NO. q</. .30(,/ ~ 1"".u-- . . Richard C. Detwiler and Callison, Tighe, Robinson and Anastasion, Defendants JURY TRIAL DEMANDED COMPLAINT AND a~ thia;t ~ day of k, 199' coma tha P1aiotiffa Arthur T. McDermott, Esquire, and Arthur T. McDermott and Associates, a Professional Corporation, by and through their attorneys The Law Offices of Spero T. Lappas, and make this Complaint against the above captioned Defendants, respectfully representing as follows: 1. Plaintiff Arthur T. McDermott is an adult individual maintaining a practice of law at 50 East High Street, Carlisle, Pennsylvania. The Law Offices of SPERO T. LAPPAS Page 3 2. Plaintiff Arthur T. McDermott and Associates, a professional corporation, is a professional corporation organized under the laws of the Commonwealth of Pennsylvania maintaining a professional office for the practice of law at 50 East High Street, Carlisle, Pennsylvania. 3. Defendant Richard C. Detwiler is an attorney licensed under the laws of the state of South Carolina maintaining an office for the practice of law at 1208 Washington Street, Columbia, South Carolina 29201. 4. Defendant Callison, Tighe, Robinson, and Anastasion (hereinafter "Callison Law Office") is a South Carolina general partnership of attorneys maintaining an office for the practice of law at 1208 Washington Street, Columbia, South Carolina 29201. 5. At all times material to this cause of action, Defendant Richard C. Detwiler was the employee, servant, partner, or agent in and of Defendant Callison, Tighe, Robinson, and Anastasion. All actions which are described in this Complaint as having been taken by Defendant Detwiler were taken pursuant to his partnership, agency, employment, or servant status with Defendant Callison Law Office and were taken in the course and scope of that relationship. 6. In 1992, Plaintiffs undertook the representation of Nicholas and Candice J. Lagaza in connection with the establishment of an estate for Nicholas W. Lagaza, deceased, and with respect to the litigation of any causes of action which the clients or the estate would have in connection with the death of Nicholas W. The Law Offices of SPERO T. LAPPAS Page 4 Lagaza. It was the Plaintiffs' desire, intention, and effort to establish this estate in the Register of Wills Office and the Orphans Court of the Court of Common Pleas of Cumberland County. 7. During the course of this representation, a controversy arose as to whether the decedent's correct domicile was Cumberland County, Pennsylvania or rather was in the state of South Carolina. 8. During this controversy, the Defendants represented those claimants and litigants who were attempting to establish the decedent's domicile in South Carolina and to pursue on behalf of a South Carolina estate whatever claims resulted from the death of Nicholas W. Lagaza, deceased. 9. In connection with the Plaintiffs' investigation and preparation for the litigation concerning civil claims resulting from the death of Nicholas W. Lagaza, deceased, the Plaintiffs expended great and large amounts of time and effort, incurred costs, and produced valuable investigative and other materials which were all reasonable, necessary, proper, and valuable with respect to the litigation of claims resulting from the death of Nicholas W. Lagaza, deceased. A true and correct copy of the Plaintiffs' statement of time and expenses is attached hereto and marked as Exhibit A to this Complaint. 10. On or about May 13 or 14, 1993, there was a hearing or other proceeding before the Court of Common Pleas of Cumberland County for the purposes of determining whether or not an estate would be opened in Cumberland County, Pennsylvania for Nicholas W. The Law Offices of SPERO T. LAPPAS Page 5 (- "-'.' -.< . - Lagaza, deceased. 11. At that hearing, the South Carolina claimants and litigants were represented by Defendant Detwiler and through him by defendant Callison Law Office. 12. During the course of this litigation, specifically on or about May 14, 1993 and within Cumberland County, Pennsylvania, Plaintiff Arthur T. McDermott and Defendant Richard C. Detwiler had numerous and diverse conversations concerning the Lagaza case. 13. At that time, date, and place, Plaintiffs and Defendants agreed and contracted that Attorney McDermott would turn over to Attorney Detwiler the file materials which Plaintiffs had produced, generated, and accumulated in connection with their investigation, preparation, and anticipated litigation of the Lagaza case, that he would do so voluntarily and without the need for any litigation or compulsory process, and that he would make his file available to Attorney Detwiler and the Defendants for their use in the Defendants' continued representation of the Lagaza plaintiffs. 14. In consideration and exchange for Attorney McDermott's promises, Attorney Detwiler, and through him the Callison Law Office, agreed to compensate the Plaintiffs at an hourly rate for all work which they had done in anticipation, preparation, and investigation of this anticipated Lagaza death litigation. 15. Attorney McDermott performed his promises under the contract by turning over to Attorney Detwiler the Lagaza file according to the terms and conditions which had been bargained for, The Law Offices of SPERO T. LAPPAS Page 6 agreed upon, and contracted between and among the parties. 16. Attorney Detwiler confirmed to Attorney McDermott that the work which Attorney McDermott had done and the file materials which Attorney McDermott promised to, and did, turn over to Attorney Detwiler were valuable and necessary to the Defendants and their clients in the continued prosecution of the Lagaza claim. 17. Attorney McDermott, after completing his responsibilities under the contract with the Defendants, submitted to the Defendants a bill for his services and expenses in accordance with the agreement and contract which the plaintiffs made with the Defendants. This bill is attached hereto as Exhibit A. 18. All services and expenses described on Exhibit A were reasonable, necessary and proper. 19. The hourly rate charged by plaintiffs was reasonable. 20. Plaintiffs have made several demands upon the Defendants for payment of this bill in accordance with the contract, but thus far the bill remains unpaid. 21. Accordingly, pursuant to the contract, the Defendants are indebted to the Plaintiffs in the amount of $24,126.23. 22. The Court of Common pleas in Cumberland County decided that the proper domicile of the decedent Nicholas W. Lagaza was in South Carolina. 23. Accordingly, Plaintiffs' representation of the Cumberland County litigants and claimants terminated, and the case proceeded to settlement or litigation by the Defendants in South Carolina. The Law Offices of SPERO T. LAPPAS Page 7 24. The file materials which Attorney McDermott turned over to Attorney Detwiler were valuable to Attorney Detwiler, his firm, and his clients in connection with the resolution of the Lagaza case. 25. By delivering the file materials to Attorney Detwiler, Plaintiffs relieved the Defendants of the need and necessity for recreating or performing the work which had already been done by the Plaintiffs. 26. Plaintiffs believe and aver that the Defendants made use of these file materials in connection with their pursuit of the Lagaza case. 27. Plaintiffs believe and aver that the Lagaza case was eventually resolved, either by litigation or settlement and that the Defendants collected a fee in connection with the litigation and resolution of that case. 6 28. Accordingly, the use of the Plaintiffs' file materials by the Defendants without payment has resulted in an unjust enrichment of the Defendants. 29. Furthermore, the Plaintiffs are entitled to payment according to the terms of the Exhibit A on a auantum meruit basis. COUNT 1 PLAINTIFFS V. RICHARD C. DETWILER BREACH OF CONTRACT 30. All previous paragraphs of this Complaint are hereby incorporated into this count by reference thereto. The Law Offices of SPERO T. LAPPAS Page 8 WHEREFORE, the Plaintiffs demand judgment against this Defendant in the amount of $24,126.23. COUNT 2 PLAINTIFFS V. CALLISON, TIGHE, ROBINSON, AND ANASTASION BREACH OF CONTRACT 31. All previous paragraphs of this Complaint are hereby incorporated into this count by reference thereto. WHEREFORE, the Plaintiffs demand judgment against this Defendant in the amount of $24,126.23. COUNT 3 PLAINTIFFS V. RICHARD C. DETWILER UNJUST ENRICHMENT 32. All previous paragraphs of this Complaint are hereby incorporated into this count by reference thereto. WHEREFORE, the plaintiffs demand judgment against this Defendant in the amount of $24,126.23. COUNT 4 PLAINTIFFS V. CALLISON, TIGHE, ROBINSON, AND ANASTASION UNJUST ENRICHMENT 33. All previous paragraphs of this Complaint are hereby incorporated into this count by reference thereto. WHEREFORE, the Plaintiffs demand judgment against this Defendant in the amount of $24,126.23. The Law Offices of SPERO T. LAPPAS Page 9 NICHOLAS LAGAZA Date OS/26/94 HOURS Page 2 AMOUNT ----- ------ -(BC)Call to Ms. Hickman at Chubb Ins 1.40 Company. Confer w/Atty McDermott reI offer. Filed notes. 09/10/92-(BC)Review letter from Ms. Chapman's 1.50 attorney. Call to client reI status Confer w/Atty McDermott reI Chapman letter. Call to Atty Hall reI status -(BC)Confer w/Atty McDermott and 1.60 client reI settlement offer. Confer w/Atty McDermott re: Chapman letter. 09/1l/92-(BC)Draft claim letter to So. 0.50 General Insurance Company. 09/l4/92-(BC)Draft of claim letter. 0.25 09/15/92-(BC)Calls to insurance adjustor. 0.25 09/16/92-(BC)Call to insurance adgents reI 0.50 policies and facts of case. 09/1B/92-(BC)Confer w/Atty McDermott and Atty 0.50 Brown reI filing Complaint. Call to Trooper Pearson re: charges on other driver. 09/2l/92-Meet w/Atty Cero reI filing of 0.25 Complaint in South Carolina. Call to Atty Wilkins reI representation in US District Court. -(BC)Draft of Complaint. 09/25/92-(BC)Draft of Complaint. 09/29/92-(BC)Call to Federal Courts. Pinished drafting of Complaint. 09/30/92-Calls to Atty Wilkins and Sowell reI representation in South Carolina. -(BC)Call to Texas Department of Motor Vehicles re: insurance company. Conference w/Atty Horsman. 10/02/92-(BC)Confer w/Atty McDermott on Complaint and South Carolina attorney. 10/05/92-(BC)Calls to insurance companies. 10/06/92-(BC)Teleconference w/client. Call to insurance agent. 10/0B/92-(PB)Call to Trooper Pearson. Call from Trooper Pearson. 10/09/92-(BC)Teleconference w/insurance agent Hickman. Call to NICR reI questions on parentage of girlfriend's child. 3.50 1.25 0.50 0.25 1.00 0.25 0.75 0.50 0.50 1.00 NICHOLAS LAGAZA Date OS/26/94 10/13/92-(BC)Receive and review insurance letter. 10/lS/92-(BC)Receive and review letter from State Farm. 10/20/92-(BC)Review of letter f~om State Farm and respond. Review of Federal Insurance Co letter and pictures of accident scene. -(BC)Call to Althin re: wages paid. Confer w/Atty Brown on letters and calls. 10/21/92-(DP)Legal research in library for Pro Hac Vice Porm. -(DP)Call to US Attorney re: Pro Hac Vice Porm. Call from US Attorney. -(BC)Prepare file for Atty McDermott to take to South Carolina. Confer w/client re: insurance policy and status of case. 10/22/92-(BC)Draft Answer to State Farm letter. Teleconference W/Atty Jacobs re: parties to the case. -To South Carolina - meet w/DA of Cherokee County and Trooper Pearson. Discuss case and accident - visit scene of accident. 10/23/92-Meet w/Atty Jacobs re: Complaint and admission to US District Court for South Carolina. 10/26/92-(BC)Call to NWL's employer. -(BC)Client conference re: interrogatories and status of case. Letter to Atty Jacobs w/Complaint and interrogatories. 10/27/92-(BC)FaX pay records to Althin. Teleconference w/State Farm. Attempt to call Althin. -(BC)Review notes of telephone conversation. 10/2B/92-(BC)Draft answer to fax from Atty Jacobs. 10/29/92-(BC)Confer w/Atty McDermott re: status. Call to Atty Brearly at Chubb Insurance re: W/C claim. Confer w/Atty Brown. HOURS ----- 0.50 0.17 2.00 0.50 1.00. 0.50 0.50 0.50 B.OO B.OO 0.20 1.20 1.25 0.60 1.40 l.l0 Page 3 AMOUNT ------ NICHOLAS LAGAZA Date OS/26/94 -(BC)Call to Althin Personel manager re: pay records and future earnings. Read, noted, filed Althin Fax. -(BC)Teleconference to Atty Brearly and Bill in NC. Conference w/law clerk re: W/C claim. 10/30/92-(BC)Review interrogatories and amended Complaint. C~ll to client. -(BC)Legal research on W/C claims. Teleconference w/Atty Hills and Atty Bellon W/C. Confer w/Atty McDermott. ll/09/92-(BC)Reviewed copies of Complaint and interrogatories filed in South Carolina. Draft interrogatories for defendants. ll/10/92-(BC)Call to client re: status of criminal processing. Call to Atty Hall re: same. Draft interrogatories for Sanqwin. Legal research. 11/11/92-(BC)Call to Atty Jacobs re: subpoena for Althin. Continued work on interrogatories. Claim letter to 50. General Insurance. -(BC)Confer W/Atty McDermott re: course of actions. Draft interrogatories for Crutchfield. Teleconference w/Jacob's office. 11/12/92-Call to NC Atty Anderson. Fax information re: W/C. 11/13/92-(BC)Call to Atty Jacobs. Continue work on interrogatories for 5anqwin and Crutchfield. -Brief Atty Cero re: W/C and Atty Anderson. ll/14/92-(BC)Work on draft of interrogatories to defendants. Claim letter to So General Ins Co. Work on subpoena to Althin for pay records. ll/16/92-(BC)Draft of subpoena and insurance claim letter. Draft of interrogatories. 11/l7/92-(BC)Finished Crutchfield interrogatories. Review of insurance documents. HOURS 0.50 1.25 1.00 1.80 4.40 3.40 3.17 1.70 0.25 1.30 0.10 1.25 2.BO 1.50 Page 4 AMOUNT ------ NICHOLAS LAGAZA Date OS/26/94 ll/lB/92-(BC)Legal research on SC law on damages in wrongful death action. 11/19/92-(BC)Finished interrogatories for Sanqwin. Call to Atty Jacobs on SC law. Review of notes. Teleconference w/DA in SC on charges. Legal researc 11/23/92-(BC)Call to paralegal, Ms. Alford re: service of complaint on Sanqwin. Letter w/documents to SC. Work on damage information format. 11/24/92-(BC)Work on damage format and information. 11/2S/92-(BC)Teleconference w/Atty anderson reI W/C claim. 11/30/92-(BC)Re-organize file. Teleconference W/Atty Anderson ref W/C. Teleconference w/Mr. Jakubel of Althin re: pay records. 12/0l/92-(BC)Teleconference w/Atty McDermott and Atty Anderson reI W/C claim. l2/09/92-Call from client. 12/10/92-Meet w/client. 12/1l/92-(JK)Confer W/Atty McDermott and Atty Cero reI underinsurance. 12/14/92-Meet W/Atty Cero re: background. Calls to Mr/Mrs Lagaza ref rapidity. Received authority at SOOK. Call to Chubb Ins. -Legal research re: North Carolina W/C. Call to Anderson's law office. Call to AAA ref trip info - make reservations. -(BC)Teleconference w/Atty McDermott re: W/C and settlement. Telecon w/Atty White (Chapman) in probate in NC. Review of notes. 12/1S/92-Meet w/Atty Cero re: files to NC. -To Raleigh NC. Review files. Call to Atty Anderson. Legal research ref NC worker's compensation. -(BC)Teleconference w/Ms. Hickman, insurance adjuster. Draft Fax to Hickman and So General Insurance. Telecon w/Atty McDermott re: status. HOURS 3.50 1.80 4.50 2.10 0.25 1.40 0.25 0.20 1.00 0.40 1.50 1.50 . .~_J~:"" , . . " -.: PageS. ,,-. AMOUNT ------ ,-.. '- . . .... ,.,,:'- " 1. 00 NO CHARGE 0.20 7.90 1.40 NICHOLAS LAGAZA Date OS/26/94 12/16/92-Meet at Industrial Commission. Meet w/Atty Mike Anderson re: subrogations of W/C lien. Call to Atty white. Legal research. 12/17/92-Return to Carlisle. 12/22/92-Call to Chubb inaurance supervisor re: additional information. Fax copy of Certificate of Administratic~ and SC Complaint. -(BC)Confer W/Atty McDermott re: settlement and copied complaint and fee agreement. 12/23/92-Call to Mr. Fisher re: settlement offer. 12/24/92-(BC)Confer w/Atty McDermott re: settlement. Draft letters to Chubb Insurance and So General Insurance re: settlement. 12/29/92-(BC)Review of file and notes of conference w/Atty McDermott on settlement. 01/04/93-Call to Dean Stewart. 01/07/93-Call from Jeff Jacobs. Call to Bob Wilkins. 01/09/93-(BC)Reorganize file. 01/11/93-Call to client re; citizenship. 01/12/93-Draft Petition to W/C board in North Carolina re: funeral expenses and ambulance bills. 01/l7/93-Letter from Atty White - review and draft response letter reI domicile. 01/1B/93-(BC)Review and file letters. 01/22/93-(BC)Review of South Carolina attorney bill W/Atty Brown. -(BC)Conference w/Atty Brown. 01/25/93-(BC)Letter to Atty Jacobs re; insurance policies. Call from Atty Hall re: status of criminal proceedings against Sanqwin. -Calls from and to Solicitor Hall. Call to Mrs. Lagaza re: family wishes. Call to Hall w/request for maximum. HOURS Page 6 AHOUN'r ------ 6.00 7.00 1.00 0.30 0.50 1.25 0.20 0.10 0.30 2.50 0.20 0.50 0.60 0.50 0.40 0.70 0.90 0.50 NICHOLAS LAGAZA Date OS/26/94 Page 8 HOURS AMOUNT ----- ------ 1.00 3.50 0.50 0.10 0.25 NO CHARGE 0.25 0.25 3.00 02/l5/9J-(BC)Review of Brief. Conference w/Atty McDermott re: survival action. -Final draft of Brief in OPPOSition to Motion to Intervene. Federal express to US District Court. 02/17/93-(BC)Confer w/Atty Brearly reI settlement. Confer w/Atty McDermott. 02/19/93-Call to wm. Fisher (Chubb Ins). 02/21/93-(BC)Review of billing from SC Atty Jacobs. 02/22/93-Meet w/Atty Cero re: settlement against Cruthfield. -(BC)Teleconference w/Mr. Fisher. Letter to Chubb Ins reI authorizing settlemetn w/So General Insurance. 02/23/93-(BC)Draft fax letter to Chubb Ins. re: settlement authorization. Revise file material. Draft Answers to Interrogatories. 02/24/93-(BC)Conference w/Atty McDermott reI 2.25 settlement w/Southern General. Draft Answers to Interrogatories. Review letter from Atty Jacobs and Brief. 02/2B/93-(BC)Review and revised Answers to 2.75 Interrogatories. Draft Answers to Request for Production. Confer w/Atty McDermott re: settlement. 03/0l/93-(BC)Call to Mr. Fisher at Chubb Ins 0.30 re: settling. 03/02/93-(BC)Conference w/Atty McDermott re: 0.80 Motion and Notice of hearing. Call to Chubb Ins re: settlement. 03/03/93-(BC)Call to Ms. Nunley at Chubb Ins. 1.30 Revise Answers to interrogatories. Confer w/Atty Brown on medical expenses. -Call from client re: trip to SC and 0.20 purpose. 03/07/93-Legal research re: SC statutes, 2.00 cases on wrongful death and standing of estates. NICHOLAS LAGAZA Date OS/26/94 -(CD)Legal research at DSL and on Lexis. 03/1l/93-(BC)Review draft of Answers to defense interrogatories. Confer w/Atty McDermott. -Travel to Greenville SC for Hearing tomorrow with administrator. 03/12/93-Meet W/Atty Jacobs. To Courthouse re: Hearing. Primarily Argument by attorneys - no testimony. To SC Probate Court re: estate forms. 03/15/93-Call to Greenville - Judge Anderson. 03/l7/93-Pre Trial memo due today. Pinal draft completed and filed. 03/1B/93-Work on Answer to PO's. Call to Judge Anderson - Order is imminent. 03/26/93-Receive and review Order from SC reI granting Petition to Intervene. 04/07/93-(JK)Review opponents Answer and Counterclaim. Confer W/Atty McDermott. 04/12/93-Legal research re: wrongful death/survivor. OB/25/93-Letter to Atty White. 09/2l/93-Letter to Herb Brown re: statement. 09/27/93-Call to Atty Jacobs re: billing statement. ll/22/93-Letter to Atty Detweiler. 02/25/94-Call to Atty Lappas re: fee in the wrongful death matter. Call to Nick Lagaza. 03/01/94-Meet w/Spero Lappas. 03/1B/94-(CD)Law clerk research re: NC statutes for response to Complaint. 03/24/94-Meet w/Atty Lappas re: Answers to Complaint. For Professional Services Rendered " HOURS .~ id~i\;~~'~rf:.. . '>~1'.'f.tl?';;' ,~;~.:';':,J~.tii::'J' . ."'1".;~""" :}f{f:;~Y ,. .",; page"g ;.: 'v'" "':~~;' . AHO~:t~/' ------ 1.50 0.75 .. ' ,'- ~ .! .-( , ,:~,S~~:' 10.00 B.OO . ;;;~~'; ~':';.<'-_~~':'t v.' ::~ '.':,i~' .r-\/" ~.~~~t-: ". 0.10 1.75 0.30 0.50 0.30 1.00 0.00 NO CHARGE 0.20 NO CHARGB 0.20 NO CHARGB 0.25 .NO CHARGE 0.50 NO CHARGE 0.50 NO CHARGE 2.00 NO CHARGE 0.50 NO CHARGE -------- --------- 193.94 $lB756.50 " . , 1,6., NICHOLAS LAGAZA Date OS/26/94 - .-- , . ,,'.--._T. . -(.,~,.:.jt,. , -.-!,j-, :r.f' . ::.~~~~~:.~: ': ,.-' ,.)!.t~i\ '" _....,'='~.. ",,~~.., ~. ~_-. ~~:'!f.r-. page'lO-f,~!: '-, ", -. ..... '.. --;,.' -', AMOUNT ------ Additional Charges: OB/2B/92-Expense for SC Oept of Trans - $3.00 10/21/92-Filing expense in US District Court $120.00 10/22/92-Travel expense: Hotel $111.25 Gas & meals - $37.96 01/29/93-Filing expense (Clerk of Courts) $2B.00 03/05/93-Expense for filing in the Clerk of Courts - $9.00 03/12/93-Expense for lodging during SC trip $101.0B 04/l5/93-Expense for South Carolina attorneys (Nelson,Mullins,Riley & Scarborough) (Oct 92 thru present) $5,420.01 *see itemized bill* 05/ll/93-Expense for transcript of Karen Finkenbender - $25.00 .~. ".,. ~.'. . Balance Due --------- $5855.30 $24611.80 ( 3.00) ( 247.00) ( 22.21) ( 28.00) ( 185.36) --------- ( $4B5.57) 11II======== $24126.23 Total costs Total time and expense charges 08/28/92 Payment from account 11/14/92 Payment from account 11/30/92 Payment - thank you 02/21/93 Payment - thank you 04/29/93 Payment - thank you . Total Payments aDaa====a====================D==============a======aa===D Previous balance of retainer account Payments made from retainer account Payments made into retainer account ( $0.00 $250.00) $250.00 r( ~ '1 "" :> - Q ...... ... . <3 ~ J ~ 0 tl S ~ ~ \,oj \,; III :,. ~ ~ -=r f en ~>- - = .,~ " I ~ ~'.'" ..::-= '.',.1(,. "I .:i '" .-.;.:::'.' -: ,.;> ". C.~L,l:o, f ~ '"T~.~ r.::> I ..:.~ ~J j . ,'- r-- '" '. - ~j -, ~ '-0 '~.' - " /' IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Arthur T. McDermott, Esquire and Arthur T. McDermott and Associates, a Professional Corporation, I I I I I CIVIL ACTION - LAW I I I NO. 94-3061 Civil Term I I I JURY TRIAL DEMANDED Plaintiffs vs. Richard C. Detwiler and Callison, Tighe, Robinson, and Anastasion, Defendants REPLY TO PRELIMINARY OBJECTIONS COMES NOW, Plaintiff by and through his attorney, Spero T. Lappas, Esquire and replies to Defendants' Preliminary Objections as followsl 1. Admitted. 2. Admitted. 3. Admitted. However Defendant Detwiler, in his capacity as an attorney of the Callison Law Firm attended a Court hearing regarding the determination of the residence of Nicholas Wasil Lagaza, on behalf of the Estate of Nicholas W. Lagaza in May, 1993. 4. Admitted. 5. Denied. See answer to paragraph 3 above. Additionally, Defendant Detwiler verbally recognized the valuable professional services previously rendered by Plaintiffs in the Federal lawsuit filed in South Carolina. 6. This is a matter of law for determination by the Court and requires no response. 7. Denied. Defendant Detwiler, as an agent/attorney of the Callison Law Firm specifically contracted with Plaintiffs on the basis of services provided in the South Carolina federal action. B. Denied as a matter of law. Defendant Detwiler verbally proposed the contract while in Carlisle, Cumberland County, Pennsylvania, and services of the Complaint was properly made by registered mail and Defendants signed for such registered mail at their South Carolina address. See Pa. R.Civ.P. No. 403 and 404(2). 9. Admitted in part and denied in part. It is admitted that the Defendants herein and others brought a lawsuit against Plaintiffs herein~ however, the lawsuit in North Carolina deals with other parties as well as defendants, and the other parties were not parties to the agreement at issue herein. 10. Admitted in part and denied in part. It is admitted that Plaintiffs herein filed an Answer to said Complaint~ however, Plaintiffs herein specifically denied that they were submitting to personal jurisdiction of the North Carolina Court, nor did Plaintiffs enter an appearance in said lawsuit. 11. Plaintiffs have no knowledge of the status of the North Carolina action, and therefore can neither admit nor deny. 12. This is a matter of law for decision by the Court, and Plaintiffs therefore neither admit or deny. Respectfully submitted, ARTHUR T. MCDERMO'l'T & ASSOCIATES ~ ~.3AOc.. Arthur T. MCDermott, 50 East High Street Carlisle, PA 17013 (717) 243-7B07 /) - 7 /~-/"'" ".,., ,.;.~~ " Esquire t::"' I_IJ, CBRTIFICATE OF SBRVICB I hereby certify that a true copy of the foregoing Reply to prelimin~jections was served on the below named person( s), by f!~st claDD wa~~paid, addressed tOI Carol J. Lindsey, Esquire 11 East High Street Carlisle, PA 17013 Date r/1/'I,/ '~~~~ Arthur T. McDermott, Esq. 50 East High Street Carlisle, PA l7013 (717) 243-7B07 c . ;,..... ;:y .;;;>00 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Arthur T. McDermott, Esquire, and Arthur T. McDermott and Associates a Professional Corporation, I I I I CIVIL ACTION - LAW I I I I NO. 94-3061 Civil Term I I I Plaintiffs vs. Richard C. Detwiler and Callison, Tighe, Robinson, and Anastasion, Defendants AFFIDAVIT OF SERVICE BY MAIL PURSUANT TO Pa. R.C.1P. 1920.4(a)(I)(ii) COMMONWEALTH OF PENNSYLVANIA I I SS COUNTY OF CUMBERLAND I Arthur T. McDermott, Esquire, being duly sworn according to law, deposes and says that he is the Plaintiff, Arthur T. HcDeJ:JllOtt, Esquire, and that he did serve a true and correct copy of the Notice and Complaint filed in the above matter, by mail restricted, certified, return receipt requested, to the Defendant, Richard Detwiler, Esquire on June 13, 1994. The receipt form is attached hereto as Exhibit "A". /' - .-:~.:::>.' -' . ':". '---.-' ,,//../ Arthur T. McDermott, Esquire Sworn and subscribed before me this~3~day of June, 1994. ~fr .. ~ .. \, I ' .urI'r smON OTARYP\lBLIC ""' lIORo.,CUhlBERl:ANO COUHTY ~C:IIISSI0H.uPIRES.OCT, 3t)?~ ..... PIIII~l\IIlCIll.1l HI...... ARTHUR T. McDBRMOTT, ESQUIRE, I and ARTHUR T. McDERMOTT and I ASSOCIATES, a Professional I Corporation, Plaintiffs IN THB COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PBNNSYLVANIA . . v. I I I CIVIL ACTION - LAW . . RICHARD C. DETWILER and CALLISON, TIGHE, ROBINSON, and ANASTASION, Defendants . . . . I I NO. 94-3061 CIVIL TERM IN REI DEFENDANTS' PRELIMINARY OBJECTIONS BEFORE HOFFER. BAYLEY and OLER. JJ. ORDER OF COURT AND NOW, this l~t day of November, 1994, upon consideration of the attached letter indicating that a settlement of the above case is imminent, the preliminary objections to Plaintiff's complaint are DBBMED MOOT. BY THE COURT, J J ; Spero T. Lappas, Bsq. 205 State Street ~' P.O. Box BOB , Harrisburg, PA l7l0B-OBOB . r Attorney for Plaintiff ~) , ~v \ .PCarol J. Lindsay, Bsq. . J ~'" 11 East High Street .'IY ~ Carlisle, PA 17013 ~ ~ Attorney for Defendant ~ :rc 1','" ~I\!;"'. " ,- I 'I "II ; '.1 t\1 ,dr, ~.... Nov I 3 01 PH '9~ I [I r !i f I~ t Ii-Of FlOE Of THE ;'ROTHONOTUY CUMBERLAND COUNTY PENNSYLVANIA i I -I ~\ ! IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Arthur T. McDermott, Esquire and Arthur T. McDermott and Associates, a Professional Corporation, Plaintiffs I I I I I CIVIL ACTION - LAW I I I NO. 94-3061 Civil Term I I I JURY TRIAL DEMANDED vs. Richard C. Detwiler and Callison, Tighe, Robinson, and Anastasion, Defendants PRAECIPE TO THE PROTHONOTARY I Please mark the above captioned case as settled and discontinued with prejudice. Respectfully submitted, ARTHUR T. MCDERMOTT & ASSOCIATES ~~o~ -Arthur T. McDermott, Esquire 50 East High Street Carlisle, PA 17013 (717) 243-7B07 '.- '. CCI Carol Lindsay, Esquire Attorney for Defendants _,'1;1