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HomeMy WebLinkAbout21-1998-629 Orphans'IN RE: ESTATE OF : IN THE COURT OF COMMON PLEAS OF HOWARD C. GALE : CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION :No. 1998-629 ORPHANS' COURT IN RE: ADJUDICATION and OPINION OF COURT OLER, J., September 19, 2008. In this decedent's estate matter, several grandchildren of the decedent (Petitioners) have filed a petition for declaratory judgment, seeking a declaration that the decedent's interest in five parcels of real estate was encompassed by a gift in the decedent's will of the decedent's interest in a certain corporation, notwithstanding that a different corporation was legal owner of the parcels.' An interested beneficiary, decedent's widow (Respondent), has opposed the petition.3 A hearing was held on the petition on March 13, 2008, and June 18, 2008, with the record being supplemented thereafter by a stipulation of counsel filed on July 28, 2008. For the reasons stated in this opinion, the petition will be denied. STATEMENT OF FACTS The decedent with respect to this estate is Howard C. Gale, who died testate on January 19, 1998,4 the date of his most recent will having been January 2, 1998.5 Among his survivors were his spouse of 32 years, Respondent, Julie F. Gale, now 87 years old ,6 a son named Howard C. Gale, Jr.,' from whom he had ' Petition for Declaratory Judgment, filed May 22, 2007. 2 At a hearing on the petition for declaratory judgment, counsel indicated that the testator's widow was the current executrix of the estate. N.T. 71, Hearing, March 13, 2008. However, the docket entries do not support a conclusion that she, or any other person, has been appointed to serve as the decedent's personal representative following the initial executor's death. s Answer of Respondent, Julie F. Gale, to Petition for Declaratory Judgment, filed August 22, 2007. 4 N.T. 25, 57, Hearing, June 18, 2008. s Petitioners' Ex. 1. 6 N.T. 39, Hearing, June 18, 2008. N.T. 12, 15, Hearing, June 18, 2008. been estranged for many years,' and four children of Howard C. Gale, Jr., Petitioners herem.9 At the time of his death, the testator was the majority shareholder in two corporations: Howard C. Gale Development Co., Inc., and Country Club Park Development Co., Inc.10 With respect to disposition of his interest in the first corporation, the third item of the testator's will provided as follows: I give, devise and bequeath my entire interest in the Howard C. Gale Development Co., Inc. to my wife, Julie F. Gale and all of the shares of stock in my name shall be transferred or reissued in her name. Both she and my attorney, Robert J. Trace, Esq. shall determine the future of the Howard C. Gale Development Co., Inc." With respect to disposition of his interest in the second corporation, the fourth item of the testator's will provided as follows: I give, devise and bequeath my entire interest in the Country Club Park Development Co., Inc. to Robert J. Trace, Esq., IN TRUST NEVERTHELESS, with the provision that all of the net income shall be paid over to my wife Julie F. Gale, for the remainder of her life and at her death, the Trust shall cease and the principal and the assets reduced to cash and the sum realized shall be divided equally among my grandchildren and step grandchild....'Z At the time of the testator's death, and for many years prior thereto, the first corporation, Howard C. Gale Development Co., Inc. (the testator's interest in which passed to his spouse, Respondent, under the will), had been the owner of various parcels of realty in Cumberland County, Pennsylvania, including the following five Cumberland County properties which are the subject of the present dispute: 6 Fargreen Road, Camp Hill, Pennsylvania; 55 Circle Drive, Camp Hill, Pennsylvania; 22 Country Club Place West, Camp Hill, Pennsylvania; 49 Circle Drive, Camp Hill, Pennsylvania; and 530 Fairway Drive, Camp Hill, s N.T. 15, 17-18, 44, 62, Hearing, June 18, 2008. 9 N.T. 20, Hearing, June 18, 2008; Petition for Declaratory Judgment, filed May 22, 2007. 10 Respondent's Ex. 6; Petitioners' Ex. 55. " Petitioners' Ex. 1. 1 2 Petitioners' Ex. 1. 2 Pennsylvania. 13 This corporation, which had been incorporated by the testator and two others in 1960,14 had the following designated corporate purpose: To deal in real estate, building material and supplies including the improvement and development of land, to construct and repair, buy, sell, exchange and lease dwelling houses, apartments and commercial establishments, and to make loans for these purposes." Evidence at the hearing on Petitioners' Petition for Declaratory Judgment indicated that the testator had frequently, although not always, 16 treated the properties as being owned by the second corporation, Country Club Park Development Co., Inc., instead of the first corporation, Howard C. Gale Development Co., Inc. .17 In addition, the testator's estranged son testified that, prior to the estrangement, his father had told him he wanted the disputed properties to go to his grandchildren. 18 On the other hand, another witness testified that, despite the commingled and convoluted nature of his business operations, the testator "had it all in his head."19 DISCUSSION "The testator's intent is the polestar in the construction of every will and that intent, if it is not unlawful, must prevail." In re Estate of Elkins, 2005 PA Super. 375, ¶10, 888 A.2d 815, 823. However, just as there is an objective theory " N.T. 11, Hearing, March 13, 2008. These properties were previously owned by an entity known as Country Club Park, Inc. N.T. 73-74, Hearing, June 18, 2008; Respondents' Exs. 2-5. Country Club Park, Inc., was merged into Howard C. Gale Development Co., Inc., effective December 31, 1973. Respondents' Ex. 2. 14 Respondent's Ex. 6. is Respondent's Ex. 6 (emphasis added). 16 See Respondent's Ex. 1 ( March 1, 1997, lease of 530 Fairway Drive, Camp Hill, Pennsylvania, by Howard C. Gale Development Co., Inc., executed by testator as president of lessor) 17 See, e.g., Petitioners' Exs. 2 (lease for 6 Fargreen Road), 3 (lease for 55 Circle Drive), 4 (lease for 22 Country Club West), 5 (lease for 49 Circle Drive). " N.T. 13, Hearing, June 18, 2008. 19 N.T. 59, Hearing, June 18, 2008. 3 of contracts applicable to the determination of the intent of contracting parties, 20 there is a well-settled principle that, when the language of a will is clear and unambiguous, parol or extrinsic evidence may not be utilized to aid in the construction of the will. In re Estate of Daniel A. Kelly, 473 Pa. 48, 54, 373 A.2d 744, 747 (1977); In re Hartman's Estate, 320 Pa. 321, 329, 182 A.2d 234, 238 (1936). Furthermore, in this context any "ambiguity in a will must be found without reliance on extrinsic evidence before the extrinsic evidence is admissible." In re Estate of Daniel A. Kelly, 473 Pa. 48, 54, 373 A.2d 744, 747 (1977). "[E]xtrinsic evidence of surrounding facts must relate to the meaning of ambiguous words of the will. It cannot be received as evidence of testator's intention independent of the written words employed." In re Estate of Beisgen, 387 Pa. 425, 431, 128 A.2d 52, 55 (1956). The rationale for this rule has been variously expressed by the Pennsylvania Supreme Court as follows: The dangers inherent in admitting parol evidence to prove a testator's intention—namely, opening the door to fraud, changing or defeating the testator's intention, or nullifying the provisions of the Wills Act requiring Wills to be in writing and signed by testator at the end thereof—make clear the reasons for the exclusion of such evidence .21 It is not satisfactory procedure to accept parol testimony to explain unambiguous language in a will. Aside from the monumental fact that the testator is not present to rebut any quotation improperly imputed to him, such an uncontrolled practice would make for unutterable confusion and chaos in the devolution of property.zz 20 "Pennsylvania law follows the objective theory of contracts ...." Great Northern Ins. Co. V. ADT Sec. Services, Inc., 517 F. Supp. 2d 723, 740 (W.D. Pa. 2007). Under this theory, "resolution of a dispute [as to the interpretation of a contract] depends upon the intent of the parties as evidenced by the language of the document, or, where ambiguity exists, by extrinsic evidence.... Intentions not expressed in the agreement are irrelevant to a determination of the rights and obligations of the contracting parties and proof of them is barred by the parol evidence rule ...." In re marriage of Fletcher and O'Kain, 214 Or. App. 585, 599, 167 P.3d 984, 991 (2007) (citations omitted). 21 In re Beisgen's Estate, 387 Pa. 425, 432, 128 A.2d 52, 55 (1956). 22 Umberger's Estate, 369 Pa. 587, 593-94, 87 A.2d 290, 293 (1952) 11 A latent ambiguity can exist only when necessary to identify the subject matter or object of a devise. And if there is in existence a subject or object that satisfies the terms of the will, and to which they are applicable, there is no occasion for the introduction of parol evidence, and a doubt suggested by extrinsic circumstances cannot be permitted to affect its construction. To do so would, in effect, amount to changing the will of the testator, and writing a new one for him, rather than interpreting the will of his making.zs The statute, when it required all wills to be in writing signed by the testator and attested by witnesses, certainly intended, that the evidence and the whole evidence of the disposition of property by will, should be the will itself, that the evidence of the intent of the devisor should be derived from the writing signed by him, and solemnly attested; otherwise innumerable would be the cases where evidence of mistake would be claimed and proved ....1124 Mr. Jarman, in his valuable Treatise on Wills ... says: "As the law requires wills both of real and personal estate ... to be in writing, it cannot consistently with this doctrine permit parol evidence to be adduced, either to contradict, vary, add to or [subtract from] the contents of such will; and the principle of this rule demands an inflexible adherence to it, even where the consequence is the partial or total failure of the testator's intended disposition; for it would have been of but little avail to require that a will ab origine should be in writing, or to fence a testator round with a guard of attesting witnesses, if, when the written instrument failed, to make a full and explicit disclosure of his scheme of disposition, its deficiencies might be supplied, or its inaccuracies corrected, from extrinsic sources. No principle connected with the law of wills is more firmly established, or more familiar in its application, than this. ,25 In short, for a number of sound reasons, a court "may not ... , under guise of construction or under general powers of equity assume to correct or redraft [a] will in which the testator has expressed his intentions." In re Estate of Kelly, 473 Pa. 48, 55, 373 A.2d 744, 748 (1977). In the present case, the subject matter of the testator's gifts in the third and fourth items of his will—his interests in two extant corporations, respectively 21 _[n re Estate ofKelly, 473 Pa. 48, 54, 373 A.2d 744, 747 (1977) (citation omitted). 24 Wallize v. Wallize, 55 Pa. 242, 248, 1867 WL 7520 at 5 (1867) (citation omitted). 25 Wallize v. Wallize, 55 Pa. 242, 249-50, 1867 WL 7520 at 7 (1867) (emphasis added). E was in existence, as were the designated recipients of the gifts. The language of disposition utilized by the testator to those recipients was clear and unambiguous. At most, it can be said that, had the testator been more conversant with the details of his estate, he might have written a different willan observation that could probably be applied to many testators. Under these circumstances, it can not be said that the third and fourth items of the testator's will contain latent or patent ambiguities which would permit the court to reform the will on the basis of extrinsic evidence. For the foregoing reasons, the following order will be entered: ORDER OF COURT AND NOW, this 19th day of September, 2008, upon consideration of the Petition for Declaratory Judgment filed by several grandchildren of the testator, Howard C. Gale, seeking a declaration that properties in Cumberland County, Pennsylvania, with addresses of 6 Fargreen Road, 55 Circle Drive, 22 Country Club Place West, 49 Circle Drive, and 530 Fairway Drive, Camp Hill, owned by Howard C. Gale Development Co., Inc., were encompassed by a gift to them in the testator's will of his interest in Country Club Park Development Co., Inc., and were not encompassed by a gift to the testator's spouse in the testator's will of his interest in Howard C. Gale Development Co., Inc., following a hearing held on March 13, 2008, and June 18, 2008, and for the reasons stated in the accompanying opinion, the petition is DENIED. Bret Keisling, Esq. 219 Pine Street Harrisburg, PA 17101 Attorney for Petitioners 0 BY THE COURT, s/ J. Wesley Oler, Jr. J. Wesley Oler, Jr., J. Adam L. Seiferth, Esq. 1011 Mumma Road Suite 201 Lemoyne, PA 17043 Attorney for Respondent Julie F. Gale IN RE: ESTATE OF : IN THE COURT OF COMMON PLEAS OF HOWARD C. GALE : CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT DIVISION :No. 1998-629 ORPHANS' COURT IN RE: ADJUDICATION and OPINION OF COURT ORDER OF COURT AND NOW, this 19th day of September, 2008, upon consideration of the Petition for Declaratory Judgment filed by several grandchildren of the testator, Howard C. Gale, seeking a declaration that properties in Cumberland County, Pennsylvania, with addresses of 6 Fargreen Road, 55 Circle Drive, 22 Country Club Place West, 49 Circle Drive, and 530 Fairway Drive, Camp Hill, owned by Howard C. Gale Development Co., Inc., were encompassed by a gift to them in the testator's will of his interest in Country Club Park Development Co., Inc., and were not encompassed by a gift to the testator's spouse in the testator's will of his interest in Howard C. Gale Development Co., Inc., following a hearing held on March 13, 2008, and June 18, 2008, and for the reasons stated in the accompanying opinion, the petition is DENIED. BY THE COURT, J. Wesley Oler, Jr., J. Bret Keisling, Esq. 219 Pine Street Harrisburg, PA 17101 Attorney for Petitioners Adam L. Seiferth, Esq. 1011 Mumma Road Suite 201 Lemoyne, PA 17043 Attorney for Respondent Julie F. Gale