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HomeMy WebLinkAbout2010-4905 ORRSTOWN BANK, : IN THE COURT OF COMMON PLEAS OF PLAINTIFF : CUMBERLAND COUNTY, PENNSYLVANIA : : V. : : : ESTATE OF JAMES M. : ORLOWSKY, by and through : its personal representatives, : Jaime Lee and Shaine Capone, : JAIME LEE SHAINE CAPONE : AND CAROLE SALES, : DEFENDANTS : 10-4905 CIVIL TERM IN RE: DECLARATORY JUDGMENT OPINION AND ORDER OF COURT Masland, J., November 18, 2010:-- In this complaint for declaratory judgment, Plaintiff, Orrstown Bank, sues the estate of James M. Orlowsky (Decedent) and three others, Jaime Lee, Shaine Capone, and Carole Sales. Plaintiff asks the court to determine the right of ownership for funds it holds in two money market accounts opened by decedent listing Ms. Lee and Ms. Sales as joint owners with the right of survivorship, respectively. Upon review, we conclude the funds are the property of the listed joint owners, not part of the estate. I. Background In 1988, Decedent executed a will that divided his estate equally between his daughters, Ms. Lee and Ms. Capone. Pl.'s Ex. 3, Art. IV. Then, in 2007, Decedent opened two money market accounts with the Plaintiff bank. The first account notes an initial deposit of $90,000.00 and lists Ms. Lee as a joint owner with the right of survivorship. Pl.'s Ex. 1. The second had an initial deposit of 10-4905 CIVIL TERM $26,229.98 and lists Ms. Sales, Decedent's sister, as a joint owner with the right of survivorship. Pl.'s Ex. 2. The paperwork from these accounts indicates unequivocally that Decedent intended these accounts to be joint accounts with the right of survivorship. There is, however, a minor irregularity in the paperwork relating to the signature card. Both signature cards clearly indicate Decedent's name, signature, taxpayer identification number, and date of birth. The signature cards contain the same information about the named joint owners but omits their signatures with notations indicating that they are temporary signature cards. II. Discussion Any dispute over the ownership of the joint account funds derives from two issues: (1) whether the terms of the will may override the right of survivorship created by the joint accounts; and (2) whether the joint owners' failure to sign the joint account signature cards renders the accounts invalid. A. Will Our Supreme Court recently clarified whether joint accounts form part of a decedent's estate and what effect seemingly contrary will terms have on the interpretation of these accounts. In re Novosielski, 992 A.2d 89 (Pa. 2010), our Supreme Court roundly rejected past Superior Court cases that effectively interpreted joint account agreements in pari materia with preexisting wills. Instead, the Court refocused emphasis on the scheme known as the Multiple Part Account Act (MPAA). Specifically, the Court noted: Any sum remaining on deposit at the death of a party to a joint account belongs to the surviving party or -2- 10-4905 CIVIL TERM parties as against the estate of the decedent unless there is clear and convincing evidence of a different intent at the time the account is created. 20 Pa. C.S. §6304(a) (emphasis added). This statutory presumption is not subordinate to a decedent's will. Novosielski, 992 A.2d at 101. “Indeed, the MPAA clearly evinces a legislative intent that joint accounts are to be generally governed and interpreted separate and apart from provisions governing wills.” Id. Nonetheless, the terms of a decedent's will may be considered “in the appropriate case and in conjunction with other relevant evidence” to determine whether the statutory presumption of survivorship has been overridden by clear and convincing evidence. Id. at 102. However, a court may not find the presumption overridden merely because a preexisting will details a distribution scheme that conflicts with one arising from a subsequently created joint account. Id. Here, Decedent's will distributes his estate equally between his daughters, Ms. Lee and Ms. Capone. Meanwhile, the joint accounts appear to carve out separate amounts for Ms. Lee and Ms. Sales, Decedent's sister. At hearing, there was no evidence introduced beyond the will to overcome the statutory presumption that Decedent intended to create joint accounts with the right of survivorship. Accordingly, so long as the joint accounts are not defeated by the lack of signatures by Ms. Lee and Ms. Sales, the funds contained therein belong to those named survivors and are not part of the estate. 20 Pa. C.S. §6304(a); Novosielski, 992 A.2d at 101. -3- 10-4905 CIVIL TERM B. Missing Signatures Here, the accounts in question are defined by the MPAA as multiple party accounts. 20 Pa. C.S. §6301. The MPAA then defines party, in relevant part, as “a person who, by the terms of the account, has a present right subject to request, to payment from a multiple-party account.” 20 Pa. C.S. §6301. Based on these definitions and Decedent's clear intent indicated by the account paperwork, we conclude that Ms. Lee and Ms. Sales are parties to their respective joint accounts notwithstanding their failure to sign the signature cards. To reiterate, a review of the joint account paperwork leaves no question regarding Decedent's intentions at the time of account creation. He clearly intended to create joint accounts with the right of survivorship in Ms. Lee and Ms. Sales. He did so by indicating the type of account he was creating and by designating the joint owners by name, taxpayer identification number, and date of birth. Further, at hearing, bank officials testified that if Ms. Lee or Ms. Sales came to a branch office seeking to withdraw funds from the joint accounts, they would be permitted to do so, provided they verified their identities and confirmed the request with Decedent. Thus, because they had the right to withdraw funds from the account, notwithstanding their failure to sign the signature card, they are parties to the account. Accordingly, the joint accounts are valid. III. Conclusion In sum, the distribution scheme in Decedent's will does not provide clear and convincing evidence to rebut the statutory presumption that he intended the -4- 10-4905 CIVIL TERM funds included in the joint accounts with the right of survivorship be excluded from his estate. Further, the joint accounts are valid because Ms. Lee and Ms. Sales satisfy the statutory definition for a party to a multiple party account. Therefore, the joint account funds are not part of the estate and the Plaintiff bank is directed to remit the sums to Ms. Lee and Ms. Sales, respectively, upon their request. ORDER OF COURT AND NOW, this day of November, 2010, we resolve Plaintiff, Orrstown Bank's complaint for declaratory judgment as follows: the funds in the Decedent's joint accounts do not form part of the estate, they are the property of the listed joint owners with rights of survivorship. Plaintiff shall remit the funds to the listed joint owners at their request. By the Court, Albert H. Masland, J. David A. Baric, Esquire For Plaintiff Jacqueline Verney, Esquire For Estate of James M. Orlowsky Carole Sales 54463 Aurora Pike Shelby Township, MI 48316 Jaime Lee 1124 Keokuk Terrace NE Leesburg, VA 20176 -5- 10-4905 CIVIL TERM Shaine Capone 8201 Sandpoint Boulevard Orlando, FL 32819 :saa -6- ORRSTOWN BANK, : IN THE COURT OF COMMON PLEAS OF PLAINTIFF : CUMBERLAND COUNTY, PENNSYLVANIA : : V. : : : ESTATE OF JAMES M. : ORLOWSKY, by and through : its personal representatives, : Jaime Lee and Shaine Capone, : JAIME LEE SHAINE CAPONE : AND CAROLE SALES, : DEFENDANTS : 10-4905 CIVIL TERM IN RE: DECLARATORY JUDGMENT ORDER OF COURT AND NOW, this day of November, 2010, we resolve Plaintiff, Orrstown Bank's complaint for declaratory judgment as follows: the funds in the Decedent's joint accounts do not form part of the estate, they are the property of the listed joint owners with rights of survivorship. Plaintiff shall remit the funds to the listed joint owners at their request. By the Court, Albert H. Masland, J. David A. Baric, Esquire For Plaintiff Jacqueline Verney, Esquire For Estate of James M. Orlowsky Carole Sales 54463 Aurora Pike Shelby Township, MI 48316 10-4905 CIVIL TERM Jaime Lee 1124 Keokuk Terrace NE Leesburg, VA 20176 Shaine Capone 8201 Sandpoint Boulevard Orlando, FL 32819 :saa -8-