Calkins, M. v. Butz, E.

Superior Court of Pennsylvania·Decided January 23, 2017·No. 442 EDA 2016·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

MILDRED K. CALKINS, ADMINISTRATRIX IN THE SUPERIOR COURT OF OF THE ESTATE OF ANNA C. KASYCH, PENNSYLVANIA DECEASED

Appellant

v.

EDWARD H. BUTZ, ESQUIRE, LESAVOY BUTZ & SEITZ, LLC, ST. LUKE’S HEALTH NETWORK, INC., ST. LUKE’S HOSPITAL – ALLENTOWN CAMPUS

Appellees No. 442 EDA 2016

Appeal from the Order Entered January 19, 2016 In the Court of Common Pleas of Lehigh County Civil Division at No(s): 2015-C-0809

BEFORE: GANTMAN, P.J., MOULTON, J., and MUSMANNO, J. MEMORANDUM BY GANTMAN, P.J.: FILED JANUARY 23, 2017 Appellant, Mildred K. Calkins, Administratrix of the Estate of Anna C.

Kasych, Deceased, appeals from the order entered in the Lehigh County Court of Common Pleas, which granted judgment on the pleadings in favor of Appellees Edward H. Butz, Esquire, and Lesavoy Butz & Seitz, LLC (“Attorney Butz and LB&S”). We affirm.

The relevant facts and procedural history of this case are as follows.

Appellant is a sibling of Anna Kasych and Charles Kasych, Jr., who are deceased. The Kasychs initially owned eight properties as joint tenants in Whitehall Township (“Whitehall Properties”), which were valued at millions of dollars. In October 2008, the Kasychs met with the vice president of the St.

Luke’s Hospital Development Office, to discuss the possibility of making a testamentary gift of the Whitehall Properties to St. Luke’s Hospital (“St. Luke’s”). At the Kasychs’ request, the general counsel for St. Luke’s recommended two accountants and two attorneys for estate planning services, one of whom was Attorney Butz. At that time, Attorney Butz was a partner at the law firm of LB&S. Bernard Lesavoy also was a partner at LB&S. Attorney Lesavoy and LB&S had represented St. Luke’s in the past. Attorney Lesavoy also received a community involvement award from St. Luke’s in 2002 and was an honorary co-chair at the hospital’s “Dinner by Starlight” event in 2005.

Shortly after the meeting with the St. Luke’s Development Office, the Kasychs engaged the services of Attorney Butz and LB&S in connection with the planned bequests to St. Luke’s. The terms of Attorney Butz and LB&S’ representation was not memorialized in writing. In December 2008, Attorney Butz drafted separate wills for the Kasychs devising their property interests, including the Whitehall Properties, to St. Luke’s. As part of the estate plan, Attorney Butz also drafted new deeds for each of the Whitehall Properties, which changed the Kasychs’ ownership of the properties from joint tenancies to tenancies in common. In a letter to the Kasychs dated December 4, 2008, Attorney Butz explained: “Finally, I have enclosed a document converting your real estate ownership from joint tenancies with right of survivorship to tenancies in common, which allows you to separately leave one-half of your properties to St. Luke’s.” (Appellant’s Complaint, filed

4/15/15, at Exhibit C; R.R. at 43a). This change comported with the Kasychs’ desire, as expressed in their wills, for their estates to qualify for the federal estate tax charitable deduction. The Kasychs signed the new deeds on February 6, 2009, and they were recorded on March 3, 2009. The Kasychs executed the finalized wills on August 12, 2009.1 Mr. Kasych died on September 8, 2010. On February 17, 2011, Attorney Lesavoy was appointed to the Board of Governors of St. Luke’s Hospital—Allentown Campus. Ms. Kasych was executrix of Mr. Kasych’s estate and administered his estate for three years until her death. Mr. Kasych’s will was probated and his one-half interest in the Whitehall Properties passed directly to St. Luke’s. During that time, Ms. Kasych also defended Mr. Kasych’s estate against claims brought by Appellant, and contacted Attorney Butz to revise her own estate plan. In an engagement letter to Ms. Kasych dated February 12, 2013, Attorney Butz stated:

I have advised you that my firm has represented St.

Luke’s Hospital in a variety of matters. You may also recall that my youngest son was born at St. Luke’s Hospital, Allentown. Therefore, you should know that I have a high regard for St. Luke’s. Because you are free to leave your estate to any person or entity you wish, however, I do not believe that the above facts have any bearing on my representing you in connection with your estate plan. On the other hand, I do not want to be

1 Both wills contained a provision requesting that the personal representative use all reasonable efforts to prevent the sale or transfer of any estate property to Appellant, among several other individuals and entities.

involved in any matter adverse to St. Luke’s. I hope you will find this satisfactory. If not, please let me know.

(Appellant’s Complaint at Exhibit D; R.R. at 45a-46a). Ms. Kasych subsequently engaged other counsel to revise/revoke her will. Ms. Kasych died on December 21, 2013. No testamentary writing was admitted to probate, and Appellant was appointed administratrix of Ms. Kasych’s estate.

On March 16, 2015, Appellant initiated the current action by filing a praecipe for a writ of summons in her capacity as administratrix of Ms. Kasych’s estate. Appellant filed a complaint on April 15, 2015, which included counts of breach of contract, malpractice/professional negligence, and breach of fiduciary duty against Attorney Butz and LB&S.2 Appellant also brought counts of unjust enrichment and equitable reformation against St. Luke’s Health Network, Inc. and St. Luke’s Hospital—Allentown Campus (“St. Luke Defendants”). The St. Luke Defendants filed preliminary objections on May 8, 2015. On May 27, 2015, Appellant filed preliminary objections to the St. Luke Defendants’ preliminary objections. Attorney Butz and LB&S filed an answer and new matter to the complaint on June 12, 2015. On June 17, 2015, the St. Luke Defendants filed amended preliminary objections to Appellant’s complaint.

On September 4, 2015, Attorney Butz and LB&S filed a motion for

judgment on the pleadings, arguing Appellant’s claims against them were

2 Appellant filed certificates of merit in support of her complaint.

barred by the relevant statutes of limitations. The court sustained the St. Luke Defendants’ preliminary objections on September 24, 2015, which resulted in dismissal of all claims against the St. Luke Defendants. 3 The court granted Attorney Butz and LB&S’ motion for judgment on the pleadings on January 19, 2016. Appellant filed a timely notice of appeal on February 2, 2016. The court ordered Appellant to file a concise statement of errors complained of on appeal per Pa.R.A.P. 1925(b), and Appellant timely complied.

Appellant raises the following issues for our review:

WHETHER THE TRIAL COURT ERRED IN DISMISSING THE ENTIRE COMPLAINT WITHOUT ALSO ADDRESSING THE APPLICABLE FOUR-YEAR STATUTE OF LIMITATIONS TO [APPELLANT’S] COUNT I FOR BREACH OF CONTRACT, WHICH WAS TIMELY FILED.

WHETHER THE TRIAL COURT ERRED IN DISMISSING THE COMPLAINT AS A MATTER OF LAW AND GRANTING [ATTORNEY BUTZ AND LB&S’] MOTION FOR JUDGMENT ON THE PLEADINGS UNDER THE STATUTE OF LIMITATIONS WHERE THE DISCOVERY RULE AND/OR FRAUDULENT CONCEALMENT DOCTRINES TOLLED THE APPLICABLE LIMITATIONS PERIODS FOR [APPELLANT’S] TORT AND CONTRACT CLAIMS AND THE FACTUAL ISSUES IN DISPUTE PRECLUDED A RULING ON THIS ISSUE AS A MATTER OF LAW AT THE PLEADINGS STAGE.

(Appellant’s Brief at 4).

Appellate review of an order granting a motion for judgment on the

3 The order sustaining the St. Luke Defendants’ preliminary objections is not at issue in this appeal.

pleadings implicates the following principles:

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