In re Austin Trust

674 A.2d 293, 449 Pa. Super. 467
CourtSuperior Court of Pennsylvania
DecidedApril 4, 1996
StatusPublished
Cited by4 cases

This text of 674 A.2d 293 (In re Austin Trust) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Austin Trust, 674 A.2d 293, 449 Pa. Super. 467 (Pa. Ct. App. 1996).

Opinion

SAYLOR, Judge:

The fundamental issue in these consolidated appeals is whether the Court of Common Pleas of Erie County acted within its authority when, on August 1, 1995, it corrected its order of January 25, 1995, to conform to the opinion that had accompanied the earlier order. Finding that the court possessed the authority to act as it did, we affirm.

The matter before the court involved objections filed by Charlotte S. Austin (“Appellant”) and by the Commonwealth of Pennsylvania (“the Commonwealth”) to the First and Partial Account and the Audit Statement of the trustees of the C. Robert Austin Trust (“the Trust”). Appellant is the income beneficiary of the Trust, which had been established by her late husband, C. Robert Austin (“Settlor”). At issue here is Appellant’s Objection No. 3, which the trial court addressed as follows in its opinion of January 25, 1995:

Objection 3 of [Appellant] — itself contested by [the Commonwealth] — challenges the charging of trustee fees to income rather than dividing those fees between principal and income.... [Appellant] contends that the language of the trust document and its amendment which limits the compensation of the trustees to no more than ten percent “of the annual net income of the trust” should be viewed as a limitation on the amount and not as a specification regarding the source of the fees. We cannot agree.
Had [Settlor] intended the meaning suggested, he could have specified the source of the payment or ... could have utilized [specific language to that effect]. We view the language of the provisions executed by [Settlor] to be specific in mandating that the fees shall be paid from the net income and, at least as to fees incurred to date, that direction will be followed by the court.

After considering the question of prospective fees, the court concluded that they, too, “shall be charged to income absent an agreement by [Appellant], the remaindermen^] and [the Commonwealth] that an allocation of those fees between principal and income should occur.”

Although the trial court effectively dismissed Appellant’s Objection No. 3 in its opinion, the order accompanying the opinion stated in pertinent part as follows:

January 25, 1995: For the reasons stated in the accompanying Opinion, the Objections of [Appellant] and [the Commonwealth] to the First and Partial Account filed August 10, 1994 and the Audit Statement filed September 12, 1994 are disposed of as follows:
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Objection 3 is sustained....

Neither Appellant nor the Commonwealth took any action concerning the discrepancy between the opinion and the order. In fact, it appears from the record that the discrepancy went unnoticed, at least by Appellant. In a letter to the trustees’ counsel dated February 17, 1995, counsel for Appellant observed that

[s]inee the time for filing Exceptions has expired, and the trustees have not objected to my Affidavit of Fees ..., I think it is now time to have the trustees prepare a Second and Final Account.
The only real issue remaining[,] then, is to determine the maximum trustee fee permitted. I have enclosed my Fee Limitation Analysis which was previously submitted to you and to the court. Since the court has concluded that all trustee fees must be charged to income, and that trustee fees must be deducted in determining net income, then based upon the enclosed analysis, trustee fees cannot exceed 9.0909% of the net income before trustee fees....

(Emphasis added.)1

In June of 1995, as the final Account was being audited, the trial court learned of the discrepancy. After informing counsel of its [295]*295intention to enter a corrective order, the court scheduled argument on the matter. At argument, counsel for Appellant argued that the trial court lacked the authority to modify the earlier order -with regard to Objection No. 3 and, in addition, that there was a conflict between the order of January 25, 1995 and the accompanying opinion as to Appellant’s Objection No. 5, which concerned the appointment of Integra Trust Company as successor trustee.2 On July 24, 1995, the trial court entered a decree nisi which read in pertinent part as follows:

1. [Appellant’s] Objection No. 3 is dismissed.
2. [Appellant’s] Objection No. 5 remains sustained regarding the appointment of Integra but that appointment and future trustee fees are limited by the conditions of the trust, our January 25, 1995 Opinion and Order and the present Opinion and Order.

Appellant filed exceptions to the decree nisi, as did the trustees. On August 1, 1995, the trial court entered an order denying Appellant’s exceptions and making final the decree nisi. Appellant has filed an appeal from this order at No. 1654 Pittsburgh 1995. On September 13, 1995, the trial court entered an order dismissing the trustees’ exceptions and, again, stating that the decree nisi of July 24, 1995 was made final. Appellant has filed an appeal from this order at No. 1768 Pittsburgh 1995. The appeals have been consolidated, and the parties have briefed and argued them as if they were a single appeal.

Appellant argues that where there is an inconsistency between an order and an accompanying opinion, it is the order which controls. According to Appellant, because the order of January 25, 1995 sustained her Objection No. 3, she had no reason to challenge the order. The Commonwealth did have such a reason, Appellant asserts, but waived any challenge by failing to request reconsideration of the order within 30 days. Therefore, Appellant argues, under 42 Pa. C.S.A. § 5505, the trial court lacked the authority to modify its original order more than 30 days after entry of the order. Section 5505 reads as follows:

Except as otherwise provided or prescribed by law, a court upon notice to the parties may modify or rescind any order within 30 days after its entry, notwithstanding the prior termination of any term of court, if no appeal from such order has been taken or allowed.

While acknowledging that the courts have created an “extraordinary cause” exception to the general rule, Appellant contends that no such extraordinary cause has been shown to exist in the present case. Alternatively, Appellant argues that even if the trial court possessed the authority to modify its order of January 25, 1995, it erred in doing so because Appellant’s Objection No. 3 should in fact have been sustained.

First, we consider Appellant’s claim that the responsibility for challenging the order of January 25,1995, lay with the Commonwealth as the aggrieved party. As made clear by Appellant’s counsel’s letter of February 17, 1995, quoted supra, Appellant understood that the trial court had ruled against her with regard to the source of the trustee fees: “[T]he court has concluded that all trustee fees must be charged to income[.]” It was therefore Appellant, not the Commonwealth, who was aggrieved by the trial court’s ruling. Appellant’s assertion to the contrary — that the order controls the opinion, and “[accordingly, since the [trial] court’s January 25, 1995 order unambiguously sustained [her] objections, she was not aggrieved” — is specious. Appellant will not [296]

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Cite This Page — Counsel Stack

Bluebook (online)
674 A.2d 293, 449 Pa. Super. 467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-austin-trust-pasuperct-1996.