In Re: Trust of J.S.M., Appeal of: K.S.B.

CourtSuperior Court of Pennsylvania
DecidedMarch 26, 2025
Docket2590 EDA 2023
StatusUnpublished

This text of In Re: Trust of J.S.M., Appeal of: K.S.B. (In Re: Trust of J.S.M., Appeal of: K.S.B.) 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: Trust of J.S.M., Appeal of: K.S.B., (Pa. Ct. App. 2025).

Opinion

J-A24031-24

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37

JOHN S. MIDDLETON, IN HIS : IN THE SUPERIOR COURT OF INDIVIDUAL CAPACITY, AND IN HIS : PENNSYLVANIA CAPACITIES AS FORMER TRUSTEE : OF THE TRUST OF FRANCES S. : MIDDLETON, SETTLOR, DATED : FEBRUARY 1, 2001, AS MODIFIED, : AS FORMER TRUSTEE OF THE JSM : FAMILY TRUST, AS CO-TRUSTEE OF : THE TRUSTS U/A/T OF ANNA M. : No. 2590 EDA 2023 BAUER, SETTLOR DATED SEPTEMBER : 12, 1994 AND F/B/O HUGHES AND : F/B/O MIDDLETON, AND AS CO- : EXECUTOR OF THE ESTATE OF : FRANCES S. MIDDLETON AND : BRADFORD HOLDINGS, INC. : : Appellant : : : v. : : : KIMBERLY S. BRUSUELAS, AS : INTERIM PERSONAL : REPRESENTATIVE OF THE ESTATE OF : ANNA K. NUPSON : :

Appeal from the Order Entered September 18, 2023 In the Court of Common Pleas of Montgomery County Civil Division at No(s): 2021-24165

BEFORE: LAZARUS, P.J., KING, J., and LANE, J.

MEMORANDUM BY LANE, J.: FILED MARCH 26, 2025

John S. Middleton (“Middleton”), in his individual capacity, and in his

capacities as former trustee of the Trust of Frances S. Middleton, Settlor,

dated February 1, 2001, as modified, as former trustee of the JSM Family J-A24031-24

Trust, as co-trustee of the trusts U/A/T of Anna M. Bauer, Settlor dated

September 12, 1994 and F/B/O Hughes and F/B/O Middleton, and as co-

executor of the estate of Frances S. Middleton, together with Bradford

Holdings, Inc. (“Bradford”), appeal from the order, which: (1) sustained the

preliminary objections of Kimberly S. Brusuelas, as Interim Personal

Representative of the Estate of Anna K. Nupson (“Nupson”); 1 and (2)

dismissed with prejudice Middleton and Bradford’s complaint. We reverse.

Middleton, Nupson, and a third sibling are the three children of Frances

S. Middleton (“Frances”) and Herbert Middleton. Bradford was the family’s

business.

As the instant appeal concerns the application of the collateral estoppel

doctrine, we review the relevant prior history between the parties. The parties

have had “protracted litigation” “involv[ing] a tangled web of several family

trusts, businesses, and estates, along with several family settlement

agreements.” Trial Court Opinion, 1/16/24, at 1, 8-9 n.3. In 2001, Frances

orally created a trust, naming Middleton as trustee and him and his family as

primary beneficiaries.

____________________________________________

1 Anna K. Nupson was the originally named sole defendant in this action, and

during the pendency of this appeal, she passed away. This Court approved the substitution of her estate for her. For ease of discussion, we refer to Nupson and her estate collectively as “Nupson.”

-2- J-A24031-24

In 2003, “[i]n order to prevent threatened litigation[,]” Frances

amended the trust (“Modified 2001 GRAT”)2 to designate Middleton, Nupson,

and their sibling as equal beneficiaries. Amended Complaint, 3/27/23, at 6-

7. Also in 2003, Middleton and Bradford “[bought] out” all of Nupson’s and

the third sibling’s shares of Bradford. Id. at 7-8. Relevantly, these events

involved the following documents, executed the same year: (1) a family

settlement agreement (“2003 Master Family Settlement Agreement”); (2)

another family settlement agreement (“FSA”), which pertained to Nupson’s

own 1994 trust (“1994 Anna Trust”); (3) stock purchase agreements (“SPA”);

and (4) a release and indemnification agreement (“GRAT Indemnification

Agreement”). At this juncture, we note Nupson, as well as her mother,

Frances, were represented from at least 2002 by attorney Bruce Rosenfield

(“Attorney Rosenfield”) and his law firm, Schnader Harrison Segal & Lewis LLP

(“Schnader”).3 Attorney Rosenfield was also the sole trustee of another trust,

the 2001 Anna Subtrust. Frances died in 2013.

In 2018, Middleton, Nupson, Bradford, and others executed a settlement

agreement (“2018 Settlement Agreement”), which purportedly resolved the

2 The trust was a grantor retained annuity trust. See Amended Complaint, 3/27/23, at 3. For ease of review, we employ the same shorthand references to the documents used by the parties.

3 But see Nupson v. Schnader Harrison Segal & Lewis, LLP, No. CV 18-

2505, 2022 WL 4635943, at *1 (E.D.Pa. 2022) (stating that Attorney “Rosenfield began representing [Nupson] in 1994 with respect to the formation of” the 1994 Anna Trust).

-3- J-A24031-24

parties’ ongoing disputes. Amended Complaint, 3/27/23, at 4-5 (unnecessary

capitalization omitted). Under this settlement agreement, Nupson agreed

that: Frances’ original 2001 trust “was properly created, funded and

administered,” Nupson would “forever waive[] her right to contest the 2001

Modified GRAT;” the 2003 Master Settlement Agreement and GRAT

Indemnification Agreement were enforceable; “all prior transfers of Bradford

stock . . . were in accordance with the Shareholders’ Agreement;” and “the

2003 Master Settlement Agreement and all the transactions carried out

thereunder were not the subject of any fraud or conspiracy by [Middleton] or

Bradford.” Settlement Agreement, 2/26/18, at 20-21 (emphasis added), Tab

2 to Complaint, 12/9/21. The 2018 Settlement Agreement also provided that

none of the above provisions “shall be construed to mean that [Nupson]

believe[d] she received the correct advice by the Schnader firm, its partners,

and each of them . . . and she reserve[d] the right to pursue such a claim

against the Schnader firm[.]” Id. at 21.

Nupson also waived all claims against Middleton and Bradford:

Except as provided in this Agreement, and specifically excepting any claims that [Nupson] may have or assert against the Schnader firm, its partners and each of them, [Nupson] releases, quitclaims and discharges

[Middleton and Bradford]

****

from and against any and all claims, debts, demands, causes of action, suits, damages, obligations, costs, fees, losses, expenses, compensation, and liabilities whatsoever, at law or in equity,

-4- J-A24031-24

known or unknown, asserted or unasserted, contingent or accrued, discovered or undiscovered, which occurred or existed at any time from the beginning of time to the date this Agreement is approved by the Court[.]

Id. at 40-41 (emphasis added). Finally, the 2018 Settlement Agreement

stated:

. . . Nothing in this Agreement shall be construed to waive or limit any Party’s rights against any person or entity not a Party to this Agreement. [Nupson, Middleton, and Bradford] retain any claims or demands they may have against any person or entity who is not a Party to this Agreement.

Id. at 46.

Shortly after the execution of the 2018 Settlement Agreement, Nupson

commenced an action against Attorney Rosenfield and Schnader in the United

States District Court for the Eastern District of Pennsylvania (“the federal

court”), sounding in legal malpractice and breach of fiduciary duty. According

to Middleton and Bradford’s instant amended complaint, Nupson’s federal

action averred: Frances’ original 2001 trust was not properly created or

administered; Nupson may contest the Modified 2001 GRAT; the prior stock

transfers were not proper; and the 2003 Master Settlement Agreement was

not legal or enforceable. Amended Complaint, 3/27/23, at 17. Middleton and

Bradford intervened in the federal action for the limited purpose of opposing

Nupson’s request for discovery, from them, of allegedly privileged documents

or protected work product. Id. at 24.

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