Kain Account

6 Pa. D. & C.2d 475, 1955 Pa. Dist. & Cnty. Dec. LEXIS 409
CourtYork County Orphans' Court
DecidedDecember 19, 1955
StatusPublished
Cited by1 cases

This text of 6 Pa. D. & C.2d 475 (Kain Account) is published on Counsel Stack Legal Research, covering York County Orphans' Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kain Account, 6 Pa. D. & C.2d 475, 1955 Pa. Dist. & Cnty. Dec. LEXIS 409 (Pa. Super. Ct. 1955).

Opinion

Gross, P. J.,

On July 27,1955, George Hay Kain, Jr., a member of the York County Bar, filed in this court what purports to be his first and final account as trustee of certain funds held by him under his written declaration of an alleged inter vivos trust, dated August 6, 1954. A true and admittedly correct photostatic copy of said declaration of trust is attached to the petition for adjudication of his account and will be hereinafter quoted verbatim.

In his petition for adjudication, filed with his said account, the accountant states that the interested parties in said alleged trust are, Jennings B. Hartman, Paul M. Murphy, William H. Kain and the accountant, himself, and that his reason for filing the account is [476]*476“to determine the ownership and distribution of the funds and the real estate involved.”

Under the rules of this court, said account was placed on the audit list of accounts to be heard on September 7, 1955.

On August 22, 1955, on petition of Paul M. Murphy and Jennings B. Hartman, two of the parties in interest, a rule (a citation) was issued to show cause why said account should not be stricken from the record for lack of jurisdiction in this court to entertain it, to which petition an answer was filed by the accountant on September 5, 1955. No replication was filed.

At a hearing held on October 3,1955, the accountant testified at length in explanation of the origin and nature of the alleged trust and recited with considerable detail, his individual and personal activities in the administration thereof.

The accountant’s testimony in relation to his activities in the administration of the trust is of doubtful relevancy inasmuch as he testified that his written declaration of the alleged trust, dated August 6, 1954, constituted the only writing which may be the basis of the proceedings in this court, but, inasmuch as only feeble objections were made to the accountant’s testimony and no motion was made to strike it out, we will allow it to stand on the record and give it such weight and probative value as we think it deserves in enlightening the court as to what legal relationship was created between the parties.

From the entire record, and the testimony submitted, we find the following facts:

1. The photostatic copy of the declaration of the alleged trust, hereinbefore referred to, written on the letterhead of the law firm of Kain, Kain & Kain, of York, of which the accountant and his brother, William H. Kain, are members, reads as follows:

[477]*477“August 6, 1954
“Mr. Jennings B. Hartman, 65 South Main Street, Spring Grove, Pennsylvania
“Mr. Paul M. Murphy,
49 North Beaver Street, York, Pennsylvania
“Mr. William H. Kain,
119 East Market Street, York, Pennsylvania
“Gentlemen:
“As each of you knows, some months ago by our combined efforts an option to purchase the farm of Daniel M. Emig in West Manchester Township, York County, Pennsylvania, comprising approximately 133 acres of land, for $80,000, prior to July 1, 1955, was obtained in my name, and, I understand, recorded in the Office for the Recording of Deeds in and for York County by my brother William.
“As you all know, the sum of $500 was expended by our office in payment for the option, and there have subsequently been certain relatively small expenditures of money made by the office or by one or more of us; and we are about to enter into an agreement with the W. H. Long Company for an advertising brochure.
“I feel that as of the moment there is no necessity of dividing the various expenses so that each of us bears his own share thereof, and I am confident that all of us can have full confidence so far as those expenses are concerned.
“I do feel, however, that each of you is entitled to a letter from me evidencing my agreement with each of you that I hold the option for the equal benefit of the four of us, with the understanding that all promotional expenses will be borne equally by all of us and that all of us will meet to decide whether or not to exercise [478]*478the option and be given a full opportunity to participate equally in the exercise of the option.
“As of the moment, I see no reason for any more formal declaration of trust by me or the preparation of any other legal instruments to be recorded in the Court House, and I intend to be legally bound hereby; but if any of the three of you have any feeling whatever that any more formal agreement than this should be entered into, I want each of you to feel perfectly free to discuss such suggestions in order that each of us, our heirs and assigns, may be fully protected by the ‘fruits of our labors.’
“Sincerely yours,
George Hay Kain, Jr.”

2. The written option referred to in the foregoing quoted declaration of trust (accountant’s exhibit no. 1) was procured by the accountant in his own name on April 12, 1954. By this option, Daniel M. Emig and Elizabeth E. Emig, his wife, for the consideration of $500, paid to them by the accountant, granted to the said George Hay Kain, Jr., the accountant, his heirs and assigns, the right to purchase, until July 1, 1955, their farm consisting of approximately 133 acres of land, situate in West Manchester Township, York County.

The option further provides that, in the event of the exercise of the option by the optionee, the optioners shall convey or cause to be conveyed to the optionee, his nominee, heirs or assigns, a deed of general warranty for the land described in the option, at the price of $80,000, and the sum of $500 paid for the option shall be considered as part payment of the purchase price. (Italics supplied.)

There are other provisions in the option which granted the right to the optionee, his nominee, agents and employes, the right to ingress, egress and regress during the running of the option, to make surveys, [479]*479soil tests and drainage facilities, at his own expense and that any loss or damage to the optionors as a result thereof is to be paid for by the optionee.

3. Subsequent to the procurement of and during the running of said option, the services of an experienced firm of engineers was employed to divide the land covered by said option into four plots and make blue prints thereof; an aerial photographer was employed to make photographs of said tract of land; numerous conferences were held between the parties in interest with reference to the sale of the several plots; the accountant made several trips to Philadelphia to consult with and secure the advice of friends for feasible plans which would inure to the best advantage to the parties in interest in the ultimate sale of said farm in its various parts. Paul M. Murphy, an experienced real estate broker, and the accountant took the aerial photographs and blue prints to the Western Maryland Railway Company, for the purpose of interesting said railway company as a purchaser of part of said farm. The accountant held numerous conferences with Metropolitan Edison Company and New York Wire Cloth Company, for the purpose of interesting them as purchasers of part of said farm.

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Bluebook (online)
6 Pa. D. & C.2d 475, 1955 Pa. Dist. & Cnty. Dec. LEXIS 409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kain-account-paorphctyork-1955.