Katz, S. v. Katz, J.

CourtSuperior Court of Pennsylvania
DecidedNovember 3, 2016
Docket1653 WDA 2015
StatusUnpublished

This text of Katz, S. v. Katz, J. (Katz, S. v. Katz, J.) 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
Katz, S. v. Katz, J., (Pa. Ct. App. 2016).

Opinion

J-A16007-16 J-A16008-16

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

SUSAN KATZ, IN THE SUPERIOR COURT OF PENNSYLVANIA Appellee

v.

JAMES R. KATZ,

Appellant No. 1653 WDA 2015

Appeal from the Order October 9, 2015 In the Court of Common Pleas of Allegheny County Family Court at No(s): FD03-000652-008

SUSAN KATZ, IN THE SUPERIOR COURT OF PENNSYLVANIA Appellant

Appellee No. 1723 WDA 2015

Appeal from the Order October 9, 2015 In the Court of Common Pleas of Allegheny County Family Court at No(s): FD03-000652-008

Appellant No. 123 WDA 2015 J-A16007-16 J-A16008-16

Appeal from the Order December 17, 2014 In the Court of Common Pleas of Allegheny County Family Court at No(s): FD03-000652-008

Appellee No. 390 WDA 2015

Appeal from the Decree December 17, 2014 In the Court of Common Pleas of Allegheny County Family Court at No(s): FD03-000652-008

BEFORE: SHOGAN, OLSON, and STRASSBURGER,* JJ.

MEMORANDUM BY SHOGAN, J.: FILED NOVEMBER 03, 2016

James R. Katz (“Husband”) and Susan Katz (“Wife”) filed cross-appeals

from a final divorce decree. For the reasons that follow, we remand on the

limited issues relating to the Coventry Estates shareholder loan,1 the

unexplained $48,500 attributed to Husband,2 and the reduction of Wife’s

attorney’s fees by $35,857.3 In all other respects, we affirm.

____________________________________________

* Retired Senior Judge assigned to the Superior Court. 1 Issue 2 in Wife’s Appeal at 390 WDA 2015. 2 Issue 12 in Husband’s Appeal at 123 WDA 2015. 3 Issue 1 in Wife’s Appeal at 1723 WDA 2015.

-2- J-A16007-16 J-A16008-16

In appeal numbers 123 and 390 WDA 2015, Husband and Wife filed

cross-appeals from the final December 17, 2014 divorce decree. In those

appeals, the parties raised matters relating to the trial court’s 2012 rulings

on exceptions and cross-exceptions to the Recommendations of the Special

Master (“Master”). In appeal numbers 1653 and 1723 WDA 2015, the

parties filed cross-appeals from the limited issue of enforcement of an order

of counsel fees initially recommended in the Master’s Report and

Recommendation dated May 18, 2011 (“Initial Master’s Report”), ordered by

the trial court on September 18, 2015, and clarified on October 9, 2015.

Therein, the court assessed liability for attorney fees and costs incurred in a

separate civil action filed against Husband, Enclave Community Services

Assoc. v. James R. Katz, GD-11-006476, Allegheny County, 7/18/16

(“Enclave Lawsuit”).

Facts and Procedural History

The Master, in her initial report, provided the background for this suit,

as follows:

The parties hereto were married on October 10, 1981[,] and separated[4] on May 6, 2003.5 It was a first marriage for each. Both parties have college degrees. Husband’s is from Boston University and Wife’s is from Chatham College.6 Wife was born [in May of 1956,] and is currently 57 [sic] years of ____________________________________________

4 At separation, both parties filed protection from abuse petitions against each other.

-3- J-A16007-16 J-A16008-16

age. Husband was born in January 1953 and is currently 58 years of age. One daughter was born during the marriage. She is an adult. Both parties came into the marriage with considerable assets, namely stocks,7 bonds, cash, and in Husband’s case, a house. Each of the parties maintained their own investment accounts and bank accounts throughout the marriage. Each was able to invest his or her annual gifts from parents into their own investment accounts. The parties had one joint account into which Wife would deposit her paycheck and Husband would deposit funds from the Pittsburgh Land Company rentals and Enclave sale proceeds. Husband would pay the parties[’] personal expenses from that account. 5 This date was agreed upon by the parties’ prior counsel. In actuality, Wife and Husband continued to reside in the marital residence estranged from one another until 2007 when Wife could stand it no longer and moved out. 6 Wife testified that she had several Master’s level courses, but never obtained an advanced degree. 7 Husband’s Father and Uncle founded Papercraft Corporation, which went public prior to the parties’ marriage. Husband received stock, which will be addressed later in this report.

* * *

Both Husband and Wife are from well-to-do families. Each has one sibling. Throughout the marriage, each was regularly gifted with money from both their own and one another’s parents. Money was loaned, parents acted as guarantors on loans, provided luxurious vacations,8 dinners out, luxury automobiles complete with car insurance, repairs and gas cards, medical/hospitalization insurance,9 school fees for the parties’ daughter, as well as college fees, and other benefits too numerous to list. This largesse has enabled them to acquire a significant marital estate, which is now the subject of bitter dispute. 8 Annual 2-week vacation to Hawaii with Wife’s parents, and annual Thanksgiving vacations in New York with Husband’s parents.

-4- J-A16007-16 J-A16008-16

9 Wife’s medical insurance is currently being paid out of her Father’s Orphan’s Court Estate.

Initial Master’s Report, 5/18/11, at 3.

Wife filed a complaint in divorce on November 19, 2003, and Husband

filed claims in divorce on January 2, 2004. They divorced on December 17,

2014. The trial court described the case as “long running and extremely

litigious,” noting that the transcripts are “rife with examples of non-

productive, even juvenile, behavior on the part of both of these educated

and sophisticated people. This behavior complicated what was already a

very complex case.” Trial Court Opinion, 8/10/15, at 2, 3 (footnotes

omitted). As noted by the Master, both parties come from wealthy families

that have contributed financially to the parties. The multi-million-dollar

marital estate is comprised of “real estate, including the marital home, four

apartment buildings, and a large real estate development in Fox Chapel and

Indiana Township, called The Enclave.” Id. There are also a number of

developed and undeveloped lots. “The real estate was managed through the

marital business entity known as The Pittsburgh Land Company. Another

entity, Coventry Estates, was formed to build the homes in The Enclave.”

Id.

The initial Master’s equitable-distribution hearings took place

November 13–15, 2010, and February 22–24, 2011. A substantial amount

of time was spent taking testimony regarding the parties’ jewelry. It was

-5- J-A16007-16 J-A16008-16

appraised prior to the hearing, (“appraised jewelry”), and the parties

stipulated to its value. The Master was to determine whether it was marital

property and to whom it would be awarded. Additionally, both parties

asserted that there was a great deal of missing jewelry (“Missing Jewelry”)

and both denied knowing where it was located.5

The Master pointedly commented on the credibility of the parties. The

Master stated:

Before addressing additional specific assets and making her Recommendation, the Master wishes to comment on the credibility or lack thereof she found in various witnesses, as well as their actions post-separation. Husband was frequently not credible. He didn’t remember what was inconvenient for him . . . to remember, but had a clear memory of those things beneficial to his position.

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