Kristin Carlson v. The PNC Financial Services Group, Inc., et al.

CourtDistrict Court, E.D. Pennsylvania
DecidedMay 4, 2026
Docket2:25-cv-05702
StatusUnknown

This text of Kristin Carlson v. The PNC Financial Services Group, Inc., et al. (Kristin Carlson v. The PNC Financial Services Group, Inc., et al.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kristin Carlson v. The PNC Financial Services Group, Inc., et al., (E.D. Pa. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA KRISTIN CARLSON, Plaintiff, CIVIL ACTION v. NO. 25-5702 THE PNC FINANCIAL SERVICES GROUP, INC., et al., Defendants. OPINION Slomsky, J. May 4, 2026 TABLE OF CONTENTS I. INTRODUCTION................................................................................................................. 1 II. BACKGROUND ................................................................................................................... 2 A. Factual Background ............................................................................................................ 2

1. Parties .............................................................................................................................. 2 2. The April 2025 Tax Withdrawals and Plaintiff’s Oversight Requests ............................ 3 3. Plaintiff’s Demand Letter and Defendant PNC’s Response ........................................... 7 4. Present Lawsuit ............................................................................................................... 8 B. Procedural Background ..................................................................................................... 10

III. STANDARD OF REVIEW................................................................................................. 10 IV. DISCUSSION .......................................................................................................................11 A. Venue is Not Proper in the Eastern District of Pennsylvania.............................................11 B. The Case Will Be Transferred to the Southern District of Ohio ....................................... 17 i. Private Interest Factors ................................................................................................. 18 ii. Public Interest Factors................................................................................................... 20

V. CONCLUSION ................................................................................................................... 21 I. INTRODUCTION This case arises out of Plaintiff Kristin Carlson’s claims that Defendants PNC Bank, N.A., (“PNC”), a corporate co-trustee, and Defendants Timothy Carlson, Murray Wilson, and William Rathman, Jr., as individual co-trustees (collectively, the “Individual Co-Trustee Defendants”) (together with PNC, the “Trustee Defendants”), along with three Defendant PNC

officers, breached their fiduciary obligations to her in their administration of the trust of which she is a beneficiary. (See Doc. No. 32.) The alleged breach stems from the sale and tax treatment of real property located in Ohio that belonged to the trust. (Id. ¶¶ 1, 17, 34.) After Plaintiff’s concerns were not addressed to her satisfaction, she claims that the Trustee Defendants used outside counsel, Defendant Vorys, Sater, Seymour and Pease LLP (“Vorys”), to assist in the breach of their fiduciary duties owed to her. (See id. ¶¶178–98.) In response to Plaintiff’s Amended Complaint, the Trustee Defendants and Defendant Vorys filed Motions to Dismiss the Amended Complaint pursuant to Federal Rules of Civil Procedure 12(b)(3) based on improper venue and 12(b)(6) for failure to state a claim upon which relief can be granted. (See Doc. Nos. 42, 46.) In addition, the Individual Co-Trustee Defendants

have moved to dismiss the Amended Complaint pursuant to Federal Rule of Civil Procedure 12(b)(2) for lack of personal jurisdiction. (See Doc. No. 42.) For reasons that follow, venue is improper in this District. Rather than dismiss the action in its entirety, though, the Court will transfer this case to the Southern District of Ohio where it could have been filed in the first instance. II. BACKGROUND A. Factual Background As required at the motion to dismiss stage, the facts are taken from the Amended Complaint and presented in the light most favorable to the Plaintiff. See Kost v. Kozakiewicz, 1 F.3d 176, 183 (3d Cir. 1993). 1. Parties

Plaintiff is one of several beneficiaries of the Ernest D. Rathman & Marguerite Sebald Rathman Trust, which was established on March 4, 1963 (the “Trust”).1 (Doc. No. 32 ¶4.) The Trust is administered by PNC Bank, N.A. (“PNC”) as corporate co-trustee and Timothy Carlson, Murray Wilson, and William Rathman, Jr. as individual co-trustees. (Id. ¶¶ 5, 7.) Three PNC officers—Marie Tormey (Chief Fiduciary Officer), Laura Long (General Counsel), and William Demchak (Chief Executive Officer) (together with PNC, the “PNC Defendants”)—who allegedly had authority over fiduciary-services policies, reporting, and responses to beneficiary oversight, are also named Defendants in this case. (Id. ¶ 8.) Although Plaintiff does not assert a specific claim against PNC Financial Services Group,

Inc. (“PNC Financial”), PNC Financial is still a named Defendant because PNC Financial is Defendant PNC’s parent company. (Id. ¶ 6.) Plaintiff alleges that PNC Financial is vicariously liable for the acts and omissions of Defendant PNC’s personnel who performed fiduciary services, and for conduct directed or ratified by PNC Financial’s own officers. (Id.)

1 Because the Trust Agreement is referenced in and relied on in the Amended Complaint, the Court may consider it when ruling on the Motions to Dismiss. See In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir. 1997) (“A document integral to or explicitly relied upon in the complaint may be considered without converting the motion to dismiss into one for summary judgment.”) (internal quotations and citations omitted). Plaintiff also brought claims against two outside professionals: Ernst & Young LLP (“EY”) ”, the tax advisor during the pertinent tax period, and Vorys, Sater, Seymour and Pease LLP (“Vorys”), Defendant PNC’s outside litigation counsel. (Id. 9, 46.) 2. The April 2025 Tax Withdrawals and Plaintiff’s Oversight Requests In April 2024, the Trust sold a piece of real estate that it owned, which was located on the 4200 Block of Grand Avenue in Butler County, Ohio. (See Doc. No. 33, Ex. 2.) The net proceeds from the sale were $908,052.35. ([d.) Plaintiff alleges that PNC’s 2024 quarterly and year-end statements incorrectly classified the April 2024 sale proceeds as “Rent/Investment Income” and that no corrected beneficiary statement was issued. (Doc. No. 32 at § 36, Ex. 2A.) The April 2024 sale was recorded as follows:

ED&MS RATHMAN FUNDB (© PNC PRIVATE BANK IRREVOCABLE TRUST STATEMENT Account number 70-70-001-***5477 January 1, 2024 - December 31, 2024 Page 41of 114 Detail Investment income Payable Post Amount Actiwity Beacription date date Guantity per unit Income Priecipaal, Dividend Of/30/26.

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Kristin Carlson v. The PNC Financial Services Group, Inc., et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/kristin-carlson-v-the-pnc-financial-services-group-inc-et-al-paed-2026.