Pozzuolo Estate

249 A.2d 540, 433 Pa. 185, 1969 Pa. LEXIS 548
CourtSupreme Court of Pennsylvania
DecidedJanuary 15, 1969
DocketAppeal, 10
StatusPublished
Cited by33 cases

This text of 249 A.2d 540 (Pozzuolo Estate) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pozzuolo Estate, 249 A.2d 540, 433 Pa. 185, 1969 Pa. LEXIS 548 (Pa. 1969).

Opinions

Opinion by

Me. Justice Jones,

Margaret Pozzuolo (decedent), a Delaware County resident, died intestate on February 15, 1961, as the result of an airplane crash in Brussels, Belgium. Decedent was survived by her husband, Joseph, a minor at the time, and her parents, Elliott and Margaret Lovering. Elliott Lovering and Elizabeth Nudo, Joseph Pozzuolo’s grandmother, were appointed co-administrators of decedent’s estate.

The co-administrators entered into a contingent fee agreement with Joseph Patrick Gorham, a member of the Philadelphia Bar (appellant). Under this contingent fee agreement, attorney Gorham was to institute a trespass action for damages arising from decedent’s death against Sabena World Airlines, the owner of the ill-fated airplane; for his services attorney Gorham was to receive one-third (1/3) of the amount recovered in the action.

Attorney Gorham retained a New York law firm to institute a suit against Sabena in the United States District Court in New York City on behalf of decedent’s personal representatives, such firm to receive twelve (12%) per cent contingent fee. This firm suggested that attorney Gorham also retain the services of Kriendler and Kriendler. Kriendler and Kriendler, a firm well known for its legal work in aviation crash suits, was then handling several other suits arising from the same Sabena plane crash and had gathered valuable information concerning the cause of the crash which would enhance the strength of the decedent’s personal representatives’ claim for damages. From the information garnered by Kriendler and Kriendler, it was indicated that the crash had resulted from a defect in the construction of the particular airplane, and, on the basis of this information, suit could be justified not only against Sabena but also against Boeing Airplane Company, manufacturer of the plane.

[188]*188Kriendler and Kriendler agreed to supply its information and to aid in the litigation for a contingent fee of ten (10%) per cent. With the potential cost of the litigation rising, attorney Gorham approached decedent’s personal representatives for the purpose of having his contingent fee agreement revised; the parties agreed that attorney Gorham would now be paid fifty. (50%) per cent of whatever amount would be recovered by way of damages for decedent’s death.

Suit was instituted against Sabena and Boeing in the United States District Court in New York City and was eventually settled for $45,000.00. After deducting twenty-two. (22%) per cent in contingent fees for bringing the suit, the New York law firm sent attorney Gorham a check for $34,949.38.1 Attorney Gorham deposited this check in his own attorney’s account.2

At this stage attempts were instituted to settle the estate. Attorney Gorham took the position that he and the estate were to split the net amount recovered,, to wit, $34,949.38, each to receive $17,474.69. Elliott Lovering,, one of the co-administrators, contended that the estate was entitled, to fifty (50%) per cent of the gross amount recovered, or $22,500.00.

Some nine months after the $34,949.38 check was received by attorney Gorham, Boy Davis, Esquire, attorney for co-administrator Lovering, requested the Orphans’ Court of Delaware County to issue a citation directing that Elizabeth Nudo, the co-administratrix, show cause why she should not join with Lovering in filing an estate account; upon citation issued, Mrs. [189]*189Nudo made no response thereto nor did she or her counsel, attorney Gorham, appear. The Court, on February 28, 1967, directed that Mrs. Nudo join with Mr. Lovering in filing an account and, upon noncompliance by Mrs. Nudo with the Court’s directive, the Court removed Mrs. Nudo as administratrix and directed attorney Gorham to turn over all papers pertaining to decedent’s estate to attorney Davis. The Court reaffirmed this Order on June 7, 1967, and removed Mrs. Nudo as co-administratrix, and dismissed exceptions filed to its previous Order. The propriety of that ruling has been appealed to this Court (No. 127, January Term, 1968).

On July 31, 1967, Mr. Lovering filed a petition and accounting under Section 731 of the Fiduciaries Act of 1949.3 Section 731 provides a method for the distribution of estates which do not exceed the value of $2,500.00, provided that one year has expired since the initial advertisement of the grant of Letters. In the account filed, Lovering simply accounted for the amount received from the Wrongful Death action in the United States District Court in New York City, and the debit side of said account provides as follows:

“Gross settlement $45,000.00
Joseph Patrick Gorham, Esquire, Attorney, 50% contingent fee 22,500.00
Net proceeds for distribution according to Intestate Act $22,500.00”

In the accounts, on the credit side thereof, credit is sought for $110.00 in administration expenses, $1,-[190]*190350.00 counsel fee for attorney Davis, Lovering’s counsel, for distribution already made to decedent’s surviving spouse of $10,200.00 and distribution to be made of $5,52,0.00 to decedent’s surviving parents and $5,-320.00 to decedent’s surviving spouse, for a total of $10,840.00. It is to be noted that in the petition to which this account is attached, Lovering, inter alia, avers: (1) that the “only asset available consists of the proceeds of a Wrongful Death action” brought in the United States District Court for the Southern District of New York in which settlement was made and the remainder of the proceeds “for distribution to those entitled under the Wrongful Death Act is $22,-500.00”; (2) “Since after the deduction of administration expenses the proceeds go directly to those entitled under the Intestate Act and become no part of an estate, there is no estate to be distributed and no inheritance tax due.”4

To Lovering’s petition and accounting, from the Order of the Court below made July 18, 1967, it would appear that objections were filed by attorney Gorham on his own behalf and on behalf of Mrs. Nudo, the re[191]*191moved co-administratrix.5 On September 19, the Court below dismissed the objections, confirmed Lovering’s account, and directed that the monies shown by the account “to be due the Estate” be paid over by attorney Gorham to Lovering’s counsel. From that decree an appeal was taken to this Court (No. 138, January Term, 1968).

During the pendency of these two appeals, the Orphans’ Court of Delaware County issued an attachment against attorney Gorham directing him to pay over to the estate the sum of $5,959.09 held in his attorney’s account, and, upon noncompliance with this Order, the Court held attorney Gorham in contempt. The contempt order is the basis for the third appeal to this Court (No. 10, January Term, 1969).

The real nub of this entire controversy, the subject of apparently interminable litigation, is the amount of counsel fee to which attorney Gorham is entitled.

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Bluebook (online)
249 A.2d 540, 433 Pa. 185, 1969 Pa. LEXIS 548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pozzuolo-estate-pa-1969.