Ulsh, D.&C. v. Ulsh, M.&S.

CourtSuperior Court of Pennsylvania
DecidedJanuary 20, 2023
Docket1515 MDA 2021
StatusUnpublished

This text of Ulsh, D.&C. v. Ulsh, M.&S. (Ulsh, D.&C. v. Ulsh, M.&S.) 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
Ulsh, D.&C. v. Ulsh, M.&S., (Pa. Ct. App. 2023).

Opinion

J-A23040-22

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

DELMAR O. ULSH AND CRYSTAL : IN THE SUPERIOR COURT OF ULSH : PENNSYLVANIA : : v. : : : MARLIN TROY ULSH AND STUART : LEE ULSH : No. 1515 MDA 2021 : Appellant :

Appeal from the Order Entered October 14, 2021 In the Court of Common Pleas of Fulton County Civil Division at No(s): 2018-00299

BEFORE: BOWES, J., McCAFFERY, J., and STEVENS, P.J.E.*

MEMORANDUM BY STEVENS, P.J.E.: FILED: JANUARY 20, 2023

Appellants, Marlin Troy Ulsh and Stuart Lee Ulsh, file this interlocutory

appeal by right from the portion of the October 14, 2021, order entered by

the Court of Common Pleas of Fulton County that determined the parties’

respective shares in a family partnership, granted the Plaintiffs/Appellees’

request to dissolve the partnership, and ordered the partition of the

partnership asset known as the “Front Farm” real estate accordingly. We

affirm the order in these respects and remand to the trial court to resume

further proceedings consistent with this decision.

____________________________________________

* Former Justice specially assigned to the Superior Court. J-A23040-22

The present matter arises from a Complaint filed by Plaintiffs/Appellees

Delmar and Crystal Ulsh on December 19, 2018, in which they alleged that

the “Ulsh Farm Partnership”, whose business it is to run the Ulsh Family Farm,

comprised four equal partners—adult siblings Delmar, Crystal, Marlin, and

Stuart. The Complaint further alleged that the Ulsh Family Farm itself

consisted of various personal property and two farm properties on which the

Partnership’s farming takes place, the “Front Farm” and the “Rear Farm.”

Delmar and Crystal’s Complaint sought dissociation from and dissolution

of the Partnership,1 partition of the “Front Farm” among the four owner-

siblings equally, and partition of the “Rear Farm” between co-owners Delmar

and Stuart.2 With respect to the first of the farm properties, the “Front Farm”,

which is the main working farm on the property, the Complaint alleged that it

was owned equally by the four siblings despite Crystal’s conveyance of her

share by Deed to Stuart and Delmar at Stuart’s insistence to shield the

1 Once one dissociates from a partnership, one has no standing to seek dissolution of the partnership, as only an existing partner may dissolve a partnership. See Official Comment to 15 Pa.C.S. 8481(a)(1) (a partner who has already been dissociated lacks the power to dissolve the partnership.)

Here, the trial court perceived that Plaintiffs/Appellees Delmar and Crystal sought primarily to dissolve the Partnership in question, and it granted that request. Accordingly, the trial court declared the dissociation request moot.

2 The Complaint provides, however, “that if the property cannot be divided without prejudice to or spoiling the whole, such proper and necessary sale or sales of the same may be made by such person(s) and in such manner as the Court may direct. Complaint ¶ 37 B.

-2- J-A23040-22

property from her then-pending divorce and equitable distribution matter. 3, 4

The second of the farm properties, the “Rear Farm”, accessible only by a 25-

foot wide right of way across the Front Farm, is owned equally by Delmar and

Marlin as tenants-in-common.

Defendants/Appellants Stuart and Marlin filed their Answer and New

Matter and Counterclaims seeking dissociation of Delmar from the Partnership

and partition of the Rear Farm and asserting against Delmar and Crystal both

3 The parties acknowledged during the present litigation that they initially misapprehended the applicable law regarding Crystal’s share in the partnership, as it was not subject to equitable distribution because it was a gift from their father.

4 Upon Crystal’s 2009 conveyance, therefore, the Front Farm was owned equally by Delmar, Marlin, and Stuart as joint tenants. Notably, the brothers had not prorated Crystal’s 1/3 share amongst themselves in accordance with their preexisting 1/6, 1/3, and 1/6 shares but had chosen, instead, to become equal partners.

Delmar and Crystal’s Complaint alleged that the parties intended the conveyance to be a temporary measure, as reflected by the facts that no consideration for the conveyance of Crystal’s share was paid and Crystal continued to work the Front Farm in the ensuing years to the Partnership’s benefit. Complaint, ¶ 23. The Complaint thus averred that “all parties have agreed that Crystal Ulsh is [sic] also holds an equal one-fourth share in the Partnership[,]” Complaint, ¶ 13, and it further avers that Crystal has been working on the farm and received a partial distribution of the farm income in 2017 (the year prior to the Complaint); is not paid a salary for her farm work but performs the work as an equal member of the Partnership; has reasonably relied on the representations of Marlin and Stuart that she would continue to be treated as an equal partner; and that the Partnership has received the benefit of Crystal’s work for years, with the understanding that she was entitled to the full benefits of Partnership. Complaint, at ¶¶ 14-17.

-3- J-A23040-22

a conversion claim with respect to Partnership assets and a breach of fiduciary

duty claim for alleged mismanagement of such assets.

The matter proceeded first to an evidentiary hearing on January 29,

2020. The trial court determined afterward, in its Opinion of February 13,

2020, that Crystal was a partner in the Ulsh Farm Partnership, finding that the

evidence belied Defendants’/Appellants’ claim that she intended to dissociate

from the partnership and thereby permanently surrender her partnership

interest with her conveyance. Instead, the temporary transfer of title was in

the nature of a constructive trust in her favor, the trial court ruled, as she

trusted the representations of her siblings that title would be returned to her

in the future.

The trial court thus ordered that Crystal possessed an equal, one-

quarter interest in the Partnership with her siblings despite title as indicated

on the deed, and, therefore, that she would share equally with her three

sibling Partners the value of the Front Farm—which was deemed a partnership

asset-upon dissolution of the partnership. Trial Court Opinion, 2/11/20, at 3-

4.

On June 22, 2021, the present matter proceeded to a non-jury trial on

the remaining issues, which included formal partition of the Front Farm,

partition of the Rear Farm, dissociation from the Partnership, dissolution from

the Partnership, and Marlin’s and Stuart’s counterclaims. At trial, the parties

agreed the Partnership’s purpose was to conduct the business of farming on

the Front Farm. N.T., 6/22/21, at 6. Marlin and Stuart testified that they

-4- J-A23040-22

have not assisted with the farming operations for at least five years, N.T. at

77, 115, and all parties agreed that they can no longer remain in business

together. N.T. at 7, 33, 58, 84, 137, 141. In this regard, the parties have

been unable to work together and have disagreed on many things related to

the Partnership.

Appellants testified, however, that they had the financial wherewithal to

hire a third party to help with the farming if necessary, and had done so in

the past, N.T. at 35-36, 101-102, 141-42, and they wished to continue the

Partnership operations only with one another. N.T. at 84, 141-42. Appellees

countered by reference to Marlin’s testimony that he lives almost 150 miles

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Thomas v. Elash
781 A.2d 170 (Superior Court of Pennsylvania, 2001)
Hess v. Gebhard & Co. Inc.
808 A.2d 912 (Supreme Court of Pennsylvania, 2002)
Canter's Pharmacy, Inc. v. Elizabeth Associates
578 A.2d 1326 (Supreme Court of Pennsylvania, 1990)
Girard Bank v. HALEY
332 A.2d 443 (Supreme Court of Pennsylvania, 1975)
Viener v. Jacobs
834 A.2d 546 (Superior Court of Pennsylvania, 2003)
Stainton v. Tarantino
637 F. Supp. 1051 (E.D. Pennsylvania, 1986)
Kapcsos, A. v. Benshoff, M.
194 A.3d 139 (Superior Court of Pennsylvania, 2018)
Bochetto v. Piper Aircraft Co.
94 A.3d 1044 (Superior Court of Pennsylvania, 2014)
Johnson v. Gaul
77 A. 399 (Supreme Court of Pennsylvania, 1910)

Cite This Page — Counsel Stack

Bluebook (online)
Ulsh, D.&C. v. Ulsh, M.&S., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ulsh-dc-v-ulsh-ms-pasuperct-2023.