Petition to Remove Administrator Based on Favoritism and Bias is Denied
In the estate litigation and estate administration case of In Re the Estate of John Bower, Sr., PICS Case No. 14-1593 (C.P. Lycoming, Sept. 23, 2014) the Honorable Richard A. Gray denied one of decedent’s heirs’ petition to remove his mother as administrator of the estate because he disagreed with her decision to withdraw from litigation involving his siblings.
Decedent died intestate on May 6, 2011. His widow, Anna Bower, petitioned and was granted letters of administration of his estate. The petition identified the following heirs and beneficiaries to include the deceased’s widow, Anna, and their five children, Jacqueline Wright, Penelope Bower, Carolyn Stubler, John Bower Jr. and Matthew Bower. The certification of notice to beneficiaries was filed in January 2012. There was no further movement in the case until April 2, 2014 when John Bower Jr. petitioned to remove Anna Bower as administrator of the estate.
At the time of decedent’s death, he, petitioner and the family-owned North Branch Transfer, Inc. were plaintiffs in a lawsuit in Lycoming County against Penelope and Matthew Bower and Mathew Bower Trucking. In that lawsuit, plaintiffs sought to enjoin Penelope Bower from dissipating the assets of NBT, to recover funds allegedly converted by Penelope, to recover damages for Penelope’s breach of fiduciary duty as an officer of NBT, to obtain an accounting of NBT, to declare the invalidity of NBT stock issued to Penelope, to seek replevin of equipment and assets belonging to NBT and to declare the transfer of 100 Rose Street to Matthew Bower Trucking null and void.
After decedent died, a non-jury trial was held on the sole issue of ownership on NBT. The court determined the percentage of ownership of NBT: petitioner, 25 percent, Penelope Bower, 25 percent, and the estate of John Bower Sr., 50 percent. The remaining issues were scheduled for trial. Over petitioner’s protest, Anna Bower, as administrator of the estate and as majority shareholder of NBT, scheduled a closed special meeting of shareholders. The shareholders, representing 75 percent of the NBT shares, voted to discontinue NBT as a plaintiff in the Lycoming case.
Here, the court found that petitioner moved to remove his mother as administrator of the estate primarily, if not exclusively, over a disagreement about whether NBT should pursue claims against Penelope and Matthew Bower and Mathew Bower’s trucking company. Within days of learning that Anna Bower scheduled the shareholders meeting to discontinue the lawsuit against his siblings, petitioner sought an injunction to prevent the shareholders from meeting. The petition for removal focused on Anna Bower’s voting her shares to discontinue the lawsuit against his siblings for personal reasons at the expense of the estate.
In addition to his primary contention that discontinuation of the lawsuit warranted removal of his mother, petitioner also raised concerns about hostility, bias and favoritism as a reason for his mother’s removal. Despite evidence of hostility between petitioner and his mother, the court found there was no evidence that such animosity resulted in the administration of the estate being administered unfairly toward petitioner.
The court agreed with the financial soundness and practicality of Anna Bower’s decision to vote the estate’s NBT shares to discontinue the lawsuit. As far as favoritism, the court noted the discontinuance of many potential claims against petitioner that had not been pursued which equaled, if not exceeded, the claims against Penelope Bower. Finally, and most practically, the evidence suggested that there were not liquid assets to pay a third-party administrator. The court declined to remove Anna Bower as administrator. Petition to remove administrator of estate denied.
Reference: Digest of Weekly Opinions, Pennsylvania Law Weekly 37 PLW 989 (October 14, 2014)
Filed Under: Trust & Estates; Probate/Estate Administration; Estate Litigation
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