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Lynch then filed a petition for the allowance of an appeal
to the Pennsylvania Supreme Court. His petition was denied on
January 15, 1991.
Sometime during the latter part of 1989 or the first part of
1990, Reardon entered into a settlement agreement with the estate
and paid to the estate $25,000 in accordance with the terms of
the settlement.7
On August 29, 1989, Lynch filed a petition in the U.S.
Bankruptcy Court for the Eastern District of Pennsylvania,
pursuant to chapter 13 of title 11, United States Code. In his
petition, Lynch acknowledged his indebtedness and listed the
Estate of Philip Meriano as a judgment creditor in the amount of
$225,000.
When Lynch filed his petition in bankruptcy on August 29,
1989, the estate was still being represented by the Dilworth law
firm. Marjorie Obod (Obod), an associate with the Dilworth firm,
received an incomplete record of what was filed with the
bankruptcy court by Lynch.
Obod then filed a proof of claim with the bankruptcy court
for the estate as a judgment creditor of Lynch because of the
surcharge imposed by the Orphans' Court against him. Shortly
thereafter, the Dilworth firm ceased to represent the estate and
took no further action against Lynch.
7 The settlement agreement was not made a part of the
record.
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