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face value of any securities recovered if they were recovered
prior to suit. Otherwise Lynch was to receive 40 percent of the
face value of any securities recovered after filing suit.
Lynch then entered into an agreement whereby Reardon agreed
to assist Lynch in the investigation to recover the stolen
securities. Reardon was to be paid 15 percent of the face amount
of any securities recovered.
Lynch's and Reardon's investigation was successful, and the
estate recovered stolen securities in the face amount of
$1,623,000. As Judge Shoyer, the auditing judge of the Orphans'
Court, noted in his Adjudication of September 21, 1988:
In endeavoring to arrive at a reasonable and fair
fee, the auditing judge is most conscious of the fact
that had it not been for Reardon and Lynch, there would
be nothing here for the parties to fight about.
Judge Shoyer noted that:
Counsel for Panepinto claim that it is "clear that
any impropriety by Reardon may be subject to the
sanctions of the court, and compensation should be
denied." There is, however, no assertion of any so
called "impropriety" by Reardon.
At the trial of this case, petitioner called Reardon as a
witness to inquire whether he had paid to the estate the amount
he was surcharged by the Orphans' Court. Reardon replied that he
had entered into a settlement agreement with the estate.
BY MR. TUPITZA:
Q You entered into -- what type of settlement
agreement did you enter into with the estate?
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