Estate of Kenneth F. Schoeneman - Page 3




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               After the transfer of the businesses, Kenneth’s home fell              
          into disrepair, he had trouble paying for his custom-tailored               
          clothing, and he regularly ate in a soup kitchen.  When Kenneth             
          discussed his sons he became so ill that his personal assistant             
          would have to administer heart medication.                                  
               During and after 1985, Kenneth demanded additional                     
          distributions from the trustees and sought to regain control of             
          his businesses.  In January 1989, he retained Attorney James                
          Riley, who filed an action against Dale, Franklin, and the bank             
          on March 28, 1989, in the Pennsylvania Court of Common Pleas.  On           
          November 12, 1989, Riley refiled the action in the Orphans’                 
          Court, pursuant to an order of the Court of Common Pleas stating            
          that “Exclusive jurisdiction over inter vivos trusts and the                
          removal of fiduciaries of trusts is vested in the Orphans Court             
          Division.”  Riley prepared, but did not file, a Racketeer                   
          Influenced and Corrupt Organizations Act (RICO) complaint against           
          the sons and the bank.  Both Riley and the sons’ lawyer believed            
          that Kenneth probably would not recover damages relating to the             
          Orphans’ Court and RICO complaints.  Nevertheless, after the suit           
          was filed, and throughout the course of the litigation, Riley               
          contended that Kenneth’s sons’ actions were responsible for                 
          Kenneth’s emotional distress and tarnished reputation.                      
               On December 24, 1991, Kenneth entered into a Settlement                
          Agreement and Release (settlement) with his sons, pursuant to               






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