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respondent’s motion for leave to file amendment to answer and to
claim increased deficiency asserting an increased deficiency in
estate tax of $2,235,455.49.
In the amendment to answer, respondent raised as an issue
whether a potential malpractice claim decedent possessed against
the law firm of Eckell, Sparks, Monte, Auerback & Moses (Eckell,
Sparks) constituted an interest in property includable in
decedent’s gross estate, and if so, the value of that claim. As
detailed infra, on March 13, 1995 (more than 4 years after
decedent’s death), the administrators pro tem. and the residuary
beneficiaries of decedent’s estate filed an action against Eckell,
Sparks. The plaintiffs’ claims in that action included, among
others, a claim related to malpractice committed in handling
decedent’s affairs during her life and a claim for a return of
attorney’s fees of $247,500 paid by the estate for services
rendered during the administration of the estate. In April 2000,
the Court of Common Pleas of Chester County, Pennsylvania, Orphans’
Court Division (the Orphans’ Court) ordered Eckell, Sparks to
return the $247,500 of attorney’s fees paid by the estate. In
early May 2000, the administrators pro tem., the Glovers, and
Eckell, Sparks entered into a settlement agreement, pursuant to
which Eckell, Sparks agreed to pay the administrators pro tem. and
the residuary beneficiaries $750,000 for the release of all their
claims against the law firm.
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