North Branch Transfer, Inc. v. Bower
36 Pa. D. & C.5th 333
| Pennsylvania Court of Common P... | 2014Background
- Dispute over ownership and percentage of North Branch Transfer, Inc. turns on whether John Bower, Sr. gave his shares to John Bower, Jr. before death via a document titled 'Shareholders Meeting'.
- Document states Sr. would relinquish shares only upon his death; officers/directors listed as recipients are Jr., Brenda Bower, and Jonathon Bower, all signing.
- Court applies gift and donative-delivery tests: intent to make an immediate gift, and delivery of control or certificates.
- Court finds no inter vivos gift due to lack of donative intent and because relinquishment conditioned on Sr.’s death with Sr. retaining control.
- Court finds no gift mortis causa because Sr. did not believe he was about to die or likely to die soon; timing and circumstances do not show imminent death.
- Court states the document cannot be considered testamentary for probate purposes at this stage and schedules further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the document constitute an inter vivos gift? | Bower Jr. argues the document transferred shares immediately. | Sr.’s death condition and lack of delivery negate donative intent. | No; insufficient donative intent and delivery. |
| Did the document constitute a gift mortis causa? | Document constitutes a deathbed transfer to avoid loss on death. | Sr. did not believe death was imminent; conditions show non-imminent vacation risk. | No; insufficient evidence of imminent death or donative intent. |
| What is the ownership split of North Branch after ruling on gifts? | Parties dispute ownership based on potential gift. | Document does not divest Sr.’s ownership; gift rejected. | Jr. 25%, Penelope 25%, Sr. estate 50%. |
Key Cases Cited
- In re Estate of Sipe, 492 Pa. 125 (Pa. 1980) (donative intent and delivery essential for gifts; delivery can be non-formal)
- Titusville Trust Co. v. Johnson, 375 Pa. 493 (Pa. 1953) (donatio mortis causa requires belief of impending death and consequent revocability)
- Wagner v. Wagner, 353 A.2d 819 (Pa. 1976) (donative intent is to make an immediate gift; delivery includes relinquishment of control)
- Cost v. Caletri, 394 A.2d 513 (Pa. 1978) (donative gifts require intent, delivery, and acceptance)
- Parkhurst Estate, 167 A.2d 476 (Pa. 1961) (donative intent and timing considerations for gifts)