Estate of: Dale C. Stoffel, Appeal of: Quinn, J.
CourtSuperior Court of Pennsylvania
Date FiledOctober 22, 2026
Docket236 WDA 2025
JudgeMurray
StatusUnpublished
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Full Opinion
J-A22040-26
NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37
IN RE: THE ESTATE OF: DALE C. : IN THE SUPERIOR COURT OF
STOFFEL, DECEASED : PENNSYLVANIA
:
:
APPEAL OF: JOHN H. QUINN, JR. AND :
ROBERT A. GAZZOLA :
:
:
: No. 236 WDA 2025
Appeal from the Order Entered January 31, 2025
In the Court of Common Pleas of Washington County Orphans’ Court at
No(s): 63-2004-1421
BEFORE: BOWES, J., OLSON, J., and MURRAY, J.
MEMORANDUM BY MURRAY, J.: FILED: October 22, 2026
John H. Quinn, Jr. (Quinn), and Robert A. Gazzola (Gazzola)
(collectively, Appellants) appeal from the orphans’ court’s order granting the
amended petition (Petition) filed by Barbara Stoffel (Ms. Stoffel), the widow
of Dale C. Stoffel (Decedent), and (a) removing Quinn as the executor of
Decedent’s estate (the Estate); (b) disqualifying Quinn from acting as trustee
of the testamentary trust created by Decedent’s will (the Trust); (c) removing
Gazzola as successor administrator of the Estate; (d) directing Quinn to file
an accounting of his actions as executor/trustee; and (e) appointing Ms.
Stoffel as the administrator of the Estate and sole trustee of the Trust. After
careful consideration, we affirm.
The comprehensive history of this case can be gleaned from the Petition,
the notes of testimony from the hearing held on the Petition, and the orphans’
J-A22040-26
court’s opinion. As alleged in the Petition, Decedent, a resident of Washington
County, Pennsylvania, died suddenly on December 10, 2004. Petition, 6/5/23,
¶ 6. Decedent was survived by Ms. Stoffel and their two children. Orphans’
Court Opinion, 7/15/25, at 2. At the time of his death, Decedent served as
the president, chief executive officer, and director of Wye Oak Technology,
Inc. (Wye Oak). Decedent also owned 100% of Wye Oak’s outstanding shares
of stock. Petition, 6/5/23, ¶ 7.
Decedent executed a will (the Will) on September 14, 2001, naming
Quinn, a licensed attorney, as executor, and which bequeathed to Ms. Stoffel
all of Decedent’s tangible personal property. Id. ¶ 12. In addition, Article IV
of the Will created a “Bypass Trust” (the Trust) naming Quinn as its sole
trustee. Id. ¶ 14. According to the Petition,
[Quinn] was to pay to [Ms. Stoffel] “such portions of the principal
of the Bypass Trust as [Quinn] deems advisable to provide
liberally for [Ms. Stoffel’s] health, education, support and
maintenance after taking into account [Ms. Stoffel’s] other
resources.”
Decedent’s will further provides that upon the death of [Ms.
Stoffel], the Trustee “shall divide the remaining Bypass Trust
principal into equal shares” and distribute an equal share to a trust
for each of the children born of [Ms. Stoffel] and Decedent if any
are then living, or if not, to their issue then living, per stirpes,
subject the Trust Provisions of Article IX of the Will.
Id. ¶¶ 15-16.1 Decedent’s Will further bequeathed to Ms. Stoffel the residue
of the Estate. Id. ¶ 17.
____________________________________________
1 The Petition did not include citations for the quoted provisions of the Will.
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As the orphans’ court described in its opinion, following Decedent’s
death,
letters testamentary were granted to [Quinn] … on December 27th,
2004. On March 28, 2006, [Quinn, as executor,] filed an inventory
of the Estate’s assets as of the date of death[,] which listed two
bank accounts with a combined value of $15,364.56; stock shares
in two closely held companies: the CLI Group and its
subsidiaries[,] valued at $1,000,000.00; and shares in Wye Oak
… totaling $1,000,000.00; personal property valued at $1,500,
and liabilities totaling $149,262.02.[FN1] The net value of the
Estate as of the date of death … was stated as $1,906,777.54.
Not shown on the inventory[,] but comprising a large,
unliquidated asset of the Estate[,] was and continues to be an
award of approximately $120 million granted to Wye Oak in
litigation against the Republic of Iraq [(Iraq) (the Iraq Litigation)]
arising out of unpaid government contracts and the death of []
Decedent [in Iraq]. [Quinn] continued to serve as executor of the
Estate and trustee of the [] Trust until January 29, 2025.
[FN1] Included in the liabilities listed on the inventory and on the
inheritance tax return is the amount of $125,505.43 in attorneys’
fees owed to Quinn, Racusin & Gazzola Chartered [(QRG)],
[Quinn’s] law firm.
Orphans’ Court Opinion, 7/15/25, at 2 (capitalization modified; footnote in
original).
The Iraq Litigation
A substantial asset of the Estate is the judgment entered in the Iraq
Litigation. By way of background, in 2004, prior to Decedent’s death, Wye
Oak entered into a contract with Iraq and the Ministry of Defense of Iraq
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(Ministry) (collectively, the Iraq Defendants). Petition, 6/5/23, ¶ 7. As
described by Charles Allen Foster, Esquire (Attorney Foster),2
Wye Oak was a government contractor, and at the instance [sic]
of General David Petraeus, [Wye Oak] became a contractor to the
Department of Defense of the Republic of Iraq. [Wye Oak’s] job
was to renovate armored vehicles in preparation for the
reconstitution of the Iraqi army, so that, as President [George W.]
Bush put it, they could stand up, and we could stand down.
So it was an essential part of the foreign policy of the United
States as to what [Wye Oak] was doing in Iraq. They performed
admirably, exceeding the requirements of the contract.
[Wye Oak] gave a bill for their work to date of approximately $27
million. Iraq didn’t pay. The Secretary of Defense got involved,
and ordered that something be done to get the program back on
track. They had a big meeting in Baghdad. The Iraqis promised
to pay in three days. [Decedent] went to collect the money, and
he was murdered, rather than paid.
As a result, the [Iraq Litigation] began in 2009. [Decedent] was
murdered in 2004, but the lawsuit was filed in 2009, and it
essentially went nowhere until 2018….
N.T., 1/29/25, at 10.
On November 15, 2019, the federal district court entered a judgment
against the Iraq Defendants,
jointly and severally[,] … for the amount of $120,742,030.78,
which included the final judgment amount of $120,338,393.71,
plus $10,909.11 per day for each day after October 9, 2019,
through and including November 15, 2019.
Petition, 6/5/23, ¶ 27 (quotation marks omitted; punctuation modified).
____________________________________________
2 Attorney Foster and his law firm later represented Wye Oak in the Iraq
Litigation.
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On May 12, 2020, the federal court denied Wye Oak’s request that the
Iraq Defendants be deemed liable for attorneys’ fees equal to a 46%
contingency fee. Id. ¶ 29. The federal court instead directed Wye Oak to file
a “lodestar fee.”3 Id. A fee dispute subsequently arose between the
attorneys/law firms representing Wye Oak in the Iraq Litigation (the Fee
Dispute).
On August 17, 2021, the federal court entered judgment in the Iraq
Litigation, which included an attorneys’ fee award of $7,672,487.89 to Wye
Oak. Id. ¶ 30. On December 4, 2024, the United States Court of Appeals for
the District of Columbia Circuit vacated the fee award and remanded the
matter to the federal district court. Wye Oak Tech., 2024 U.S. App. LEXIS
30747, *1-2 (D.C. Cir. filed Dec. 4, 2024) (order). “On August 29, 2024, Wye
Oak filed a Petition for Rehearing and Suggestion for Rehearing En Banc in the
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3 Our federal courts have explained that there are two primary methods for
calculating attorneys’ fees awards: the percentage-of-recovery method and
the lodestar method. The percentage-of-recovery method “resembles a
contingent fee in that it awards counsel a variable percentage of the amount
recovered for the class.” In re Cendant Corp. PRIDES Litig., 243 F.3d 722,
732 n.10 (3d Cir. 2001) (quotation marks and citation omitted). “The lodestar
amount represents the number of hours reasonably worked on a case
multiplied by the reasonable hourly rate.” Wells v. Bowen, 855 F.2d 37, 43
(2d Cir. 1988) (citing Pennsylvania v. Delaware Valley Citizens’ Council
for Clean Air, 478 U.S. 546, 564, 106 S. Ct. 3088, 92 L. Ed. 2d 439 (1987)).
See also Lindy Bros. Builders, Inc. v. American Radiator & Standard
Sanitary Corp., 487 F.2d 161, 167 (3d Cir. 1973) (basing the calculation of
attorneys’ fees by determining the hours spent by the attorneys and the value
of the services).
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Court of Appeals for the District of Columbia.” Petition, 7/15/25, ¶ 36. That
proceeding was pending at the time Ms. Stoffel filed the Petition underlying
this appeal. Id.
The Iraq Litigation Fee Dispute
The Petition summarized the Fee Dispute’s origins. Early in 2009,
Quinn, on behalf of Wye Oak, hired Pavich Law Group, P.C. (PLG), to pursue
Wye Oak’s claims against the Iraq Defendants. N.T, 1/29/25, at 11. “[T]he
terms of that engagement were that [PLG] would prosecute the case on a
contingent fee, but that Wye Oak would pay all the expenses.” Id. at 12.
The Iraq Litigation commenced on June 29, 2009. The Iraq Litigation
initially focused on Iraq’s claim of sovereign immunity, which ultimately was
rejected by the federal district court, affirmed by the federal court of appeals,
and denied certiorari by the United States Supreme Court. Republic of Iraq
v. Wye Oak Tech., Inc., 567 U.S. 936 (2012). The Iraq Litigation next was
transferred to the Federal District Court for the District of Columbia.
Around this time, Quinn expressed his dissatisfaction with PLG’s
representation of Wye Oak. Petition, 7/15/25, ¶ 57. In 2014, Quinn, on behalf
of Wye Oak, hired the Washington, D.C., law firm of Kalbian Haggerty LLP
(KH) to advise Wye Oak on Iraqi law. Id. ¶ 59. Wye Oak paid KH a retainer
of $7,500.00, agreed to KH’s hourly rates, and further agreed to a 3%
contingency fee to be paid to KH from PLG’s contingency-fee share. Id.
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Attorney Foster testified that KH “had a very minuscule involvement in
advising Wye Oak on some points of Iraqi law.” N.T., 1/29/25, at 12.
As alleged in the Petition, in 2016, after extensive negotiations, Quinn
retained Attorney Foster’s law firm, Whiteford, Taylor & Preston (WTP), to
become Wye Oak’s lead counsel for certain aspects of the Iraq Litigation.
Petition, 7/15/25, ¶ 61. Wye Oak agreed to pay WTP a contingency fee “equal
to 15% of the Wye Oak recovery and a ‘look back’ provision to ensure that if
WTP undertook an expanded role, it would be fairly and reasonably
compensated.” Id. ¶ 62. At the time Wye Oak entered into its fee agreement
with WTP, “PLG’s contingency percentage was reduced to 25%, and the
maximum contingency percentage for all lawyers involved was set at 43% of
the Wye Oak recovery.” Id. ¶ 64.
Around July 15, 2019, when a substantial judgment against the Iraq
Defendants looked likely, WTP’s lawyers met with Quinn to discuss the
potential reallocation of the contingency fee between WTP and PLG.4 Id. ¶
69. As described by Attorney Foster,
____________________________________________
4 As alleged in the Petition,
once WTP became involved in the Iraq Litigation, it proceeded to
conduct discovery, find and depose or obtain affidavits from
witnesses all over the world, secure experts in Iraqi law and
damages, prepare witnesses, exhibits, briefs and court
presentations, and ultimately try the case in Washington[, D.C.,]
and San Antonio[, TX].
(Footnote Continued Next Page)
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[Quinn] wanted a change. When the litigation was basically over,
[Quinn] wanted to change his hourly rate of compensation to a
percentage compensation. ….
When the issue of additional compensation for my firm [(WTP)]
raised its head, [Wye Oak] agreed to raise the total contingency
fee [pool] to 46%. It was agreed by everyone that [WTP] was
entitled to 25 [percent] of the 46 percent. The other lawyers
couldn’t agree as to what their slice of the pie was going to be.
….
The dispute that couldn’t be resolved was between [] Quinn and
[PLG]. [] Quinn wanted a piece of the action, and he wanted a
majority of the remaining percentage. …. [PLG] was willing for
[Quinn] to have something. But it wasn’t as much as [] Quinn
wanted. And they couldn’t come to an agreement as to what it
was going to be.
N.T., 1/29/25, at 14-15.
The Fee Dispute Arbitration
Ultimately, Quinn agreed to the terms of a written “Agreement
Concerning Attorneys’ Fees” (ACAF), which, inter alia, included an arbitration
clause for resolving the Fee Dispute between WTP, PLG, KH, QRG, and Wye
Oak.5 Petition, 7/15/25, ¶ 82. Attorney Foster testified,
[i]n the arbitration, [] Quinn decided, against my advice, that he
wasn’t going to make a claim [for attorney’s fees], but he
contended that he had a conflict of interest to make a claim in the
arbitration and he refused to do so. So I told him, … if you believe
you have a claim for a piece of this fee, you should come into the
arbitration and prove your claim. …. [H]e didn’t do so.
____________________________________________
Petition, 7/15/25, ¶ 66.
5 The ACAF was executed on December 2, 2019, and effective as of October
15, 2019. Id.
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N.T., 1/29/25, at 16.6
On July 9, 2020, Quinn filed a notice of limited withdrawal by QRG as
counsel for Wye Oak in the ACAF arbitration. Petition, 7/15/25, ¶ 96. On July
25, 2020, WTP filed claims against Quinn and QRG, in the ACAF arbitration. 7
WTP alleged that Quinn and QRG fraudulently induced WTP to enter into the
contingency fee agreement; Quinn and QRG tortiously interfered with the
ACAF; and that Quinn breached the ACAF. Quinn subsequently filed motions
to dismiss the ACAF arbitration, challenging the arbitrator’s jurisdiction and
claiming that the COVID-19 pandemic made it impossible for Quinn to
participate in the proceedings.
____________________________________________
6 Similarly, the Petition alleged that
in response to [the federal district court’s] May 12, 2020,
Memorandum Order directing Wye Oak to present a request for a
lodestar fee, Quinn alleged [a] conflict of interest which allegedly
prevented the four firms from filing any fee petition at all.
Quinn contended that the fee request “conflict of interest” could
only be resolved by PLG’s agreement to (a) dismiss the ACAF
arbitration[;] (b) hav[e] PLG’s fee determined based upon Quinn’s
theory that [PLG] was entitled to nothing more than a claim in
quantum meruit[;] and (c) giv[e] Quinn and QRG a complete
release….
Petition, 7/15/25, ¶¶ 89-90 (punctuation modified; paragraph designations
omitted).
7 The parties selected The Honorable Richard A. Levie (Retired) as arbitrator.
Petition, 7/15/25, ¶ 86.
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During this time period, David Stoffel8 and WTP advised Quinn that Wye
Oak had no interest in the division of the contingency fee among counsel, as
it had agreed to a 46% contingency fee and had delegated division of that fee
to an arbitrator. According to the Petition, Quinn thereafter “announced that
neither QRG nor Wye Oak would participate in the ACAF Arbitration.” Id. ¶
102.
Even though Quinn, on behalf of Wye Oak, had objected to proceeding
with the arbitration, David Stoffel, acting in his role as President of Wye Oak,
helped schedule a conference call between the ACAF parties. Id. ¶ 103. After
learning of David Stoffel’s action, Quinn removed David Stoffel as a director
of Wye Oak. Id. Quinn then appointed himself as a director of Wye Oak. Id.
Next, “acting as the sole director of Wye Oak, [Quinn] ‘suspended’ David
Stoffel as President. Quinn then appointed himself as President [of Wye
Oak].” Id.
As alleged in the Petition, on June 5, 2024, the ACAF arbitrator issued a
final award in the Fee Dispute, distributing the 46% contingency fee in the
Iraq Litigation as follows: WTP – 27.5%; PLG – 18%; KH – 0.5%; QRG –
0.0%. Id. ¶ 105. The arbitrator found that QRG, acting through its president
(Quinn), tortiously interfered with PLG’s contractional relationships; caused
Wye Oak to breach its fiduciary duty to PLG; and, in 2014 and 2017,
____________________________________________
8 David Stoffel, Decedent’s brother, also served was a contingent beneficiary
of the Estate, and previously served as a director of Wye Oak.
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fraudulently induced PLG to reduce its contractually-set contingency fees. Id.
Regarding WTP, the arbitrator determined that QRG, through the actions of
Quinn, tortiously interfered with WTP’s contractual/business relationships;
“made negligent and fraudulent misrepresentations and omissions of material
fact to WTP on which WTP relied”; and fraudulently induced WTP to enter into
a 2017 fee agreement with Wye Oak. Id.
The Petition
Relevant to this appeal, the Petition alleged that, at all relevant times,
Quinn served as the Estate’s executor and as a director of Wye Oak. Id. ¶
23. As alleged by Ms. Stoffel, Quinn served,
at various times, … as the Chairman or President, Secretary
Treasurer, General Counsel and a Director of Wye Oak (including
for an unknown period of time as the sole Director and Officer of
Wye Oak). While serving in his various capacities as Executor of
the Estate and as an officer and director of Wye Oak, Quinn has
also served, at various times, as attorney for the Executor of the
Estate, accountant for the Estate, attorney for the accountant for
the Estate, Trustee of the [] Trust, and a principal at his law firm,
QRG.
At all times relevant hereto, Wye Oak’s claim against the Iraq
Defendants was Wye Oak’s principal asset and the Wye Oak
shares were the Estate’s single most valuable asset. Because the
Estate owned 100% of the Wye Oak shares, Quinn, as Executor,
controlled those shares and, therefore, Quinn controlled both Wye
Oak and the Estate, directly and indirectly. On numerous
occasions, Quinn declared, “I am Wye Oak.”
Id. ¶¶ 43-46 (paragraph designations omitted; paragraph breaks and
punctuation modified). Ms. Stoffel alleged Quinn had irreconcilable conflicts
of interest with Wye Oak, within Wye Oak, and with the Estate, which owns
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100% of Wye Oak’s shares. Id. ¶ 106. Ms. Stoffel further alleged that Quinn
holds, or held, various positions within Wye Oak, including chairman of the
board of directors, president, secretary, treasurer, and corporate general
counsel. Id. In each position, Quinn owed fiduciary duties to Wye Oak and
its sole shareholder (the Estate, which Quinn controls), and to Wye Oak’s
creditors. Id. Without oversight, Ms. Stoffel asserted, Quinn could not
exercise independent judgment with regard to any matter in which he or his
own firm, QRG, had an interest. Id.
Ms. Stoffel’s Petition also alleged that Quinn, as an officer/director of
Wye Oak, additionally owed a fiduciary duty to each of the law firms vying for
a share of the contingency fee, as well as a duty to his own firm, QRG. Id.
The Petition averred that initially, Quinn billed the Estate $390/hour for his
services. Id. ¶ 67. However, “when Quinn learned of WTP’s hourly rates, he
increased his own hourly rate for Wye Oak from $390 per hour to $790 per
hour in order to match WTP’s rates.” Id. Quinn did not seek approval from
the Estate’s sole beneficiary (Ms. Stoffel) or its contingent beneficiary (David
Stoffel) for the rate increase. Id. ¶ 68.
The Petition claimed that Quinn rejected David Stoffel’s request for the
appointment of independent directors for Wye Oak. Id. ¶ 106. The Petition
alleged that
Quinn and his law firm, QRG, have acted as outside General
Counsel to Wye Oak (a) for corporate advice[,] and (b) for
services allegedly rendered in connection with the Iraq Litigation.
As such, Quinn has a personal interest in (a) QRG’s claim for legal
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fees on an hourly basis for corporate work[,] and (b) QRG’s claim
for a portion of the contingency fee as allegedly provided for by
the ACAF for firms representing Wye Oak in the Iraq Litigation.
Id.
The Petition averred that Quinn took actions, against the interests of the
Estate, by paying QRG substantial sums (partly for his own benefit), when the
Estate was “practically insolvent and without regard for the fact that the Estate
needed those funds to prosecute the Iraq Litigation.” Id. ¶ 107. Further,
Quinn refused to consider “monetization” of a portion of the judgment in favor
of Wye Oak, which would have provided $15 million to Wye Oak. Id. ¶ 108.
This, in turn, would have enabled Wye Oak to engage collections counsel on a
cash basis. Id.
The Petition asserted that Quinn undertook no tax planning for the
Estate in the event that the claim against the Iraq Defendants exceeded
$1,000,000.00. Id. ¶ 109. In addition, Quinn failed to utilize tax counsel
until after a judgment in excess of $120 million, plus costs, interest, and legal
fees, was rendered in favor of Wye Oak. Id. ¶ 110.
According to the Petition, Quinn breached his fiduciary duty to the Estate
and/or its beneficiaries by causing sums to be paid to QRG, while the Estate
was almost insolvent; not obtaining Ms. Stoffel’s consent before doubling his
hourly rate; not notifying Ms. Stoffel of his rate increase; failing to discuss
QRG’s contingency fee proposals with Ms. Stoffel before presenting them to
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WTP and PLG; and not advising Ms. Stoffel of Quinn’s 2019 proposed
contingency fee apportionment before presenting it to PLG. Id. ¶ 111.
The Orphans’ Court Proceeding
At the January 29, 2025, hearing on the Petition, the orphans’ court
heard testimony from Ms. Stoffel, Attorney Foster, and Quinn. The orphans’
court ultimately determined that, “[u]pon consideration of the testimony,
exhibits and arguments by counsel at the hearing, … a clear and obvious
conflict of interest existed between [Quinn] and the Estate.” Orphans’ Court
Opinion, 7/15/25, at 9. Consequently, the orphans’ court granted Ms. Stoffel’s
Petition and removed [Quinn] as executor and trustee 9 “due to the ongoing
conflicts of interest.” Id.
Appellants timely appealed. Appellants and the orphans’ court have
complied with Pa.R.A.P. 1925.
The Arguments of the Parties
Appellants present the following issues for our review:
1. Whether the [orphans’] court erred and abused its discretion in
[the] removal of [Quinn] as Executor of the Estate … (as well
as removal as trustee of the testamentary trust pursuant to the
Will and the removal of the successor representative/trustee)
based on a purported conflict of interest.
2. Whether the [orphans’] court erred and abused its discretion in
determining that [] Quinn failed to obtain “informed consent”
____________________________________________
9 The orphans’ court additionally removed Gazzola as the successor
administrator/trustee. However, Appellants offer no argument challenging the
removal of Gazzola as the successor administrator/trustee. We therefore limit
our consideration to the removal of Quinn as executor/trustee.
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from [Ms.] Stoffel, the widow of [Decedent] and beneficiary of
his Estate, regarding decisions concerning attorneys’ fees
regarding [] Quinn’s services on behalf of the principal asset of
the Estate.
Appellants’ Brief at 5 (punctuation and capitalization modified).
“When reviewing an order entered by the orphans’ court, the decision
will not be reversed unless there has been an abuse of discretion or a
fundamental error in applying the correct principles of law.” Tr. Under Deed
of Wallace F. Ott, 271 A.3d 409, 416 (Pa. Super. 2021) (internal quotation
marks omitted). “Because the orphans’ court sits as the fact-finder, it
determines the credibility of the witnesses and, on review, we will not reverse
its credibility determinations absent an abuse of that discretion.” Interest of
M.A., 284 A.3d 1202, 1210 (Pa. Super. 2022) (capitalization modified).
“However, we are not constrained to give the same deference to any resulting
legal conclusions. Where the rules of law on which the court relied are
palpably wrong or clearly inapplicable, we will reverse the court’s decree.” Id.
1. Whether the orphans’ court improperly removed Quinn as
Executor/Trustee:?
Appellants first argue that the orphans’ court improperly removed Quinn
as executor of the Estate, and as trustee to the Trust, based on a clear conflict
of interest. Appellants’ Brief at 28. Appellants claim that in removing Quinn,
the orphans’ court ignored established Pennsylvania law requiring that proof
of cause for the removal must be clear. Id. Appellants point out that Quinn
was primarily responsible for initiating the litigation in Iraq that
will in all likelihood result in substantial wealth ultimately flowing
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to the Estate, either by way of judgment against Iraq or by way
of the payout of [an] insurance policy [that becomes payable
should the judgment be overturned]—again, all of which would
not exist but for [] Quinn’s initial efforts[,] which continued for
over a decade, without compensation.
Id. at 28-29.
Appellants assert that the “conflicts” identified by the orphans’ court
“consisted of disputes amongst the attorneys involved in the []Iraq Litigation—
and not between [] Quinn or his firm and the Estate.” Id. at 30 (capitalization
modified). According to Appellants,
[w]ith respect to the division of the Wye Oak 46% contingency
fee, any effort by [] Quinn to collect a share of this amount would
not serve to reduce the Estate’s interest in the overall recovery,
as the 46% contingency was established by the ACAF and Wye
Oak’s remaining 54% interest would thus be unaffected by any
amount paid to [] Quinn in accord with that [a]greement.
Id. Appellants explain that Quinn sought to have his fees included as part of
the 46% contingency-fee pool, and not to be paid out-of-pocket by Wye Oak.
Id.
Appellants further dispute the orphans’ court’s interpretation of Quinn’s
October 19, 2020, letter to Ms. Stoffel’s counsel. Id. at 31. Appellants
contend that Quinn consistently explained that “before any funds were
distributed incident to the Iraq Litigation, he would ensure that Ms. Stoffel
would be able to provide informed consent with the advice of her counsel.”
Id. Appellants emphasize Quinn’s explanation to the orphans’ court that he
did not discuss the distribution of funds, “because to this minute, there is no
money.” Id. Regarding the ACAF arbitration, Appellants argue that PLG
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commenced the arbitration proceedings “prematurely, before Quinn had the
opportunity to obtain informed consent.” Id.
Appellants claim there is no evidence supporting the orphans’ court’s
finding that Quinn had clear conflicts of interest. Id. at 32. Appellants assert
that even if potential conflicts existed, there is no evidence linking the
potential conflicts to any harm or jeopardy to the Estate. Id. Appellants
acknowledge the orphans’ court cited, as conflicts of interest, Quinn’s
simultaneous service as a director of Wye Oak and as its legal counsel. Id.
However, Appellants argue that “[t]hese facts alone, without any link to actual
harm to the Estate, are immaterial.” Id. at 33. Appellants assert that Quinn’s
“efforts are the sine qua non to the $120,000,000.00 judgment against Iraq.”
Id.
Appellants argue that three “fundamental errors [] go to the core of this
appeal.” Id. First, Appellants claim Quinn did not engage in “multiple
attempts” to increase his compensation. Id. at 34. According to Appellants,
Quinn sought an increase in rates, which applied only to Wye Oak and was
incident to the Iraq Litigation. Id. Appellants argue, “[t]he client relative to
this increase was Wye Oak, not the Estate; and David Stoffel explicitly state[d]
his approval of the fee increase as set forth in the March 16, 2018[,] Minutes
of the Board of Directors Meeting.” Id. Appellants further emphasize Quinn’s
testimony that his rate increase was prospective only, “and not a matter of
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concern for the Estate[.]” Id. at 35. According to Appellants, “[t]he [E]state
was certainly not directly involved in the [] Iraq [L]itigation.” Id. at 36.
Appellants next dispute the orphans’ court’s determination that Quinn’s
efforts to include QRG in the Iraq Litigation’s contingency pool evidenced a
conflict of interest. Id. Appellants point out that the ACAF was signed not
only by Quinn (on behalf of QRG), but also by representatives from the other
firms involved, and by David Stoffel (on behalf of Wye Oak). Id. at 36-37.
Appellants assert that Wye Oak, not the Estate, was the client of Quinn/QRG
during the Iraq Litigation. Id. at 37.
Appellants emphasize that David Stoffel signed the ACAF, in which Wye
Oak recognized QRG’s efforts in the prosecution of the Iraq Litigation, “and
hereby replace[d] QRG’s previous hourly fee agreement with a percentage
contingency fee.” Id. Appellants repeatedly assert that any recovery by
Quinn or QRG, as a result of the Iraq Litigation, would not impact Wye Oak or
the Estate. Id. A recovery by QRG would only reduce the percentage owed
to the other firms involved in the Iraq Litigation and Fee Dispute. Id. For this
reason, Appellants argue, neither the increase in Quinn’s rate nor Quinn’s
participation in the contingency fee pool impacted the Estate. Id. at 38.
Although the record evidenced disagreements between the law firms involved
in the Iraq Litigation, Appellants posit that these disagreements did not
diminish the potential benefits flowing to the Estate. Id.
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Appellants distinguish our Supreme Court’s decision in In re Rafferty’s
Estate, 105 A.2d 147 (Pa. 1954), upon which the orphans’ court relied.
Appellants’ Brief at 39. Appellants state that in Rafferty, the administrator
was removed because he was also a beneficiary of the estate, along with his
five siblings. Id. When a dispute arose over the ownership of certain
property, the hearing judge determined, and our Supreme Court agreed, that
the administrator’s interest conflicted with the interests of the decedent’s
estate. Id. Appellants claim that instantly, Quinn/QRG made no claim to any
assets of the Estate. Id. at 39-40. Appellants state that the “anticipated
recovery of any fees would be circumscribed from the Estate’s pool of wealth.”
Id. at 40.
Appellants compare the instant circumstances with those presented in
In re DiMarco Estate, 257 A.2d 849 (Pa. 1969). Appellants’ Brief at 40. In
DiMarco Estate, Appellants argue, the Supreme Court reversed the removal
of an estate’s executor, who was accused of fraud resulting from the
executor’s interest in the residuary estate. Id. According to Appellants, the
Supreme Court held that
[t]he fact that these personal representatives do not now see eye
to eye (in all probability[,] in the instant case[,] due to outside
influence) cannot justify a court in [the executor’s] removal[,]
especially where it is not shown that such ill-feeling has resulted
in any damage or injury to the estate or the beneficiaries thereof.
Id. (quoting DiMarco Estate, 257 A.2d at 854).
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Appellants argue that Ms. Stoffel’s testimony offered no specific
examples of conflicts of interest and “merely mimicked in general terms”
Attorney Foster’s testimony. Id. at 41. Because there is no evidence of
damages to the Estate or its beneficiaries, Appellants maintain that the record
does not support Quinn’s removal as executor/trustee. Id.
Ms. Stoffel disagrees, arguing that the orphans’ court properly exercised
its discretion in removing Quinn as executor/trustee. Appellee’s Brief at 12.
Ms. Stoffel claims Appellants are attempting to reargue the facts, and
improperly asking this Court to reweigh the credibility determinations made
by the orphans’ court. Id. at 13. Ms. Stoffel points to the orphans’ court’s
finding that Quinn raised the rate that he charged to Wye Oak, without seeking
the informed consent of Ms. Stoffel. Id. at 14. Ms. Stoffel also points to her
own testimony agreeing with the arbitrator’s decision, which allocated Quinn
and QRG zero percent of the contingency fee award. Id. at 15 (citing N.T.,
1/29/25, at 55). Ms. Stoffel agrees with the orphans’ court that Quinn’s
conflict lies not in the amount of the fee award, but in the actions he took to
pursue increased fees. Id. at 16. Ms. Stoffel asserts these actions were
contrary to the Estate’s interests. Id.
Ms. Stoffel further argues that removal of an executor for a conflict of
interest does not require the presence of actual harm. Id. at 17. Ms. Stoffel
points out that Quinn was removed as executor pursuant to 20 Pa.C.S.A. §
3182(5), which grants the orphans’ court broad discretion to remove an
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executor “when, for any other reason, the interests of the estate are likely to
be jeopardized by [the executor’s] continuance in office.” Id. at 18 (emphasis
omitted) (quoting 20 Pa.C.S.A. § 3182(5)). Ms. Stoffel asserts that a conflict
of interest does not require actual harm; “rather, the mere existence of the
conflict is the situation that the law seeks to avoid[.]” Id. at 19. Thus,
according to Ms. Stoffel, the conflict of interest, alone, justifies the removal,
and there is no need for proof of wrongdoing by the personal representative.
Id. at 19-20.
The removal of an executor is a matter vested in the sound discretion
of the orphans’ court, and we will not disturb such a determination absent an
abuse of that discretion. In re Estate of Andrews, 92 A.3d 1226, 1230 (Pa.
Super. 2015) (citing In re Estate of Mumma, 41 A.3d 41, 49 (Pa. Super.
2012)).
The orphans’ court has statutory authority to remove a personal
representative when, inter alia, “the interests of the estate are likely to be
jeopardized by his continuation in office.” 20 Pa.C.S.A. § 3182(5). The
Pennsylvania Supreme Court has explained that,
[w]hile, under that statutory provision, orphans’ courts do have
the power of removal of personal representatives and such
removal lies largely within the discretion of such courts, an abuse
of such discretion renders its exercise subject to appellate
review….
… An executor, of course, is chosen by the testator himself, and
his appointment represents an expression of trust and confidence
by the testator. Hence, his removal is a drastic action which
should be undertaken only when the estate within the control of
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such personal representative is endangered. To justify the
removal of a testamentary personal representative[,] the proof of
the cause for such removal must be clear.
In re Estate of Lux, 389 A.2d 1053, 1059 (Pa. 1978) (citations omitted).
A conflict of interest is sufficient to remove a personal representative of
an estate
when the fiduciary’s personal interest is in conflict with that of the
estate, such that the two interests cannot be served
simultaneously. The reasons for removal of a fiduciary must be
clearly proven. However, proof of a conflict of interest can be
inferred from the circumstances. When a conflict of interest is
apparent from the circumstances, bad faith or fraudulent
intent on the part of the fiduciary need not be proven.
In re Estate of Westin, 874 A.2d 139, 143 (Pa. Super. 2005) (citations
omitted; emphasis added). Where an executor’s personal interest conflicts
with the interest of the estate, removal is proper.10 In re Estate of Andrews,
92 A.3d 1226, 1230 (Pa. Super. 2014).
Quinn, an attorney, is also subject to the Pennsylvania Rules of
Professional Conduct. Rule 1.7 addresses the conflicts of interest that may
arise between an attorney and his/her client, and provides as follows:
(a) Except as provided in paragraph (b), a lawyer shall not
represent a client if the representation involves a concurrent
conflict of interest. A concurrent conflict of interest exists
if:
(1) the representation of one client will be directly adverse
to another client; or
____________________________________________
10 An executor has a “duty to see that [his] purely private interests were not
advanced at the expense of the estate.” In re Pitone’s Estate, 413 A.2d
1012, 1015 (Pa. 1980).
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(2) there is a significant risk that the representation of one
or more clients will be materially limited by the lawyer’s
responsibilities to another client, a former client or a third
person or by a personal interest of the lawyer.
(b) Notwithstanding the existence of a concurrent conflict of
interest under paragraph (a), a lawyer may represent a
client if:
(1) the lawyer reasonably believes that the lawyer will be
able to provide competent and diligent representation to
each affected client;
(2) the representation is not prohibited by law;
(3) the representation does not involve t