On Appeal from the United States District Court for the Eastern District of Pennsylvania, D.C. Civil No. 82-4823, (Sat Below: Honorable Donald W. Van Artsdalen). On Appeal from the United States District Court for the Eastern District of Pennsylvania, D.C. Civil No. 82-0539, (Sat Below: Honorable Donald W. Van Artsdalen).
BEFORE: HUNTER and GARTH Circuit Judges and GERRY, District Judge*fn*
MEMORANDUM OPINION OF THE COURT
Factual and Procedural History
The present appeals are from the final judgments entered at district Court Nos. 82-0539 and 82-4823. The two district court cases were tried together without a jury. Two separate orders were entered on June 29, 1984.
Appellee Margaret R. Noone, a citizen of New Jersey, filed her first complaint on February 5, 1982 in the district court court docketed at Civil Action No. 82-0539 seeking an equitable accounting from her daughter, Margaret N. Cole, her son-in-law, Timothy W. Cole and her son John Noone, Jr.*fn1 She sought the return of all assets belonging to her and/or the estate of her late husband, John J. Noone, Sr., that the Coles had converted as a result of their confidential relationship with Margaret Noone and John J. Noone, Sr. Appellants Margaret Cole and Timothy Cole, husband and wife, reside at C Horse Farm in Chadds Ford, Pennsylvania. Margaret Cole is a co-executrix with Margaret Noone of the estate of John J. Noone, Sr.
Before John Noone, Sr. died, he executed a general power of attorney appointing Timothy Cole as his attorney-in-fact. Margaret Noone also executed a power of attorney to Timothy Cole after her husband's death.
After the appointment of Timothy Cole as attorney-in-fact for John Noone, Sr. in October, 1979, the Coles actively managed the financial affairs of both Margaret Noone and John Noone, Sr. The Noones' bills were sent to the Coles' C Horse Farm address, and the Coles took the responsibility of paying those bills.
Margaret Noone's request for an accounting centered around three discrete sets of assets, only one of which is before us on this appeal. Margaret Noone sought on behalf of the estate of John Noone, Sr., the proceeds from the sale of stock in the John J. Noone brokerage account.
The Coles owned 28.111 acres of land in Chadds, Fords, Pennsylvania, known as C Horse Farm. By deed dated February 4, 1982, Timothy and Margaret Cole conveyed the entire 28.111 acres of C Horse Farm to the Cole children for the consideration of $1.00. Elizabeth M. Cole, T. Mark Cole, Victoria M. Cole, and Jennifer A. Cole (the Cole children) are the adult children of Timothy and Margaret Cole, and the grandchildren of Margaret Noone. The Cole children all are citizens of Pennsylvania.
By deed dated September l, 1982, the Cole children conveyed 21.755 acres of the C Horse Farm property to C Horse Farm, Inc. for the consideration of $1.00. C Horse Farm, Inc. is a corporation organized under the laws of Pennsylvania with its principal place of business in Chadds Ford, Chester County, Pennsylvania. The Cole children are the sole shareholders of C Horse Farm, Inc. T. Mark Cole is chairman and president of the corporation, Victoria Cole is treasurer of the corporation, and Margaret Cole is secretary of the corporation.
On November 1, 1982, Margaret Noone filed her second complaint at Civil Action No. 82-4823 seeking to set aside as a fraudulent conveyance the transfer of the property known as C Horse Farm ...