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Client Successes, News

Schnader Obtains Important Trust Victory before the en banc Pennsylvania Superior Court in an Appeal on Behalf of Philadelphia Health & Education Corporation

09/16/2011

Schnader obtained a victory before the en banc Pennsylvania Superior Court in a case involving a trust established in 1919 by George Elkins for the benefit of Hahnemann Hospital. Schnader represented the Philadelphia Health & Education Corporation ("PHEC") d/b/a/ Drexel University College of Medicine, a separate nonprofit subsidiary of Drexel University. After Hahnemann was acquired by Tenet Health Systems, the charitable purpose of the Elkins Trust failed, and the Orphans' Court held a cy pres proceeding to determine to whom the trust funds should be awarded. After an initial proceeding in the Orphans' Court and a trip to the Superior Court, the Orphans' Court ultimately awarded the trust funds to PHEC even though, of the eight claimants before it, PHEC was the only entity that was not technically a "hospital." Seven Philadelphia hospitals appealed the award and initially prevailed before Superior Court in a 2-1 decision. The Superior Court granted reargument en banc, and after full briefing and oral argument before the en banc court, unanimously affirmed the Orphans' Court's award of the trust funds to PHEC.

The Schnader team consisted of Nancy Winkelman and Katrin C. Rowan, who represented PHEC on appeal to the Superior Court.

Please click here for the opinion.