Appeal, No. 347, Oct. T., 1962, from order of County Court of Philadelphia, Dec. T., 1961, No. 4405-E, in case of City of Philadelphia v. Pioneer Custom Upholstery Co., Inc. et al. Order affirmed.
James L. Stern, Deputy City Solicitor, with him Albert J. Persichetti and Matthew W. Bullock, Jr., Assistant City Solicitors, and David Berger, City Solicitor, for City of Philadelphia, appellant.
No argument was made nor brief submitted for appellees.
Before Rhodes, P.j., Ervin, Wright, Woodside, Watkins, Montgomery, and Flood, JJ.
[ 199 Pa. Super. Page 529]
This is an appeal from an order sustaining the preliminary objections of the defendant Sander Oslick to the plaintiff's complaint in equity. The complaint alleges that the corporate defendant failed to file returns for wage taxes withheld from its employees for the fourth quarter of 1953 and the first and second quarters of 1954; that the defendant Oslick was president, the defendant Brofman secretary and treasurer and the defendant Cohen vice-president of the corporate defendant and knew that the wage taxes were withheld by the corporation and not remitted to the plaintiff; that on April 29, 1954, bankruptcy proceedings were instituted against the corporation; that the plaintiff made an examination and audit of the records of the corporation and on July 12, 1954 made an assessment for the unpaid taxes, and filed a proof of claim in the bankruptcy proceedings but received no dividend; that a notice and demand was duly mailed to the defendants on May 21, 1958 with which the defendants failed to comply; and that the corporate defendant
[ 199 Pa. Super. Page 530]
and the defendant-officers have converted the wage taxes which were withheld to their own use and by reason thereof are trustees ex maleficio.
The bill prays for an injunction restraining the defendants from disposing, assigning or transferring their assets and for a decree declaring the defendants to be trustees ex maleficio and ordering them to pay to the plaintiff all wage taxes withheld together with interest and penalties.
The defendant Sander Oslick filed preliminary objections alleging that (1) the plaintiff is guilty of laches; (2) the complaint sets forth no cause of action against him; and (3) the plaintiff has an adequate remedy at law. The court sustained the objections on the ground of laches and dismissed the complaint.
While the defence of laches ordinarily depends upon all the circumstances, when, as here, the liability of the defendant is one which might have been asserted in an action of trespass or assumpsit and is cognizable in equity only because facts are alleged from which it might be inferred that the defendant is a trustee ex maleficio, the plaintiff will normally be barred after the expiration of six years by analogy to the statute of limitations. Ashhurst's Appeal, 60 Pa. 290 (1868); Barnes & Tucker Co. v. Bird Coal Co., 334 Pa. 324, 330, 5 A.2d 146, 149 (1939). See also Ebbert v. Plymouth Oil Co., 348 Pa. 129, 34 A.2d 493 (1943).
Here there is no concealment alleged to take the case out of this general rule. On the contrary, the allegations of the bill show that the facts were known to the plaintiff almost at once after they occurred and at the latest when the plaintiff audited the ...