Kehoe v. Gilroy

467 A.2d 1, 320 Pa. Super. 206, 1983 Pa. Super. LEXIS 4056
CourtSupreme Court of Pennsylvania
DecidedOctober 7, 1983
Docket524
StatusPublished
Cited by14 cases

This text of 467 A.2d 1 (Kehoe v. Gilroy) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kehoe v. Gilroy, 467 A.2d 1, 320 Pa. Super. 206, 1983 Pa. Super. LEXIS 4056 (Pa. 1983).

Opinion

SPAETH, Judge:

This is an appeal from an order sustaining preliminary objections in the nature of a demurrer and dismissing appellants’ complaint in equity on the ground that appellants were guilty of laches. Since we find that the record does not disclose laches, we reverse.

On May 10, 1944, Frank M. Kehoe executed an irrevocable deed of trust, naming John C. Kehoe, Jr., trustee. Early in 1964, John Kehoe resigned as trustee and the First National Bank of Pittston was appointed successor trustee, but it too resigned, and on November 25, 1964, Edmund P. Gilroy was appointed successor trustee. On December 3, 1964, Gilroy and the American Casualty Company of Reading, Pennsylvania, posted a $50,000 bond for the faithful performance of the terms of the trust, and on December 11, 1964, Gilroy acknowledged the receipt of the sum of $37,-735.53 as the balance of the trust principal.

The deed of trust directed that income was to be paid to Frank Kehoe during his life and after his death to his wife, Sylvia Kehoe, during her life, and after her death, principal to be paid to her children, John Kehoe, III, and Sylvia Ann Mack.

*209 On July 1, 1969, Edmund Gilroy, the trustee, died, and letters testamentary were issued to his wife, Hazel E. Gilroy. On January 10, 1975, Frank Kehoe, the settlor, died. On January 24, 1977, Sylvia Kehoe, John Kehoe, III, and Sylvia Ann Mack brought this action in equity against Hazel Gilroy, as Edmund Gilroy’s executrix, and American Casualty Company, as surety on the bond for Edmund Gilroy’s performance as trustee. We shall have occasion to quote the complaint in a moment. Stated generally, it alleges: the terms and history of the trust; that Sylvia Kehoe has received no income since the death of her husband, Frank Kehoe, the settlor; that Edmund Gilroy, Hazel Gilroy’s decedent, failed to perform his obligations as trustee; and that the American Casualty Company has failed to perform its obligations under its bond for Edmund Gilroy’s performance. The complaint requests an accounting and distribution.

As defendants, Hazel Gilroy and American Casualty Company each filed preliminary objections. Each set of preliminary objections raised a question of jurisdiction. In its opinion the trial court states that this question has been settled by transferring the action to the Orphans’ Court Division, and on this appeal the trial court’s jurisdiction has not been questioned.

Hazel Gilroy’s preliminary objections include, in addition to a petition raising a question of jurisdiction, a demurrer alleging that the complaint “sounds in assumpsit” and is “barred by the passage of six (6) years from the date of death of Edmund P. Gilroy.” American Casualty Company’s preliminary objections include, in addition to a petition raising a question of jurisdiction, a demurrer alleging five grounds: plaintiffs “are guilty of laches”; the action “is barred by the applicable Statute of Limitations”; the trust instrument by its terms “relieves the trustee of any duty to account”; there is “a presumption that the trust was properly administered”; and the complaint “does not state a cause of action” against American Casualty Company.

*210 The trial court dismissed the complaint “[a]fter hearing oral argument and reviewing the pleadings and briefs.” Slip op. at 6. Sylvia Kehoe, John Kehoe, III, and Sylvia Ann Mack filed this appeal.

. In its opinion in support of its order dismissing the complaint, the trial court states that “[sjince the Demurrer will be sustained based on laches, the Court need not reach conclusions as to the other objections raised by the Defendants.” Id. Therefore, we shall not consider all of the issues raised by the preliminary objections; the only issue before us is whether in finding laches, the trial court erred. 1

In explaining its finding of laches, the trial court states: The pleadings in this case reveal certain significant factors:
1. No action was taken by Settlor against his Trustee for a period of almost six years even though during that time he should have been receiving the trust income.
2. The successor beneficiaries had knowledge of the trust’s existence and eventually joined together to enforce their vested rights even though they were not possessory at that time as to all Plaintiffs.
3. Even though the account of a deceased trustee’s fiduciary is due upon the death of a trustee, no request was made of Hazel E. Gilroy, Executrix for the Estate of Edmund B. Gilroy, for a period in excess of eight years. Slip op. at 5.

The court concludes its opinion by stating:

Under the circumstances presented, the Court believes it unjust to force the Trustee’s widow to account for her husband’s action with regard to the trust, now 12 years later.
*211 Since the liability of a surety is no greater than that of a principal, the Preliminary Objections with regard to the American Casualty Company____are also sustained____
Slip op. at 6.

We are not persuaded by this reasoning.

Contrary to the trial court’s statement, the pleadings in the case—the complaint and the preliminary objections—do not reveal the facts recited by the court. The preliminary objections are purely conclusory, alleging no facts in support of the plea of laches; the complaint, after alleging the terms and history of the trust and the death of Edmund Gilroy, trustee, and Frank Kehoe, settlor and life beneficiary, only alleges: that “Sylvia Kehoe, Plaintiff, has not received any income from said trust and is without knowledge as to the whereabouts or the amount of the principal or income of said trust” (Complaint, para. 15); that Edmund Gilroy “has wholly failed and refused to perform his obligations as Trustee of said trust in so far as he has failed to account to the Plaintiff and has concealed the amounts of principal and income of said trust” {id., para. 16); that American Casualty Company “has wholly failed and refused to perform its obligations under the bond ... in so far as it has failed and refused to perform the objections of accounting and distribution of income and principal upon [Edmund Gilroy’s] default____” (id, para. 17); that John Kehoe, III, and Sylvia Ann Mack are each entitled to one-half the principal of the trust but are “without knowledge as to the whereabouts of the principal” (id., paras. 19-20, 24-25); and that Edmund Gilroy “has concealed, absconded or otherwise failed” to account for the principal, and American Casualty Company has “failed and refused to pay [the principal] into said trust” (id., paras. 21-22, 26-27).

We assume that the trial court derived its statement of the “significant factors” on which it based its decision from statements by counsel at oral argument. However, the record contains no transcript of the oral argument. We *212 are therefore obliged to conclude that the court’s statement is unsupported by the record.

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Bluebook (online)
467 A.2d 1, 320 Pa. Super. 206, 1983 Pa. Super. LEXIS 4056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kehoe-v-gilroy-pa-1983.