POLICEMEN'S ANNUITY & BENEFIT v. CITY OF MILW.

• Decision Date: 17 April 2001
• Docket Number: No. 99-0965.,99-0965.
• Parties: POLICEMEN'S ANNUITY AND BENEFIT FUND OF the CITY OF MILWAUKEE, and George H. Sprague, both plaintiffs individually and as representative of a class consisting of City of Milwaukee Police Officers hired prior to 1948 who participated as members of the Policemen's Annuity and Benefit Fund System, and Ruth Ackmann, Gilbert C. Armbruster, Phyllis C. Bailey, Robert Baker, John W. Balcerak, Vladimir V. Barak, Elizabeth Barnes, Hildegarde Barg, Ethel G. Bartelt, Theresa Bartl, Alphonse P. Bauer, Dolores Baumann, Samuel Bay, Eugene W. Bebo, Esther B. Beck, Raymond J. Bednarek, Harold F. Behling, Virginia Behrendt, Violet Behrens, Franz Belot, Allen H. Bence, Howard C. Bentz, Ruth L. Berg, Gustav C. Bergemann, Leona Bett, Leona Bevsek, Agnes M. Beyer, Elsie V. Bilty, Richard W. Bohmer, Margaret M. Booton, Leocadia Borkowicz, Adele Brasile, Mildred Breidenbach, Harold A. Breier, Harold Breitlow, Elizabeth A. Brelsford, Hazel Brown, Ralph J. Brown, Mildred A. Bruss, Florence A. Budich, Evelyn Buege, Andrew Busalacchi, Edward F. Domask, Ann Doro, Mariann Dorow, John Dotski, Betty J. Drake, Anna J. Dunham, Harry E. Dunn, Jr., Mardella B. Eckhardt, Raymond A. Ehmke, Margaret M. Eichman, Vera M. Eichstaedt, Edmund H. Eigenfeld, Virginia Einem, Milton A. Engbring, Leone Erfert, William Ericsson, Chester R. Esch, Lucille Evans, Clara S. Evenson, Eileen Evica, Ruth Fabich, Isabelle C. Faubel, Dolores L. Feilen, Mary Ann Feilen, Florence T. Filipiak, Irene M. Fischer, Julia M. Fisher, Sylvia Freismuth, Florence Freund, Dorothy Frischmann, Glyn Fuglesang, Ruth Gaertner, John O. Galler, Ethel Galligan, Hermine Garms, Florence A. Gelhar, Marianne Gilbert, Florence Girard, Elsie Gleisner, Virginia J. Glembin, Marvin R. Godfried, Frances G. Goehle, Norma Goehlen, Tobias J. Golembiewski, Sylvia Gorniak, John W. Grantz, Henrietta Granum, Rosemary Greinke, Theresa F. Gust, Estelle Guttowski, Mary Guzinski, Laverne J. Guzman, Stanley Gwiazdowski, Louis J. Habel, Dorothy L. Haensgen, Genevieve Hanley, Dora I. Harris, Ewald J. Hartmann, Marie Heibler, Hulda E. Heidelberg, Rose M. Hein, Walter D. Heller, Esther Helm, Mary Helz, Edmund M. Hemmen, Edwin F. Henke, Emilie C. Henrich, Rachel Hensler, Harold J. Hermann, Frances M. Herold, Rachelle Heyse, Herbert L. Hinstorff, Stella Hoffmann, Gertrude A. Horsch, Winifred Hubbard, Donald W. Huffer, Lorraine Huml, Edward W. Ihlenfeld, Gregory F. Isermann, Charles E. Jaeck, Ann Jaeger, Ronald Jaeger, Leroy A. Jahnke, Alvina Jakubiak, Robert H. Jamrozy, John A. Jarvella, Bruno J. Jedrzejewski, Lucille M. Jefferies, Chester B. Jelinski, Howard L. Jennrich, William S. Jens, Earl M. Jenson, Helen C. Jeske, Dolores M. Johnson, Edgar R. Jones, Frances H. Julien, Edmund L. Jurkowski, Edwin W. Justen, Leone Kahne, Norma Karpinski, Chester R. Kasinski, Ervin F. Kasprzak, Marion V. Kassow, Henry R. Kasza, Eva Katsekes, John Kenzoria, Bertha J. Kieckhefer, Evelyn A. Kind, Bernice King, Theresa Kirsch, Ruth D. Klann, Casimir Klapczynski, Wilbur H. Klasen, Frank Klein, William J. Klippel, Otto Knapke, Dorothy E. Knueppel, Doris Knuth, Cecelia F. Koch, Gladys Koenig, Leo Koenig, Robert W. Koepp, Sara M. Koepp, Lyle W. Kohn, Doris I. Komperda, Edward Kondracki, Estelle Konz, Leo Kopecki, Mary J. Kopsar, Stanley A. Korbar, Mercedes Kottke, Arthur H. Kranich, Vernell Krasnan, Rudolph E. Krause, Arthur G. Krebs, Louise Kremsreiter, Helen M. Kresnicka, Dorothy M. Kropkat, Norman L. Kruse, Edward M. Kubiak, Henry J. Kubiak, Gladys H. Kuehnel, Ruth W. Kuhn, Harry J. Kuhr, Ann Kurek, Richard Kurowski, Angeline C. Kuszewski, Peter J. Kuzniewski, Stephen Kwasniewski, Mary T. Kwiatkowski, Phillip L. LaPorte, Lucille G. Laabs, Ervin C. Landowski, Pearl Lange, Gladys Lauby, Evalyn Lavann, Florence O. Lavin, Walter Lazowski, Fritz Lehto, Hazel Lemke, Mary Lepak, Ruth E. Lewin, Dorothy Liebscher, Hildagard Liederbach, Ralph E. Lietz, Irma Lindemann, Arlene I. Lund, Luella Lund, Ethel C. Maass, Alois Machnik, Stephen C. Magenheim, Harriet M. Mahlberg, William J. Mann, Clarence Mantei, Evelyn D. Mantz, Ferdinand J. Meyer, Theron A. Meyer, Beatrice Michalzik, Joseph A. Michuda, Emil F. Milo, Eleanore E. Miotke, Joseph J. Miszewski, Theodore B. Mizak, Gordon Moll, Alexia M. Morawetz, Gloria H. Morrell, Ben Morrow, Bernice Mozach, George Muehlbauer, Lauretta Muenchow, Gladys Multhauf, Olive Murray, Edith Nagy, Joyce D. Nauertz, Frank Nawrocki, Bessie Neff, Dorothy Nelson, Eleanore Nennig, George A. Nielsen, Richard Niemann, Dolores Nimmer, Estelle M. Obst, Robert J. O'Connor, Ruth E. Ohde, Allen W. Oldenburg, Florence M. Olson, Irene Opolak, Regina J. Oppmann, Margaret Orlick, Martha Ostermeyer, Joseph Pagliano, Anthony J. Pakulski, Lawrence J. Papke, John Papp, Genevieve Pares, Jeanette E. Petermann, Marie Petersdorff, Caroline Pfeil, Tony H. Pike, Grace A. Pittenger, Marina Plant, Clara L. Plate, Selma Plinska, John Podlesnik, Josephine Pogorelc, Richard T. Polsen, Cecelia L. Popper, Anthony Primozich, Evelyn Quandt, Howard E. Radtke, Lillie E. Raiter, Greta Rasmussen, Raymond P. Raths, Myron R. Ratkowski, Lambert F. Rehorst, Harold J. Reinelt, Minnie Cox Reiter, Mary H. Reitz, Howard A. Ritzman, Kenneth F. Roberts, Robert L. Roepke, Peter Rokich, Dorothy M. Roubik, Mary Rowe, Mary S. Ruehle, Bernice Rutkowski, Helen G. Rybka, Gladys C. Salapa, William G. Schendel, Betty Fay Schiefelbein, Dorothy F. Schmid, Helmuth G. Schmidt, Jack E. Schmitt, Freda Schneider, Gertrude M. Schneider, Irene Schoknecht, Clara M. Schramm, Earl W. Schroeder, Lillian Schultz, Harley Schwertfeger, Alma Seelow, Howard R. Senn, Annette E. Shaffer, Florence Sigg, Richard F. Sinski, Esther Slottke, Raymond L. Sokol, Peter Sokop, Harold Sommerfield, Theodore R. Sonju, Mary Sorgi, Anice M. Spees, Zanana Spencer, Katie Spende, George H. Sprague, Jerome J. Springer, Stanley St. Onge, Mary E. Stark, Marion W. Stephen, Harriet Stolz, Esther D. Stout, Ethel L. Strachota, Mary A. Stroede, Mary A. Strzyzewski, Karl R. Stuhmer, Isabelle Surges, Michael Sworske, Jack C. Sylvester, Florence Szczepanski, Marie Teevan, Elsie Tellefson, Mary A. Tesch, Clara Tesmer, Gertrude Tieffenbach, Earl H. Tietyen, Dorothy H. Tietyn, Evelyn J. Todryk, Margaret Torcivia, Leonard Trinastic, Helen Ulatowski, Veronica Ullenberg, Roy V. Ullius, Regina R. Urbanek, Dorcas E. Vlcansky, Grace Voeks, Andrew H. Voss, Ben J. Wacker, Charles O. Waedekin, Jeanette E. Wahlen, John F. Walenta, Eleanor Walters, Clara Waterhouse, Ruth Weber, Gerda M. Weidner, Frank Weis, Maude W. Wellauer, June V. Wheeler, Agnes White, Louis Wiesmueller, Antola Wilburn, Kenneth A. Wille, Melvin L. Wingert, Mabel E. Winkelmann, Janet Winter, Edna M. Wissing, Richard Wissmueller, Antoinette Witt, Josephine Wittig, Ralph W. Wobszal, Frances J. Wolf, Anne Wolke, August Yanke, Estelle Zakrzewski, Norman Zastrow, Harold F. Zemlicka, Ruth M. Zenda, Evelyn Zepecki, Alice Ziemann and Ruth L. Zimdars, Plaintiffs-Appellants, v. CITY OF MILWAUKEE, Defendant-Respondent.
• Court: Wisconsin Court of Appeals

246 Wis.2d 196

2001 WI App 144

630 N.W.2d 236

POLICEMEN'S ANNUITY AND BENEFIT FUND OF the CITY OF MILWAUKEE, and George H. Sprague, both plaintiffs individually and as representative of a class consisting of City of Milwaukee Police Officers hired prior to 1948 who participated as members of the Policemen's Annuity and Benefit Fund System, and Ruth Ackmann, Gilbert C. Armbruster, Phyllis C. Bailey, Robert Baker, John W. Balcerak, Vladimir V. Barak, Elizabeth Barnes, Hildegarde Barg, Ethel G. Bartelt, Theresa Bartl, Alphonse P. Bauer, Dolores Baumann, Samuel Bay, Eugene W. Bebo, Esther B. Beck, Raymond J. Bednarek, Harold F. Behling, Virginia Behrendt, Violet Behrens, Franz Belot, Allen H. Bence, Howard C. Bentz, Ruth L. Berg, Gustav C. Bergemann, Leona Bett, Leona Bevsek, Agnes M. Beyer, Elsie V. Bilty, Richard W. Bohmer, Margaret M. Booton, Leocadia Borkowicz, Adele Brasile, Mildred Breidenbach, Harold A. Breier, Harold Breitlow, Elizabeth A. Brelsford, Hazel Brown, Ralph J. Brown, Mildred A. Bruss, Florence A. Budich, Evelyn Buege, Andrew Busalacchi, Edward F. Domask, Ann Doro, Mariann Dorow, John Dotski, Betty J. Drake, Anna J. Dunham, Harry E. Dunn, Jr., Mardella B. Eckhardt, Raymond A. Ehmke, Margaret M. Eichman, Vera M. Eichstaedt, Edmund H. Eigenfeld, Virginia Einem, Milton A. Engbring, Leone Erfert, William Ericsson, Chester R. Esch, Lucille Evans, Clara S. Evenson, Eileen Evica, Ruth Fabich, Isabelle C. Faubel, Dolores L. Feilen, Mary Ann Feilen, Florence T. Filipiak, Irene M. Fischer, Julia M. Fisher, Sylvia Freismuth, Florence Freund, Dorothy Frischmann, Glyn Fuglesang, Ruth Gaertner, John O. Galler, Ethel Galligan,

Hermine Garms, Florence A. Gelhar, Marianne Gilbert, Florence Girard, Elsie Gleisner, Virginia J. Glembin, Marvin R. Godfried, Frances G. Goehle, Norma Goehlen, Tobias J. Golembiewski, Sylvia Gorniak, John W. Grantz, Henrietta Granum, Rosemary Greinke, Theresa F. Gust, Estelle Guttowski, Mary Guzinski, Laverne J. Guzman, Stanley Gwiazdowski, Louis J. Habel, Dorothy L. Haensgen, Genevieve Hanley, Dora I. Harris, Ewald J. Hartmann, Marie Heibler, Hulda E. Heidelberg, Rose M. Hein, Walter D. Heller, Esther Helm, Mary Helz, Edmund M. Hemmen, Edwin F. Henke, Emilie C. Henrich, Rachel Hensler, Harold J. Hermann, Frances M. Herold, Rachelle Heyse, Herbert L. Hinstorff, Stella Hoffmann, Gertrude A. Horsch, Winifred Hubbard, Donald W. Huffer, Lorraine Huml, Edward W. Ihlenfeld, Gregory F. Isermann, Charles E. Jaeck, Ann Jaeger, Ronald Jaeger, Leroy A. Jahnke, Alvina Jakubiak, Robert H. Jamrozy, John A. Jarvella, Bruno J. Jedrzejewski, Lucille M. Jefferies, Chester B. Jelinski, Howard L. Jennrich, William S. Jens, Earl M. Jenson, Helen C. Jeske, Dolores M. Johnson, Edgar R. Jones, Frances H. Julien, Edmund L. Jurkowski, Edwin W. Justen, Leone Kahne, Norma Karpinski, Chester R. Kasinski, Ervin F. Kasprzak, Marion V. Kassow, Henry R. Kasza, Eva Katsekes, John Kenzoria, Bertha J. Kieckhefer, Evelyn A. Kind, Bernice King, Theresa Kirsch, Ruth D. Klann, Casimir Klapczynski, Wilbur H. Klasen, Frank Klein, William J. Klippel, Otto Knapke, Dorothy E. Knueppel, Doris Knuth, Cecelia F. Koch, Gladys Koenig, Leo Koenig, Robert W. Koepp, Sara M. Koepp, Lyle W. Kohn, Doris I. Komperda, Edward Kondracki, Estelle Konz, Leo Kopecki, Mary J. Kopsar, Stanley A. Korbar, Mercedes Kottke, Arthur H. Kranich, Vernell Krasnan,

Rudolph E. Krause, Arthur G. Krebs, Louise Kremsreiter, Helen M. Kresnicka, Dorothy M. Kropkat, Norman L. Kruse, Edward M. Kubiak, Henry J. Kubiak, Gladys H. Kuehnel, Ruth W. Kuhn, Harry J. Kuhr, Ann Kurek, Richard Kurowski, Angeline C. Kuszewski, Peter J. Kuzniewski, Stephen Kwasniewski, Mary T. Kwiatkowski, Phillip L. LaPorte, Lucille G. Laabs, Ervin C. Landowski, Pearl Lange, Gladys Lauby, Evalyn Lavann, Florence O. Lavin, Walter Lazowski, Fritz Lehto, Hazel Lemke, Mary Lepak, Ruth E. Lewin, Dorothy Liebscher, Hildagard Liederbach, Ralph E. Lietz, Irma Lindemann, Arlene I. Lund, Luella Lund, Ethel C. Maass, Alois Machnik, Stephen C. Magenheim, Harriet M. Mahlberg, William J. Mann, Clarence Mantei, Evelyn D. Mantz, Ferdinand J. Meyer, Theron A. Meyer, Beatrice Michalzik, Joseph A. Michuda, Emil F. Milo, Eleanore E. Miotke, Joseph J. Miszewski, Theodore B. Mizak, Gordon Moll, Alexia M. Morawetz, Gloria H. Morrell, Ben Morrow, Bernice Mozach, George Muehlbauer, Lauretta Muenchow, Gladys Multhauf, Olive Murray, Edith Nagy, Joyce D. Nauertz, Frank Nawrocki, Bessie Neff, Dorothy Nelson, Eleanore Nennig, George A. Nielsen, Richard Niemann, Dolores Nimmer, Estelle M. Obst, Robert J. O'Connor, Ruth E. Ohde, Allen W. Oldenburg, Florence M. Olson, Irene Opolak, Regina J. Oppmann, Margaret Orlick, Martha Ostermeyer, Joseph Pagliano, Anthony J. Pakulski, Lawrence J. Papke, John Papp, Genevieve Pares, Jeanette E. Petermann, Marie Petersdorff, Caroline Pfeil, Tony H. Pike, Grace A. Pittenger, Marina Plant, Clara L. Plate, Selma Plinska, John Podlesnik, Josephine Pogorelc, Richard T. Polsen, Cecelia L. Popper, Anthony Primozich, Evelyn Quandt, Howard E. Radtke, Lillie E. Raiter, Greta

Rasmussen, Raymond P. Raths, Myron R. Ratkowski, Lambert F. Rehorst, Harold J. Reinelt, Minnie Cox Reiter, Mary H. Reitz, Howard A. Ritzman, Kenneth F. Roberts, Robert L. Roepke, Peter Rokich, Dorothy M. Roubik, Mary Rowe, Mary S. Ruehle, Bernice Rutkowski, Helen G. Rybka, Gladys C. Salapa, William G. Schendel, Betty Fay Schiefelbein, Dorothy F. Schmid, Helmuth G. Schmidt, Jack E. Schmitt, Freda Schneider, Gertrude M. Schneider, Irene Schoknecht, Clara M. Schramm, Earl W. Schroeder, Lillian Schultz, Harley Schwertfeger, Alma Seelow, Howard R. Senn, Annette E. Shaffer, Florence Sigg, Richard F. Sinski, Esther Slottke, Raymond L. Sokol, Peter Sokop, Harold Sommerfield, Theodore R. Sonju, Mary Sorgi, Anice M. Spees, Zanana Spencer, Katie Spende, George H. Sprague, Jerome J. Springer, Stanley St. Onge, Mary E. Stark, Marion W. Stephen, Harriet Stolz, Esther D. Stout, Ethel L. Strachota, Mary A. Stroede, Mary A. Strzyzewski, Karl R. Stuhmer, Isabelle Surges, Michael Sworske, Jack C. Sylvester, Florence Szczepanski, Marie Teevan, Elsie Tellefson, Mary A. Tesch, Clara Tesmer, Gertrude Tieffenbach, Earl H. Tietyen, Dorothy H. Tietyn, Evelyn J. Todryk, Margaret Torcivia, Leonard Trinastic, Helen Ulatowski, Veronica Ullenberg, Roy V. Ullius, Regina R. Urbanek, Dorcas E. Vlcansky, Grace Voeks, Andrew H. Voss, Ben J. Wacker, Charles O. Waedekin, Jeanette E. Wahlen, John F. Walenta, Eleanor Walters, Clara Waterhouse, Ruth Weber, Gerda M. Weidner, Frank Weis, Maude W. Wellauer, June V. Wheeler, Agnes White, Louis Wiesmueller, Antola Wilburn, Kenneth A. Wille, Melvin L. Wingert, Mabel E. Winkelmann, Janet Winter, Edna M. Wissing, Richard Wissmueller, Antoinette Witt, Josephine Wittig, Ralph W. Wobszal, Frances J. Wolf, Anne Wolke, August Yanke, Estelle Zakrzewski, Norman Zastrow, Harold F. Zemlicka, Ruth M. Zenda, Evelyn Zepecki, Alice Ziemann and Ruth L. Zimdars, Plaintiffs-Appellants, v. CITY OF MILWAUKEE, Defendant-Respondent.¹

No. 99-0965.

Court of Appeals of Wisconsin.

Oral argument February 14, 2001.

Decided April 17, 2001.

On behalf of the plaintiffs-appellants, the cause was submitted on the briefs of John F. Fuchs and Marcia A. Snow of Fuchs Snow & DeStefanis, S.C., Milwaukee. There was oral argument by John F. Fuchs.

On behalf of the defendant-respondent, the cause was submitted on the brief of Matthew W. O'Neill and Lawrence J. Glusman of Friebert, Finerty & St. John, S.C., Milwaukee. There was oral argument by Matthew W. O'Neill.

Before Wedemeyer, P.J., Fine and Schudson, JJ.

¶ 1. WEDEMEYER, P.J.

The Policemen's Annuity and Benefit Fund of the City of Milwaukee ("PABF") and George H. Sprague, et. al, appeal from a summary judgment dismissing a declaratory judgment action against the City of Milwaukee. PABF claims the trial court erroneously ruled that: (1) no express or statutory trust was created to require the City to make "in lieu" widow's annuity and other contributions from 1969 to 1989; (2) the six-year statute of limitations in WIS. STAT. § 893.43 (1999-2000) bars PABF's claim; and (3) the City is not estopped from raising a statute of limitations defense. PABF further posits two bases for relief not addressed by the trial court: (1) equity requires the imposition of a constructive trust as a result of the City's failure to make the required payments; and (2) the doctrine of laches does not bar PABF's action. Because equity requires the imposition of a constructive trust, and because neither laches nor the statute of limitations bars this action, we reverse.²

I. BACKGROUND

¶ 2. Prior to July 30, 1947, police officers hired by the City of Milwaukee became members of the PABF, which is a retirement system that provides pension and other retirement benefits to its members and their beneficiaries.³ The PABF is governed by Chapter 35 of the Milwaukee City Charter, which was amended in 1969 to provide that the City make "in lieu" contributions to the fund on behalf of the police officer members and their beneficiaries for widow's annuity and other benefits. The City was to pay a sum not to exceed 6% of the earnable compensation paid a police officer who was still eligible for fund contributions.

¶ 3. The City had authority over the fund, and could amend the provisions, provided it did not modify the annuities and associated benefits of the person who became a member of the system prior to the effective date of any amendment. The retirement act, codified at 35-01-67 of the Milwaukee City Charter, provides that officers and their beneficiaries have vested rights to annuities and benefits that shall not be diminished or impaired by subsequent legislation without the officers' consent. The act provides a lifetime widow's annuity with required contributions until an officer turns fifty-seven years old and optional contributions after that time. It provides that a police officer who continues working after turning...