The legal sufficiency of plaintiff’s bill of complaint is challenged by preliminary objections thereto filed by defendants.
The following facts are alleged in the bill: On May 23, 194.0, plaintiff, a business broker, held a contract with
The sale was in bulk and not in the ordinary course of trade and was made without compliance with the provisions of the Bulk Sales Act of May 23, 1919, P. L. 262, 69 PS §§521, et seq., in that defendant Pitt failed, before any portion of the purchase price was paid, to demand or receive from his vendor, Mrs. Forman, a sworn written statement of the names and addresses of all her creditors, the amounts due or to become due them, and the inventory of stock and fixtures required by the act. Moreover, the notice to creditors required by section 2 of the act was not given. The purchase money not having been applied to the payment of the bona fide claims of the vendor’s creditors according to their dignity, plaintiff seeks, inter alia, an adjudication that the sale is void, defendant Pitt is liable to him as a receiver for the fair value of the transferred property, and defendant Mrs. Forman is indebted to him in the sum of $135 with interest.
The issues raised by defendants’ preliminary objections are twofold: (1) Whether or not the bill of complaint is defective in failing to aver plaintiff’s compliance, as a broker, with the license and license-tax provisions of the Act of May 7,1907, P. L. 175, secs. 1, 9, 72 PS § §2901, 2917; and (2), apart from the foregoing, whether or not plaintiff is a “creditor” within the meaning of the Bulk Sales Act, supra.
The foregoing conclusion renders unnecessary an adjudication as to plaintiff’s status as a “creditor” within the meaning of the Bulk Sales Act. However, since plaintiff may be able to amend his bill to supply the aforemen
More particularly, it has been determined that a business broker retained to sell a business for a commission becomes a creditor within the meaning of the act at the very moment he brings the vendor and vendee together and a subsequent sale will be invalid as to him in the event of noncompliance with the statute: Blau, etc., v. Richman et al., 33 D. & C. 481 (1938); Cain v. Samuels, 70 Pitts. 152 (1921) ; cf. Penrose v. Damens et al., 33 D. & C. 587, 589 (1938). Under plaintiff’s contract in this case, his rights are the same for this purpose. Assuming the truth of the allegations of the bill, at the moment the sale was consummated plaintiff became a creditor of defendant, Mrs. Forman, for the commissions due and, consequently, would appear to be within that class protected by the provisions of the Bulk Sales Act, supra: George H. West Shoe Co. et al. v. Lemish et al., supra.
Decree
And now, to wit, October 1, 1940, it is hereby ordered and decreed that defendants’ preliminary objections be sustained with leave to plaintiff to amend his bill of complaint within 15 days from the date hereof, or the bill will be dismissed.
