Madison Avenue Baptist Church v. Baptist Church
Dissenting Opinion
(dissenting). On the first trial of this case the defendants, to show title out of plaintiffs, offered in evidence the record of the proceedings had in the Supreme Court to dissolve plaintiffs’ incorporation, and authorize a sale and trans fer of its property. The Justice at Circuit excluded all evidence of these proceedings, on the ground that such evidence was immaterial and constituted no defence to the action, in that the Supreme Court had exceeded its authority in ordering a dissolution of plaintiffs’ corporation in directing a conveyance of plaintiffs’ property to the defendants, instead of a sale in market for money, and in ordering the proceeds, after payment of incumbrances, to be paid to defendants. Accordingly, the Justice ordered judgment for the plaintiffs. The General Term, on appeal, reversed this decision, ordered a new trial, and held that the record of the proceedings in the Supreme Court should have been admitted in evidence, for that the record on its face, uncontradicted, was sufficient to give the Court jurisdiction, and that the Court did not exceed its authority in the premises.
This is all, as I understand it, the Court on the first appeal did or could attempt to decide. The case, as it now appears, contains much additional evidence, and,, in my opinion, raises important questions not before considered by the Court.
The Justice at Circuit, however, found as a fact, among other findings, that the proceedings of the corporators’ meeting of the 29th of September, 1862, and the meeting of the “ trustees ” of the 1st of October, 1862, were severally “duly called and convened.” But he does not find as a fact, that the proceedings of either of these meetings were attended, or assented to, by a majority of the plaintiffs’ corporators, or how or in what manner the meeting of the 29th of September was called. And he declines to find whether or not the papers called “ consent of pew holders ” and “ consent of pew owners ” contain the signatures of a majority of the corporators. To such refusal to find, plaintiffs’ counsel excepted. If the facts, therefore, are material, the refusal to find as requested was error.
The Justice found, as matter of law, that the title to the property in question was in the defendants, and that they were entitled to a judgment of confirmation of their title.
In my opinion, the evidence given, and the rulings' of the Judge on the second trial, raise important jurisdictional questions, which were not and could not have been considered on the former appeal.
And these questions are, whether upon the undisputed facts in
That the jurisdiction of any Court exercising authority over a subject may be inquired into in and by every other Court where the proceedings of the former are relied upon is well settled (1 Peters’ U. S. Rep., 328 ; 8 N. Y. R., 254 [4 Selden] ; 12 N. Y. R., 156 ; 6 Barb., 607).
I deem it immaterial to inquire whether, independently of any statute on the subject, a religious corporation could convey its real estate. For it is conceded that corporations organized under the act of 1813 can only convey by the permission of the Supreme Court first had and' obtained in the manner prescribed by the statute.
In respect to religious societies, incorporated under the provisions of the last-mentioned act, it is settled by the court of last resort that they are civil corporations aggregate, and that the “ body corporate ” is the “ male members of full age belonging to the church, congregation, or society, who statedly attend divine worship in such church, and who contribute to its support and that the title to all the corporate property (unless expressly otherwise held in trust) is vested in such “ body corporate and that the so-called “ trustees ” are only officers or agents to care for and manage the corporate property for the use and benefit of the corporation (Robertson v. Bullions, 1 Kernan’s R., 243; People v. Fulton, ibid, 94).
In my opinion, the general power and authority of officers or agents of a corporation do not extend to authorize them to dispose of, by sale, the real estate nf the corporation, or institute any proceedings for that purpose, unless expressly empowered so to do by the charter, or by the express or implied authority of a majority of the corporators. I am aware that there has been some conflict of decisions on the subject, but I think the weight of authority is as above stated, and that the opposite
In ascertaining the general power and authority of officers and agents of a corporation, derived simply from their appointment as such, regard must be had to the character of the corporate body and the object and purpose of its corporate existence, and, that being ascertained, it then becomes the duty of its officers so to manage its affairs as to promote its prosperity and welfare, and advance and subserve the general purposes and designs of its incorporation; and any act of its officers intended or calculated to destroy the corporate body or subvert or defeat the objects and purposes of its corporate existence, or destroy or substantially impair its_ usual and ordinary business, will be held unauthorized and void, unless the authority to do the particular act is found in the charter, or expressly or impliedly authorized by the body of the corporators themselves, either in the form of by-laws^ rules, resolutions, or other act evidencing assent (Robbins v. Clay, 33 Maine R., 132; Angel on Corporations, sec. 480 ; Malborough Man. Co. v. Smith, 2 Conn. Rep., 579; Abbott v. The American Hard Rubber Co., 33 Barb., 578, and authorities cited). And so far was this principle carried, that in the case last cited a sale by the directors of all the.personal property of a manufacturing corporation, so as thereby to prevent the prosecution of the particular business for which the corporation was organized, was declared unauthorized and void, as against a non-consenting stockholder, although assented to by the holders of a majority of all the capital stock, and this, notwithstanding the corporate body was left intact with its factory and real estate, well adapted to the prosecution of other business. It is true that this was a case of a jovrit-stooh corporation, and rose between a non-consenting-stockholder and the purchasers of the property. But the principle decided is applicable to all corporations alike, viz., that the general power of the officers and agents does not extend to do such a thing, and that the act would be held void whenever and wherever questioned. And this upon the principle that such suicidal acts were not within the scope
If I am correct in this, the next inquiry is, whether there is to be found any authority, express or implied, in the act of incorporation, authorizing the “ trustees ” to “ apply ” to the Court for leave to sell the real estate of the corporation.
The language of the statute is, that “ it shall be lawful for the Chancellor (Court), upon the application of any religious corporation, to make an order of sale,” &c. It is the application of the “ corporation,” and that alone, which confers upon the Court jurisdiction to proceed in the premises. But it is said the “ corporation ” can only act through - its agents. True, but these agents must be thereunto duly authorized in some way so to act, and" the inquiry is whether these particular agents can find any warrant of authority in the statute, of their own volition to put the “corporation” into court by making in its name the “application ” to sell its real estate. The powers and authority of the trustees in respect to the property and temporalities of the church are defined and specified in the fourth section of the act with more than usual particularity; and it will be seen that they are, with one' ex- . ception, powers of custody, management, and accumulation merely. They may have the “ custody ” of all “ temporalities,” enumerating many of them. They may collect all “debts and demands,” and assert and defend all “ rights and privileges,” in church property, may “purchase and hold" other additional “real and personal” property, and “ demise, lease, and improve” the same for the “ use of the chiorch,” &c. They may erect “ buildings for ministers,” “school-houses,” and other buildings for like “ use of the church ” (not for sale); and may “ make rules and orders for managing the temporal affairs of the church.” It will be seen that in all these carefully and specifically enumerated powers there is not a word expressing or implying a power to sell and dispose of property. They are powers coupled with a duty to Tceep and accumulate for the “ use ” of the church, and which duty would be violated by an attempt to sell
The idea appears to he, that property once vested in a religious corporation, for religious uses, is solemnly dedicated to the service of God, in such mode and manner, and with such forms of worship, as the corporation shall choose (not inconsistent with the law of the land, and the general public policy of the country).
It is clearly the intent of the statute to withhold from these religious corporations that general power of sale and disposition of its property which is incident to other civil corporations, organized for the prosecution of secular affairs, and to confer this power on religious corporations only for special occasions and to meet particular emergencies, and not even then without the sanction and approval of the Court first had and obtained. Hence, whenever the occasion arises where the religious “ uses ” above stated may be subserved by a sale of the real estate of the corporation, it is provided, in the incorporating act, that whenever such corporation may desire to sell its real estate, such “religious corporation” (not its officers) may apply to the Supreme Court for an order permitting such sale. And the statute then immediately proceeds to clothe the Court with power to “ direct the application of the moneys arising from such sale, by the corporation, to such uses as the same corporation, with the consent and approbation of the Court, shall conceive to be most for the interest of the society to which the real estate so sold did belong thus precluding the possibility of the church property, or its proceeds, being in any manner disposed of, except by the particular and, specific action .of the “ corporation ” itself. The “ trustees ” may; manage and hold, buy and build, alter and repair, lease and demise, but it is the corporate body only that can sell and dispose of :the realty, and that only with the consent of the Court.
There is, therefore, nothing to be found .in the act of incorporation which does expressly, or by implication, confer authority lip on the trustees to make “ application ” to sell the church property; and aside from the proceedings of the meeting, here
I am not without authority for this conclusion. The case of the Malborough Manufacturing Co. v. Smith (2 Conn. Rep., 579), above cited, is in point on this question. It was there held, that a joint resolution of the Legislature of the State of Connecticut, increasing the power of the directors of the corporation, procured on the application of the directors alone, without the consent or knowledge of the body of the corporators, was null and void. This joint resolution authorized the “ corporation ” to do certain acts (making assessments upon stock) which by its original charter it was not authorized to do. The Court further held, that even if the joint resolution were held valid, it did not authorize the directors to do the acts, and that an assessment by the directors, without other authority, did not bind the body corporate, or any stockholder who might dissent; or, in other words, the Court held to the principle, that where a special power is conferred by statute upon a “ corporation,” eo nomine, to do some act not within the scope and power of its general corporate powers, such special power can only be exercised by officers specially thereunto authorized by the corporate body.
The only remaining question is, Had these “ trustees ” any express authority from the corporate body; or does any circumstance appear in evidence from which this Court can rightfully and legally imply an authority to the “ trustees ” to institute and prosecute the proceedings to sell the real estate and dissolve the corporation?
The act of incorporation provides for the ascertainment and registration'of all such persons as shall from time to time become corporate members in these religious corporations. This registry
The effect given to this meeting and its proceedings renders it necessary to examine with some particularity the law and facts with regard to it. The meeting was held on Monday evening, September 29,1862, pursuant to the following call, read from the pulpit on the preceding day, viz , “A meeting of the church and congregation will be held in the chapel to-morrow evening, at 7-|- o’clock, for the purpose of authorizing the trustees to take the proper legal steps for effecting our union with the Oliver street JBa/ptist Ohurch.” It will be observed that this call was for the whole body of the church and congregation,
It is sought to avoid the force of these objections by general propositions, to the effect that the statute has authorized these corporators to apply to the Court for leave to sell their property; that corporations usually act by agents appointed at meetings, and, as the statute prescribes no method of calling such meetings, they may be called without notice, or on any notice, &c. But I deny in toto that corporations ever are or can be bound by the acts of officers or agents, unless the acts done are either within the scope and purview of the general power and authority of such officers, or are especially authorized by some rule or resolution of the corporate body; and further, that corporations never do or can act by or through meetings of a minority of the corporators, unless such meetings are expressly authorized to be convened and held' by some authority which is binding upon or has been assented to by all. If there be no such authority, then a majority at least must act or assent. And it is questionable, where the act sought to be authorized is one not within the scope of the general powers of the corporation, whether it is not necessary to have the assent of all the corpora-tors in order to bind all. Such is certainly the rule in reference to moneyed and joint-stock corporations. At all events, I am clearly of the opinion that without such authority the proceedings of a meeting, to be of any force or effect, must be participated in, or the meeting attended by, at least a majority of the corporators, and personal notice (or its equivalent) must be given
The learned Justice at the Circuit finds as a fact that the meeting of the 29th of September was “ duly called and convened.” The finding is general. The Judge could not have intended to find as a fact that the meeting was called by any charter or corporate authority for such purpose specially made and provided; because it is conceded there was no such authority It was doubtless intended merely as an assertion of the Judge’s conclusion that the mode and manner of calling and convening the meeting were such as to make it a meeting of the body corporate, sufficient in law to confer power upon the trustees to proceed. This I have endeavored to show was error.
The objection of the defendants’ counsel respecting the difficulty and inconvenience of personally notifying the corporators of the call for the September meeting, scarcely needs comment, in view.of the fact that the corporators were but eighty in all, residing in a small compass, their names registered, and their rights as corporators depending upon their “stated attendance upon divine worship” in that church. Neither do I consider it necessary to remark upon the effect to be given to the papers entitled “ Consent of pew, holders,” and “ Consent of pew owners.” It is substantially conceded, that these papers contained the signatures of but twenty-seven corporators, and it is 'not pretended that any authority for the proceedings of the trustees could be derived therefrom.
In conclusion, I desire briefly to notice the character of the proceedings to sell this church property. The petition was sworn to the 17th of October, 1862, and on the same day, without any order to show cause or notice of presentation or examination, save of the statements in the petition, the Court “ di/rected ” the trustees to convey all plaintiffs’ property to the “ Baptist Church in Oliver street.” And on the 21st of October this order was complied with by the execution, under its corporate seal and delivery of a conveyance to the last-named church, of all plain
Were the question open to me on this appeal, I should not hesitate to hold that such a paper was not, and could not be taken to be, in any sense, the “application” of the “religious corporation” whose property it sought to affect, and that the petition was void and of no effect on its face, and all subsequent proceedings based upon it were likewise void. And further, that the Court exceeded its authority in the mode and manner of disposition, both of the realty and its proceeds.
This Court, however, on the former appeal, has held otherwise on these questions. And in that decision I so far acquiesce, that if there were no other questions in the case, I should vote for affirmance of the judgment, upon the ground of stare decisis. But I cannot concur, in opinion.
It is with regret and some diffidence that I feel constrained to dissent from the opinions of my learned and more experienced associates, but such are my convictions.
The judgment should be reversed, and a new trial granted.
Opinion of the Court
When this case was before the Court upon the former appeal, it was held, that the matters set forth in the answer, and which had been offered to be proved on the trial, constituted a defense to the action. I do not, therefore, propose to examine at much length any of the questions disposed of by the former decision, except as those questions may be affected by the evidence given on this trial.
It is now claimed that such evidence renders the proceedings to obtain the permission of the Court to convey the plaintiffs’ property entirely void, for the following reasons:
First—That no legal notice was given of the meeting at which the Trustees were authorized to make the application;
Second—That the resolution containing such authority was not adopted by a majority of all the corporators of the church; and,
Third—That a portion only of the pew owners and pew holders, who consented to such application, were corporators.
The only notice for the first meeting of the society was given from the pulpit of the church, notifying the- church and congregation that a meeting would be held for the purpose of authorizing the trustees to take the proper legal steps for effecting the union. Such notice, it is claimed, was not sufficient to bind the corporation, by a vote of a majority of those present at
The eleventh section of the act to provide for the incorporation of religious societies (Laws 1813, vol. 2, p. 212, see. 11) provides, that an order for the sale of its real estate may he made “ upon the application of the “ corporation,” but no mode or form is anywhere prescribed for making the application.
The corporation is the aggregation of the male members, of church and congregation, who have been stated attendants, and have contributed to its support; and it is such aggregation that is authorized to make the application.
All corporations act by and through their officers and agents, whose powers are delegated at public or private meetings. Such meetings may be convened in such manner, upon such notice, and at such place, as may be provided in the by-laws, or otherwise agreed upon by the corporation. The statute does not require that any notice shall be given; and it is entirely competent for a corporation to adopt any by-law respecting the notices which may be proper or necessary to be given, or in any other manner prescribe the mode of notifying the corporators, provided it is not in conflict or inconsistent with the statute. The only notice of which the statute has prescribed the nature and manner of giving, is in respect to the election of trustees; and it is provided, that the minister, elders, or deacons, &c., shall “publicly notify ” the congregation of the time and place of the election. But whether such notification shall be by announcement from the pulpit, or, as the plaintiffs claim it should be, in respect to other meetings, by personal service upon each corporator, is not defined. Yet I think it cannot he successfully contended that a notice announced from the pulpit would render an election of trustees void. In one case (People v. Peck, 11 Wend., 604), the Court held that even the omission altogether to give the notice prescribed by the statute in respect to elections of trustees, did not vitiate an election. If any thing can be gained from the statute, it is, that if the legislature thought the rights and interests of corporators, in so important a matter as
It may be, that the rule contended for by the plaintiffs is, to a limited extent, applicable to .all that class of corporations in which the corporators or stockholders have a material and direct interest in the property of the corporation, and have a right to be consulted with regard to its disposition. In those cases, I have no doubt that, if it is desired to get authority from the stockholders, and there is no particular mode of notifying them provided either in the charter or in any by-law, personal notice should be given. But in a religious corporation, where the corporators have not, individually, any pecuniary interest, and where any male person, who merely statedly attends divine worship and contributes a few pence annually to the support of the church, is a corporator, no such strictness can be required. And therefore, if a meeting is convened, after a public notice given in the manner usually adopted for giving notices of all meetings of the church and congregation, the proceedings of such meetings cannot, it seems to me, be otherwise than valid and binding upon all the corporators.
The two cases to which we were referred by the plaintiffs’ counsel have not, upon examination, been found to strengthen the position, that the notice of the meeting, in the case before ns, was not sufficient to bind the corporation. In one of the cases (Wiggin v. First Freewill Baptist Church of Lowell, 8 Met., 30), the decision was put upon the ground that there were special provisions in the incorporating law, directing the manner in which meetings should be convened, which were, “ in such manner as the society shall, by any by-law or vote, provide;" if there be no by-law or vote, then “ in such manner as the assessor, or the standing committee, shall, in their warrant for such meeting, direct.” And there was a further provision in case the assessors or committee refused or neglected. The meeting was
The other case (Stow v. Wyse, 7 Conn., 214) was .a manufacturing corporation, and there was no notice whatever to the stockholders of the meeting, and the Court said, that if there was no particular mode of notifying stockholders provided either in the charter or in any by-law, personal notice might be given ; and it was held, in that case, that without such personal notice the meeting had no authority to direct a sale of its property. But the doctrine of that case, even if it he approved, must be confined, I think, to the class of corporations to which I have before referred, in which the stockholders, as in the case from Connecticut, have a material and pecuniary interest, and where the trustees or directors are clothed with none of the large powers which are conferred by the statute upon church trustees.
If I am correct in supposing that the notice of the meeting was sufficient and the meeting was legally convened, it necessarily disposes of the second objection, namely, that the resolution authorizing the application to the Court was not adopted by a majority of all the corporators. It was adopted by a majority of the persons present and voting at the meeting; and that, upon well-established principles, was sufficient to bind the corporation. No question was raised that a quorum was not present; nor was the right of any person to vote challenged or questioned ; and we have the right to assume that a majority of the persons entitled to vote were present. If, therefore, the meeting was legally called, and there was a sufficient number present, of those who had the right to be present, the proceedings of the meeting, adopted by a majority, were binding upon all the corporators.
The third objection has even less force. It was not necessary to obtain the consent of the pew owners or pew holders at all, and it is quite immaterial whether or not they were corporators. They certainly had no greater rights than corporators, and it was not necessary to consult their wishes, after having obtained the
Hone of the objections, therefore, taken by the plaintiffs, seem to me to affect the validity and sufficiency of the proceedings to obtain the sanction of the Supreme Court to the proposed conveyance. As found by the learned Justice, the meeting was duly called and convened, and the resolutions authorizing the application of the Court properly passed, and nothing more was required to confer jurisdiction, or give binding effect to the action of the trustees.
I see no reason for disturbing such finding. The evidence, when subjected to well-understood principles, which I have attempted to express, would justify no other conclusion.
But if it were necessary to go a step farther in this case, the petition to the Court, and the order made thereupon, could be sustained on the further ground, that the authority of the corporators was not necessary, and, therefore, all question as to the sufficiency of the notice, or of the vote at the meeting, is disposed of. It has been held, by two judges at least (Matter of Second Baptist Church in Canaan, supra, and Matter of St. Ann’s Church, 14 Abb., 424), that the trustees of a religious society have power to make the application, without being authorized by the express vote of the corporation.
The fourth section of the Act of 1813 (supra;) vests all the temporalities belonging to the church, as well its real as its personal estate, in its trustees. They are authorized to purchase other real or personal estate, and to demise, lease, and improve the same; to erect meeting-houses, and to dispose of all moneys belonging to the corporation. All this authority may be exercised without consulting or obtaining the consent of the corporators; and therefore, in virtue of the care and custody of the real estate of the corporation with which the statute intrusts them, the trustees are the proper persons to obtain the sanction of the Court to a sale. As the giving or withholding its sanction is wholly in the discretion of the
In short, trustees of religious- corporations have the power and the right, <and, as I think, the sole power and right, to seek the sanction of the Court to a proposed sale of the corporate property; and if an order is made allowing the sale, and the order is executed by a conveyance of the property, it must be that the title acquired would be valid and effectual.
It was earnestly contended by the plaintiffs’ counsel, that this Court was in error in holding, upon the decision of the former appeal, that the real property of a religious corporation was alienable at common law, and that such power of alienage was merely restrained by the statute.
The confidence with which that position was attacked has led me to a further examination of the question, although it is not necessary to the decision of the case.
That corporations aggregate have at common law such right, and, independently of any statute, the absolute jus disjoonendi, which is neither limited as to object nor circumscribed as to quantity, seems to be well settled upon authority (The Mayor and Commonalty of Colchester v. Lawton, 1 Ves. & Bea., 226; 1 Sid., 161, note at the end of the case ; Sutton’s Hospital, 10 Co., 30, b ; 1 Kid on Corp., 108 ; Com. Dig., tit. “ Franchise,” and cases cited in 3 Robt., 570).
In England, this common-law right of disposition was greatly restrained, on the part of religious corporations, by numerous statutes from 13 Ed. 1 (c. 41), to 5 Geo. 3. (ch. 17), and particularly by several statutes passed in the reign of Elizabeth. By those statutes the common-law right of disposition
The English statutes to which I have referred were enacted for no other purpose than to take from religious corporations their common-law powers of alienation. If such common-law powers had not existed, the Statutes of Westminster were supererogative and needless, and we should have to impute to the British Parliament ignorance of their own common law.
The first general incorporating act of religious societies, in this State, was passed in 1784 (1 Greenleaf ed. Laws of 1784, p. 71). That statute did not contain the present eleventh section of the act of 1813; and whether, until the act of 1806, there was any restraint upon alienation, depended upon whether the statutes of England, in regard to religious corporations, had been adopted by the colonial government in this country, of which Chancellor Walworth says there was a doubt (supra). Consequently, the special acts of 1803, authorizing sales of church property, were passed, and also the general act of 1806.
The reexamination of this question has confirmed the opinion I have heretofore expressed, that in this country, at least, the common-law right of alienation has not been taken away, unless the required sanction of the Court to a sale can be construed into something more than a restraint upon alienation.
The question, however, is of but little importance, inasmuch
I have examined the exceptions taken to the exclusion of evidence offered by the plaintiff, and do not think any of them well taken. They were offers of evidence of matters transpiring after the order had been made by the Supreme Court, and after the deed of the premises had been executed and delivered to the defendants, and would at most have tended to show that some, and possibly a majority of the corporators, did not approve of or consent to the transfer. For the reason I have already stated, such evidence would have been immaterial upon the issues in the case, and ineffectual to impair or defeat the defendants’ title, and were therefore properly excluded.
I find no error in the decision or judgment, and think they should be affirmed, with costs.
Concurring Opinion
(concurring). I think the weight of authority is to the effect that the management of the temporal affairs and of the property of religious corporations is vested exclusively in the trustees; that they are to determine whether it is necessary or • expedient to sell the real estate of the corporation, and the terms on which the sale should be made ; and it is for them to apply to the Court to obtain leave to carry out their plans.
It follows from this that it is not necessary there should be any resolutions by the corporators authorizing a sale and application to the Court, nor that a sale and application should be assented to or authorized by the corporators, or any of them; but the application of the trustees only gives the Court jurisdiction to authorize a sale.
It is true, the Court may hear the corporators in opposition to the application of the trustees, and perhaps may even deny the application on the specific ground that a majority of the corporators object to a sale. So, also, the Court may, on application
This view disposes of the first, second, and third of appellants’ points.
The fourth point has been passed on at a previous General Term adversely to the appellants.
I concur in affirming the judgment, with costs.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.