Kirtland v. Purdy University
Kirtland v. Purdy University
Opinion of the Court
delivered the opinion of the court.
On the 9th of October, 1867, the original bill was filed in this cause by the complainants as creditors of the Purdy University, a corporation created by the Legislature of this State in 1856, to subject to the satisfaction of the complainants’ demands the property of the corporation, consisting of a school building and the land on which it was situated, and some school furniture and apparatus. The subpoena was served upon one of the trustees, and a stockholder of the corporation, who was the lawyer by whom the complainants’ bill was filed. He put in an answer admitting the facts to be as alleged, and at the return term of the writ, during the same month of October, a final decree was rendered in favor of the complainants, by which their debts were ascertained to amount to nearly sis thousand dollars, and the property of the University ordered to be sold in satisfaction thereof. The property was sold under this decree, and bid off by the principal creditor, who had been the president of the University, at $1,500 for the realty and $500 for the personalty. This sale was confirmed on the 13th of October, 1868.
On the 5th of September, 1872, David McKenzie and others, claiming to be stockholders of the University, filed their petition in said cause, setting out the foregoing facts, charging that they had no notice of the proceedings, that the same were illegal, and the decree fraudulently procured, and asking “that they be permitted to show that the decree rendered is errone
After the remand, the petitioners filed a demurrer to the bill, which was overruled. They then filed “ an answer in the nature of a cross-bill,” and asked “that it be treated as an original bill in the nature of a bill of review.” The prayer was, that the orders and decrees in the original cause be set aside, for an account, etc. An answer was put in to the cross-bill and proof taken. On final hearing, the chancellor was of opinion that his decree in the original cause had not been disturbed by this court, and could not be by an answer and cross-bill, and he, therefore, dismissed the cross-bill with costs, and the petitioners again appealed.
It appears from the allegations of the cross-bill, that the Purdy University was a private corporation,
It is suggested by the cross-bill, and in argument, that the land of the corporation was held by such a title that it could not be subjected to the payment of the debts of the corporation. But this is a mistake. The land was bought by the corporation with its own money, not donated. The conveyance is to certain persons named, “trustees of Purdy University and to their successors forever for the use of said University.” The habendum is “to have and to hold to said trustees and their successors forever for the use and benfit of said University, but for no other use.” It is common learning that the habendum of a deed cannot abridge the estate given in the premises: Co. Lit., 299 a; Hafner v. Irwin, 4 D. & B., 435. The words, moreover, do not create a condition, or provide for a divestiture of title by a failure to use in a particular mode: Ramsey v. E. & Ky. R. Co. 3 Tenn. Ch., 175, affirmed by this court. The land could be sold by the corporation, and divided among the stockholders: State v. Elliston, 4 Baxt., 99. And a conveyance for the exclusive use of a school or charity does not affect the power of disposition: Franklin v. Armfield, 2 Sneed, 306, 354.
Affirm the decree with costs.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.