Aleman v. Carrillo

364 N.E.2d 892, 49 Ill. App. 3d 93, 7 Ill. Dec. 601, 1977 Ill. App. LEXIS 2709
CourtAppellate Court of Illinois
DecidedApril 21, 1977
DocketNo. 75-137
StatusPublished
Cited by2 cases

This text of 364 N.E.2d 892 (Aleman v. Carrillo) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aleman v. Carrillo, 364 N.E.2d 892, 49 Ill. App. 3d 93, 7 Ill. Dec. 601, 1977 Ill. App. LEXIS 2709 (Ill. Ct. App. 1977).

Opinions

Mr. JUSTICE GEORGE J. MORAN

delivered the opinion of the court:

Plaintiffs appeal from a judgment of the circuit court of St. Clair County finding the issues in favor of the defendant in a case in which plaintiffs contested the validity of the dissolution of a not-for-profit corporation known as “Mexican-American Society of Fairmont City, Illinois.”

Plaintiff Mexican-American Society of Fairmont City (herein referred to as the “Society”) was incorporated in 1947 pursuant to the Illinois General Not-For-Profit Corporation Act (Ill. Rev. Stat. 1975, ch. 32, par. 163(a) et seq.). The purpose of the Society was to provide an organization to assist the Mexican-American community in a variety of ways, including but not limited to social, intellectual, and economic advancement.

The original Society consisted of 45 founding members who adopted a constitution and bylaws in accordance with section 163(a)(8) of the Not-for-Profit Corporation Act. The original constitution and bylaws were written in Spanish, and translated into English for the purposes of this lawsuit.

On May 13, 1968, the Society held its periodic meeting. A motion to reorganize the Society to a business corporation was adopted by 20 members attending the meeting. The motion stated:

“The May 13, 1968 meeting of the Mexican-American Society of Fairmont City passed a motion that the organization be made into a profit organization of shares for twenty members in good standing. Every member will be given an equal share. Listed below are the names of members who are to receive the shares.”

The signatures of the 20 members follow, and the document was notarized by the accountant. A certificate of dissolution of the corporation was thereafter issued by the Secretary of State.

The Mexican-American Club, Inc., was then incorporated as the business corporation to succeed the Society. In accordance with the motion to reorganize, the 20 members whose signatures appear on the motion received equal shares in the corporation.

On August 10,1972, the plaintiff Juan Aleman filed a suit, T.C. No. 72— 2152, against Joseph Carillo, Jose M. Roque, Justino Martinez, Antonio Rangel, and Mexican-American Club, Inc., alleging that the individual defendants fraudulently and illegally dissolved a not-for-profit corporation known as “Sociedad Mexican American de Fairmont City, Illinois” and wrongfully converted it into a corporation for profit, namely, the defendant Mexican-American Club, Inc. Plaintiff s suit asked the court to hold that the individual defendants were illegally elected and that the incorporation of the defendant Mexican-American Club, Inc., be held illegal and void.

On June 13, 1974, the trial court, after hearing the evidence, made complete findings of fact and conclusions of law and rendered judgment in favor of the defendants and against the plaintiff.

Appellant Aleman in his brief filed in this court has not questioned the validity of the judgment against him, so the judgment in favor of the defendants and against plaintiff Aleman in the trial court in Cause No. 72 — 2152 must be affirmed.

On June 10, 1974, in a suit styled “Mexican-American Society of Fairmont City, Illinois, an Illinois Corporation v. Mexican-American Club, Inc., a corporation,” trial court No. 74 — L—892, the plaintiff claimed that it was a nonprofit organization first organized in August of 1941, that the defendant was a business corporation incorporated on June 10, 1968; that plaintiff was the owner in fee of certain premises.

Plaintiff further alleged that on June 10,1968, the defendant wrongfully entered the above premises and has withheld and continues to withhold possession of said property from plaintiff, claiming a title interest in the property.

Defendant filed a motion to dismiss, claiming the plaintiff lacked legal capacity to sue because the plaintiff was dissolved as a general not-for-profit corporation on May 29, 1969. Attached to the motion was a certificate of dissolution signed by the Secretary of State.

In answer to defendant’s motion plaintiff filed a certified copy of a judgment order of the circuit court of St. Clair County cancelling the articles of dissolution of plaintiff and reinstating the plaintiff to corporate status. The judgment ordered the Secretary of State to expunge from his office the articles of dissolution and to “do such other things as are necessary” to show that the plaintiff is a duly organized and existing corporation.

The suit from which this judgment emanated was styled “Mexican-American Society of Fairmont City, Illinois, Juan Cisneros and Abraham Aleman v. Secretary of State of Illinois,” No. 73 — MR—2453. Plaintiffs in this action were Juan Cisneros, Abraham Aleman, and the Mexican-American Society of Fairmont City. Both of these individuals were founding members of the Society, and members in good standing at the time of the reorganization to the business corporation. Both received stock in the Mexican-American Club, Inc., in exchange for their interest in the defendant not-for-profit corporation.

The defendant was the Secretary of State of Illinois. The nature of this action was to vacate the articles of dissolution of the Society filed in 1969 and reinstate the Society. It is important to note that neither the Mexican-American Club, Inc., nor any of its incorporators were parties to this suit. The Secretary of State entered a consent to judgment and the court ordered the articles of dissolution cancelled.

In finding in favor of the defendant in case No. 74 — L—892 the trial court found:

“8. The second suit, No. 74 — L—892, was filed by Mexican-American Society of Fairmont City, Illinois, an alleged Illinois not-for-profit corporation.
9. By appropriate affirmative defense in its responsive pleading, defendant, Mexican-American Club, Inc., challenged the legal capacity of Mexican-American Society of Fairmont City, Illinois to bring and maintain this suit, alleging that said not-for-profit corporation had been dissolved.
10. The Court finds that said not-for-profit corporation was duly dissolved by the Secretary of State of Illinois in 1969; the Court further finds that an attempt was made by certain individuals, Juan Cisneros and Abraham Aleman, proporting (sic) to act for and on behalf of Mexican-American Society of Fairmont City, Illinois, during the period subsequent to the filing of the first suit herein, No. 72 — 2152, and the filing of the second suit, No. 74 — L—892, filed a suit in this Court docketed as No. 73 — MR—2453, against the Secretary of State of Illinois, as defendant, in which said cause a proported (sic) judgment was entered on September 10, 1973 ordering that the Articles of Dissolution of the not-for-profit corporation, Mexican-American Society of Fairmont City, Illinois, filed on or about May 29, 1969 be cancelled upon the filing of annual reports and payment of fees.
11. No notice of the pendency of said suit or the hearing resulting in the judgment of September 10, 1973 was given to any of the defendants in this cause.
12.

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In Re Marriage of Roth
426 N.E.2d 246 (Appellate Court of Illinois, 1981)
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400 N.E.2d 715 (Appellate Court of Illinois, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
364 N.E.2d 892, 49 Ill. App. 3d 93, 7 Ill. Dec. 601, 1977 Ill. App. LEXIS 2709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aleman-v-carrillo-illappct-1977.