American Legion v. Big Spring Veterans, Inc.

73 S.W.2d 594, 1934 Tex. App. LEXIS 698
CourtCourt of Appeals of Texas
DecidedJune 1, 1934
DocketNo. 1276.
StatusPublished
Cited by3 cases

This text of 73 S.W.2d 594 (American Legion v. Big Spring Veterans, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Legion v. Big Spring Veterans, Inc., 73 S.W.2d 594, 1934 Tex. App. LEXIS 698 (Tex. Ct. App. 1934).

Opinion

HICKMAN, Chief Justice.

This suit went to trial on plaintiff’s fourth amended original petition in which William Prank Martin Post No. 185 of the American Legion, Department of Texas, alleging itself to be a corporation, and American Legion, Department of Texas, alleging itself to be a corporation, were plaintiffs, and Big Spring Veterans, Inc., a corporation, was defendant. The suit involves the title and possession of lot 11, block 29, original town of Big Spring, Howard county, Tex. The trial below was before the court without the assistance of a jury, and resulted in a judgment that plaintiffs take nothing, and the cause has been brought to this court by a writ of error proceeding. The brief of plaintiffs in error well summarizes the petition upon which the case was tried, and will be adopted as follows:

“The suit involves the title to lot 11, block 29, original town of Big Spring, Howard county, Tex. Plaintiffs’ petition alleges that all parties to this suit are corporations; contains the usual count in trespass to try title, and alleges Clara Blanck and husband, Philip Blanck, are the common source of title; that plaintiffs acquired title to the lot in controversy by virtue of a deed from Clara Blanck and husband, Philip Blanck, to ‘Homer McNew, E. E. Pahrenkamp, and R. V. Middleton, trustees for William Prank Martin Post No. 185, American Legion, Department of Texas, for the use and benefit of said post, which is located in Big Spring, Texas’; that the defendant claims title by virtue of an instrument signed and acknowledged by R. V. Middleton, Homer McNew, and E. E. Pahrenkamp and their wives, purporting to convey the lot in question to the defendant; that the instrument to defendant was without consideration, without the name of either plaintiff being mentioned therein, without authority from either of said plaintiffs, and conveyed no title to defendant, and that the instrument to defendant was executed at a time when there was dissension in the local American Legion Post, and with the intent of putting the property out of the reach and control of certain members of said post. The petition also contains other allegations in support of those just outlined.”

The facts developed upon the trial may be briefly stated as follows: American Legion is a national organization, chartered by special act of the Congress of the United States. By that act it was given the right to establish state and territorial organizations and local chapters, or posts, and to adopt a constitution and by-laws. Under the constitution adopted pursuant to the powers thus conferred, state departments and local posts were chartered by the national . organization. Membership in American Legion, (national organization) and in a state or territorial department results from becoming a member of a local post. The constitution of the national organization pro-' vides that its revenue shall be derived from membership dues and “from such other sources as may be approved by the national executive committee.”

The American Legion, Department of Texas, is a corporation duly incorporated under and by virtue of the general corporation laws of the state of Texas, its charter having been issued on December 30, 1919. The charter was originally granted under the name of “American Legion, Texas Branch,” which name was later changed by amendment to “American Legion, Department of Texas.” Thereafter* on September 19, 1920. a charter, or authority to maintain a local post, was granted by American Legion (national organization) to “William Prank Martin Post No. 185, American Legion, Department of Texas.” This charter was issued by the' National Commander and National Adjutant, and was countersigned by the Department Commander and Adjutant. With money derived from rodeos, dances, and other public entertainments, the local post, in 1923, purchased lot 12, block 29, original town of Big Spring, said property having been conveyed to R. V. Middleton, Homer McNew, and E. E. Pahrenkamp, as trustees for the use and benefit of said local post. After the purchase of this lot, property values greatly increased, and in 1927 it was sold and the lot in controversy in this suit purchased. The deed to same was executed by Clara Blanck, joined by her husband, Philip Blanck, and recited a consider *596 ation of $1,500 cash and the execution and delivery of a promissory note for $6,000. This deed recited that the cash was paid and the note executed by Homer McNew, R. V. Middleton, and E. E. Eahrenlramp, trustees for William Frank Martin Post No. 185, American Legion, Department of Texas. The premises were conveyed to the same parties “for the use and benefit of said post, which is located in Big Spring, Texas."

On October 5, 1928, by a vote of the members of the local post, the trustees were instructed to convey said property to a corporation then in the process of being chartered under the name of Big Spring Veterans, Inc. This corporation was chartered under the general laws of Texas, and was organized primarily for the purpose of acquiring title to the lot in controversy. The stock of this corporation was divided equally between the then members of the local post. The facts disclose that one of the members, Judge James T. Brooks, declined to accept any stock, and at least one other member did not know of the transaction and never received any stock, but the evidence discloses that no one who was then a member of the local post made any objection to the transfer, or is now complaining thereof. The record does not present a case in which a minority faction of an association is challenging the light of the majority to appropriate the property of such organization to some purpose other than that for which the association was created.

The briefs discuss many interesting questions involving the law of property rights incident to membership in a benevolent association, but, under the conclusions we have formed with reference to the record here presented, these questions will not be reached.

The defendant in error filed a duly verified plea in abatement, denying the corporate existence of the local post, and by cross-assignments of error challenges the action of the trial court in overruling this plea. It becomes necessary to consider this question preliminarily. The only claim of corporate capacity asserted by the local post is based upon the provisions of articles 1399 and 1400, R. S. 1925. These articles read as follows:

“Art. 1399. — The grand lodge of Texas, Ancient, Free and Accepted Masons, the Grand Royal Arch Chapter of Texas, the Grand Oommandery of Knights Templars of Texas (Masonic); the grand lodge of the Independent Order of Odd Fellows of Texas, .and other like institutions and orders organized for charitable o¡r benevolent purposes may, by the consent of their respective bodies expressed by a resolution or otherwise, become bodies corporate under this title.

“Art. 1400. — The incorporation of any such grand lodge shall include all of its subordinate lodges, or bodies holding warrant or charter under such grand body, and each of such subordinate bodies shall have all the rights of other corporations under and by the name given it in such warrant or charter issued by the grand body to which it is attached, such rights being provided for in the charter of the grand body. Such subordinate bodies shall, at all times, be subject to the jurisdiction and control of their respective grand bodies, and subject to have their warrants or charters revoked by such grand body.”

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Bluebook (online)
73 S.W.2d 594, 1934 Tex. App. LEXIS 698, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-legion-v-big-spring-veterans-inc-texapp-1934.