American University v. Wood

216 Ill. App. 189, 1919 Ill. App. LEXIS 306
CourtAppellate Court of Illinois
DecidedDecember 10, 1919
DocketGen. No. 24,335
StatusPublished
Cited by6 cases

This text of 216 Ill. App. 189 (American University v. Wood) 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
American University v. Wood, 216 Ill. App. 189, 1919 Ill. App. LEXIS 306 (Ill. Ct. App. 1919).

Opinions

Mr. Presiding Justice Thomson

delivered the opinion of the court.

This is an appeal by the defendants from a decree granting the complainant, American University, the relief prayed for in the bill filed by it.

The complainant received its certificate of complete organization as a corporation from the Secretary of State of Illinois in 1911 but that certificate has never been recorded in the Becorder’s office of Cook county as required by section 4 of chapter 32 of our statutes (J. & A. 2421). The corporation nevertheless proceeded to do business and has ever since been engaged in the pursuit of its corporate objects, chief of which has been the teaching of what is known as chiropractic, by correspondence through the mails. Its present name and also the corporate object just referred to were brought about by an amendment to its charter made in 1913, which amendment Was recorded in the Recorder’s office of Cook county, where its place of business is, but the record fails to show that this change in name and objects was ever published as required by our statutes.

The defendant Wood became associated with complainant in 1913. He acquired .some stock in the corporation and was elected its president and acted in that capacity for some time. His duties were in connection with the so-called “professional work” of the complainant,—the preparation of its advertisements and literature and in a part, a.t least, its correspondence course in chiropractic. Wood’s interest in the complainant corporation was a minority interest and in December, 1916, he was eliminated by those in control. Before quitting the complainant’s premises, however, Wood and one Smith, who became president of the defendant corporation, the so-called “Chicago University of American Sciences,” which was organized January 15, 1917, removed therefrom certain papers and files belonging to complainant, including lists of its students and prospective students. Shortly thereafter defendants began sending out to those whose names were on these lists, a series of communications, advising them if they were students of complainant and had paid their fee in full for its correspondence course, to demand their money back inasmuch as they had been deprived of the personal services of defendant Wood as an instructor, and if they had not paid their fee in full, to pay no more and if they had not enrolled as students with complainant as yet, to pay no further attention to them but to enroll with the defendant Chicago University. These communications alleged that the course offered by complainant was full of “weaknesses”; that defendants could give far better service in their course in chiropractic; that the majority stockholders of complainant cared nothing about what their students got out of their course but were merely after their money; that their policy was, “the students be damned”; that those addressed were to beware of “so-called schools, colleges or universities that are merely stock companies incorporated as a commercial enterprise to make dividends for stockholders”; referred to the defendant corporation as “the great University of Chicago with its 25,000 . correspondence students, and other endowed institutions incorporated not for profit”; referred to complainant as giving a cheap “mail order” cpurse and to the defendant “University” as an educational institution conducted under State control and not for profit; that “you enroll with this great Chicago University under a double guarantee of complete satisfaction or money refunded—Dr. Wood’s personal guarantee, never before given or permitted, and ours”; suggesting a plan to students enrolled with complainant, whereby they might defeat any efforts it might make to have them complete their agreements with it; urging them to “enroll with us now”; referring to a valuable twelve volume reference library, “we are giving away as a free gift to all our students taking my complete course in chiropractic,” adding, “I also wish to’explain very clearly that it will not be necessary for you to study these books all through be-' fore you receive your University Diploma and honors, and become a Doctor of Chiropractic. * * * I can and will help you attain your fondest ambitions. I guarantee it. This is all I can do now, until you take me at my word and accept my offer. I urge you—for your sake—to enroll for this complete course in chiropractic right now”-, another “urging and strongly advising” those who had been students with complainant when Wood was connected with it, to sue complainant for the return of their tuition money as they had been defrauded and wronged and to send a “Dr. Moser” power of attorney to act for them and one dollar in connection with a joint suit which was suggested;—and considerable more along these same lines which it would serve no purpose to mention. Some of these communications were signed by Wood, some by the so-called Chicago University of American Sciences by Smith as president and some by both.

After the defendant Wood had left the complainant and after he had sent out several of the communications referred to, the complainant and he came together and had a settlement of their affairs by which he turned back his stock in the complainant company and in turn received a note of his which complainant held and further the sum of $1,000 in cash and also he agreed in writing to deliver all the documents and effects belonging to complainant which he had in his possession, within 48 hours, and also that he would not, in the future, address and send to the students and customers of complainant any more letters or documents of the kind complained of or in any way interfere with the business of the complainant. Wood, however, did not deliver the lists to complainant nor cease sending out the communications complained of.

The decree perpetually restrained and enjoined both defendants from writing, printing, publishing and circulating the communications referred to or any like documents or letters among the students or prospect tive students of the complainant and from advising them in any manner whatsoever to cancel or default in their contracts with the complainant, and it further enjoined defendants, their agents, solicitors, attorneys and employees from combining, confederating and conspiring together for the purpose of in any way meddling or interfering with complainant’s business, and especially for the purpose of writing, publishing and sending letters or circulars such as those complained of in the bill and shown by the evidence, or of like kind, to the students or prospective students of the complainant.

In urging that this decree be reversed, the defendants first contend that the complainant has no existence as a corporation, either de jure or de facto and, therefore, as such, it has no standing in a court of equity and is entitled to no injunction for the protection of a business conducted by it as a pretended corporation without legal existence. There are two reasons why this contention cannot be maintained. The question whether there was any irregularity in the organization of the complainant corporation, which would prevent it from being a corporation de jure cannot be considered by us in such a proceeding as the one at bar. Such a question cannot be raised collaterally but can only be presented in a direct proceeding by information in the nature of a quo warranto.

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Cite This Page — Counsel Stack

Bluebook (online)
216 Ill. App. 189, 1919 Ill. App. LEXIS 306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-university-v-wood-illappct-1919.