Atlantic Refining Co. v. Fraternal Order of Eagles, Aerie No. 970

19 Pa. D. & C.2d 427, 1959 Pa. Dist. & Cnty. Dec. LEXIS 151
CourtPennsylvania Court of Common Pleas, Lycoming County
DecidedJune 26, 1959
Docketno. 11
StatusPublished

This text of 19 Pa. D. & C.2d 427 (Atlantic Refining Co. v. Fraternal Order of Eagles, Aerie No. 970) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lycoming County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Refining Co. v. Fraternal Order of Eagles, Aerie No. 970, 19 Pa. D. & C.2d 427, 1959 Pa. Dist. & Cnty. Dec. LEXIS 151 (Pa. Super. Ct. 1959).

Opinion

Greevy, J.,

This is an action in equity instituted by the Atlantic Refining Company, a corporation, plaintiff, against Fraternal Order of Eagles, Aerie No. 970, Glenn C. Wright and Herman Snyder, trustees of the Fraternal Order of Eagles, Aerie No. 970, Edward J. Hamm and Phillip L. Shannon, former trustees of the Fraternal Order of Eagles, Aerie No. 970, and Robert L. Wolfe, defendants, for specific performance of a contract for the sale of real estate. The contract was entered into on March 19, 1958, by the trustees and officers purportedly on behalf of defendant, Fraternal Order of Eagles, Aerie No. 970, wherein defendants agreed to sell to plaintiff certain premises located at the northeast corner of East Third and Basin Streets, Williamsport, for the price or sum of $32,500. The contract provided that final settlement should take place on July 15, 1958. Tender was made on behalf of plaintiff but defendant, Fraternal Order of Eagles, Aerie No. 970, refused to perform alleging that the contract of sale was invalid and unenforceable . . .

Discussion

On Sunday, March 16, 1958, an advertisement appeared in the Grit that a special Aerie meeting of the Eagles was called by the president for March 19, 1958, at 8 p. m., regarding “business pertaining to the buildings.” This advertisement also appeared in the Williamsport Sun on March 17, and again on March [429]*42918, 1958. The meeting was held and action taken approving the sale of the premises in question to plaintiff and on the same date the agreement of sale of the premises was executed and delivered to plaintiff.

The question before us is whether that agreement is valid and binding against defendant, Fraternal Order of Eagles, Aerie No. 970.

The Nonprofit Corporation Law of May 5, 1933, P. L. 289, is not applicable as defendant is a fraternal order, to wit, Lodge Aerie System, and as such is not covered by the act: 15 PS §2851 — 4(2). Defendant, however, comes under the law pertaining to fraternal benefit societies: Fraternal Benefit Societies Act of July 17, 1935, P. L. 1092, 40 PS §1051. The Grand Aerie of the Fraternal Order of Eagles has the power to make, alter and amend its constitution and laws for the government of the organization and such law governs the organization as well as subordinate and constituent lodges and all the members (40 PS §1056), and the court cannot substitute its judgment for the judgment of those who were authorized to adopt the constitution and laws. Section 89.1 of the Statutes of the Grand Aerie of Fraternal Order of Eagles pertaining to Aerie officers, provides that the board of trustees, under the direction of the Aerie, shall hold in trust for the Aerie all real property belonging to the Aerie. Opinion 73, rendered by the grand tribunal, pertaining to this section, states: “Under our Laws, the Trustees are in effect the agents of the Aerie, and their powers and duties, unless otherwise defined and enlarged by the Aerie By-Laws, are at all times subject to the direction and control of the Aerie.”

The by-laws of Aerie No. 970 do not otherwise define or enlarge the powers and duties of the trustees. Section 11.1 of the by-laws of Aerie No. 970, provide: “Under the direction of the Aerie, the Trustees shall be the custodians of and hold in trust for lawful pur[430]*430poses of the Order and this Aerie, all real property of the Aerie, in accordance with Section 110.4 Statutes Fraternal Order of Eagles or laws amendatory thereof.” The actions of the trustees as to real property are at all times subject to the direction and control of the members. Therefore the contention of plaintiff that the trustees were not even required to give notice to the membership of their action is without merit.

Section 110.4 of the statutes provides, inter alia: “That no real estate . . . may be . . . encumbered by any local Aerie, or by any person or body in trust . . . unless authorized by a vote of the Aerie at a meeting upon such notice to each member as may be required by the laws of the State ... or if the laws require no notice, then at least five days notice by mail,” and unless written approval has been secured from the financial advisor and if this has not been done, then any action shall be invalid and ineffective for any purpose.

Defendant contends that the word encumbrance includes “sale”. With this we do not agree. The court, in the case of Jeffrey Structures, Inc., v. Grimaldi, 186 Pa. Superior Ct. 437, 440, sets forth: “It is well established that an encumbrance is the right or interest in the land which may subsist in third persons to the diminution of the value of the land, but consistent with the passing of the fee by the conveyance”. This is supported by Opinion No. 30, which sets forth that no written approval is required from the financial ad-visor for the sale of the Aerie’s real property. The trustees had the power to sell the real property here involved and to enter into the agreement of sale, provided they were directed and authorized by the members. Plaintiff claims that that direction and authorization was given at a special meeting held on March 19,1958.

Section 72.2 of the statutes sets forth: “The Worthy [431]*431President may at his discretion call a special meeting of the Aerie at any time. He shall call a special meeting at any time he may be so requested, in writing, by ten members of the Aerie in good standing. At such special meetings no business shall be transacted, except as may be stated in the notice of such call, and at least two-days notice shall be given to the members of such meeting”.

The question before us is whether the meeting was properly called and whether or not the action taken at the meeting is valid. A special meeting was held March 11, 1958, at which time a motion was passed to place the two front buildings in the hands of “Bill” Brand, real estate agent, for sale at a price of $35,000.

Another special meeting was held March 14, 1958, the minutes set forth: “Friday, March 14, Adam Earnest, Worthy President, called for a special meeting at which ten members in good standing signed the paper calling for a special meeting. Due to lack of time the following announcements were made: Three times Saturday, March 15, 1958. The Grit Publishing Company said it would appear in paper third month 16th day, 1958. It also was placed in two days issue Williamsport Sun Gazette, Monday and Tuesday, March 17th and 18th, 1958, in a 1 x 2 ad.”

The special meeting was held March 19, 1958, and it was at this meeting that a motion was carried to sell premises in question to plaintiff for $32,500. The minutes set forth that: “A motion and order by Brother Frank Hofer and properly seconded by Brother J. W. Ada and a little discussion, motion was put to vote on the two buildings was put to vote. The two buildings front to be sold to the Atlantic Refining Company for their offer of $32,500. This is a new offer. Of 23 present 18 voted for the motion, 5 not voting, including one a member of the Philadelphia Aerie. No dissenting votes and was unanimous to sell buildings as [432]*432ordered. Telegrams and letters of Grand Aerie were read with full authority of Aerie to sell at the amount stated. Papers of sale were signed by the President, Secretary, Treasurer, two Trustees and Auditor. No further allowance of business to be transacted, meeting adjourned until March 25, 1958.” Notice of this meeting was given by advertisement in the Grit on March 16, 1958, and Williamsport Sun on March 17 and 18, 1958, setting forth:

“EAGLES No. 970

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Related

Jeffrey Structures, Inc. v. Grimaldi
142 A.2d 378 (Superior Court of Pennsylvania, 1958)

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Bluebook (online)
19 Pa. D. & C.2d 427, 1959 Pa. Dist. & Cnty. Dec. LEXIS 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-refining-co-v-fraternal-order-of-eagles-aerie-no-970-pactcompllycomi-1959.