Carleton v. Roberts

1 Posey 587, 1880 Tex. LEXIS 222
CourtTexas Commission of Appeals
DecidedNovember 1, 1880
DocketCase No. 2546
StatusPublished
Cited by2 cases

This text of 1 Posey 587 (Carleton v. Roberts) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carleton v. Roberts, 1 Posey 587, 1880 Tex. LEXIS 222 (Tex. Super. Ct. 1880).

Opinion

Quinan, J.

The questions presented by the demurrers, it is believed, are not difficult of solution. That the petition disclosed a good cause of action is, we think, free from doubt. The objections urged by the appellants are: 1. That there was no legal association under the title of the Bonham Masonic Female Institute capable of holding property; that the word stockholders implied shareholders in an incorporated company, and no act of incorporation was averred.

The object of this suit is to enforce a trust for charitable uses and to prevent the perversion of the trust property to improper uses. The organization and maintenance of a school for females at Bonham was a public charity. A conveyance of property to that use without naming any trustee would be held good and enforced in equity, and if trustees were necessary, a court of equity would appoint them; for as the maxim is, so laudable “a charity would never be suffered to fail for want of a trustee.” But here there is a trustee, the “ Constantine Lodge,” capable of holding property for charitable uses and administering the same. In the conveyance to the lodge of the property, the trust is declared to be for the stockholders of the “ Bonham Masonic Female Institute.” If there were no such stockholders the trust would not fail. The charitable purpose is impressed on the face of the instrument. A court of equity would construe the deed so that it might stand, and would construe it liberally in favor of the charity. There being (strictly speaking) no stockholders, proof would be heard to determine who are meant by the term. Evidence is admissible always “to show the surrounding circumstances of the parties and of the subject of the contract, and the usages of language under which the instrument was written, in [592]*592order to read the instrument with the same knowledge with which the party wrote it.” Dana v. Fielder, 12 N. Y., 40. And the circumstances surrounding the transaction, as detailed in the petition, show that by .stockholders was meant subscribers — not stockholders, strictly, because they wei*e not incorporated; 'not partners or stockholders in a joint-stock company, for here there was no community of profit or loss; no termination of their association by the death or withdrawal from the enterprise of. any of its members; no taking of profits in severalty, nor contemplation of profits for private use, but the future fruits and income of the institution about to be established were devoted forever to its maintenance, and to be diverted to no other purpose whatever. Thomas v. Ellmaker, Select Cases in Equity, 110; Paschal v. Acklin, 27 Tex., 200; 1 Greenl. Ev., sec. 288; Wharton, 939.

2. It is objected that the petition does not show the election of trustees and proceedings had in accordance with the act of 30th January, 1845, to authorize the appointment of trustees in certain cases. That act provides how, in certain cases, trustees may be elected at a public meeting and qualified, and so constituted a body politic and corporate, capable of holding property, of suing and being sued; but it is not contended that the subscribers to the Bonham Masonic Female Institute were, by virtue of the provisions of that act, incorporated, nor was it contemplated. The plan of their organization was that the masonic lodge should become trustee, and that only those contributing to the fund should have a voice in the direction of the administration of the institution. That statute has no relation to their association, nor does it follow, that because, by its terms, provision is made for incorporation of societies for the building of school-houses, meeting-houses, parsonages, and dedicating camp-grounds, that the same laudable undertakings can be accomplished in no other way.

3. It is also objected that the petition discloses numerous other parties having an interest, who are not made plaintiffs or defendants in this suit.

[593]*593While the rule that all parties in interest ought to be made parties is well established, so also are the exceptions, to it.

One is, where (as the petition in this case discloses) the parties are very, numerous, and it would be impracticable to join them; that it would produce interminable delay and would probably obstruct the purposes of justice.

Another is, where parties form a voluntary association for public or private purposes, and those who sue or defend may fairly be presumed to represent the rights and interests of the whole. In these cases the suit may well be brought by the plaintiff, either alone or with others, in behalf of^ himself and all others interested. Story’s Eq. Pleading, 94, 97, 114a, 115.

And another exception to the general rule is in respect to public charities; that the same strictness is not required either as to parties or to pleadings as in ordinary cases. Story, Eq. PL, § 8.

4. The petition in this case sets out sufficient cause why relief should be granted. The sale of the trust property to Oarleton, and by Carleton to Abernethy, the diversion of it from the maintenance of a school solely for females, to a mixed school for males and females, and from one not to be conducted on sectarian grounds, to one under the control of a particular religious denomination, were acts directly opposed to the scheme of the founders of the institution. There was moreover alleged a direct repudiation of the trust. It is held adversely to them. This was just such a case as entitled the subscribers to the charity to the aid of a court of equity to prevent the perversion of the fund to which they have contributed to other uses. “ Eegarding this association,” says Chancellor Kent in a similar case, “ in the aspect of a charity, nothing can be clearer than that a court of equity will not suffer its funds to be diverted to other uses than the donors intended.” Livingston v. Lynch, 4 Johns. Ch., 594. And Judge Story says, “in such cases, if there be any abuse or misuse of the funds by the trustees, the court of chancery will interpose, at the instance of the attorney-general or the parties in interest, to correct such [594]*594abuse or misuse of the funds. ... If the trustees of the charity should grossly abuse their trust, a court of equity, may go to the length of taking it away from them, and commit the administration of the charity to other hands.” Story’s Eq., § 1199.

5. The other errors assigned in the case will require but a very brief notice. They are directed to the charge of the judge, his refusal to give charges asked, the improper admission of testimony, and his refusal to grant a new trial on these grounds, and that the verdict was against the law and evidence.

Objections were made to the admission of the testimony of the witnesses Fuller, Bean and others, to prove the declarations of the grantor, Bailey Inglish, that he put the land in as stock in .the school enterprise, as he had no money to give, on the ground that it does not appear in writing so as to bind him, and that it tends to vary the deed, was made prior to it, and was not made in presence of the lodge. It is-not easy to perceive the force of these objections. Parol evidence is admissible to establish a trust.

This is especially so where the trust is to charitable uses; “for charities are also so highly favored in law that they have always received a more liberal construction than -the law will allow in gifts to individuals.” Story’s Eq., 1165. So parol evidence is admissible to show the consideration of a deed, as in this case that Hr.

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Related

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220 S.W. 105 (Court of Appeals of Texas, 1920)
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Bluebook (online)
1 Posey 587, 1880 Tex. LEXIS 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carleton-v-roberts-texcommnapp-1880.