Central Maine General Hospital v. Carter

132 A. 417, 125 Me. 191, 44 A.L.R. 1333, 1926 Me. LEXIS 30
CourtSupreme Judicial Court of Maine
DecidedMarch 3, 1926
StatusPublished
Cited by12 cases

This text of 132 A. 417 (Central Maine General Hospital v. Carter) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Maine General Hospital v. Carter, 132 A. 417, 125 Me. 191, 44 A.L.R. 1333, 1926 Me. LEXIS 30 (Me. 1926).

Opinion

Wilson, C. J.

An action to recover of the estate of Charles H. Osgood, formerly a prominent business man of Lewiston, the sum of twenty thousand dollars, which, it is alleged, Mr. Osgood during his lifetime, to wit, on January 12th, 1922, agreed to give to the plaintiff, a duly organized charitable corporation under the laws of this State, for the purpose of constructing an addition to its hospital buildings to be known as the west wing. The action was tried before a jury, which awarded the plaintiff a verdict for the full amount claimed, with interest from the date of demand upon the executors. The case is before this court on a motion for a new trial on the usual grounds [193]*193and numerous exceptions to the introduction or exclusion of evidence and to a refusal to direct a verdict for the defendants.

Owing to the ruling of this court upon the motion, but two of questions raised by the defendants’ exceptions require special consideration; as it does not appear from the bill of exceptions that the defendants were aggrieved by the rulings of the court to which exceptions upon other grounds were taken.

The exception to the admission of the proof of claim filed in the Probate Court by the plaintiff against the estate of Mr. Osgood is untenable. That the declaration sets forth more specifically than was set forth in the proof of claim the consideration for the alleged promise to give could not have prejudiced the defendants, especially since even further specifications were filed at the defendants’ request.

The claim filed sets forth that Mr. Osgood on January 12th, 1922 contracted to give the sum named and that there was a valid consideration for the contract. The declaration alleges in addition to the contract to give that the offer to give was accepted by the plaintiff on February 3d, 1922, and that in consequence of and relying on the promise to give, the plaintiff incurred certain financial obligations and failed to do certain things in the promotion of the interests of the Hospital that it otherwise would have done. These additional allegations were obviously intended to set forth what the plaintiff contends was the consideration which rendered the promise to give binding and which was only set forth in the proof of claim in general terms. It is no new claim.

The testimony of several incorporators and officers of the plaintiff corporation was offered by the plaintiff and admitted against the objection of the defendants’ counsel upon the ground that such officers and incorporators were in effect parties to the suit and so were disqualified as witnesses under Chap. 87, Sec. 117, Sub. Sec. 2.

The defendants’ counsel evidently places little reliance upon this contention. They cite no cases in point. All decisions of the courts where this question has been raised appear to be against their contention. Grange Warehouse Ass’n v. Owen, 86 Tenn., 355; Merriman v. Wickersham, 141 Cal., 567; Rust v. Bennett, 39 Mich., 521. Also see 40 Cyc., 2290 and note in 9 Am. and Engl. Anno. Cases, Page 181 for further citations. The statute of this State includes only parties to the action and even though a corporation can only speak through its officers, such officers are not parties to the [194]*194action within the meaning of this statute. All the testimony of the officers or incorporators of the plaintiff corporation, if otherwise admissible, was properly received for the consideration of the jury.

The real issue in the case, however, is raised on the refusal to direct a verdict and on the motion for a new trial, viz., whether the oral promise or agreement of Mr. Osgood to give to the plaintiff the sum of twenty thousand dollars is now enforceable against his estate after his death by reason of a lack of consideration to support it during his lifetime.

The defendants say that admitting a definite offer to give the sum named within one year, it never went beyond the stage of a' mere offer; that the evidence did not warrant the jury in finding that the offer was ever accepted by the plaintiff, or if it does, that there is still lacking evidence of any consideration to make it a binding-promise on the part of Mr. Osgood and so bind his estate after his death.

We think there was sufficient evidence from which the jury was warranted in finding that the offer of Mr. Osgood was considered by the plaintiff at a meeting of its directors, and its intent to accept the proposed gift for the express purpose for which it was offered was clearly shown.

But even though the jury were warranted in finding an agreement on Mr. Osgood’s part to give and an acceptance, or an intent on the part of the plaintiff to accept and conveyed to Mr. Osgood during his lifetime, the troublesome question is still left: was there a valid consideration for Mr. Osgood’s promise to give?

The courts in the earlier decisions appear inclined to hold such agreements to give for charitable purposes are not enforceable for various reasons; Boutell v. Cowdin, 9 Mass., 254; Phillips Limerick Acad. v. Davis, 11 Mass., 113; Trustees of Bridgewater Academy v. Gilbert, 2 Pick., 579; Foxcroft Academy v. Favor, 4 Maine, 382; but beginning with Amherst Academy v. Cowls, 6 Pick., 427; Trustees of Parsonage Fund in Fryeburg v. Ripley, 6 Maine, 442 there is clearly discernable a more liberal attitude toward sustaining such agreements. Williams College v. Danforth, 12 Pick., 541; Ladies Collegiate Institute v. French, 16 Gray, 196; Ives v. Sterling, 6 Met., 310; Athol Music Hall Co. v. Carey, 116 Mass., 471; College Street Church v. Kendall, 121 Mass., 528; Troy Academy v. Nelson, 24 Vt., 189; Barnett Adm. v. The Franklin College, 10 Ind., App. 103; Collier v. Baptist Education, 47 Ky., 68; Albert Lea College v. Brown Admr., 60 L. R. A., (Minn.), 870.

[195]*195It is true many of the cases may be differentiated from the case at bar, especially if it be held that there was no evidence properly admitted in the instant case of any acts done by the plaintiff during Mr. Osgood’s lifetime and of which he was cognizant, in furtherance of the purpose for which the funds were to be given. It may also be true that in strict theory the sustaining of such promises to give cannot be upheld as a contract based on a valid consideration. Williston on Cont., Vol. I, Page 249. However, the courts have sustained them as contracts in numerous instances, not only where the performance in part at least of the purpose for which the funds •were subscribed or promised were shown, or where liabilities were incurred on the strength of such promise, but in many of the cases the courts have indicated that they regarded the promise on the part of the donee, or promisee, to accept the proposed gift with the express or implied undertaking to apply it to a specific purpose for which it was to be given as a valid and sufficient consideration to bind the promisor. In other words, it has been held that an express promise, or the implied promise contained in the acceptance of a proposed gift upon the conditions upon which it is offered, as for instance, to apply the gift to the purposes specified in the offer, is a valid consideration for the promise to give.

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Bluebook (online)
132 A. 417, 125 Me. 191, 44 A.L.R. 1333, 1926 Me. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-maine-general-hospital-v-carter-me-1926.