Cheney v. Ketcham

5 Ohio N.P. 139
CourtLucas County Court of Common Pleas
DecidedNovember 15, 1897
StatusPublished
Cited by3 cases

This text of 5 Ohio N.P. 139 (Cheney v. Ketcham) is published on Counsel Stack Legal Research, covering Lucas County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cheney v. Ketcham, 5 Ohio N.P. 139 (Ohio Super. Ct. 1897).

Opinion

PRATT, J.

This action is brought by Frank J. Cheney, as a member of the Club, against a majority of the board of trustees, the steward, secretary, and assistant secretary, of the Toledo club.' The club itself is not made a party. The petition alleges that the club is a corporation under articles filed August 31st, 1889, the purpose for which or-' ganized being alleged in the petition to be for the acquiring and maintaining a clubhouse, furniture and other appurtenances, for the use of the corporation, and that it should have a capital stock of thirty-five thousand dollars, in shares of one hundred dollars each. That the plaintiff was one of the original subscribers, and one share of stock was issued to him July 3, 1890, and ever since owned by him; that the club property is designed and used as a place for its members to rest and procure refreshments, at reduced prices. It then charges that the defendants, by wrongful combination and conspiracy, have excluded the plaintiff from the use and enjoyment of the property of the club, and threaten .and intend to continue for all time in the future to exclude him therefrom, to his great and irreparable injury. The prayer is for an injunction.

The defendants file a joint answer,admitting that they are officers of the club as charged, and that the plaintiff became a member of the same, but allege that he has not been such member since the 12th of April, 1897. They deny that the acquiring of property by the club was its controlling purpose, but allege that it was organized for the purposes of amusement, social culture and mutual improvement of its members, and that the acquiring of property was incidental only to such purposes, and-that the corporation was not organized for profit. It then sets forth in full a copy of the articles of incorporation, and alleges that on the 25th of Novemer, 1889, articles and laws for the government of the club were duly adopted,and sets forth certain sections of said by-laws. Sec. 2, of Art. II, provides that the subscribers to the membership of the club shall be active members upon paying an admission fee of one hundred dollars. Sec. 7 provides for the admission of other members. Art. IV. provides as to the powers and duties of the trustees, and sec. 4 of that article provides, that such trustees — among other powers-may “reprimand, suspend or expel, by an affirmtive vote, of two-thirds of all the trustees,” and — among other reasons — “for any conduct which, in the opinion of the board, is improper or is prejudicial to the welfare and reputation of the club.” It provides for the manner in which charges and specifications shall be filed and'investigated. It then alleges, that on July 13, 1896, charges and specifications were filed against the plaintiff, in writing, by John N. Mockett, one of the members of the club, of improper intimacy with the . wife of Mockett, and sets forth a copy of the charges It alleges the giving of notice to the plaintiff of the filing of said charges, and that the same would be heard on the 8th of March, 1897; that on that date plaintiff appeared, by his attorney, and, on the requests of such attorney, hearing was postponed until April 12th, when, it is alleged, that hearing was had upon the charge and plaintiff expelled and notified of such expulsion, and that no appeal was taken by him from such action.

Plaintiff, by his reply, denies that the controlling purpose of the club was for social or similar purposes, but alleges that the property of the corporation was used and enjoyed by the owners of the capital stock, and that all other purposes were incidental thereto; denies that the by laws set forth in the answer were legally adopted, or that he consented to or acquiesced therein ; admits the filing of the charges; alleges [140]*140that he appeared by attorney before the board of trustees for trial thereon, but that his attorney was excluded by the board and that no trial was ever had. It also alleges that Muckett, who filed the charges, sat as a member of the board and voted for his expulsion, and that his vote was necessary to constitute the requisite majority of the board. It alleges that whatever was done by the board was “the arbitrary, wrongful and fraudulent act of the said defendants” named as members of the board, and without any trial or investigation of the charges filed.

Reduced to the simple, material and controverted elements of these pleadings, the issues between the parties are:

1. The charge made in the petition that the defendants as officers of this club, wrongfully combining and confederating together, had excluded plaintiff from the benefits and privileges of the club.

2. The allegation on the part of the defense that, by reason of the charges filed against the plaintiff, he has been, under the rules and by laws of the club, duly expelled from the club, and for that reason, no longer entitled to its benefits and privileges.

3. The denial by the plaintiff both of the power of the board of trustees to expel him, and the fact that such board has expelled him upon investigation or trial of these charges

There is very little material conflict in the evidence introduced or question as to the facts necessary to be considered by the court in arriving at its conclusions as to the law. The legal questions involved are,however, important, and, some of them at least not easy of solution, and these have been exhaustively argued by counsel for the respective parties and a great number of authorities cited byeach of them.

I. It being admitted that the plaintiff was one of the original members of this corporation and owner of one share of its stock, and that he was, by reason thereof, entitled to and did receive and enjoy its benefits and privileges,’ and it being conceded that from and after April 12, 1897, he has been, and still is, denied and deprived of such benefits and privileges by the defendants, who, as officers of said corporation, are entrusted with the care and control of its rights and privileges, the first and fundamental question to be determined is:

Has the plaintiff been legally expelled from such membership and is he not rightfully excluded from sucn rights and privileges?

The determination of this question involves the following considerations:

1. What is the character of this corpora-tion, and what property right has the plaintiff as a stockholder, in the same?

The articles of incorporation have not been offered in evidence, but purport to be set forth in full in defendant’s answer, and there is no denial that they are so correctly set forth — unless it is to be considered as covered by the general denial in the reply. Counsel, however, for botn parties have discussed the bearing of the several provisions of these articles, and I consider them the same as though the originals were before me. By these articles it is provided :

(a). That it is incorporated as an incorporation “not for profit, under the general incorporation laws of Ohio.”

(b). Its name and location are designated.

(c). “3d. The purposes for which said corporation is formed is for association, amusement, literary and social culture and mutual improvement, and for the purpose of acquiring by purchase,lease or otherwise, and owning and maintaining in said city of Toledo, club rooms, and a club-house for the use of the corporation and its guests, with such real estate, furniture, fixtures, library and paraphernalia as may be deemed necessary or desirable to carry out the purposes of such corporation.”

(d).

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Cite This Page — Counsel Stack

Bluebook (online)
5 Ohio N.P. 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cheney-v-ketcham-ohctcompllucas-1897.