Chisholm v. Hyattstown Volunteer Fire Department, Inc.

691 A.2d 776, 115 Md. App. 58, 1997 Md. App. LEXIS 62
CourtCourt of Special Appeals of Maryland
DecidedApril 1, 1997
Docket1150, Sept. Term 1996
StatusPublished
Cited by4 cases

This text of 691 A.2d 776 (Chisholm v. Hyattstown Volunteer Fire Department, Inc.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chisholm v. Hyattstown Volunteer Fire Department, Inc., 691 A.2d 776, 115 Md. App. 58, 1997 Md. App. LEXIS 62 (Md. Ct. App. 1997).

Opinion

CATHELL, Judge.

Avon B. Chisolm, appellant, was elected to “lifetime” membership in the Hyattstown Volunteer Fire Department, Inc. (HVFD or the Department), appellee, in 1987. In February of 1994, HVFD expelled appellant “for actions detrimental to the best interests of’ the Department. 1 Appellant filed suit against HVFD in the Circuit Court for Montgomery County, challenging his expulsion. Following the presentation of appellant’s case, the circuit court granted a partial motion for judgment in favor of HVFD; at the conclusion of the court trial, the court rendered judgment in favor of HVFD. Appellant noted a timely appeal; he presents three questions for our review:

I. Do corporate by-laws constitute a contract, and did the circuit court therefore err when it ruled that *61 HVFD’s bylaws were not a contract and, on that basis, granted HVFD’s motion for judgment on counts II [breach of contract] and IV [specific performance]?
II. Did HVFD’s by-laws clearly and unambiguously provide for lifetime members who cannot be dropped from the membership and the circuit court therefore err in ruling that Chisolm could be expelled from that special membership?
III. Was Chisolm’s right to fundamental fairness ... violated by the presence of Douglas Edwards on the trial board?

The Relevant Facts

HVFD is a nonprofit, nonstock or membership corporation. Its bylaws, in Article IV, Section 4, set forth eight classifications of members. Lifetime membership is a subclass of Special Memberships. Article IV, Section 5.8.1. provides this description of lifetime membership:

Lifetime membership may be conferred by a majority vote of the members present at any regular meeting of the Department, upon any member who has attained fifteen (15) active years in the Hyattstown Volunteer Fire Department, Inc., [sic] Lifetime members shall not be dropped from the rolls of the Department. They shall be granted the privilege of the floor but shall be exempt from the annual payment of dues, have no vote, not hold Department office and not participate in fire/rescue operations unless such member meets the requirements of subsection (A) of this Section.
A. Lifetime members may pay the annual dues and, therefore, be entitled to all the benefits and privileges of an active member.

Article XV of the bylaws sets forth the procedures by which a member of the Department may be disciplined. In relevant part, it provides:

*62 A member may prefer formal charges against any member of the Department ... for any ... cause considered detrimental to the best interest of the Department.
A Trial Board consisting of members in good standing of the Department shall be convened to hear and decide formal charges brought against members____ A Trial Board of seven (7) members shall be selected by lottery, with both the charging member and the member being charged in attendance---- After the Trial Board is selected, the Secretary shall notify the members selected, in writing, within five (5) days, with a trial to be held within ten (10) days. A quorum of at least five (5) of those members selected shall proceed with the trial. At no time shall the accused, the accuser, or any family members of those persons be permitted to serve on the Trial Board.
At such hearing the member so charged shall be afforded an opportunity of being heard in their own defense, and may receive assistance in presenting their defense from members of the Department, and shall have the right to bring in witnesses____
Upon hearing the evidence on the charges, the Trial Board shall either find the member not guilty or guilty and if guilty, may impose whatever disciplinary action the Trial Board deems appropriate except for expulsion from the Department. The Trial Board may recommend to the Department membership expulsion from the Department at the next regular meeting of the Department following the completion of the hearing.

On December 13, 1993, Scott Testerman, HVFD’s vice president, filed formal charges against appellant. A Trial Board was convened, and that board found appellant “guilty” of misfeasance. The Trial Board recommended to the general membership that appellant be expelled from the Department, the membership voted to follow that recommendation, and appellant was thereafter expelled from the Department.

*63 On April 14, 1995, appellant filed suit against HVFD. His Third Amended Complaint contained four counts that alleged and/or sought: 1) declaratory relief; 2 2) breach of contract; 3) wrongful discharge; and 4) specific performance. Prior to trial, HVFD filed a Motion for Summary Judgment on all issues. At the conclusion of the hearing thereon, the circuit court ruled:

I find specifically that ... the provision under “Membership Classes,” paragraph number 8, “Special Membership Classes,” the provision that says, “Lifetime members shall not be dropped from the rolls of the Department,” refers specifically to the fact that they are not required to pay dues; and, therefore, cannot be dropped from the rolls for not paying the dues, and that that is the purpose of the lifetime membership.
I find that Article XV, dealing with discipline, is separate and that the remedy, any of the remedies available under the discipline provisions are available as to any member no matter what their classification is.
So on the threshold question, I am finding that he [appellant] was subject to the same provisions as any other member, under the “Discipline” section, including expulsion.

The court then ordered the parties to proceed to trial on all of the remaining issues.

A three day bench trial commenced on June 3,1996. At the close of appellant’s case, the Department made a motion for judgment. The court granted the Department’s motion as to counts 2) breach of contract; 3) wrongful discharge; and 4) specific performance. The court reserved ruling upon count 1, which sought a declaratory judgment “that the actions of the *64 Trial Board are null and void, [and] that the actions of the ... Department ..., in expelling him from membership in the department [were] illegal.” In pertinent part, Judge Scrivener ruled:

I do not find that Mr. Chisolm was an employee of the Hyattstown Volunteer Fire Department and, therefore, cannot be subject to a wrongful discharge action since there is no employer-employee relationship.
With respect to counts 2 and 4, breach of contract and specific performance, I find that there is no contract in this case. So, therefore, there can be no breach of contract or specific performance.
I do not find that- the bylaws constitute any kind of contract which would give rise to an action either for breach of contract or specific performance under this case.

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Bluebook (online)
691 A.2d 776, 115 Md. App. 58, 1997 Md. App. LEXIS 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chisholm-v-hyattstown-volunteer-fire-department-inc-mdctspecapp-1997.