Craig v. Mercy Hospital-Street Memorial

45 So. 2d 809, 209 Miss. 427, 1950 Miss. LEXIS 409
CourtMississippi Supreme Court
DecidedOctober 2, 1950
Docket37689
StatusPublished
Cited by12 cases

This text of 45 So. 2d 809 (Craig v. Mercy Hospital-Street Memorial) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Craig v. Mercy Hospital-Street Memorial, 45 So. 2d 809, 209 Miss. 427, 1950 Miss. LEXIS 409 (Mich. 1950).

Opinions

McGehee, C. J.

Upon the advice of the Attorney General, based upon an interpretation of the meaning of Section 66 of the Mississippi Constitution of 1890, as applied to the question at issue, the appellant, Carl N. Craig, as State Auditor of Public Accounts, refused to honor and pay a requisition of the Mississippi Commission on Hospital Care, for a warrant on the State Treasury, in favor of the appellee, Mercy Hospital — Street Memorial, of Vicksburg, Mississippi, and representing a part of a large grant of money which had been approved by such Commission in favor of the said hospital in the total sum of $214,000 from state funds, to be supplemented to the extent of $527,000 from federal funds to be paid to the hospital through the Commission, as per contract between them in connection with the long range statewide hospital plan to assist in the construction, erection, and equipping of hospitals, nurses’ homes, health centers, clinics, and related facilities, that are publicly owned, operated, and controlled, or where the same are privately owned, op[432]*432erated, and controlled on a strictly nonprofit basis, as defined by the Commission, and as provided by law.

...Thereupon, the .appellee, Mercy Hospital — Street Memorial, filed its petition for a writ of mandamus to compel the issuance of the warrant as aforesaid. To this petition the appellant, as such State Auditor, and represented by the Attorney General, filed an answer .to the suit for mandamus on two defense grounds, (1) That the hospital involved is not eligible to receive such grant from the state appropriation of $4,750,000, made by Chapter 164, Laws of 1948, and from the federal funds allocated to-the state, for the reason that the hospital corporation is not owned, operated, and controlled on a strictly nonprofit basis, within the meaning of Chapter 430, Laws of 1948, which is amendatory of Chapter 363, Laws of 1946, and the Act of Congress, 42 U. S. C. A. Section 291 et seq., which was enacted “to assist the several states.to construct public and non-profit hospitals ’ and appropriated $300,000,000 of federal funds for such purpose.

.(2) .That the grant of the funds in question is a donation or gratuity for a sectarian purpose or use, and is therefore in violation of said Section 66 of the State Constitution, which reads as follows: “No law granting a donation or gratuity in favor of any person or object shall be enacted except by the concurrence of two thirds of the members elect of each branch of the legislature, nor by any vote for a sectarian purpose or use. ”

As to the first ground of defense above stated, a nonprofit,hospital is defined in both the said Act of Congress and Chapter 430, Laws of 1948, as “ [any hospital] owned and operated by a corporation or association no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder, group, or individual. ”

The Mississippi Commission on Hospital Care found and adjudicated by resolution duly adopted that the appellee hospital comes within the definition of a nonprofit hospital, as above defined, and that said hospital [433]*433had agreed to the terms and conditions imposed by the said Act of the State Legislature of 1948, the material provisions of which were set forth in the contract executed and submitted by the hospital to the Commission so as to entitle it to the grant of funds in question as a part of the long-range state-wide hospital program contemplated by Chapter 363, Laws of 1946, as amended by the said Chapter 430, Laws of 1948.

As a consideration for the so-called “grant” of the funds in question, the appellee hospital obligated itself to maintain at least 10% of its bed capacity if needed for charity patients as provided for in the said Acts of the Legislature. It also agreed and contracted with the Commission, as provided for in said Chapter 430, Laws of 1948, that if, at any time within twenty years after the date of such grant, the hospital shall cease to be a nonprofit institution, or shall otherwise fail to meet the requirements of the Act, a lien in favor of the State shall attach to the property of the hospital, and that the State shall be entitled to recover the amount of money advanced by it to such institution, less reasonable depreciation as determined by agreement of the parties or the chancery court of the county in which such hospital or facility is located. It further covenanted and agreed that the hospital will be maintained as a privately owned nonprofit hospital and operated with a purpose of providing maximum hospital facilities to the citizenship of the State at minimum cost to the patient, as required by the statute authorizing such a grant of aid; and that said hospital and all of its facilities “shall be available at all times as a part of the state-wide hospital program sponsored by the Commission and as a part of the state-wide teaching facilities for medical technicians, nurses, medical students, internes, and resident physicians and such other medical educational needs as the Commission may determine to be necessary or desirable; . . .”. (Italics ours.) And the following is expressly admitted by the answer of the defendant in this case and it therefore [434]*434stands as a fact: “As a specific consideration for obtaining said funds Petitioner lias entered into and executed a formal covenant and agreement with the said Commission on Hospital Care insuring said Commission of definite required facilities and of certain controls and services in return for the money to be made available to the Petitioner.”

It will therefore be seen that while the statutes in question refer to the allocation of the funds as being a “grant”, the express provision of the statues fully discloses that the allocation of funds is not to be made as a grant in the sense of being a gift. In fact a grant of personal property is defined in Black’s Law Dictionary, Second Edition, 547, as “a method of transferring personal property, distinguished from a gift by being always founded on some consideration or equivalent. 2 Bl. Com. 440, 441.” And as applied to real estate, a grant is a generic term applicable to all transfers of such property, whether with or without consideration.

The record is silent as to any finding by the Mississippi Commission on Hospital Care on the issue as to whether or not the appellee, Mercy Hospital — Street Memorial, had applied for the grant for a sectarian purpose or use, within the meaning of said Section 66 of the State Constitution. Assuming that there was no donation or gratuity involved, in view of the consideration to be received by the State in return for the so-called grant under the terms of the contract hereinbefore mentioned, there would have been no need for a finding* by the Oommission that the funds were not being sought for a sectarian purpose or use, the Constitutional provision in question only prohibiting a “donation or gratuity” for such a purpose or use. However, the circuit court which heard the cause on both oral and documentary evidence without the intervention of a jury, not only sustained the findings of the Commission on Hospital Care to the effect that the appellee is a nonprofit hospital, no part of the net earnings of which inures, or may lawfully inure, to [435]*435the benefit of any private shareholder, group, or individual, but the court further found from the proof that the grant was neither a donation nor gratuity, and that it was not for a sectarian purpose or use.

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Craig v. Mercy Hospital-Street Memorial
45 So. 2d 809 (Mississippi Supreme Court, 1950)

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Bluebook (online)
45 So. 2d 809, 209 Miss. 427, 1950 Miss. LEXIS 409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/craig-v-mercy-hospital-street-memorial-miss-1950.