Dunham v. Kauffman

10 Ohio N.P. (n.s.) 49, 20 Ohio Dec. 274, 1910 Ohio Misc. LEXIS 31
CourtCourt of Common Pleas of Ohio, Franklin County, Civil Division
DecidedMarch 21, 1910
StatusPublished
Cited by1 cases

This text of 10 Ohio N.P. (n.s.) 49 (Dunham v. Kauffman) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Franklin County, Civil Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dunham v. Kauffman, 10 Ohio N.P. (n.s.) 49, 20 Ohio Dec. 274, 1910 Ohio Misc. LEXIS 31 (Ohio Super. Ct. 1910).

Opinion

Rogers, J. "

Tbe petition seeks to enjoin the consolidation of two corporations, not for profit, organized under the laws of this state. The plaintiffs are members, and two of them are trustees, of one of such corporations, namely, the Women’s Educational and Industrial Union, and the natural defendants are members of the [50]*50board of trustees of the Women’s Educational and Industrial Union, and the Young Women’s Christian Association, the other corporation involved in this controversy. The ease is now heard upon the application of the plaintiffs for a temporary injunction upon the petition to prevent the alleged threatened consolidation until a final hearing of the case upon the merits. This application is resisted by the defendants, which includes the natural persons above named and the two corporations.

.At the September term, 1909, of this court, before his honor, Judge Dillon, upon a full hearing, the right of the two corporations in question to consolidate pursuant to the steps then taken by them, respectively, was decided adversely to the defendant corporations on the ground that the prerequisite agreement for such consolidation was not entered into by the board of trustees of the Women’s Educational and Industrial Union, pursuant to the statutes governing such consolidation. However, many of the questions involved in this case were tried out in the former case, and, while not necessary to a decision by the court, were, in the opinion of the learned judge, elaborated upon for the future guidance of the corporations. While such opinion is not binding in the decision of this case, after a careful review of the opinion, I am convinced that the opinion upon the questions other than the one decisive of the case is founded upon proper reason, and I am persuaded to follow it. Thus, much of the work on this application is made easy by the opinion of the court heretofore given upon the same questions.

Objection is made to the consolidation under the statute on the ground that neither of said corporations is a benevolent or a charitable association. This question was decided by his honor, Judge Dillon, adversely to the plaintiffs in the former trial, and I am satisfied that the petition itself shows that both of these organizations come under the head of benevolent institutions. The petition shows that both corporations are not for profit; that the Women’s Educational and Industrial Union was formed for the educational and industrial advancement of working women and girls, members of said association; that by its constitution adopted in January, 1910, its declared purpose is to promote the temporal, mental and spiritual welfare [51]*51of young women; that the Young Women’s Christian Association was formed for the promotion of the spiritual, intellectual, social and physical development of young women; that by its constitution its declared purpose is to promote the temporal, mental and spiritual welfare of young women; that the Women’s Educational and Industrial Union has a boarding and lodging house for women and girls, and nurseries in which, for a small consideration, both white and colored children of mothers who are engaged in daily work are kept while the mothers are so engaged; that the Young Women’s Christian Association occupies a part of a building of the other corporation where religious and other related work is conducted; that large donations have been made by philanthropic persons to carry on the work of the AVomen’s Educational and Industrial Union, and that the future purpose of the proposed consolidated corporation, as shown by the agreement 'entered into between them, is to continue to do and perform the moral, benevolent work, duties and obligations undertaken and performed therefore by the respective corporations.

Benevolence does not merely consist in feeding the hungry and clothing the poor. It has a broader significance where the religious and moral needs of humanity are involved. Without going into a detailed discussion of what a benevolent society is, I am satisfied that whatever organization has for its main purpose the leading of a hand to promote the spiritual, intellectual, and moral uplift of others, whether it be its members, without pecuniary reward to the society or its promoters, is a benevolent organization, and certainly these two organizations come within that definition, and the connection that they do not come within' the statute, in my opinion, is not sound.

It is also contended that the different methods pursued by these two corporations militate against the right of consolidation. The statute only requires that they should be benevolent or charitable organizations to entitle them to the right of amalgamation, however diverse their methods of work may be.

A further reason is urged that certain donations have been given with certain conditions of reverter, and that by the consolidation certain gifts will be lost to the united body. This is [52]*52no ground’ for equitable interference. It may be a question of expediency as to whether the societies should consolidate and thereby jeopardize any prior gifts which may be subject to a condition of reverter, but it is no legal ground of objection in the face of the statutory right of consolidation of two or more organizations of the kind specified in the statute.

A further ground of objection is that the consolidation statutes were enacted subsequent to the organization of the corporations in question, and, therefore, can not be made to apply to the consolidation of the prior incorporated associations on the ground that the statute would thus be retroactive and impair the obligations of contracts with third persons made prior to the enactment of the consolidation statutes, referring especially to two parcels of real estate. In the absence of a reservation in the Constitution of our state allowing the Legislature to alter, revoke, or repeal any grant of special privileges or immunities, plaintiffs’ contention would appear more plausible. But in Article XIII, Section 2, of the Constitution of this state, it is provided:

“That corporations may be formed under general laws; but all such may be, from time to time, altered or repealed. ’ ’

And in Article I, Section 2, it is provided:

‘ ‘ That no special privileges or immunities shall ever be granted that may not be altered, revoked, or repealed, by the General Assembly. ’ ’

There being the reservations in the Constitution of the state, just quoted, allowing the Legislature to alter, revoke, or annul, the privileges and immunities granted these societies when they were chartered, respectively, they accepted them subject to the right of the Legislature at any time to enact a statute of consolidation whereby their rights might be altered or changed, and when such consolidation statutes were enacted it in nowise impaired the obligations of the contract either represented by the charter or as represented in agreements with third persons. See on this subject Jefferson College v. Washington & Jef. Col., 80 U. S. (13 Wall.), 190, affirming Houston v. Jefferson Col., 36 Pa. St., 428.

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Trustees of First Methodist Episcopal Church of Bryan, O. v. State
24 Ohio N.P. (n.s.) 33 (Williams County Court of Common Pleas, 1921)

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Bluebook (online)
10 Ohio N.P. (n.s.) 49, 20 Ohio Dec. 274, 1910 Ohio Misc. LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunham-v-kauffman-ohctcomplfrankl-1910.