Eis v. Croze

112 N.W. 943, 149 Mich. 62, 1907 Mich. LEXIS 619
CourtMichigan Supreme Court
DecidedJuly 1, 1907
DocketDocket No. 4
StatusPublished

This text of 112 N.W. 943 (Eis v. Croze) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eis v. Croze, 112 N.W. 943, 149 Mich. 62, 1907 Mich. LEXIS 619 (Mich. 1907).

Opinion

Blair, J.

Complainant filed the bill of complaint herein to enforce the specific performance of a declaration of trust executed by the defendant Croze on the 4th day of April, 1893. The instrument declaring the trust, after reciting the purchase of certain real estate subject to certain liens and payment therefor with the proceeds of a note signed by Croze and indorsed by the other defendants, contains, among other provisions, the following:

“Now I, the subscriber, do hereby declare and make known that the said property is held by me in trust for the following uses and purposes, and with the following powers vested in me as such trustee and by virtue of this instrument expressly reserved to myself, namely:

First. The property above described shall be held in trust as security for the payment of the said note discounted as aforesaid, and the interest thereon, or for the payment to the subscriber and the said indorsers of any sum or sums which they or any of them shall pay by reason of the said note, or by reason of the making and indorsement of the same, or of any renewal or renewals of the same or any part thereof, and of any sum or sums which they or -any of them shall pay as interest on the same, and of any sum which they or any of them shall pay for the purpose of perfecting title to said property or for removing the liens therefrom, and until said sums and said note shall have been fully paid.

Second. Upon the full payment of the several sums mentioned in the foregoing paragraph by or on behalf of the St. Ignatius Church Society of Houghton, Mich., within the period hereinafter mentioned, but not thereafter, except at the option of said trustee and said indorsers, the said property is to be conveyed by the said trustee to the Right Reverend Bishop Yertin, or his successor, for the use of the said church society.

[64]*64“ Third. After the expiration of three (3) years from the date of this declaration of trust, if within that time the said church society shall not have fully paid said amounts as mentioned in paragraph first, then the said trustee shall have, and hereby reserves and retains, the power and right, with the consent or request of a majority of said indorsers, including himself, to sell said property and to convey the same to such person or persons, and upon such terms as they shall deem proper. The proceeds of such sale to be applied as follows

This instrument was duly recorded, but was not delivered, being retained by defendant Croze. The circumstances leading up to the purchase of the property and the execution of the declaration of trust were, briefly, as follows : The society was contemplating the erection of a new church edifice, but the parishioners were not agreed as to the location of the new building. Father Manning, the then parish priest, the defendants, and others, were in favor of locating the building on the property in question. Others, and, as it afterwards developed, a majority, were in favor of locating the new building upon or near the old site. The defendants, for the purpose of procuring the location of the church upon the new or downtown site, organized themselves into a voluntary and unofficial committee, purchased the land in question, and caused the conveyance thereof to be made to the defendant Croze.

‘ ‘ The committee of men belonging to St. Ignatius congregation were anxious to have the church built on the niain street, and that property was purchased for that purpose. * * * It was with the end in view of getting this property for the new church. The indorsers on the note at the time were Mr. Croze, with the parties that were representing the crowd that wanted a church down town.”

The original loan was $2,389.92, increased in May, 1894, to $3,030.46. The principal source of revenue of the committee was the rent from the property. May 2, 1894, the committee borrowed $1,000 of the lessee of the property, for the purpose of making repairs, upon the note of Joseph Croze, trustee, indorsed by others of defendants. [65]*65This note was paid in rent, and, until paid, the revenue from rents ceased. In the summer of 1894, the committee applied to an association of ladies of the church for assistance. These ladies were associated under the name of the “ No Name Club ” at one time; of the “ Harmony Club ” at another time. The nature of the-association, its relation to the church, to the men’s committee, and to the property in question, are stated by Mrs. Edwards, a member of the association, at the close of whose testimony it was stipulated that the other members would testify substantially the same. The following extracts from Mrs. Edwards’ testimony will sufficiently disclose the association’s attitude and legal relations to the property and church society:

“ I was a member of the club known as the ‘ Harmony Club.’ I think the club was organized in 1891 or 189%, but'I am pretty certain it was 1891. I was a member from the time it was organized. * * * They came to us with the proposition to take us in with them in the association. I don’t know what you would call it. They wanted funds to pay the interest on these notes that they had given for this property at the foot of the hill, and it seems to me that they had no money to meet the claims, as I understood it then, and as I understand it now. The money to repair that house after.the fire was money that was borrowed from Mrs. Fish (Mrs. Poisson), and she was to pay no rent until that $1,000 was reimbursed to her, and there was no rent coming in to pay the interest on these notes, and they had no way of reducing it without the rents, and they came to us with the proposition to come in with them and let us pay the claims of the property. At that time we had considerable money in the club fund. ,1 think it was in the neighborhood of #700. * * * After we had agreed to the proposition, all money that came from the rental of the property and all the money that had been made from entertainments and monthly dues went into the treasury of the Harmony Club and were paid to the treasurer, Mrs. Dube, and that money was used to pay all claims against this property at the foot of the hill, to pay the interest on notes and taxes, and reduce the principal. At least that is how I understand [66]*66it. That has been done ever since we went into the club, since 1894. * * * The' money that was realized out of those picnics and socials was turned into the same general fund as all the others, turned into the treasury of the Harmony Club and used for the same purpose, as far as I am aware. * * *•

Q. As to the object for which this property was purchased ?

“A. When it was bought first, I think the understanding was that the new church was to.be put on there. The proposition was Father Manning’s. The gentlemen backed him in it, but he thought it was a good proposition for the church, providing we bought Dick Lang’s or this property; but at the same time he thought the property was worth the price that was paid for it at any time. * * *

UQ. Were you led to believe by the action of the men, Mr. Croze, and Mr. Fox, that this property would be turned over to the church when they were requested to do so ?

“A. I never had any conversation with them. I don’t think they led me to believe it or not to believe it. I think the formal organization of' the Harmony Club with a constitution and by-laws was in 1894, but.

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Bluebook (online)
112 N.W. 943, 149 Mich. 62, 1907 Mich. LEXIS 619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eis-v-croze-mich-1907.