Festa Do Divino Esperito Santo De Manteca, Manteca, California, Inc. v. Mendes

26 P.2d 12, 219 Cal. 276, 1933 Cal. LEXIS 386
CourtCalifornia Supreme Court
DecidedOctober 25, 1933
DocketDocket No. Sac. 4764.
StatusPublished

This text of 26 P.2d 12 (Festa Do Divino Esperito Santo De Manteca, Manteca, California, Inc. v. Mendes) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Festa Do Divino Esperito Santo De Manteca, Manteca, California, Inc. v. Mendes, 26 P.2d 12, 219 Cal. 276, 1933 Cal. LEXIS 386 (Cal. 1933).

Opinion

SEAWELL, J.

Respondent-plaintiff, Festa Do Divino Esperito Santo de Manteca, a semi-religious association, filed its articles of incorporation in the office of the Secretary of State on April 17, 1925, and has since existed as a nonprofit corporation, with its principal place of business at Manteca, California, pursuant to the provisions of title 12, part. 4, division 1, of the Civil Code. Its corporate purposes, as set forth in its articles of incorporation, are to celebrate on proper days the Feast of the Divine Holy Ghost and the Feast of the Divine Holy Trinity and to perpetuate the precepts of the religion of its members, as practiced by their forefathers; to hold such real and personal property as the purposes of the corporation may require, and to that end lease, mortgage, hypothecate, sell and otherwise dispose of lands, tenements, hereditaments and personal property; to make by-laws for the management of its properties, and the regulation of its affairs, and its membership; to admit persons into membership, and to hold periodical or occasional conventions and general assemblies of both members and delegates.

The number of directors was fixed at five, and J. J. Machado, M. M. Alameda, J. A. Mendosa, George Williams and J. S. Marks were named as the original five directors. Many years before any steps were taken to incorporate it had been the annual custom of the Portuguese population *278 in the neighborhood of Manteca, which seems to have been quite numerous, to meet and celebrate the feasts above named. It was also the custom to meet in frequent social assemblage at other times during the year. The celebration of the Feast of the Divine Holy Ghost was a religious ceremony in the form of a thanksgiving acknowledgment for divine favors. It also had a social and good-will aspect. At other times during the year said persons of Portuguese birth and extraction met purely for social purposes. Prior to filing articles of incorporation the voluntary association or assembly seems to have been governed by five directors or trustees. It also had certain executive or administrative officers, to wit, a president, vice-president, secretary and treasurer. The association during its noncorporate existence grew in numbers and accumulated quite a sum of money from donations made by its members and those in sympathy with its social and religious activities. With these accumulated funds a building site was purchased in Manteca, upon which an eating house and chapel were erected. Thereafter there remained on hand a surplus of approximately $4,000. Immediately upon incorporation, on April 17, 1925, the directors or trustees of the association—the holders of title— conveyed said real property and transferred such moneys and personal property as had come into their possession to the corporation. Said corporation continued to conduct the business of the association in much the same manner after incorporation as it had been conducted before incorporation until the adoption of the by-laws, which it was claimed by respondents, and found by the court, was consummated at the meeting held on the evening of April 24, 1929.

Whether said by-laws were legally adopted is conceded to be the question decisive of the rights of the contending parties. The appellants take the stand that said by-laws wTere never legally adopted and that respondents, who assert themselves to be the lawful directors of said corporation by virtue of the provisions of said by-laws, are not such in right, and therefore are not entitled to manage or control the property of said corporation. Appellants further claim that the only bona fide by-laws of the corporation are those which they allege were adopted on March 22, 1931. They claim the right to exercise corporate power under said alleged by-laws. The soundness of this claim will receive notice in *279 the course of our opinion. Appellants, with the apparent cooperation of a large number of followers, took by force the possession of the real and personal property of said corporation, to the exclusion of respondents, changed the locks on the doors of the halls and other buildings; committed waste by breaking locks and doors and damaging personal property; reported falsely to the bank in which said corporation deposited its moneys and transacted its business that said respondent directors were without authority to transact any business whatsoever in behalf of or in the name of said corporation, and circulated false reports which affected the credit of said corporation, and which tended to confuse the public mind as to the legal status of the bona fide directors of said corporation. The effect of appellants’ acts was undoubtedly such as would tend to impair the credit of said corporation, obstruct said respondent directors in the transaction of the business of the corporation, and confuse the public mind as to respondents’ right to manage or control the business of the corporation.

It is not necessary to dwell upon the extent of the schism which divided the two factions contending for control, except to state that that which seemed at first to be but mere differences of opinion as to matters of fraternal policy developed into a state of belligerency which exhibited itself in violent and boisterous fashion at several meetings called for the purpose of determining which faction was properly in control of the directorship and the offices of the corporation.

The trial court, responsive to the prayer of the complaint, upon allegations fully sustained, issued its decree enjoining the appellants from enforcing or attempting to enforce the provisions of the by-laws pretended by appellants to have been adopted March 22, 1931, and from circulating said bylaws, as the by-laws of said corporation, and in brief, without enumerating specifically the many acts enjoined, it is sufficient to observe that the decree enjoins the interference by appellants with the government, control, or the transacting of the business of plaintiff corporation by plaintiff directors and their successors in office, or the management and control of the real property of said corporation by them. No damages were allowed on account of the breaking of the doors of the buildings and the waste committed by *280 appellants as alleged in the amended complaint, for the reason that said claim was withdrawn and dismissed by respondents. The decree found that waste had nevertheless been committed and the appellants were enjoined from the commission of future waste.

At this point an inconsistency in the position of appellants may be pointed out, in that they challenge by their arguments herein the existence of the original by-laws adopted April 24, 1929, under which respondent board claims to deraign its powers, or the existence of any by-laws whatever, prior to the adoption of appellants’ alleged by-laws, notwithstanding their pleadings and the language of the bylaws under which they assume the right to administer the affairs of the corporation are in fact premised upon the by-laws as amended. The final paragraph of the by-laws, adopted March 22, 1931, upon which appellants assert their right to control the affairs of the corporation, contains the following language:

“We, the undersigned, members of the special committee named at the last annual meeting, at Manteca, California, on the 27th day of July, 1930, to correct, amend, alter and modify the by-laws of the

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26 P.2d 12, 219 Cal. 276, 1933 Cal. LEXIS 386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/festa-do-divino-esperito-santo-de-manteca-manteca-california-inc-v-cal-1933.