First Missionary Baptist Church of Ballwin v. Rollins

151 S.W.3d 846, 2004 Mo. App. LEXIS 1499, 2004 WL 2339973
CourtMissouri Court of Appeals
DecidedOctober 19, 2004
DocketNo. ED 83880
StatusPublished
Cited by1 cases

This text of 151 S.W.3d 846 (First Missionary Baptist Church of Ballwin v. Rollins) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Missionary Baptist Church of Ballwin v. Rollins, 151 S.W.3d 846, 2004 Mo. App. LEXIS 1499, 2004 WL 2339973 (Mo. Ct. App. 2004).

Opinion

PER CURIAM.

Appellants, Marva Gaylor, et al. (“Gay-lor Representatives” 1 appeal the judgment of the Circuit Court of St. Louis County in favor of respondents, Press McDowell, et al. (“McDowell Representatives”2) on their motion for partial summary judgment. We reverse and remand.

On May 22, 2002, the Gaylor Representatives acted on behalf of the First Missionary Baptist Church of Ballwin (“the Church”) to file a petition for declaratory judgment and injunctive relief. The Gay-lor Representatives sought a declaration as to who had the right and authority to govern the Church and to possess and control its assets, which include the Church’s historical records, financial records, bank books, membership rosters, bank accounts, gifts, donations, and other funds. The Gaylor Representatives sought, among other things, to have the assets put in their possession and control and to prevent the McDowell Representatives from holding themselves out as the representatives of the Church.

Commerce Bank (“Commerce”) inter-pleaded and filed a third party plaintiffs answer to the Gaylor Representatives’ complaint. Commerce answered that it lacked sufficient knowledge or information to determine, among other things, which party has the right to possess and control the Church’s assets. As a result, it denied the Gaylor Representatives’ allegations pertaining to that question. Commerce then filed a motion for dismissal and order of discharge in which it asked that the suit against it be dismissed, that it be discharged from all liability with respect to the funds it interpleads into the registry of the court, and that it be awarded reasonable attorney’s fees and costs. The trial court granted Commerce’s motion, ordering it to deposit into the registry of the court the five accounts described in its petition, less its attorneys’ fees, and dismissing Commerce from the case.

The Gaylor Representatives admitted that the McDowell Representatives managed the affairs of the Church before April 13, 2002. On April 13, 2002, the Gaylor Representatives conducted a meeting at which they elected a Board of Directors and terminated the McDowell Representatives’ control of the Church. The Gaylor Representatives allege that the April 13, 2002 meeting was a long overdue annual meeting of the Church’s members at which Anthony Barnes, Norma Clayton, Marva Gaylor, and James Sheets were validly elected to the board of directors.

The McDowell Representatives, derivatively and on behalf of the Church, filed a third party petition for declaratory judgment against the Gaylor Representatives in their individual capacities. This petition sought a declaration that the April 13, 2002 election was void and that the McDowell [849]*849Representatives are the proper authority to manage the affairs of the Church.

The McDowell Representatives filed a motion for partial summary judgment, maintaining the April 18, 2002 election was illegal and void. The McDowell Representatives argue the April 13, 2002 meeting was called by Gary Fields, Ernest Schell, and David Lyons, who are not listed as officers or directors in the 2001 Annual Registration Report and who also did not manage the Church’s affairs before the meeting. Further, they argue notice of the meeting did not identify the purpose of the meeting and was not provided within ten days.

The trial court granted the McDowell Representatives’ motion for partial summary judgment. In its Order and Judgment, it found “the purported election of April 13, 2002 was null, void and held for naught” and reinstated the McDowell Representatives as church leaders for all legal, financial, and other matters. The trial court also dismissed the Gaylor Representatives’ original petition without prejudice.

When reviewing a grant of summary judgment, we view the record in the light most favorable to the party against whom judgment was entered. ITT Commercial Finance v. Mid-Am. Marine, 854 S.W.2d 371, 376 (Mo.banc 1993). “Our review is essentially de novo.” Id. We will uphold the trial court’s judgment if there exists no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Id. at 381. The moving party has the burden to show it has a right to judgment as a matter of law and that there is no genuine issue of material fact. Id. at 378. The moving party’s burden includes a duty to show the other party’s affirmative defenses fail as a matter of law. Northwest Plaza, L.L.C. v. Michael-Glen, 102 S.W.3d 552, 558 (MoApp. E.D.2003).

We will address the Gaylor Representatives’ second point first.

In their second point on appeal, the Gaylor Representatives argue the trial court erred in granting the McDowell Representatives’ motion for summary judgment because the Gaylor Representatives were the directors of the Church because they were properly elected at the April 13, 2002 meeting.

“If the corporation has members, all the directors, except the initial directors, shall be elected at the first annual meeting of members, and at each annual meeting thereafter, unless the articles or bylaws provide some other time or method of election ...” Section 355.326.1 RSMo. (2000).3 At the annual meeting, the president and chief financial officer shall report on the activities and financial condition of the corporation and the members shall consider and act on other matters raised consistent with statutory notice requirements. Section 355.231.4.

In this case, the Gaylor Representatives argue the April 13, 2002 meeting was a long overdue annual meeting because there was no other evidence of an annual meeting ever being held. The Gay-lor Representatives farther argue the Annual Stewardship/Discipleship Meetings did not qualify as annual meetings because there was no record that elections took place at these meetings. We disagree.

The Annual Stewardship/Discipleship Meetings were held every December. At these meetings, each “team leader” gave a report on his or her activities in the previous year and his or her plans for the next year. Further, the agendas from these Annual Stewardship/Discipleship Meetings [850]*850contained an' entry for a report from the “Treasury Ministry,” which included the previous year’s income and expenditures as well as the projected income and expenditures for the next year. In contrast, the record shows the April 13, 2002 meeting did not include a report on the activities and financial condition of the corporation as required by Section 355.231.4.

Therefore, even if the Annual Stewardship/Discipleship Meetings do not qualify as annual meetings under Section 355.231.4, it is clear that the April 13, 2002 meeting did not qualify as an annual meeting.

Because the April 13, 2002 meeting was not an annual meeting, we will consider whether it was a proper “special meeting.” Section 355.236 provides:

1. A corporation with members shall hold a special meeting of members:
(1) On call of its board or the person or persons authorized to do so by the articles or bylaws; or
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Related

First Missionary Baptist Church of Ballwin v. Rollins
199 S.W.3d 823 (Missouri Court of Appeals, 2006)

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151 S.W.3d 846, 2004 Mo. App. LEXIS 1499, 2004 WL 2339973, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-missionary-baptist-church-of-ballwin-v-rollins-moctapp-2004.