First Universalist Church v. Pungs

86 N.W. 235, 126 Mich. 670, 1901 Mich. LEXIS 808
CourtMichigan Supreme Court
DecidedMay 21, 1901
StatusPublished
Cited by8 cases

This text of 86 N.W. 235 (First Universalist Church v. Pungs) 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
First Universalist Church v. Pungs, 86 N.W. 235, 126 Mich. 670, 1901 Mich. LEXIS 808 (Mich. 1901).

Opinion

Long, J.

The parties to this cause do not disagree upon the facts. Plaintiff is an incorporated church society. In February, 1880, by a written lease, it leased the property now occupied by its church edifice from the McKinstry estate for an annual rental of $250, payable quarterly. The lease contained an option under which the land and building thereon might become the property •of the church upon its giving to the McKinstry estate written notice of its intention to purchase on or before April 1, 1894, and upon payment of a price to be •determined in the following manner: Each party to the lease to select an appraiser, and these two to select a third, and the three persons so chosen to appraise the land without regard to improvements thereon. On January 3, 1893, the church society being desirous of taking advantage of the option contained in the lease, a meeting was held at the house of Mr. Simon J. Murphy. At this meeting a subscription paper was presented to those pres[672]*672ent, among whom was defendant, Pungs, who was at that time a member of the board of trustees of the society. This subscription. paper, after reciting the conditions of the lease under which the property could be purchased by the society, stated:

“The value of the land or the debt we have to meet may be represented by 100 per cent. It cannot be known exactly what the amount will be. It can be approximated. You are asked to sign what proportion you are willing to assume — subscription—for the purpose of paying for the lot on which the Universalist church, the Church of our Father, stands in the city of Detroit, Michigan; the value of said lot to be determined according to the terms of the contract existing between the estate owning the lot and the church occupying the lot. We, the undersigned, do hereby agree to pay such proportion or per cent, of the indebtedness,, when determined according to the terms of the contract, as is set opposite our names. These subscriptions shall be due on or before May 1, 1894.”

Mr. Murphy subscribed 25 per cent., Mr. Newcomb 25 per cent., Mr. Bowling 10 per cent., and defendant, Pungs, subscribed “.05.” Seven others subscribed per cents., and still others subscribed fixed amounts. The percentages subscribed amounted to 85 per cent., and the fixed subscriptions to $1,300 additional.

While the record does not contain a notice served on the McKinstry estate by the church society of its intention to take the property under the terms of the lease, it does contain an acknowledgment of the receipt of the notice in a paper signed by the trustee of the estate and other parties, the heirs, who were interested in the estate. This writing also contains a recitation of the appointment of George Dingwall as the appraiser to act on the part of the estate, and an agreement that, in case the two appraisers appointed by the parties agreed upon the value of the property, the estate would waive the' appointment of a third appraiser, and that the appraisal by the two should have the same force and effect as though made by the three. The church society appointed Samuel A. Plumer, and the clerk of the church signed an agreement that, if [673]*673the two appraisers agreed, the appraisement should stand. The two appraisers thus appointed appraised the value of the land, without regard to improvements, at $30,000.

On April 26, 1894, a special meeting of the trustees of the church was held, at which the defendant, Pungs, does not appear to have been present. At this meeting a resolution was adopted authorizing the president and clerk to arrange for an extension of time for the payment of the appraisal of $30,000 to September 1, 1894, with interest. Another trustee meeting was held on September 4, 1894, at which Mr. Murphy reported that no word had been received from the McKinstry estate. From this it appears that the society was making every effort to take care of its right to purchase. Another meeting was held December 2, 1894, at which time it was reported that the Mc-Kinstry estate did not wish to accept the $30,000 without the $900 interest which had accrued. Matters finally culminated by the calling of a special meeting at the house of Mr. Murphy on December 10, 1894. The call was signed by all the trustees, including the defendant, who signed, “ Wm. A. Pungs. Yes.” Accordingly, a meeting was held on this date, at which Mr. Pungs was present. A plan was adopted by which Mr. Murphy was to be substituted for the McKinstry estate, and assume its relations with the church. The McKinstry estate was, therefore, on motion of Mr. Pungs, authorized to execute a contract with Mr. Simon J. Murphy for the church property, and the church officers were authorized to contract with Mr. Murphy for the property. December 31, 1894, another trustee meeting was held, at which defendant, Pungs, was present. A resolution was here passed unanimously which recited that the society had elected to purchase the property, and was under obligation to pay to the McKinstry estate $30,000 and interest; that the church was unable to raise the necessary sum, and Mr. Murphy had consented to assume the obligation, a .id extend the time of payment to himself. The resolution requested the McKinstry estate to execute a contract to Mr. Murphy. [674]*674Another resolution was adopted unanimously, directing the church officers to contract with Mr. Murphy for the property for the sum of $30,000. Accordingly, the MeKinstry estate, by an instrument dated November 1, 1894, did contract with Mr. Murphy for the purchase by him of the church property; and on November 1, 1898, Mr. Murphy received a deed of the land from the McICinstry estate, and is now the owner of the property. The church entered into a contract with Mr. Murphy for the purchase of the property from him for $30,000. The subscriptions were never abandoned nor allowed to lapse. A record book was kept, in which the various subscribers were charged with the amounts severally subscribed; and upon these amounts interest has been regularly paid, and in many cases the principal likewise.

Defendant, William A. Pungs, failed to pay the amount of his subscription, and this action is brought to recover such amount. The court below directed the verdict in favor of plaintiff for $1,986.24, which is conceded the correct amount, if plaintiff be entitled to recover at all. The defendant brings error.

The argument of defendant’s counsel is:

1. That there was no binding contract between the parties.

2. That the extension of time of payment sought by the plaintiff by agreeing to pay interest upon its purchase was not done in reliance upon the subscriptions, and, if it were, it released defendant if he did not consent to it, because his subscription was for the payment presently of a valid appraisement, without interest.

We think the subscription was valid and binding ^pon the defendant in its inception, within the rule laid down by the court many times. In Underwood v. Waldron, 12 Mich. 73, the defendant was sued upon his subscription made for the purpose of purchasing land or erecting a college building. This court held that, where a subscription is made by which the signers promise to pay the several sums subscribed for the purpose of erecting a building for educational purposes, and something has been [675]*675■done, or some liability or duty assumed, in reliance upon the subscription, in order to carry out that object, the promises are binding, and may be enforced, although no pecuniary advantage is to result to the promisors. It was said •

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Harvey v. Security Services, Inc
384 N.W.2d 414 (Michigan Court of Appeals, 1986)
In Re Upper Peninsula Development Bureau
110 N.W.2d 709 (Michigan Supreme Court, 1961)
Wesleyan University v. Hubbard
20 S.E.2d 677 (West Virginia Supreme Court, 1942)
Estate of Dodge v. Commissioner
13 B.T.A. 201 (Board of Tax Appeals, 1928)
Dodge v. Commissioner
13 B.T.A. 201 (Board of Tax Appeals, 1928)
Waters v. Union Trust Co.
89 N.W. 687 (Michigan Supreme Court, 1902)
Hodges v. Nalty
89 N.W. 535 (Wisconsin Supreme Court, 1902)

Cite This Page — Counsel Stack

Bluebook (online)
86 N.W. 235, 126 Mich. 670, 1901 Mich. LEXIS 808, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-universalist-church-v-pungs-mich-1901.