Grand Lodge, Knights of Pythias v. Hermione Lodge No. 16, Knights of Pythias

64 So. 2d 405, 258 Ala. 641
CourtSupreme Court of Alabama
DecidedNovember 20, 1962
Docket8 Div. 610
StatusPublished
Cited by5 cases

This text of 64 So. 2d 405 (Grand Lodge, Knights of Pythias v. Hermione Lodge No. 16, Knights of Pythias) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grand Lodge, Knights of Pythias v. Hermione Lodge No. 16, Knights of Pythias, 64 So. 2d 405, 258 Ala. 641 (Ala. 1962).

Opinions

SIMPSON, Justice.

This litigation originated by a bill in equity by Hermione Lodge No. 16, Knights of Pythias of Decatur, Alabama, a body corporate, and two of its members suing in behalf of all the members against the Grand Lodge, Knights of Pythias of the Grand Domain of Alabama, also a body corporate. The purpose of the bill was to establish complainants’ right and title to assets held by the local lodge as against any purported -claim of the defendant Grand Lodge upon the theory that said local lodge, as a corporation, had become defunct and dissolved and that its remaining assets under the law became the property of the individuals who were then members of the organization.

Defendant was called upon to propound its claim, which it did by answer and cross-bill. The theory of the cross-bill was that the complainant lodge, notwithstanding its incorporation, was a subordinate lodge of the Order of the Knights of Pythias, having been instituted as such by authority of the Grand Lodge of Alabama in the year 1876 and having existed as such until 1933, when it became defunct; that as such subordinate lodge, -complainant was subject to the fundamental laws, rituals, etc., of the ‘Supreme Lodge of the Order and the Grand Lodge of the Domain of Alabama; that by an act of Congress incorporating the Supreme Lodge and by its constitution and laws made and provided, a subordinate lodge was forbidden to use its funds for any purpose contrary to the purpose and laws of the Order or to divide its property among its members, and was required in event of its ceasing to exist' as a lodge to surrender its funds and properties to the Grand Lodge of its domain to the end that such assets be devoted to the benevolent and fraternal purposes for which the order was founded.

Complainant demurred to the cross-bill and from an interlocutory decree overruling the' demurrer, prosecuted an appeal to this court. Our decision on that appeal is reported as Hermione Lodge No. 16, etc., v. Grand Lodge etc., in 248 Ala. 473, 28 So. 2d 166, 168 A.L.R. 948. In that opinion by the then Chief Justice Gardner, the case made by the pleadings is set out in much detail. The fundamental questions there presented, viz., the validity of the rules and regulations of the superior lodge for confiscation of property of a defunct subordinate lodge and the effect of the status of a subordinate lodge of incorporation under the laws of Alabama, were given a painstaking consideration and treatment. The conclusion reached and stated was that the pertinent provisions of the organic law of the order were valid, supporting the claim propounded by the cross-bill, and that the effect of incorporation of the subordinate lodge after its institution could in no man[643]*643ner add to .the rights of the individual members of said lodge.

On a final hearing on submission of the cause for final decree on the pleadings originally filed and as amended and on testimony given before a commissioner, the trial court entered a final decree in favor of the complainants. The respondent Grand Lodge has brought this appeal from that decree.

In view of the complete statement of the case on former appeal when the pleadings were under consideration, it is not necessary that we encumber this opinion with that matter, nor is it necessary that we enter upon a reconsideration of the legal principles there enunciated. We are content to reaffirm what we there held. While some amendments were added to the original bill, their effect is primarily to fortify the original theory, that is, that the complainant’s situation is that of a corporation rather than a subordinate lodge in the general concept. One amendment sets up the fact that the complaining lodge’s assets were derived from the purchase of a tract of land, erection of a building thereon, and the subsequent sale of the property, which yielded, a surplus over mortgage indebtedness. It is alleged that in order to help defray the cost of the building, members of the lodge were induced to purchase "script” in small amounts and the proceeds were devoted to the project. The exact nature of this “script” does not appear. Apparently these instruments were proposed to be redeemd under some circumstances by the lodge but all other questions aside, the testimony discloses that the amount realized from the sale of the “script” to the members was a mere fraction of the total cost of construction and that some of this “script” was redeemed and some destroyed long prior to this litigation. It is not made to appear that any “script” is now outstanding. It is, therefore, a reasonable deduction that whatever payments were made on the project were made out of the general resources of the lodge from whatever source derived. While it was obviously the plan of the lodge to make the building self-, liquidating in part, it appearing that certain portions of the building were designed so to be and were at times rented, only a small part of the cost was actually paid. From the inception of the project until the property was sold, there were large outstanding mortgage debts which were only discharged when it was sold. There is an absence of any evidence tending to show that the property or its proceeds was ever treated as purely corporate assets. On the contrary, the lodge made semi-annual reports to the Grand Lodge in compliance with the laws of the order and on each such report was made a financial statement itemizing all receipts by way of dues, fees, donations, etc., and under appropriate headings investments were shown, along with liabilities and net surplus. The equity of the lodge in the property and later the surplus remaining after its sale were reflected on each report to the Grand Lodge.

Another amendment to the original bill sets out a decree or adjudication of the Grand Lodge, revoking the charter of Hermione Lodge No. 16,- made in the year 1944. The insistence is that the dissolution of the lodge was not voluntary on its part, but the result of arbitrary action of the Grand Lodge. The purpose of this amendment seems to have been to avail of- the rule stated in some of the cases relied upon to the effect that for the superior lodge to be entitled to take over assets of a defunct lodge, the dissolution of the lodge must have been voluntary on its part. Some reference to this situation is made in our former opinion in 248 Ala. at pages 478-479, 28 So.2d 166. Without venturing an expression of any opinion as to the effect of the nature of the dissolution, we there- observed that Hermione Lodge No. 16 ceased to exist as' a lodge by its own volition; that is, its members ceased to hold meetings or to otherwise function in the year 1933. Evidence of this fact is undisputed, in fact seems to be conceded. The action of the Grand Lodge more than ten years thereafter was merely an official declaration of an accomplished fact.

The .evidence adduced is somewhat voluminous, yet It is manifest that in view of our former decision eliminating complainant’s claim as a dissolved corporation, [644]*644on -the allegations there made "the single issue remaining for decision-on the-final hearing was the claim of the respondent Grand Lodge as set up in its cross-bill. Boiled down, the factual issues are: First, whether or not Hermione Lodge -No.

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Bluebook (online)
64 So. 2d 405, 258 Ala. 641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grand-lodge-knights-of-pythias-v-hermione-lodge-no-16-knights-of-ala-1962.