Greene v. Thompson

305 S.W.2d 136, 227 Ark. 1089, 1957 Ark. LEXIS 551
CourtSupreme Court of Arkansas
DecidedJuly 1, 1957
Docket5-1377
StatusPublished
Cited by4 cases

This text of 305 S.W.2d 136 (Greene v. Thompson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greene v. Thompson, 305 S.W.2d 136, 227 Ark. 1089, 1957 Ark. LEXIS 551 (Ark. 1957).

Opinions

Ed. F. McFaddin, Associate Justice.

This case involves the deed in trust executed by Governor and Mrs. George W. Donaghey. Specifically, the question is: under the facts here presented, can the Trustees of the Donaghey Foundation continue to pay the net proceeds of the Foundation to the Little Rock Junior College if that institution ceases to be operated by or under the supervision of the School Directors of the Little Rock School District?

In the case of Little Rock Junior College v. George W. Donaghey Foundation, 224 Ark. 895, 277 S. W. 2d 79, we had before us the deed in trust executed by Governor and Mrs. Donaghey; and that opinion contains the basic facts about the Donaghey deed in trust. The majority opinion in that case concludes with these two pertinent paragraphs:

“But little need be said about appellee’s contention that since the college has incorporated, it is no longer under the supervision of the Little Bock School Board and is therefore not entitled to receive anything from the trust. Surely appellees do not have much confidence in that theory, for the payments to the college were continued after the four-year program was abandoned.

“The deed provides that the school be ‘under the supervision of the public school authorities in said city.’ The college was incorporated in 1947; section one of Article 5 of the Articles of Incorporation provides: ‘The management and administration of the affairs of the corporation shall be vested in a Board of Trustees which shall always be composed of and limited to duly elected and installed Directors of the Little Bock School District.’ Hence the college is under the supervision of the public school authorities of Little Bock j'ust as much as it is possible to be under such supervision. By incorporating the institution and limiting the personnel of the Board of Trustees to duly elected and installed Directors of the Little Bock School District, the provision in the deed in trust pertaining to the college being supervised by the school authorities of Little Bock is fully complied with.”

As stated in the foregoing paragraphs, the School Directors of the Little Bock School District incorporated the Little Bock Junior College (as a non-profit educational corporation under § 64-1301 et seq. Ark. Stats.), and the School Directors of the Little Bock School District were the Directors of the Little Bock Junior College corporation and thus retained the operation and management of the Junior College. But after our opinion in the case of Little Rock Junior College v. George W. Donaghey Foundation, supra, the School Directors of the Little Bock School District decided to surrender their directorship of the Little Bock Junior College corporation. to other persons.1 Thereupon, the present suit was instituted by James E. Greene, et al., as plaintiffs, against Charles L. Thompson, John Eule, William Nash, Alfred Kahn, Leo Pfeifer, Henry Hollenberg, and Clyde Lowry, “Trustees of the Trust Created by the Deed in Trust executed by George W. Donaghey and Louvenia Donaghey under date of July 1, 1929.”

The complaint alleged that the plaintiffs were citizens, taxpayers, and patrons of the Little Eock School District; that this suit was for the benefit of themselves and all others similarly situated; that the defendants were the present Trustees of the Donaghey Foundation; that the Little Eock Junior College was the beneficiary of the Donaghey Foundation; that the School Directors of the Little Eock School District were the Trustees charged with the responsibility of managing and operating the Little Eock Junior College; that the School Directors of the Little Eock School District were now attempting to put into operation a plan so that the Little Eock Junior College would be managed by persons other than the elected School Directors of the Little Eock School District;2 that the defendants, as Trustees of the Donaghey Foundation, had agreed that they would continue to give the income derived from the Donaghey Foundation to the Little Eock Junior College, even under its new management; and that the Trustees of the Donaghey Foundation had no power, under the terms of the Donaghey deed in trust, to give any part of the income from the Donaghey Foundation to the Little Eock Junior College if it ceased to be operated or supervised by the Directors of the Little Bock School District.

The plaintiffs prayed that the defendants, as Trustees of the Donaghey Foundation, be enjoined from giving any of the money of the Donaghey Foundation to the Little Bock Junior College, in the event the operation or supervision of the Little Bock Junior College should pass from the Directors of the Little Bock School District. The defendants filed an answer, which in effect admitted the facts as alleged; and prayed “. . . that the Court interpret the deed in trust and that they be authorized, in their discretion, to continue to make payments to the beneficiary named in said deed in trust, that is, the Little Bock Junior College, during the time it is operated as a junior college and when and if it is advanced to a senior college, even though it is not operated by or under the supervision of the public school authorities of the City of Little Bock . . . ”3

The deed in trust of Governor Donaghey was very specific as to the necessity of the Board of School Directors of the Little Bock School District continuing to manage and control the Little Bock Junior College. Here is the pertinent language:

“It is the object and purpose of this deed to convey the property herein described to said Trustees, their successors and assigns for the purpose of creating a fund or foundation to be used for the sole and exclusive benefit of the present Little Bock Junior College, an institution of learning in said city, at the present time operated under the management of the Board of School Directors of the Special School District of Little Bock, Arkansas, investing said Trustees with full discretion to select some other public school or schools in said city, operated by or under the management or supervision of the Board of School Directors of the said Special School District' of Little Rock, and their successors in charge of the public schools in the said City of Little Rock, in the event the present Little Rock Junior College or its successors, should at any time cease to be operated by or under the supervision of the public school authorities in said city.” (Italics our own.)

Notwithstanding the quoted language, the Puláski Chancery Court held, in the case at bar, that the Trustees of the Donaghey Foundation could continue to pay the net proceeds of the Donaghey Foundation to the Little Rock Junior College, even though the School Directors of the Little Rock School District surrendered the directorships and the Little Rock Junior College ceased to be operated by or under the supervision of the School Directors of the Little Rock School District. We hold that the decision of the Pulaski Chancery Court was in error. The language we have italicized in the paragraph above is as clear as the English language can be made: “. . . in the event the present Little Rock Junior College or its successors, should at any time cease to be operated by or under the supervision of the public school authorities in said city . . .”, then the Trustees of the Donaghey Foundation were to deliver the net proceed of the Donaghey Foundation to ‘ ‘. . .

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Related

Derblom v. Archdiocese of Hartford
346 Conn. 333 (Supreme Court of Connecticut, 2023)
Little Rock University v. George W. Donaghey Foundation
485 S.W.2d 230 (Supreme Court of Arkansas, 1972)
Donaghey Foundation v. Little Rock University
332 S.W.2d 497 (Supreme Court of Arkansas, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
305 S.W.2d 136, 227 Ark. 1089, 1957 Ark. LEXIS 551, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greene-v-thompson-ark-1957.