Indianapolis Bible Institute v. Kiddey

187 N.E. 846, 98 Ind. App. 567, 1933 Ind. App. LEXIS 32
CourtIndiana Court of Appeals
DecidedDecember 13, 1933
DocketNo. 14,616.
StatusPublished
Cited by1 cases

This text of 187 N.E. 846 (Indianapolis Bible Institute v. Kiddey) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indianapolis Bible Institute v. Kiddey, 187 N.E. 846, 98 Ind. App. 567, 1933 Ind. App. LEXIS 32 (Ind. Ct. App. 1933).

Opinion

Bridwell, P. J.

Appellee, Lila M. Kiddey, filed her *568 complaint against appellant to recover an amount contributed by her to a fund raised and held by appellant, and designated as a Building Fund, and to have a receiver appointed to take charge of all assets of appellant and “wind up its affairs.” Appellant filed a demurrer to the complaint which was overruled and appellant excepted. Appellant thereafter filed its answer in two paragraphs, the first a general denial, the second alleging in substance that appellant is a charitable organization supported by voluntary contributions from the public, and members of the corporation; that its objects are “the giving of religious instructions, training in religious work, conducting a school for the study of the Bible, and religious, evangelistic, civic, educational, charitable, missionary, musical, literary and benevolent purposes;” that it is still active and is still soliciting funds, and has a large number of students and members who desire it to continue its work and “protect and perpetuate” all its funds, including the Building Fund. The sufficiency of the second paragraph of answer was not tested by a demurrer. After the filing of the answer appellee, John H. Rader, upon request, was allowed to and did file his intervening petition wherein he alleged in substance that he subscribed and paid $400 to the Building Fund of appellant; that said Building Fund was a trust fund; that appellant received the monies placed therein during a campaign to raise funds to acquire a home or building for appellant; that the accomplishment of the purpose for which the subscription was made and paid has been abandoned and that said Building Fund is in danger of being wasted; that demand has been made on appellant for the return of said Building Fund to the subscribers thereto, but appellant neglects, fails, and refuses to do so. This petition requests that a receiver be appointed to take charge of *569 said Building Fund and that distribution thereof be ordered made to the persons paying their subscriptions into said fund. The action brought was on behalf of appellees and all others similarly situated, it being alleged that the plaintiff (appellee Kiddey) is one of many persons who subscribed and paid to said fund, and that the parties so doing are “so numerous that it is impossible to bring them all before the court in this action.” The cause was submitted'to the court for trial, and in due course there was a decision and judgment in favor of the appellees declaring the “Building Fund” a trust fund held by appellant for the benefit of the donors thereto, finding the amount each of the appellees was entitled to recover, appointing a receiver to take charge of said fund with instructions to said receiver that he obtain as full and complete a list as possible of the donors to said fund, and report same to the court for instructions and further orders. The receiver appointed qualified for the discharge of his duties. Appellant filed its motion for a new trial stating as causes therefor that the finding and decision of the court is not sustained by sufficient evidence, and is contrary to law. This motion was overruled and appellant excepted. This appeal followed, appellant assigning as error that the court erred in overruling its demurrer to the complaint, and erred in overruling its motion for a new trial.

The complaint is lengthy and we deem it unnecessary to set it out in full. It is therein averred in substance that appellant is a corporation organized under and pursuant to the laws of this state; that the business conducted by said corporation has been that of furnishing biblical instructions to students for enrollment fees; that appellant, by its board of directors, did, in the ■year of 1925, decide and determine to enter upon a cam *570 paign for the raising of a fund by public subscriptions for the purpose of purchasing or constructing a building wherein to conduct its school and carry out its objects and purposes, said fund to be known as a Building Fund; that in furtherance of such campaign announcements concerning same were authorized to be published in the local newspapers, and appellant held dinners to which large numbers of persons were invited as guests and that at said dinners appellant solicited subscriptions to said Building Fund, announcing that a minimum of not less than $- was to be raised by public subscriptions; that plaintiff (appellee Kiddey) attended one of said dinners as an invited guest, and, on account of the representations there made, did subscribe and pay the sum of $50 to be used in aid of the accomplishment of the purpose proposed, “and for no other purpose;” that the sum raised was about $2,500 and this amount was wholly inadequate to purchase or construct a “home” for said corporation, and the money subscribed was never used for that purpose, and constitutes a trust fund in the hands of appellant and is impressed with a trust in favor of the subscribers to said Building Fund; that more than five years have passed without appellant obtaining any additional subscriptions, or making any effort to do so; that on the 16th day of December, 1930, appellant by its board of directors voted to abandon the purposes for which said monies were collected and to return to the several subscribers to said Building Fund, in the proportion in which they had severally paid, 80 per cent of said fund; that appellant’s treasurer, the officer of the corporation authorized by its by-laws to sign checks, arbitrarily and wrongfully refused to sign checks so said money could be returned as directed and authorized by the Board of Directors, and no part of said fund has been returned to plaintiff or to any other of the subscribers thereto; that *571 certain members of appellant’s Board of Directors desire to rescind the action of the board taken on December 16th, 1930, and are seeking to obtain authority from a majority of said board to transfer the unexpended balance of said Building Fund to the checking account of appellant so as to enable it to use such fund for the general expenses of the corporation, including the payment of salaries if it be so desired; that defendant (appellant) is insolvent; that the directors are in a state of hopeless disagreement between and among themselves as to the disposition of the Building Fund and there is imminent danger of said fund being misappropriated, dissipated, and lost; that a receiver should be appointed to take possession of said fund and distribute the same according to the direction of the court, or to take charge of all the assets of the corporation and wind up its affairs.

The demurrer was on the ground that the complaint does not state facts sufficient to constitute a cause of action.

Appellant contends that appellees have no right to maintain this action on behalf of themselves and all others similarly situated. We cannot agree with this contention. Sec. 277, Burns Ann. St. 1926, (§2-220, Burns 1933, §35, Baldwin’s 1934), provides that “when the question is one of a common or general interest of many persons, or where the parties are numerous and it is impracticable to bring them all before the court, one or more may sue or defend for the benefit of the whole.” Under the allegations of this complaint all persons who subscribed and paid money to the “Building Fund” -have a common or general interest with appellees in having such fund declared to be a trust fund held by appellant for their benefit.

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

Related

Cotner College v. Estate of Hester
51 N.W.2d 612 (Nebraska Supreme Court, 1952)

Cite This Page — Counsel Stack

Bluebook (online)
187 N.E. 846, 98 Ind. App. 567, 1933 Ind. App. LEXIS 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indianapolis-bible-institute-v-kiddey-indctapp-1933.