Industrial Trust Company v. Green

23 A. 914, 17 R.I. 586, 1892 R.I. LEXIS 32
CourtSupreme Court of Rhode Island
DecidedJanuary 30, 1892
StatusPublished

This text of 23 A. 914 (Industrial Trust Company v. Green) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Industrial Trust Company v. Green, 23 A. 914, 17 R.I. 586, 1892 R.I. LEXIS 32 (R.I. 1892).

Opinion

Stiness, J.

In January, 1889, certain Portuguese residents of this State formed a voluntary mutual benefit association, adopted a constitution, and carried on the work of their organization, after the ordinary manner of such societies, in the accumulation of a fund for the relief of the sick, and the payment of an assessment in case of death. The fund was deposited in the Industrial Trust Company, in the name of the association, by the members of its deposit and finance committees, to be withdrawn only upon orders signed by said committees, and countersigned by the president of the society. The respondent, Manuel Diaz, was president of the society for the year 1890. In February, 1890, a proposition was made that regalia be obtained for the officers, for a parade about to take place at New Bedford, which was voted down; whereupon some of the officers provided regalia at their own expense, in which they appeared at the parade. This action of the officers was regarded by some of the members as contrary to the expressed will of the society in the vote above referred to, and also to the constitution, which provided that no officer or member should appear with the society in the street except in the uniform adopted by the society. At that time no uniform except a cap and badge had been adopted. The matter caused ill-feeling in some members towards the president, who was held to be responsible for the proceeding, and at the next meeting, when the minutes of the previous meeting were read, objection was made that there was no mention therein of the regalia worn by the officers at New Bedford. The president ruled *587 that the subject was out of order at that time, but it might be called up later. This ruling aroused great excitement and confusion, some of the members shouting, “ Put that man out of the chair.” A motion was then made that the president be expelled from the chair immediately, which motion the president, after protesting that the constitution provided only for the trial of officers upon written charges, put to vote and it was carried. He then declared the result and retired from the chair, the vice-president taking his place. The disorder immediately subsided and the president remained, took part in the meeting without further objection, and also participated in several following meetings; not, however, at any time, claiming his right to the chair.

Prior to this time appnca^on had been made to the legislature for a charter for the society? under the same name, which was granted March 6, 18°^- The president and others were named as corporators, who, 0® March 10, 1890, organized thereunder, but the charter was presented to the original society for its acceptance. After t1ia^ time ^be president and his friends ceased to attend the of the original association, and finally claimed that the assor*a<aon bad become dissolved, by reason of the illegal conduct abo1® referred to, and that the fund here in question should be dk^^bated j/J/'o rata among the members.

The conh11^011 tbat the expulsion of the president from his office was ili®8ai’ and such a breach of the contract of organization as to consti5U*® sufficient ground for a dissolution of the society; and that su°b an organization is to be treated in law as a copartnership, whi°b will be dissolved by the unauthorized and wilful exclusion of a rnember from participation in its affairs and privileges. It is clear that such organizations, by reason of the mutual, contractual Rations of the members, are not public charities, but private associations, in some respects resembling partnerships. Nevertheless ^bey are not strictly partnerships. Formerly, when such associallons were more of a novelty than now, it seems to have been thought that every organized body must either be a corporation or a pai^nersbip. So in Thomas v. Ellmaker, 1 Parsons’ Select Cases, and in Gorman v. Russell, 14 Cal. 531, it was held that voluNary associations for mutual relief are partnerships; *588 but more recently the contrary doctrine has been held. La Fond v. Deems, 81 N. Y. 507; Burke v. Roper, 79 Ala. 138; Ash v. Guie, 97 Pa. St. 493; Otto v. Journeymen Tailors, 7 Amer. State Rep. 156, 160, note; Lindley on Partnership, *50.

This subject is fully considered in a note to Ebbinghousen v. Worth Club, 4 Abb. N. C. 300, where the distinction between internal and external controversies is pointed out, and cases cited showing when members may be regarded as partners inter se and as to third parties. It is needless to pass upon this question of the status of the.parties in this case, since, assuming the standpoint of the retiring members, '(Rat it is to be treated as a partnership, we do not think a sufficient cause is shown to warrant a judgment of dissolution of the society.

The president was not excluded from his membership in the society, but only from his occupation of the, chair. The vote expelling him from his office was clearly irregular, and contrary to the by-laws of the society. To this extent the action was illegal, and subversive of the mutual agreement. A majority is not omnipotent. A minority has certain equal rights which cannot be ignored. These rights are determined by the nature and rules of the association, and they may be so violated by thost in power as to sunder the bonds of the association itself. It is a well-settled rule, however, both as to partnership and societies, that courts should not interfere in the dissensions of members foi occasional breaches of agreements which are not so grievous as to make it impracticable for the relations to continue, and the purposes of the association to be carried out. Gorman v. Russell, 14 Cal. 531; Fischer v. Raab, 58 How. Pr. 221. Improper action due to excitement, bad temper, and ignorance will sometimes Oíeur, but, as stated in La Fond v. Deems, supra, attempt should fi-st be made for redress in the association itself. “ For,” to quote tie language of Gorman v. Russell, supra, “ it does not follow, if Re majority of this association have mistaken their powers or duties, and acted under such mistake, if they are willing to correct the error, that a court of equity will necessarily grant the relief sought ” by dissolution.

In the present case the president did not seek refress for the wrong done to him. He neither sought to take the enair at a sub *589 sequent meeting, nor to have the vote rescinded; nor for a trial under the constitution; nor to enforce his right to his office at law. Under the expression of the will of the society, he left the chair, and apparently acquiesced in the proceedings. He not only did not assert his own right to the office of president, but recognized and submitted to the authority of the vice-president, who was acting in his place. At a subsequent meeting a vice-president was elected to fill the vacancy so caused, without protest on the part of Dias.

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Related

Lafond v. . Deems
81 N.Y. 507 (New York Court of Appeals, 1880)
Gorman v. Russell
14 Cal. 531 (California Supreme Court, 1860)
Fischer v. Raab
58 How. Pr. 221 (New York Court of Common Pleas, 1879)
Burke v. Roper
79 Ala. 138 (Supreme Court of Alabama, 1885)
Ebbinghousen v. Worth Club
4 Abb. N. Cas. 300 (New York Court of Common Pleas, 1878)

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Bluebook (online)
23 A. 914, 17 R.I. 586, 1892 R.I. LEXIS 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-trust-company-v-green-ri-1892.