Kerner v. Thompson

6 N.E.2d 131, 365 Ill. 149
CourtIllinois Supreme Court
DecidedDecember 10, 1936
DocketNo. 23480. Reversed and remanded.
StatusPublished
Cited by18 cases

This text of 6 N.E.2d 131 (Kerner v. Thompson) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kerner v. Thompson, 6 N.E.2d 131, 365 Ill. 149 (Ill. 1936).

Opinion

Mr. Justice Orr

delivered the opinion of the court:

On the petition of the Attorney General we granted leave to appeal from a judgment of the Appellate Court for the First District which had dismissed an appeal from the circuit court of Cook county. The original action in the circuit court was one in chancery instituted by the Attorney General against William Hale Thompson, the Waterway and Flood Control Association of the Mississippi Valley, a corporation, and others, to protect and preserve a certain fund of money donated in 1927 for the use and benefit of flood sufferers in the Mississippi valley, and to require defendants to account for and restore as a public charitable trust the portion of the funds not used for the original purpose. The circuit court decreed, among other things, that a total of $72,794.79 was properly disbursed from the funds collected, under the cy pres doctrine, and it was only that portion of the decree which the Attorney General complained of as erroneous. The circuit court also required the defendant Thompson to turn over the sum of $31,131.17 to the American National Red Cross, “without prejudice to the right of said complainant, Otto Kemer, as Attorney General of the State of Illinois, to appeal from any part or portion of this decree.” In the Appellate Court the defendants filed a motion to dismiss the appeal, and in support thereof showed that they had complied with the provisions of the decree requiring them to turn over the sum of $31,131.17 to the Red Cross. Counter-suggestions to the motion to dismiss were filed by the Attorney General, to the general effect that the findings and decretal order of the circuit court were severable. The Appellate Court treated the motion as in the nature of a plea of a release of errors, and dismissed the proceedings for the principal reason that the plaintiff had accepted the benefits of a part of the decree, and after receiving from the defendants the amount found to be due upon an accounting could not thereafter prosecute a writ of error or take an appeal to reverse the remainder of the decree. The nature of the appeal and the questions involved preclude us from deciding the case upon its merits.

We must first consider- the challenge to our jurisdiction. While the question of jurisdiction of the courts to take and determine this cause was raised by appellee Thompson for the first time upon the appearance of the cause in this court, the right to raise a jurisdictional point at any stage of the proceeding is unquestioned. (People v. Old Portage Park District, 356 Ill. 340.) The argument against our jurisdiction is properly divisible into two parts, although this division is not clearly made by Thompson. While admitting that the object of the trust was charitable, he states that it could not be a public charitable use since the relief to be dispensed under the trust went only to a restricted, specified class — i. e., flood sufferers — and that it was to be applied to a particular and restricted territory — i. e., the Mississippi valley. He therefore argues that the State, because of lack of generality of application of the use to both people and territory, did not have a right to interfere with or question the acts of the trustees. His second argument is, that even though the situs of the trust fund, the trustee and the office of the trust are in Illinois, these facts do not give authority to the State to interfere where some of the funds came from donors outside of the State and the relief was not restricted to flood sufferers residing within the State.

The first argument of appellee Thompson is equivalent to a contention that he was simply handling a private charitable trust. The record will not sustain such a position, as it is conclusively shown that a public charitable use was established. This court had occasion to define a public charity in Grand Lodge v. Board of Review, 281 Ill. 480. We there said: “To constitute a public charity the benefit must not be conferred upon certain and defined individuals but must be conferred on indefinite persons composing the public or some part of the public, but the indefinite class may be of one sex or the inhabitants of a particular city, town or county or members of a particular religious or secular organization. (5 R. C. L. 293; 11 Corpus Juris, 338.) The fact of such discrimination among those members of the general public who need relief does not deprive the charity of its public nature. While classifications depending upon race, color or sex involuntarily affect individuals of the general public, membership in a church or society is no more involuntary than the selection of different callings' or trades, as in the case of seamen, locomotive engineers, laborers, farmers, or other classes that would come within the distinction of a public charity in the case where the distinction was drawn. * * * A public charity cannot be limited to defined individuals, but if it operates upon indefinite persons whose care and support rest upon the public the effect is to afford relief from the public burden and the charity is public in its nature.” This definition was quoted with approval in Skinner v. Northern Trust Co. 288 Ill. 229, and is supported by a great weight of authority in this and other States. The persons who were the objects of the trust in question were indefinite persons comprising a part of the public, so as to bring the trust squarely within the definition of a public charitable use rather than a private charity.

The second point made by appellee Thompson is likewise untenable. The fact that the money was not entirely derived from contributions made by citizens of this State or the relief dispensed was not confined entirely within the bounds of Illinois is not controlling. The appeal for funds was generated and spread in Illinois by Thompson by virtue of his office as mayor and through the medium of Chicago newspapers and radio stations. The denominated trustee was not only a resident and citizen of Illinois but was an officeholder of importance, and the prestige of his office lent force and conviction to his appeal for funds. Appellee Thompson continued to reside in Illinois as a citizen during the time the funds came in and were dispensed. The Waterway and Flood Control Association was a corporation organized under the laws of Illinois, with its main office located in Thompson’s office in the city hall of Chicago. Breen, who is the attorney for Thompson in this action, was one of the incorporators. The record shows that all the funds were deposited in and disbursed from Illinois depositaries on the orders of Thompson. The record does not show what percentage of the funds came from outside of the State, but we do not think the source of the contributions or the geographical distribution thereof is material, since the trustee’s residence, the situs of the funds and the office of the trustee were all in this State. These facts were sufficient to give 'the State the necessary interest to support the action, since the fund was a public charitable use applicable to the public generally. The right of the State, acting through the Attorney General, to interfere in the handling of a public charitable use to prevent or correct abuses cannot be denied. Stowell v. Prentiss, 323 Ill. 309; McGee v. Vandeventer, 326 id. 425; Attorney General v. Newberry Library, 150 id. 229; People v. Braucher, 258 id. 604.

We come, now, to a consideration of the action of the Appellate Court in treating the motion to dismiss as a plea of a release of errors. Pleas are still in effect under the Civil Practice act.

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Bluebook (online)
6 N.E.2d 131, 365 Ill. 149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerner-v-thompson-ill-1936.