Labelle v. Hennepin County Bar Assn.

288 N.W. 788, 206 Minn. 290, 125 A.L.R. 1023, 1939 Minn. LEXIS 661
CourtSupreme Court of Minnesota
DecidedNovember 24, 1939
DocketNo. 32,069.
StatusPublished
Cited by13 cases

This text of 288 N.W. 788 (Labelle v. Hennepin County Bar Assn.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Labelle v. Hennepin County Bar Assn., 288 N.W. 788, 206 Minn. 290, 125 A.L.R. 1023, 1939 Minn. LEXIS 661 (Mich. 1939).

Opinions

Peterson, Justice.

Plaintiff, a member of the Hennepin County Bar Association, brings this friendly action under the declaratory judgments law to obtain a declaration of its powers to conduct so-called bar plebescites for the purpose of ascertaining the preference of all lawyers practicing in Hennepin county for candidates for election or appointment as judges of the district and probate courts of the county and the municipal court of the city of Minneapolis. The individual defendants are officers of the association. Decision as to the association being decisive as to all parties, we shall refer to it as the defendant.

Defendant is a saciaL.and charitable corporation organized under 2 Mason Minn. St. 1927, §§ 7892-7900. Its. articles of incorporation provide:

“The general purpose of this corporation shall be to maintain the honor and dignity of the profession of the law, to cultivate social intercourse among its members, and to increase the usefulness of the profession in promoting the due administration of justice. The plan of operation shall be to hold frequent meetings of its members and to conduct such other activities as may be provided for in the By-Laws.”

Before each primary election a “primary ballot” is taken to ascertain the preference for candidates to be voted on in the election. When a vacancy in judicial office occurs an “advisory ballot” is taken for the purpose of advising the governor of the preference for appointment. The plebescite is conducted by mailing to each member of the bar a ballot containing the names of all the candidates for the judicial office involved with envelopes for enclosing marked ballots and mailing the envelopes with enclosed ballots to the committee for tabulation of the votes cast. The entire expense of preparing, printing, and mailing the ballots and envelopes to the bar is paid out of defendant’s funds, and *293 the work incident to the plebescite is done by its officers and committees.

Defendant’s by-laws declare that the plebescite is for the purpose of determining for the bar and the general public the opinion of the bar of Hennepin county as to the relative merits of candidates for judicial office. The by-laws, a copy of which is furnished to every participant in the plebescite, provide that in voting only fitness of the candidates for the judicial office is to be considered and that the party affiliation of any candidate or supposed preference of the governor for any particular person, party, or class shall be disregarded.

After the result of the plebescite has been ascertained it is announced to the public. The daily and some other newspapers in Hennepin county contain articles giving publicity to such fact. Where appointment is to be made, the result is communicated to the governor with a request that he appoint one of the five candidates who received the highest vote in the plebescite. No expense is involved in giving such publicity or communication with the governor.

Plaintiff contends that the holding of a plebescite is ultra vires the corporation in the sense of not being comprehended in and as being in excess of its corporate powers and unlawful as being a payment and contribution for political purposes in violation of the corrupt practices act, 1 Mason Minn. St. 1927, § 563. 2 The *294 claim of ultra vires has been abandoned. Defendant maintains that the corrupt practices act applies only to corporations organized for pecuniary profit and hence has no application to it, since it is not organized for such purposes; and that, assuming application of the act, the conduct of the plebeseites in the manner alleged does not constitute either a payment or contribution within the meaning of the statute. The amicus curiae urges in support of the proposition that the corrupt practices act does not apply to defendant that the judicial department of the government is independent of and exempt from legislative control and hence defendant is exempt from the act as a part of that department.

The court below sustained all the contentions of defendant and the amicus curiae and construed defendant’s powers in accordance with those views.

The contention that the corrupt practices act does not apply to defendant rests upon the proposition that the statute applies only to a corporation organized for pecuniary profit doing business in the state, and that defendant is not doing business at all, much less that it so organized. The statute does not define the term “doing business.” Hence the meaning of the term is to be taken as generally understood in the light of other legislation and the purpose of the statute.

Ordinarily, doing business means the exercise of the functions for which a corporation was created, whether such function be for profit or not. State ex rel. Griffith v. Knights of Ku Klux Klan, 117 Kan. 564, 232 P. 254, 37 A. L. R. 1267; Knights of Ku Klux Klan v. Commonwealth, 138 Va. 500, 122 S. E. 122; 17 Fletcher, Cyc. Corp. (Perm, ed.) § 8467.

Defendant’s activities are to be considered as doing business under the statute under which it was incorporated. Subsection 4 of § 7893 requires the election of officers “to conduct the transactions of the society” and an annual meeting for such election “and the transaction of other business.” Transacting business is the same as doing business.

*295 Other statutes in pari materia seem to indicate quite persuasively that the language was used in the sense indicated. 1 Mason Minn. St. 1927, § 601 (originally L. 1905, c. 291, § 1) prohibits corporations organized for pecuniary profit from contributing for political purposes. Section 563 (originally Ex. Sess. L. 1912, c. 3, § 26) prohibits all corporations from so contributing. The enlargement of the language indicates an intention to enlarge the scope of the statutory prohibition so as to make it unlawful for all corporations to make campaign contributions, whether organized for pecuniary profit or not, and not to limit the prohibition only to those organizations for pecuniary profit. That corporations not organized for profit are to be deemed to be doing business is apparent from statutory provisions requiring them to state their place of business in their articles of incorporation, as for example those organized for charity, § 7901; the Y. M. C. A., § 8003; Chamber of Commerce, § 7906; and home for the aged, §§ 7923, 7921. The statute under which defendant is organized contains no such requirement, but provides that it shall state its plan of operation and location. The difference is not material, since the act itself speaks of defendant’s activities as transacting business, which is the equivalent of doing business.

Where the intention has been to limit an act to corporations organized for profit, it has been so provided in express terms, as in the original law prohibiting campaign contributions by such corporations (§ 601, supra) and the statutes regulating the admission of foreign corporations to do business in the state which apply only to those organized for profit. 2 Mason Minn. St. 1927, §§ 7493 to 7495, now superseded by 3 Mason Minn. St. 1938 Supp. §§ 7195-1 to 7495-30.

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Bluebook (online)
288 N.W. 788, 206 Minn. 290, 125 A.L.R. 1023, 1939 Minn. LEXIS 661, Counsel Stack Legal Research, https://law.counselstack.com/opinion/labelle-v-hennepin-county-bar-assn-minn-1939.