Milasinovich v. Serbian Progressive Club, Inc.

84 A.2d 571, 369 Pa. 26, 1951 Pa. LEXIS 526
CourtSupreme Court of Pennsylvania
DecidedNovember 27, 1951
DocketAppeal, No. 135
StatusPublished
Cited by22 cases

This text of 84 A.2d 571 (Milasinovich v. Serbian Progressive Club, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milasinovich v. Serbian Progressive Club, Inc., 84 A.2d 571, 369 Pa. 26, 1951 Pa. LEXIS 526 (Pa. 1951).

Opinions

Opinion by

Mr. Justice Allen M. Stearne,

This is an appeal from final decrees in equity granting an injunction against a corporation not for profit —first class — and its officers, and appointing a receiver and also giving other equitable relief.

[28]*28The Serbian Progressive Club, Inc., is a corporation of the first class, incorporated by the Court of Common Pleas of Allegheny County under the Act of April 29, 1874 P, L. 73 and the Act of May 5, 1933 P. L. 289, as amended, 15 PS 2851-1 et seq. Its authorized purpose is to educate its members to become worthy citizens of the United States of America and to respect and obey the laws of the United States. The corporation owns real estate, has. cash assets and is holder of a Pennsylvania Liquor Control Board liquor license. Five alleged members of the corporation filed a bill in equity charging that the present officers, or certain of them, were endeavoring to bring the corporation- under the control of the Communist Party; that communist meetings were being held in the club house; that assets of the corporation were being employed for communist propaganda and the funds of the corporation being diverted from the lawful purposes of the corporation and applied toward subversive uses not only against the corporation but the United States ; that because of these facts many members had resigned or abandoned their membership; that the corporation finances were becoming exhausted; that bodily harm was and is threatened to those members opposing communism; that the constitution and by-laws of the corporation were ignored; the names of alleged members of the’ communist party were given and it was charged that anti-communists are excluded.

The chancellor appointed a receiver to hold the assets of the corporation and, after extensive hearings, but with a record which leaves much to be desired, made findings of fact and conclusions of law, and entered a decree which the court in banc, with modifications, unanimously affirmed. The final decree of the court in banc reads:

“1. The defendants perverted the purposes of the .charter granted by this court in using the club prem[29]*29ises;'(a) For communist and communist front meetings; (b) Diverting funds to communist and communist front organizations; (c) In the distribution of communist literature, booklets, and information.
“2. The defendant organization is ordered to expel at once the following officers and members charged with being communist and communist sympathizers: (here follow twenty-three names).
“3. To re-instate all former members who were anti-communist and who desire to rejoin said organization, and other members improperly expelled from said organization.
“4 The defendant organization and defendants are hereby permanently enjoined from using said club premises for communist meetings, discussions, conferences or for the sale or distribution of anti-American or any other treasonous literature of any character.”

The chancellor took judicial notice that the communist party is a subversive organization which conspires to teach and advocate the overthrow of the government of the United States by force and violence and constitutes a clear and present danger of an attempt to so do: United States ex rel. John Turner v. Williams, 194 U. S. 279; Kessler v. Strecker, 307 U. S. 22; Dennis et al. v. United States, 341 U. S. 494; United States ex rel. Georgian v. Uhl, 271 Fed. 676, C.C.A. 2d; Skeffington v. Katzeff et al., 277 Fed. 129, 132-133; Antolish v. Paul et al., 283 Fed. 957, 959. An act of Congress, Smith Act, 54 Stat. 671, 18 U. S. C. (1946 ed.) sec. 11, makes it a crime to knowingly or wilfully advocate the overthrow or destruction of the Government of the United States by force or violence, or to conspire to do so: Dennis et al. v. United States, 341 U. S. 494.

The findings of the chancellor are sufficiently supported by the testimony of various witnesses, including a witness who was a former undercover agent em[30]*30ployed by the Federal Bureau of Investigation. He testified that several named present officers and members of the corporation were members of and affiliated with the communist party and were actively engaged in the work and purposes of that organization.

It was testified that the purposes of the corporate charter were being perverted. Communistic doctrines were being substituted for those of the corporation. There clearly existed a danger that instead of educating its members to become worthy citizens of the United States of America and to respect and obey the laws of the United States, the corporation was now teaching and advocating the overthrow of the government of the United States by force and violence. The assets of the corporation were being diverted and used for communist propaganda. The real and personal property of the corporation was in jeopardy. The chancellor in such circumstances correctly issued the injunction and by a supplemental decree appointed a receiver.

It is true that a court in equity has no jurisdiction, in the absence of a statute, merely to declare an election void or to remove or enjoin officers. But it possesses such jurisdiction if some other ground of equitable jurisdiction is presented: Jenkins et al. v. Baxter et al., 160 Pa. 199, 28 A. 682; Bedford Springs Co. v. McMeen et al., 161 Pa. 639, 29 A. 99; Deal v. Miller, 245 Pa. 1, 90 A. 1070. For an ordinary corporate election contest there exists an adequate remedy at law, viz.: quo warranto or mandamus. In the case now before us the injunction and the appointment of a receiver was necessary and appropriate upon the allegations and proof of fraud, waste and misapplication of assets. In Jenkins et al. v. Baxter et al., supra, p. 201, it is recited that there was no allegation of fraud or force. In Deal v. Miller, supra, p. 3, we said: “There is no averment that the defendants are seeking to get [31]*31possession of the property of the corporation with a view to its mismanagement or to waste it or in any way to control it to the prejudice of the stockholders of the company.” See also sec. 367 et seq. Fletcher Cyclopedia Corporations, p. 132 and the numerous cases therein cited.

In addition to a court’s general equity jurisdiction, a partial statutory remedy has been provided by the Legislature. Sec. 503 (c) of the Act of May 5,1933 P. L. 289, art. V, 15 PS 2851-503, provides: “Unless the articles or by-laws otherwise provide, the court of common pleas of the county where the registered office of the corporation is located may, at the suit of five or more members, remove from office any director or directors in case of fraudulent or dishonest acts, or gross abuse of authority or discretion, with reference to the corporation, and may bar from reelection any director so removed for a period prescribed by the court. The corporation shall be made a party to such actions.”

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

Related

Woman's Christian Temperance Union v. Bearhalter
6 Pa. D. & C.3d 207 (Bucks County Court of Common Pleas, 1977)
Carrier v. Shearer
57 Pa. D. & C.2d 631 (Dauphin County Court of Common Pleas, 1972)
City of Philadelphia v. SEPTA
52 Pa. D. & C.2d 53 (Pennsylvania Court of Common Pleas, 1971)
Hagy v. Premier Manufacturing Corp.
172 A.2d 283 (Supreme Court of Pennsylvania, 1961)
Moosic Lakes Club v. Gorski
168 A.2d 343 (Supreme Court of Pennsylvania, 1961)
National Baptist Convention, United States of America, Inc. v. Taylor
166 A.2d 521 (Supreme Court of Pennsylvania, 1961)
Long v. Trader Horn Coal Co.
152 A.2d 257 (Supreme Court of Pennsylvania, 1959)
Commonwealth Ex Rel. Truscott v. Yiddisher Kultur Farband
116 A.2d 555 (Supreme Court of Pennsylvania, 1955)
Vergne Roig v. Superior Court of Mayagüez
77 P.R. 20 (Supreme Court of Puerto Rico, 1954)
Vergne Roig v. Tribunal Superior de Mayagüez
77 P.R. Dec. 22 (Supreme Court of Puerto Rico, 1954)
Milasinovich v. Serbian Progressive Club, Inc.
105 A.2d 149 (Supreme Court of Pennsylvania, 1954)
Albert Appeal
92 A.2d 663 (Supreme Court of Pennsylvania, 1952)
Nedwidek v. Nedwidek
92 A.2d 536 (Supreme Court of Pennsylvania, 1952)
Commonwealth v. Nelson
92 A.2d 431 (Superior Court of Pennsylvania, 1952)
Matson v. Margiotti
88 A.2d 892 (Supreme Court of Pennsylvania, 1952)
Commonwealth v. Truitt
85 A.2d 425 (Supreme Court of Pennsylvania, 1951)

Cite This Page — Counsel Stack

Bluebook (online)
84 A.2d 571, 369 Pa. 26, 1951 Pa. LEXIS 526, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milasinovich-v-serbian-progressive-club-inc-pa-1951.