Nelson v. Madison Lutheran Hospital & Sanatorium

297 N.W. 424, 237 Wis. 518, 1941 Wisc. LEXIS 227
CourtWisconsin Supreme Court
DecidedMarch 12, 1941
StatusPublished
Cited by3 cases

This text of 297 N.W. 424 (Nelson v. Madison Lutheran Hospital & Sanatorium) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelson v. Madison Lutheran Hospital & Sanatorium, 297 N.W. 424, 237 Wis. 518, 1941 Wisc. LEXIS 227 (Wis. 1941).

Opinion

Wickhem, J.

The complaint of the plaintiff Nelson alleges that prior to his decease one Torger G. Thompson agreed and bound himself in writing to subscribe $50,000 for the purpose of erecting, equipping, and endowing a sanatorium in the city of Madison, this sum to be paid h> such corporation as might be formed to carry out the enterprise; that the offer was made on the express condition that the sanatorium should be a Lutheran institution, located in Madison, and that at. least $100,000 be paid by others in cash or bankable securities to help defray the cost of such institution; that the offer would not be binding on deceased or his estate unless said conditions were complied with within six years from the date of the offer; that defendant was organized on or about September 14, 1922, to carry out the purposes of the offer, and was authorized by its articles to build, con *521 duct, .and maintain a Lutheran hospital and sanatorium situated in Madison; that subsequent to the organization of defendant it solicited and obtained a subscription of $500 from plaintiff, all of which has been paid by plaintiff to defendant; that Torger Thompson died on November 13, 1923, and that on October 20, 1927, it was represented to the county court of Dane county by defendant that the sum of $100,000 upon which the gift was conditioned had been procured in cash and bankable paper; that on that date an order was made by the county court that the sum of $50,000 be paid to defendant pursuant to the offer of decedent; that in his last will and testament Thompson bequeathed the residue of his estate to the Regents of the University of Wisconsin, and that had the sum of $50,000 not been paid to defendant it would have constituted part of such residue; that the defendant has not constructed or erected such sanatorium, and has abandoned all intention of so doing; that due to the high cost of erecting a sanatorium, lack of interest on the part of Lutheran and other subscribers, and present economic conditions, it is impossible for defendant to carry out the purposes of the subscriptions, and the plaintiff is entitled to a return of his subscription; that plaintiff’s subscription was made and paid with the understanding and upon the condition that such a sanatorium be built under all conditions specified by Thompson; and that all subscriptions for a like purpose were made upon the same understanding. Judgment was demanded that defendant render an accounting of all subscriptions received, together with expenditures, investments, and other dispositions; that defendant be adjudged trustee of all its property for the benefit of plaintiff and other subscribers; that a receiver be appointed; and that in the event it be held that plaintiff can bring this action only in-his own behalf as an action at law, that he have judgment against défendant for the amount of his subscription with interest. 'After the demurrer had been filed by defendant *522 to this complaint there was an affidavit and order to show cause why the Union Trust Company, administrator of the estate of Torger Thompson, deceased, should not be allowéd to intervene. Attached to an affidavit in opposition to the motion for intervention were true copies of the subscription of Torger Thompson, the decisions of the county court in the matter of the estate of Thompson in respect of claims of defendant, and the subscription agreement of plaintiff Nelson. Later by stipulation these papers were incorporated into the Nelson complaint and the complaint treated as amended to that extent. The complaint of the intervening plaintiff contains substantially the same allegations as those in the Nelson complaint, and in addition sets forth that defendant acquired a site for the proposed hospital on or about October 10, 1932., for the sum of $30,000; that it has never commenced erection of the proposed sanatorium on such a site; that in consequence of the abandonment by defendant of the project of building the hospital a substantial portion of the subscriptions obtained were never collected and have long since become uncollectible through the operation of the statute of limitations; that defendant at all times since the death of Torger Thompson has been without sufficient funds, and has been unable to raise sufficient funds to erect such a hospital or sanatorium as those who made the contributions contemplated and intended to1 be erected.

Since by amendment in accordance with a stipulation by the parties the Torger Thompson subscription agreement and that of plaintiff Nelson are inserted in the complaints, it is important to consider the terms of those agreements. The Thompson agreement recites an effort to secure the erection and location at Madison of a sanatorium by certain members of the Norwegian Lutheran church, the establishment of a committee looking to that end, and the affiliation of Thompson with this church. Thompson “agrees to subscribe and pay, for the purpose of the erection, equipment, and endowment *523 of a sanatorium in the city of Madison, Dane county, Wisconsin, the sum of $50,000, subject to the conditions and restrictions as hereinafter set forth.” The following are the conditions and restrictions to which the agreement to subscribe is expressly subject: “(a) Said sanatorium shall be a Lutheran institution; (b) said sanatorium shall be located at Madison, Dane county, Wisconsin;” (c) the amount subscribed shall be payable when there shall have been subscribed and paid to the officers of a corporation to be organized or to- the duly constituted committee the sum of $100,000, exclusive of the amount subscribed either in cash or bankable securities. Subsection (5) of the agreement provides that the conditions must be complied with within six years after the date of the agreement, and if not so complied with the offer shall not be deemed binding either upon Thompson or his estate. The agreement of plaintiff Nelson reads as follows :

“For the purpose of raising funds for a building for the Madison Lutheran Hospital and Sanatorium at Madison, Wisconsin, and in consideration of the pledges of others, I promise to pay. . . .”

In view of the demurrer, it must be taken as admitted that defendant has not commenced erection of the proposed sanatorium, has abandoned the building project, and has been unable to raise funds sufficient to erect the sanatorium; and that the project is impossible of fulfilment. Defendant contends that a charitable gift may not be reclaimed by the donor unless there was a condition attached to the gift or an express provision for a reverter. While it is conceded that the time has not yet arrived to consider application of the cy pres doctrine, defendant contends that it will ultimately be proper to apply this doctrine to preserve the trust and avoid return of the funds to the donors.

It is our conclusion that the trial court properly decided this case. The donations of Thompson and of Nelson were *524 gifts for a specific purpose, not general charitable gifts. If anything is plain in this case it is that there was a definite project offered for the consideration of Thompson and Nelson — the erection in Madison of a sanatorium under Lutheran auspices. This is the particular project for which Thompson and Nelson made their contributions. A mere glance at the subscription contract of Thompson makes this clear.

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Related

Saletri v. Clark
108 N.W.2d 548 (Wisconsin Supreme Court, 1961)
Fairbanks v. City of Appleton
24 N.W.2d 893 (Wisconsin Supreme Court, 1946)
Nelson v. Madison Lutheran Hospital & Sanatorium
9 N.W.2d 599 (Wisconsin Supreme Court, 1943)

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Bluebook (online)
297 N.W. 424, 237 Wis. 518, 1941 Wisc. LEXIS 227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-madison-lutheran-hospital-sanatorium-wis-1941.