Normandy Consolidated (School) District v. Harral

286 S.W. 86, 315 Mo. 602, 1926 Mo. LEXIS 851
CourtSupreme Court of Missouri
DecidedJuly 30, 1926
StatusPublished
Cited by10 cases

This text of 286 S.W. 86 (Normandy Consolidated (School) District v. Harral) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Normandy Consolidated (School) District v. Harral, 286 S.W. 86, 315 Mo. 602, 1926 Mo. LEXIS 851 (Mo. 1926).

Opinions

This suit was brought in the Circuit Court of St. Louis County, and the venue changed to Audrain County.

The judgment appealed from was entered upon a demurrer to plaintiff's petition. The petition is somewhat long, but the questions raised can best be understood only by setting it out. Omitting description of the land in question, which it is said, includes 179 acres, it is as follows:

"1. Plaintiffs state that at all times hereinafter mentioned plaintiff Normandy Consolidated (School) District was and still is a corporation duly organized and existing under the laws of Missouri relating to consolidated public schools, having the power to sue and be sued as such, and owning and conducting public common and high schools, and exercising the other powers provided by law for such school districts within a public school district in St. Louis County, Missouri, commonly known as the Normandy Consolidated School District; and that plaintiffs Arthur G. Skelly, Dr. J.B. Thurman, T. Walter Hardy, R.B. Cornwall, Oliver G. Hanson and Sam B. Coles at all said times were and still are assessed taxpaying citizens owning real and personal property in said school district, and residents thereof, and comprise all of the members of the school board of said district, and as such have an interest in the subject-matter of this action.

"2. Plaintiffs further state that at all of said times defendants Walter E. Harral, M. Curry Giles and William E. Reasor were and still are the trustees of the Plymouth Securities Company, a common-law trust, organized and in business for profit as hereinafter more particularly described, and that at all said times defendants Walter E. Harral, M. Curry Giles, William E. Reasor, O.B. Bottorff and H.A. Schneider were and still are the sole members of the Laurel Hill Cemetery Association, a voluntary association, organized and *Page 607 in business for profit as hereinafter more particularly described, and constitute the board of trustees of said association.

"And for their cause of action plaintiffs state as follows:

"3. Some time prior to July 3, 1923, defendants formed and undertook to carry out a plan of acquiring title to a large and valuable tract of land in said school district, and for profit to engage in the business of converting the same into a cemetery, selling the burial lots therein at a large profit, and of operating the same as a cemetery for profit.

"4. And in pursuance of said plan, some time prior to July 3, 1923, defendant Schneider acquired the fee-simple title to the following-described real estate, situated in said school district, in the County of St. Louis and State of Missouri, of the value of more than $200,000, to-wit: [Then follows description.]

"5. In pursuance of said plan, on July 3, 1923, defendants Harral, Giles, Reasor, Bottorff and Schneider formed themselves into a voluntary association for the purpose of obtaining a proforma decree of incorporation for an association under articles of agreement executed by said defendants on said day. Said articles provided that the association should be known as the Laurel Hill Cemetery Association, located in St. Louis County, Missouri, with a perpetual term of existence, and that its purposes were to provide and maintain in said county a cemetery for the burial of white human remains, to acquire, hold and own such real and personal property as may be proper in the establishment, improvement, management and maintenance of such cemetery, and to take and hold any gift, devise or bequest and to apply the same, or the income thereof, to the maintenance or improvement of such cemetery, its lots, walks, drives, tombs, monuments, mausoleums or other structures thereon, according to the terms of such gift, devise or bequest. Said articles further provided that said association should have no capital stock divided into shares; that it was not organized for pecuniary profit or gain in any form; that its funds should only be used for the aforesaid purposes; that it should pay no dividends to its members, though reasonable salaries might be paid to its officers, agents and servants, and that its membership should be composed entirely of owners of lots in said cemetery, who should have one vote for each lot.

"Said articles further provided that the affairs of said association should be transacted and its property managed, controlled and held by a board of trustees to be composed of five members, said five defendants to constitute the first board and to hold office until their successors are elected as may be provided in the by-laws; that annual meetings of the members be held at the cemetery; that the board should elect officers and employ agents and servants, and might fill vacancies on the board until the next annual meeting of the members, *Page 608 and that said board should take and hold the `title as such board of trustees to all property, real, personal or mixed, coming to the association.'

"6. In pursuance of said plan, on July 5, 1923, defendants Harral as president, Giles as secretary, and Reasor as treasurer, duly filed in the Circuit Court of St. Louis County, Missouri, a petition for a pro forma decree of incorporation for said association, to which was attached the said articles of agreement, and the said court duly proceeded to hear said petition. At said hearing the facts stated in this petition were presented to the court; it was shown to the court that the proposed cemetery was to be located upon the real estate above described; the plaintiffs herein presented their objections to the court; the public necessity of the cemetery was an issue before the court, and, as provided by law, the court duly proceeded to inquire into the public usefulness of the proposed corporation, and, after having duly heard and considered said petition, evidence and issues, on July 23, 1923, said court duly entered an order denying said petition for a pro forma decree `for the reason,' as shown by the record in said cause. `that there are more cemeteries in St. Louis County than needed.' On July 25, 1923, said petitioners duly filed in said court their motion to set aside said order refusing a pro forma decree. On July 28, 1923, Charles Erd and Julius R. Nolte duly entered their appearance in said cause as attorneys for plaintiff Normandy Consolidated (School) District, and presented arguments to the court in opposition to said motion, and after hearing the same and the arguments for the petitioners the court duly entered an order overruling said motion, and said petitioners have never appealed from said orders of said court. And by reason of the premises it has been adjudged between plaintiff school district and defendants that there is no public necessity for defendant's cemetery, and that defendants cannot use and maintain said real estate for cemetery purposes, and defendants are now estopped from contending to the contrary and from so using and maintaining said real estate.

"7. In pursuance of said plan, and for the purpose of evading said decision of said court, on July 23, 1923, said defendants caused said real estate to be conveyed to defendant Schneider, who on said day conveyed the same to defendants Harral, Giles and Reasor, who on said day executed, filed and caused to be recorded in Book 594, page 527, of the records in the office of the Recorder of Deeds for St. Louis County, Missouri, a declaration of trust, declaring that as trustees, under the name of Plymouth Securities Company, a trust, they and their successors hold title to said real estate and all other funds or property which might be acquired by them as such trustees, to be held, used and managed by them according to the provisions of said declaration of trust, for the benefit of the cestui que trust.

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Bluebook (online)
286 S.W. 86, 315 Mo. 602, 1926 Mo. LEXIS 851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/normandy-consolidated-school-district-v-harral-mo-1926.