Peterson v. Christianson

101 N.W. 40, 18 S.D. 470, 1904 S.D. LEXIS 84
CourtSouth Dakota Supreme Court
DecidedOctober 19, 1904
StatusPublished

This text of 101 N.W. 40 (Peterson v. Christianson) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peterson v. Christianson, 101 N.W. 40, 18 S.D. 470, 1904 S.D. LEXIS 84 (S.D. 1904).

Opinion

Corson, P. J.

This is an appeal from judgment and order denying a new trial. The case was tried by the court without a jury. The complaint in the action was demurred to ■on the grounds: (1) That it appears upon the face of said complaint that there is a defect of parties plaintiff; (2) that it appears upon the face of said complaint that there is a defect of parties defendant; (3J that said complaint does not state facts sufficient to constitute a cause of action. The demurrer was overruled, to which ruling the defendants excepted. Subsequently the defendants answered the complaint by leave of the court, and trial was had, and findings of fact and conclusions of law made and filed by the court, and a judgment in favor of the plaintiffs entered therein.

It is contended by the defendants that the court erred in overruling their demurrer to the complaint, and this question will be first considered. The plaintiffs, in their amended complaint, state their cause of action substantially as follows: That the Scandinavian Lutheran Church is a corporation duly organized and existing under the laws of the state of South Dakota; that the members of said church are composed of two nationalities, viz., Norwegians and Swedes; that the plaintiffs are Swedes and the defendants are Norwegians; that on or about the 1st day of September, 1896, the said church purchased a lot in Lead City, together with the church building standing thereon, for? 1,500, and that the purchase money for the said property was mostly paid by the plaintiffs; that article No. 1 of the by-laws oí said corporation provides that, “if« the two nationalities, Swedes and Norwegians, of which this corporation is composed, should wish to call a minister separately, then the church shall be used every Sunday and service day in [472]*472turn;” that on or about the 12th day of June, 1898, these plaintiffs became desirous of calling a minister separately, and demanded the right to use said church in turn with the defendants, as provided in said by-laws, but that the defendants, who' belonged to the Norwegian element of said church, took entire possession of said church building, and excluded the plaintiffs therefrom, and refused and still refuse to allow the plaintiffs to have the use of said church building in any way whatever, and excluded and still exclude the plain tiffs from any participation in the use of said church; that the plaintiffs are members of said church, and are entitled to the use of said church in turn with the defendants; that the plaintiffs do not in. any way seek to exclude the defendants from an equal use of said church building, and plaintiffs aver that when they are admit-ed to equal privileges in the use of said church property then they are ready and willing to bear an equal proportion of the expenses of keeping said property in repair; that the purpose for which the plaintiffs desire the use of said church property is that of holding religious services therein; that they have employed a minister of their own choosing, and by reason of the wrongful acts of the defendants in excluding them from the use of said church property plaintiffs have been obliged to hire other buildings and to use private houses m which to hold their religious services. Wherefore plaintiffs demand judgment that they are entitled to the use of said church building and property for religious purposes equally with the defendants; that the defendants and all other persons be’ restrained from excluding the plaintiffs from the use of said property their just proportion of the time, and that said restraining order may be made perpetual.

[473]*473It is contended by the appellants that the complaint does not state facts sufficient to constitute a cause of action, in that it affirmatively appears therefrom that. the plaintiffs and defendants are members of a corporation, to-wit, the Scandinavian Lutheran Church, and that said corporation is not made a party plaintiff or defendant, and in that it affirmatively appears from the complaint that this action is an attempt upon the part of certain members of a corporation to control the affairs and corporate property by an action on the part of plaintiffs, as members, against the defendants, who are also members, there being no reason shown why their grievance, if any they have, cannot be remedied by the corporation itself through its regularly constituted officers. It is insisted by th‘e respondents that the title to the church property is not in dispute in any way; no interest of the corporation is at stake; that the only claim on the part of the plaintiffs is that the persons named as defendants wrongfully prevented the plaintiffs from occupying the church one-half of .the time as provided in the by-laws of the corporation, and consequently the corporation itself was not a necessary party, either plaintiff or defendant. We are inclined to adopt the theory of the plaintiffs. It will be observed from the allegations of the complaint that the church corporation embraces two nationalities, Swedes and Norwegians; that both nationalities contributed funds for the purchase of the church property, the plaintiffs claiming that they contributed the larger share. It will be further observed from the allegations of the complaint that the by-laws contemplate that both nationalities might at some time require the use of the church for holding separate religious services. It clearly appears that the Swedes [474]*474wished to call a minister separately; that they were prevented from occupying the church or using it for their religious services by the defendants. The corporation, as such, through its board of trustees, so far as is disclosed by the complaint, took no part in the controversy between the two factions, and hence, in our opinion, the corporation was not a necessary party, either plaintiff or defendant. It is true that ordinarily, in an action in any manner affecting a corporation, the corporation must be made a party plaintiff or defendant, or it must affirmatively appear that the parties seeking to institute an action in the name of the corporation must have first applied in good faith to the board of directors of the corporation to bring the action to redress the injury complained of, and that such directors had refused upon proper demand to institute such action; or it must affirmatively appear from the complaint that the board of directors, or a majority of them, are acting in collusion with the parties alleged to have committed or are committing the injurious acts complained of. Loftus et al. v. Farmers’ Shipping Ass’n et al., 8 S. D. 201, 65 N. W. 1076; Hawes v. Oakland, 104 U. S. 450, 26 L. Ed. 827; Am. & Eng. Ency. Law, vol. 4, pp. 280-283; Morawetz on Private Corporations, book 1, p. 243. But these principles have, in our opinion, no application to this case, as the wrongful acts of the defendants are not alleged to have in any manner injured or affected the corporation, or deprived it of any of its property, and the acts of which the plaintiffs complained are not alleged to have been the acts of the corporation, but simply of the individual defendants, not resulting in injury to the corporation, but to the plaintiffs. Taking this view of the case, we are clearly of the opinion that the corporation, as such, [475]*475was not a necessary party, either as plaintiff or defendant, and that the ruling of the court in overruling the demurrer was correct.

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Related

Hawes v. Oakland
104 U.S. 450 (Supreme Court, 1882)
Loftus v. Farmers' Shipping Ass'n
65 N.W. 1076 (South Dakota Supreme Court, 1896)

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Bluebook (online)
101 N.W. 40, 18 S.D. 470, 1904 S.D. LEXIS 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peterson-v-christianson-sd-1904.