Reorganized Church of Jesus Christ of Latter-Day Saints v. Church of Christ

60 F. 937, 1894 U.S. App. LEXIS 2767
CourtU.S. Circuit Court for the District of Western Missouri
DecidedMarch 3, 1894
StatusPublished
Cited by8 cases

This text of 60 F. 937 (Reorganized Church of Jesus Christ of Latter-Day Saints v. Church of Christ) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Western Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reorganized Church of Jesus Christ of Latter-Day Saints v. Church of Christ, 60 F. 937, 1894 U.S. App. LEXIS 2767 (circtwdmo 1894).

Opinion

PHILIPS, District Judge

(after stating- the facts). 1. Question is made, at the threshold of this case, as to the power of the complaining corporation to maintain this suit. The broad proposition is asserted that a foreign corporation has no right, under the laws of Missouri, to hold or own real estate in the state. Under the statutes of Iowa, where complainant was incorporated, most liberal and plenary provisions are made for the incorporation of all manner of beneficent, charitable, and religious associations. St. Iowa, c. 2, tit. 9, p. 275. Section 1095 provides that “any three or more persons of full age, citizens of the United States, a majority of whom shall be citizens of this state, who desire to associate themselves for benevolent, charitable, religions or missionary purposes, may make, sign and acknowledge before” a prescribed officer, “and have recorded in the office of the recorder of the comity in which the business of such society is to be conducted, a certificate in writing,” etc., “in which shall be stated the name or title by which such society shall be known, the particular business and objects of such society, the number of trustees, directors,” etc. Section 1096 declares that upon the filing- for record such certificate the persons so signing and their [940]*940associates and successors “shall by virtue hereof he a body politic and corporate, * * ⅜ and by that name they and their successors shall and may have succession, and shall be persons capable of suing and being sued, and may have and use a common seal,” etc.; “and they and their successors by their corporate name shall be capable of taking, receiving, purchasing and holding real and personal estate.” Section 1097 provides that such religious associations may nominate and appoint such trustees, directors, or managers for the corporation, “according to usages of the appointing body,” etc. Section 1101 declares that “any corporation formed under this chapter shall be capable of taking, holding or receiving property by virtue of any devise or bequest contained in any last will or testament.” And the only limitation imposed by this statute upon the power of such corporation to táke and hold property is contained in the last clause of the last-named section, which declares that “no person leaving a wife, child or parent, shall devise or bequeath "■ * * more than one-fourth of his estate after the payment of debts.” Section 1102 declares that the trustees, etc., of existing religious corporations may, by conforming to the requirements of said section 1095, “reincorporate themselves, or continue their existing corporate powers, and all the property and effects of such existing corporation shall vest in and belong to the corporation so reincorporated or continued.” This association was incorporated in conformity to this statute. But it is insisted by respondents that the mére incorporation of the religious association did not have the effect, ipso facto, to vest the property of the church in the corporation, so as to authorize the legal entity to sue therefor. The case of Catholic Church v. Tofbein, 82 Mo. 418, is relied on. Tofbein, by his will, devised the property “to the Catholic Church at the city of Lexington, Missouri.” Afterwards said church was incorporated under the General Statutes. It was held that, as the devise was to the church, and took effect before the act of incorporation, the mere fact of an incorporation by that name, without more, did not have the effect to transfer to the corporation the property devised to the church, as such, any more than if the incorporators had taken some other name; citing the case of Frank v. Drenkhahn, 76 Mo. 508, as “directly in point.” In the latter case the conveyance was to a number of individuals, directors of a voluntary joint-stock association, “and their successors in office, in special trust for the use of the shareholders in said company.” Afterwards the members of said company were incorporated by act of the legislature under the name of the “St. Louis and Birmingham Iron Company.” Under judgment obtained against the corporation this property was sold, and ejectment was brought, predicated of the sheriff’s deed. The court held that, as no transfer was shown from the grantees in the deed, or from the shareholders in the joint-stock company to the corporation, there was nothing to show succession of right in the corporation to the property. But the case here is essentially different.

The theory of the complainant is that this property was acquired originally with church funds, and was and is held in trust for the use of the Church of Jesus Christ of Latter-Day Saints, which later [941]*941took the name of the “Reorganized Clmroli of Jesus Christ of Latter-Day Saints.” This church, according to its ecclesiastical polity, rules, and system of government, at its. annual general conference, April 6,1891, directed and authorized the articles of association and incorporation. This conference represented the ecclesiastical body in its entirety. And, as stated in the deposition of Bishop Kelley:

“The church at .Lamoni [Iowa], effected the articles of incorporation, because that is the central church, and all others are simply branches of that church. It is the headquarters, — the principal place of business, — and was made the principal place of business by the common consent of the body, which is the rule of action of the body.”

The articles of association were presented to, voted on and adopted by, the authorized delegates of the church, by tbe sixth article of which it is provided that: •

“All property now held or owned by said church in the name of any person or persons, as. trustees or otherwise, including the publication establishment at Plano, Illinois, shall vest in said corporation; and all persons holding such property in trust for said church are hereby directed and required to transfer and convey the same to sa.id corporation as the property of said church; and said corporation shall, by operation of law, succeed to all property now owned by said church, or held for its use, and may sue and recover the same In the name of said corporation.”

This was the act of transfer of the equitable interest of the members of the church association — tbe beneficiaries of the trust estate — ■ to the corporation. Such religious bodies are sui generis, and this was tbe only method by which this equity could he conferred upon the incorporators, — by articles in writing, duly adopted and attested at its church meeting. This equity being held by tbe incorporators, it certainly was competent for them, in adopting the articles of incorporation, to provide and declare, as they did in the sixth article thereof, that the property held or owned by the church in the name of any person or persons, as trustees or otherwise, should vest in said corporation.

2. I understand the law of comity to be well established that a corporation of one state, if not forbidden by its charter, may exert its powers in any other state of the Union, so as to taire and hold real estate therein, unless interdicted by tbe positive law or declared policy of such other state. Wright v. Lee (S. D.) 51 N. W. 706, 55 N. W. 931; Barnes v. Suddard, 117 Ill. 237, 7 N. E. 477. This question was fully considered and settled in the case of Christian Union v. Yount, 101 U. S. 352. See, also, Lancaster v. Improvement Co. (N. Y. App.) 35 N. E. 964. The respondents invoke section 8, art. 2, of the state constitution of Missouri for the position that a foreign corporation has no right to hold or own lands in this state.

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Bluebook (online)
60 F. 937, 1894 U.S. App. LEXIS 2767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reorganized-church-of-jesus-christ-of-latter-day-saints-v-church-of-christ-circtwdmo-1894.