Rezner v. Fairhope Single Tax Corporation

296 So. 2d 166, 292 Ala. 456, 1974 Ala. LEXIS 1094
CourtSupreme Court of Alabama
DecidedMay 30, 1974
DocketSC 782
StatusPublished
Cited by8 cases

This text of 296 So. 2d 166 (Rezner v. Fairhope Single Tax Corporation) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rezner v. Fairhope Single Tax Corporation, 296 So. 2d 166, 292 Ala. 456, 1974 Ala. LEXIS 1094 (Ala. 1974).

Opinion

BLOODWORTH, Justice.

Complainants, all lessees of respondent corporation, filed a bill of complaint in the circuit court of Baldwin County against Fairhope.Single Tax Corporation and certain of its officers seeking to dissolve the corporation, or, in the alternative, to enjoin the corporation, its officers, board of directors and members from fixing rents on complainants’ leases on any basis other than the actual value of the land exclusive of improvements, from devoting any of the rents to purposes other than those mutually beneficial to all of the lessees, and from paying any taxes on the corporation’s unrented and unproductive lands from complainants’ rents. Respondents’ demurrer to the original bill of complaint was sustained. [This ruling was prior to the effective date of the new Alabama Rules of Civil Procedure.] Whereupon, complainants amended their complaint, adding three additional paragraphs. [The amendment came after the effective date of the new rules]. Respondents then filed a motion to dismiss the amended complaint for failure to state a claim upon which relief could be granted. [Rule 12(b)(6) A.R.C.P.] The trial court granted the motion, dismissing the cause and taxing costs to complainants. Complainants appeal. We affirm.

In their first assignment of error, complaints contend that the trial court erred in sustaining respondents’ demurrer to the original complaint. This Court has theretofore held that where a demurrer to a complaint is sustained and the complaint is later amended and a demurrer sustained to the amended complaint, and a nonsuit taken, the action of the trial court in sustaining the demurrer to the original complaint is not before this Court for review. Thus, this assignment of error is without merit. Kent v. Coleman Company, Inc. et al., 285 Ala. 288, 231 So.2d 321 (1970); *458 Whatley v. Alabama Dry Dock and Shipbuilding Company, 279 Ala. 403, 186 So.2d 117 (1966).

In assignments of error 2. and 3., complainants insist that the trial court erred in granting respondents’ motion to dismiss the amended complaint for failure to state a claim upon which relief can be granted. Complainants argue that paragraph 10 of the amended bill of complaint does state a claim upon which relief can be granted. Paragraph 10 reads as follows :

“10. The Fairhope Single Tax Corporation, a Corporation, has wholly failed the purposes for which it was organized, as set forth in its DECLARATION OF INCORPORATION OF FAIRHOPE SINGLE TAX CORPORATION, as set forth in paragraph 3 therein (see Exhibit “B” to original complaint herein) in that:
a. The defendant corporation has failed to demonstrate the beneficiary [sic], utility and practicability of the single tax theory for any government;
b. It has failed to secure for the members of said corporation a model community free from all forms of special priviledges [sic] ;
c. It has failed to secure for the members of said corporation equality of opportunity;
d. It has failed to charge its lessees a fair rental value on the real property of the corporation.
e. It has, by charges of excessive rentals, confiscated improvements made by lessees of the said corporation, without due process of law;
f. The corporation has invested its major assets or holdings with a financial institution governed by individuals who are officers of the said defendant Fair-hope Single Tax Corporation, a corporation, and the said financial institution to the deteriment [sic] of the members of defendant corporation

Subparagraphs a., b. and c. present allegations virtually identical to those this Court considered in Fairhope Single Tax Corporation v. Melville, 193 Ala. 289, 69 So. 466 (1915). In that case a complaint was filed by a member of the same Fair-hope Single Tax Corporation seeking a dissolution or, in the alternative, an injunction (the same as in the case at bar), on the ground, among others, that “the corporation has failed and must fail in its purpose to demonstrate the ‘beneficiency, utility and practicability of the single tax, with the hope of its general adoption by the governments of the future.’ ”

This Court in Fairhope Single Tax Corporation v. Melville held, inter alia, at 193 Ala. 305, 308, 69 So. 471:

“The enactment of 1903 permits the creation of a corporation designed to allow the incorporators and the corporation’s controllees to illustrate and demonstrate, with its own property, means, and efforts, coupled with the presumed observance of contractual obligations assumed by others, single tax or other economic principles without impairing, embarrassing, or violating any features or function in the organic law. That is the enabling purpose of the enactment; and the powers conferred on the incorporation when perfected are those contributive to the effectuation of that purpose * 5‡5 ‡ ”
* * * * * *
“Distinguishing, if it can be done, the stated purpose underlying the act authorizing incorporations like that of the appellant from the exercise of the entirely lawful powers conferred by section 5 of the act allowing such incorporations, it cannot be affirmed or denied that the stated purpose is impossible of approximate attainment, because, whether the demonstration or illustration with or by the exercise of the lawful powers conferred on the corporation, in a manner or through methods the incorporators conceive to consist with the economic *459 principles approved by the corporation and those contractually concerned in or with its lawful operations, has been, is, or will be successful, is purely a matter of deduction from a premise of fact (assumed, not shown, it may be), that the soundness, wisdom, and practicability of the principles desired to be vindicated by actual test, within the bounds of every law, has been, is, or will be demonstrated or illustrated. One might conclude that the lawful exercise of the the powers conferred, however ordered, arranged, or applied they may be, would conduce to no possible demonstration or illustration of the principles adherence to which inspired the exercise of the powers; and another might conclude, with equal certainty of immunity from having his conclusion refuted, that the lawful use of the lawful powers conferred had already made a real object lesson confirmatory of the soundness and the practicability of the theories predicated of the principles sought to be illustrated by the corporate use of the powers conferred. There is no standard — nor can there be —by which the justification or correctness of these opposite deductions may be determined. Such deductions lie entirely in the realm of irrevisable individual conception and personal judgment, colored, if not controlled, by the individual’s predilection for or against the economic principles which the order, arrangement, or processes observed are conceived to test, illustrate, or demonstrate.
“No court can safely undertake to consider

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Bluebook (online)
296 So. 2d 166, 292 Ala. 456, 1974 Ala. LEXIS 1094, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rezner-v-fairhope-single-tax-corporation-ala-1974.