Richards v. Mahoning Valley Country Club

4 Pa. D. & C.4th 435, 1989 Pa. Dist. & Cnty. Dec. LEXIS 93
CourtPennsylvania Orphans' Court, Carbon County
DecidedNovember 6, 1989
Docketno. 9268 of 1989
StatusPublished

This text of 4 Pa. D. & C.4th 435 (Richards v. Mahoning Valley Country Club) is published on Counsel Stack Legal Research, covering Pennsylvania Orphans' Court, Carbon County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richards v. Mahoning Valley Country Club, 4 Pa. D. & C.4th 435, 1989 Pa. Dist. & Cnty. Dec. LEXIS 93 (Pa. Super. Ct. 1989).

Opinion

SALMON, S.J.,

specially presiding,

This action as above captioned is commenced by the filing of a petition which seeks to enjoin William Lilley from taking office as president of defendant non-profit corporation, hereinafter referred to as the club, and for other relief. An answer has been filed which shows the parties are in agreement as to most of the salient facts. In addition, counsel met with the court on September 14, 1989, and placed of record a stipulation which confirms their agreement as to most of the important facts. The crucial fact not stipulated, because not known with certainty in the absence of the club’s records, was the date when William Lilley became a member of the club.

Following the entry of that stipulation, this court entered a preliminary decree enjoining William Lilley from becoming president pending a hearing on October 23, 1989 and the further order of the court. Hearing was had on that date and the facts as to Mr. Lilley’s membership were established.

In accordance with Pa.R.J.A. 2156, this matter is heard in the Orphans’ Court.

The Mahoning Valley Country Club was organized under the Act of April 29, 1874, P.L. 73, as appears by an order of the Court of Common Pleas of Carbon County filed October 30, 1926, at No. 10 January term 1927, by Laird H. Barber, President Judge. Said Act of 1874 in section 1 authorized every corporation formed thereunder “to make bylaws not inconsistent with law, for the management of its property, the regulation of its affairs and the transfer of its stock.” As to non-profit corporations, the Act of 1874 was succeeded by the Non-Profit Corporation Law of 1933, P.L. 289. There have been various amendments and re-enactments since the Act of 1933 but in each instance the power to [437]*437make bylaws has been retained in substantially the same language. At the time of the events here involved, the governing statute was the Act of 1972, P.L. 1063, section 7504, 15 Pa.C.S. §7504. There is no dispute as to the power of the membership of this corporation to adopt, amend and repeal bylaws.

The most recent re-enactment of the non-profit corporation statute is the Act of 1988, P.L. 1444, known as. the Corporation Not for Profit Code, effective October 1, 1989. We find nothing in the new code which might affect the outcome of our present problem. It was not yet in effect when the events here in issue took place and there are no provisions which would change our result even if it were effective.

While defendants do not question the power of the membership to control the bylaws, they do contend that, under Article XI and particularly under the last clause of section 2 which states “and the interpretation of these bylaws shall rest with the board of governors,” the board of governors had authority to rule that William Lilley was eligible to be elected. We do not agree.

At the conclusion of said hearing on October 23, including summations by counsel, we granted defense counsel’s request for leave to file a legal memorandum in support of his client’s position by October 27. We have not been favored with any such memorandum.

We think that, in the present posture of this case, with no dispute as to facts, and no ambiguity in the plain language of Article IV, section 3, of the bylaws hereinafter set forth, there is no need for “interpretation.” According to Black’s Law Dictionary, the definition of the word “interpretation” is: “A translation. The art of finding the true sense of any form of words or symbols.”

[438]*438And Webster’s Seventh New Collegiate Dictionary defines that word as: “To explain the meaning of.”

The words of the bylaw are so clear that “he who runs may read” and no interpretation is needed to apply it to our present problem. If the language were unclear or ambiguous, we agree that the interpretation would be for the board of governors. What the board has undertaken to do here is not to “interpret” but to suspend or repeal the bylaw. This is a power which the membership has not surrendered to the board of governors under these bylaws.

The members who objected from the floor to the nomination of Mr. Lilley were acting properly, were clearly in order, and should have been heard and should have prevailed. The election of William Lilley cannot be permitted to stand in the face of the bylaws.

Decided cases in this area of the law are few, probably because such issues, especially in nonprofit corporations, are nearly always resolved within the structure of the organization, as they should be. In fact, when we had our in camera conference with counsel on September 13 and 14, we pointed out the devastating effect such litigation can have in an organization, especially a social one, and urged that a compromise be reached. Obviously, oiir view did not prevail.

Perhaps the closest case to the issue here is Commonwealth ex rel. Grabert v. Markey, 325 Pa. 433, 190 Atl. 892 (1937). The bylaw in issue there governed nomination rather than election. Shareholders voted for and elected two directors who had not been nominated in accordance with the bylaw, in fact had not been nominated at all. The Supreme Court held that the bylaw governed only nomination and not election, saying: “If it was intended that [439]*439only those nominated as it provides should be eligible for election, it would have been easy to say so.”

In our present case, the bylaw deals clearly with qualification for election. We think our holding is in accord with the Supreme Court’s decision.

We have also considered Commonwealth ex rel. Laughlin v. Green, 351 Pa. 170, 40 A.2d 492 (1945), which cites the Grabert case with approval. There the bylaw again dealt with nomination, and a certain shareholder cumulated a large number of votes and cast them for himself although he was not nominated. The Supreme Court upheld his election holding that the bylaws did not explicitly say that only those nominated are eligible for election.

Again, we point out that the bylaw in our case explicitly provides that only those who have been members for three consecutive years, etc., may be elected to the board. We think our holding is in accord with this Supreme Court decision also.

From the testimony, from the stipulation of counsel and from the court records of Carbon County, we make the following

FINDINGS OF FACT

(1) Mahoning Valley Country Club was incorporated as a non-profit corporation by an, order of the President Judge of Carbon County entered October 30, 1926, at No. 10 January term 1927.

(2) The bylaws of the club were introduced in evidence without objection as plaintiffs’ exhibit 1 and were effective at all times here involved.

(3) Provisions of the bylaws which we find relevant to disposition of this case are:

[440]*440 “Article III”
“Section 1. The officers of the club shall be a president, vice-president, secretary, treasurer and six directors, all of whom shall constitute the board of governors. The immediate past president shall be a member of the board for one year following his presidency.
“Article IV”
“Section 1.

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Related

Commonwealth Ex Rel. Laughlin v. Green
40 A.2d 492 (Supreme Court of Pennsylvania, 1944)
Commonwealth Ex Rel. Grabert v. Markey
190 A. 892 (Supreme Court of Pennsylvania, 1937)

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4 Pa. D. & C.4th 435, 1989 Pa. Dist. & Cnty. Dec. LEXIS 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richards-v-mahoning-valley-country-club-paorphctcarbon-1989.