Rochester Civic Theatre, Inc. v. Maria Ramsay

368 F.2d 748, 10 Fed. R. Serv. 2d 1211, 1966 U.S. App. LEXIS 4345
CourtCourt of Appeals for the Eighth Circuit
DecidedNovember 17, 1966
Docket18352
StatusPublished
Cited by34 cases

This text of 368 F.2d 748 (Rochester Civic Theatre, Inc. v. Maria Ramsay) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rochester Civic Theatre, Inc. v. Maria Ramsay, 368 F.2d 748, 10 Fed. R. Serv. 2d 1211, 1966 U.S. App. LEXIS 4345 (8th Cir. 1966).

Opinion

GIBSON, Circuit Judge.

Appellant-plaintiff Rochester Civic Theatre, Inc. appeals from an adverse jury verdict finding the appellee-defendant Maria Ramsay not liable on a $40,000 charitable subscription pledge and from the trial court’s refusal to sustain a motion for judgment notwithstanding the verdict or in the alternative granting a new trial. This is a diversity case governed by Minnesota law.

Plaintiff is a Minnesota non-profit corporation and is organized and devoted to legitimate theater presentations in Rochester, Minnesota. The theater is a community effort with about three thousand members, one thousand of whom have volunteered their time and efforts in the staging and promotion of various dramatic productions for community enjoyment. By November 1961 it had become apparent that the old warehouse being used as a theater building was inadequate for its purpose, so the group began planning for more adequate quarters. They had plans drafted for a proposed theater building and made arrangements with the city of Rochester for use of certain municipal property.

The architect’s plans indicated that the building would cost $180,000 and the interior furnishings would add an additional $70,000 to the cost. Consequently, in May 1962 plaintiff initiated a $250,-000 Building Fund Drive. It was during the course of the latter part of this campaign that representatives of the plaintiff began contacting the defendant, Mrs. Maria Ramsay, who is a woman of considerable wealth with a known interest in children. Though a citizen of the state of Nevada she was temporarily residing in a hotel in Rochester.

The evidence relating to the conversation between the agents of plaintiff and defendant is largely in dispute. Our narrative, therefore, will reflect, as it must, the evidence most favorable to the jury’s verdict for defendant. In February 1963, Mrs. Ramsay attended a production of the Rochester Civic Theatre on the invitation of Mrs. Donoghue, the president of plaintiff. On February 25, 1963 Mrs. Ramsay was a guest at a dinner given by Mrs. Donoghue and attended by numerous persons connected with the theater. Discussed at this dinner was Mrs. Ramsay’s interest in children, the general need for money, and the possibility of a “Maria Ramsay Children’s Theatre”.

By the end of March 1963, the campaign had gathered $185,000 in pledges, about $70,000 short of their stated goal. The situation was somewhat gloomy in that nearly every prospect in Rochester had been contacted by this time. On April 17, 1963, however, the campaign received a real “body blow”. The bids *751 for construction were opened and the lowest bid was $58,000 over the architect’s estimate. Though the architect succeeded in cutting some $22,000 from the plans, still a total of $286,000 would be needed rather than the projected $250,000. It was apparent that the plaintiff needed about $100,000 over its present pledges to complete the project.

At this juncture Mrs. Ramsay was again asked to attend a dinner, but she insisted that it was her turn to entertain and she invited all of the persons present at the prior dinner to dine with her on April 25, 1963 at the Pinnacle Room of the Kahler Hotel. At this dinner it was represented to her that approximately $200,000 had been pledged and that all that was needed was $40,000; that the theater had a children’s section in the plans, but due to the lack of money it might have to be cut out; and that should Mrs. Ramsay pledge the needed $40,000 the children’s theater could be built and it would carry the name chosen by her. Following these representations Mrs. Ramsay orally agreed to donate a a total of $40,000 over a five-year period.

A few days later, on April 29, 1963, Dr. Carr, Treasurer for plaintiff, contacted Mrs. Ramsey and asked her to sign a pledge card reflecting the oral agreement. Upon assurance that the card was not a binding obligation Mrs. Ramsay signed the card agreeing to donate a total of $40,000 in five annual installments of $8,000 each.

On May 16, 1963 the Rochester Civic Theatre formally entered into contracts for the construction of the theater building. Although some work had begun earlier without a contract, work was now formally commenced.

By June 1963, it had become apparent to Mrs. Ramsay that due to her husband’s strenuous objection it would be unlikely for her to be able to fulfill her commitment. Mrs. Donoghue was aware of the difficulty Mrs. Ramsay was having in securing her husband’s approval of the donation. On July 3, 1963, Mrs. Ramsay actually informed Dr. Carr that she was without funds to honor the pledge. The next day Mrs. Ramsay again informed Dr. Carr by telephone that she could not honor her pledge and asked for a return of the card.

The following day, July 5, 1963, Mrs. Donoghue, Dr. Carr, and others on behalf of plaintiff met with a group of Rochester bankers and entered into an agreement to finance the additional sum necessary, using the pledges as security. No mention was made of Mrs. Ramsay’s attempted withdrawal. The evidence is conflicting on whether the bankers relied on defendant’s pledge card, which she had signed “Mrs. Joseph Gales Ramsay III.”

The issue of reliance upon the pledge and withdrawal of the pledge prior to reliance was submitted to the jury along with Mrs. Ramsay’s affirmative defense of fraud. The jury, in a general verdict, found for Mrs. Ramsay.

Plaintiff points to the law of Minnesota that clearly provides that a charitable pledge or subscription is enforceable although no consideration passed at the time of the promise, if in reliance on the promise the promisee incurs liabilities or expends money in furtherance of the purposes of the subscription. Albert Lea College v. Brown’s Estate, 88 Minn. 524, 93 N.W. 672, 60 L.R.A. 870 (1903); In re Stack’s Estate, 164 Minn. 57, 204 N.W. 546 (1925). It is plaintiff’s contention that the detrimental reliance on defendant’s pledge was established by it as a matter of law and therefore should not have been submitted to the consideration of the jury.

It is undisputed that a written pledge was given by Mrs. Ramsay. It is undisuted that subsequent to this pledge plaintiff entered into a construction contract and began building. However, the existing Minnesota law indicates that the action on the part of the promisee must be induced or caused by the promise. It is difficult for us to say that this inducement has been proved by plaintiff as a matter of law. Also Dr. Carr testified the theater group had committed to build before the Pinnacle dinner of April 25, 1963. As observed by the trial court, *752 “The fact that a construction contract was signed does not mean in and of itself that it was done in reliance on the pledge.” Especially is this true when it is plaintiff who carries the burden of proof on this issue. We do not think the law of Minnesota in this area can be clearly determined by the two old and isolated cases, though there is other authority cited by plaintiff indicating that consideration for the promise has been conclusively established by its actions subsequent to receiving the pledge. 1 However, regardless of the abstract error that may or may not have been committed by the trial court in submitting this issue to the jury, a serious question arises as to whether this point was properly saved for review.

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Bluebook (online)
368 F.2d 748, 10 Fed. R. Serv. 2d 1211, 1966 U.S. App. LEXIS 4345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rochester-civic-theatre-inc-v-maria-ramsay-ca8-1966.