Ross v. Freeman

180 A. 527, 21 Del. Ch. 44, 1935 Del. Ch. LEXIS 37
CourtCourt of Chancery of Delaware
DecidedJuly 23, 1935
StatusPublished
Cited by6 cases

This text of 180 A. 527 (Ross v. Freeman) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ross v. Freeman, 180 A. 527, 21 Del. Ch. 44, 1935 Del. Ch. LEXIS 37 (Del. Ct. App. 1935).

Opinion

The Chancellor:

A motion under Rule 44 for a decree notwithstanding answer is in the nature of a de[46]*46murrer to the answer. Jones v. Maxwell Motor Co., 13 Del. Ch. 76, 115 A. 312. Like a demurrer it admits for the moment that the facts set forth in the answer are true. But the admission goes only as to facts. Although a demurrer confesses the matters of fact stated in the bill to be true, it does not admit any matters or conclusions of law which are suggested in the bill or inferred from the facts stated. Daniell’s Chancery Pleading and Practice, (4th Ed.) p. 545. As a motion for decree notwithstanding answer is in the nature of a demurrer to the answer, the same principle is applicable in defining the extent of the admission which the motion makes. When, therefore, the defendants’ answer denies the legal result which the complainants allege flows from the facts charged in the bill, the motion does not admit the truth of the denial. It is for the court to say whether the alleged and controverted legal conclusion does in point of law emerge from the fact statements.

In disposing of the motion under Rule 44, the facts, as distinguished from assertions of legal propositions, which are averred in the answer are to be taken as true; and, similarly, in disposing of the demurrer to the cross-bill the facts alleged therein are to be taken as true. The facts alleged in both the answer and cross-bill are the same and are stated in substantially the same language. They are in amplification of the facts as alleged in the bill, but not in material conflict therewith. The facts are as follows.

In 1901 certain lands located in New Castle County were conveyed in fee simple to William L. Price, Frank Martin and George F. Stevens upon the trusts therein specified. These lands embrace the area of what is now known as the Village of Arden. The purpose of the trust was to found a village or community in which small industries and crafts would be encouraged on the part of people in moderate financial circumstances and to adopt in said village, in so far as practicable under existing laws, the system of land tenure and taxation advocated by Henry George and known as the “single tax.” The community was [47]*47thus intended to demonstrate in a practical way the operation of the single tax theory which its well known originator had advocated in his book entitled “Progress and Poverty.”

The trusts upon which the title was held were as follows:

“In Trust Nevertheless, to permit and suffer said premises to be occupied, used and enjoyed by such persons as shall constitute and be and form parts of a community for occupying, using and enjoying the same and the various parts thereof under such provisions, restrictions, limitations,' conditions, charges and arrangements of whatsoever description as the said grantees their successors, heirs and assigns shall from time to time hereafter make, prescribe, ordain, provide or institute with full power on their part to change, alter or amend any such provisions, arrangements and limitations as they shall from time to time make and also with full power on the part of said grantees to regulate and prescribe the formation from time to time of said community and to say who may become members thereof, and also with full power in case said community shall not, in their judgment, warrant its continuance, to terminate the use and occupation of said premises by said community and the members thereof, all in their absolute discretion and with power to supply vacancies, should any occur in their, the said grantees, own number, which it is intended shall be and continue to be three, it being expressly hereby provided that upon all questions requiring the exercise of said grantees’ discretion, the action of a majority of them shall be decisive.”

The trustees endeavored to colonize the land. Leases of lots were offered to such persons as might wish to participate in the Arden experiment and to become residents of the new colony. For the first few years after the deed was made, a small number of persons acquired leases for ninety-nine years. The growth of the village was, however, slow. This was due to the fact that the terms and conditions upon which the lots were leased and the broad and comprehensive powers vested in the trustees by the deed of 1901 rendered the situation of leaseholders uncertain and insecure, particularly with reference to the amount of rentals with which a leaseholder might be charged in the future. The precise terms and conditions of the early leases are not set out in any of the pleadings. A reading of the [48]*48trust clause above quoted, discloses the extent of the broad, if not arbitrary, power which the trustees retained over the leaseholders in all matters touching the terms and conditions of their tenures. It is easy to understand why a prospective resident would hesitate, in the face of those provisions, to lay out his money in erecting improvements upon the land.

The trustees and those interested in the experiment concluded that the foregoing considerations explained the slowness of the community’s growth. They concluded that more of certainty and security needed to be offered to prospective leaseholders if the community was to develop.

Accordingly in 1905 the trustees, together with other interested persons, set about to provide means to meet the situation. Under the direction of the trustees a committee was appointed to draft a constitution and by-laws for the administration of the affairs of the village and for putting into effect the purpose of the trust, to draft a new form of lease which would provide a method for the fixing of the rentals, and to amend the trusts which the deed of 1901 specified. Such a committee was appointed. One of the trustees, George F. Stevens, was a member.

A constitution and by-laws were drafted and approved, the answer avers, by the then leaseholders, residents and trustees of Arden. It is unnecessary to set out these documents in full. The preamble to them is in part as follows:

“We, the leaseholders and residents of Arden, being desirous of fulfilling the wishes of the founders of this village,” etc.

From the preamble it thus appears that the adoption of the constitution and by-laws was the act of the leaseholders and residents. The trustees, so far as the recital shows, were not among the adopting persons. If they were, as the answer avers and the cross-bill alleges, evidence aliunde the documents is necessary to show it.

One of the provisions of the constitution is that “the rentals shall be assessed to correspond to the value or de[49]*49sirableness of each plot as determined by the Ardenfolk or their duly elected representatives acting as assessors.”

The by-laws provide for a board of seven assessors, whose duty it is to “make yearly assessments of the rental value of lands in Arden and report same to regular August meeting of the Ardenfolk, whose decision shall be final, subject to the legal rights of the leaseholders and the trustees.”

Shortly after the adoption of the constitution and bylaws, a new form of lease was drafted, in harmony with those documents.

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Cite This Page — Counsel Stack

Bluebook (online)
180 A. 527, 21 Del. Ch. 44, 1935 Del. Ch. LEXIS 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ross-v-freeman-delch-1935.