Rouech v. St. Jude's Church

284 N.W. 502, 230 Wis. 561, 1939 Wisc. LEXIS 107
CourtWisconsin Supreme Court
DecidedMarch 7, 1939
StatusPublished

This text of 284 N.W. 502 (Rouech v. St. Jude's Church) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rouech v. St. Jude's Church, 284 N.W. 502, 230 Wis. 561, 1939 Wisc. LEXIS 107 (Wis. 1939).

Opinion

Fritz, J.

The claim in question is based upon a written subscription agreement dated March 7, 1936. The agreement provides that “in consideration of the mutual promises and subscriptions of other persons made for said purpose” the subscriber agrees to pay $1,000 “for the purpose of erecting and maintaining its new Brother Dutton National Memorial High School by Saint Jude’s Church, a religious corporation of Beloit, Wisconsin, in a total sum not to exceed $300,000, and in proportions by it determfiied.” The agreement also provides that the church is authorized thereby to expend the subscribed sum “for said purposes, and which [563]*563for itself and its successors it hereby agrees to do. After the printed word “accepted” at the foot of the agreement, the words “Saint Jude’s Church, by Joseph E. Hanz” were written by the pastor of the church upon obtaining the subscription from McCanna. The evidence establishes that in 1931 Rev. Hanz had discussed with the archbishop of the diocese the establishing of such a memorial high school by St. Jude’s Church, and the latter had sanctioned and blessed the project. Rev. Hanz then had preliminary sketches and plans prepared for a building, and selected a site on the church’s property. He also prepared printed matter explaining the reasons for the memorial and the meritorious purposes of the project. He obtained nine subscriptions, totaling $11,250, up to1 January 7, 1936, and McCanna’s subscription made the total $12,250; and he collected thereon $1,365, including $40 paid by McCanna on April 13, 1936, which he deposited in a special bank account. No further subscriptions were obtained. McCanna died April 29, 1936. During his lifetime no action was taken in relation to1 the project at any meeting of St. Jude’s Church congregation or its board of trustees or directors. But the board of trustees, at a meeting on December 12, 1936, “voted to indorse the plan of Fr. Joseph E. Hanz to build a new unit, the Brother Dutton National Memorial High School, authorizing him to continue this work started by him with the sanction of the president, the Most Rev. Samuel A. Stritch, D. D., archbishop of Milwaukee, April 24, 1931, thus authorizing him to build up the fund then started for this purpose.”

In support of the objection filed to’ the claim, the defense contends that the mutual promises of other subscribers to agreements to the same effect as McCanna’s agreement do not constitute good consideration to render the subscription enforceable as a contractual obligation. The question raised by that contention has not been definitely decided by this [564]*564court. It was involved in Lathrop v. Knapp, 27 Wis. 214, in which Chief Justice Dixon considered such mutual promises sufficient as consideration, but Justice Cole dissented, and Justice Paine did not participate because he had been an attorney in the case. Subsequently, the question was raised in several cases, but was not decided because the subscription was held enforceable on the ground that the party to whom it ran had on the faith thereof made expenditures or incurred obligations which were held to constitute sufficient consideration to support the promised subscription. See La Fayette County Monument Corp. v. Magoon, 73 Wis. 627, 42 N. W. 17; Gibbons v. Grinsel, 79 Wis. 365, 48 N. W. 255; Board of Trustees of Seventh Day Baptist Memorial Fund v. Saunders, 84 Wis. 570, 54 N. W. 1094; Hodges v. O’Brien, 113 Wis. 97, 88 N. W. 901. Those decisions are in accord with the view most commonly held, “that such a subscription is an offer to contract which becomes binding as soon as the work toward which the subscription was promised has been done or begun, or liability incurred in regard to such work on the faith of the subscription.” 1 Williston, Contracts (Rev. ed.), p. 404, § 116.

There are no such grounds, however, in the case at bar. There is no proof that either St. Jude’s Church or any subscriber advanced any money or incurred any obligation on the faith of McCanna’s subscription, prior to his death. In discussing the conflict in the authorities as to whether the promise of a subscriber constitutes sufficient consideration for the promise of the other subscribers, it is stated in 1 Page, Contracts, p. 943, § 561, that,—

“In jurisdictions in which the consideration may move from a third person, the mutual promises of the subscribers, if actually intended by them as considerations, should be held to be sufficient considerations for the promise to pay such subscription to the charitable organization, if such organization, or the representative thereof, is a party to such con[565]*565tract. The great weight of authority is to the effect that if the contract is made between the subscriber and the beneficiary, so that the beneficiary is a party to the contract, the beneficiary may maintain an action upon such contract in all jurisdictions in which the consideration need not move from the promisee.”

Under the majority rule, which can be considered applicable in this jurisdiction, in view of our rule that a stranger to a contract who is a beneficiary thereunder may maintain an action thereon, even though the consideration did not move from him (Tweeddale v. Tweeddale, 116 Wis. 517, 93 N. W. 440), there is in this case still the question as to whether it can be held that the agreement for the subscription was made between St. Jude’s Church and McCanna so that the.church was a party thereto', as a matter of law. Whether the church was legally a party to and bound by the agreement depends upon the effect in law of Rev. Hanz’s action in writing the words “Saint Jude’s Church, by Joseph E. Hanz,” after the word “accepted” at the foot of the agreement.

The defense contends that the church did not thereby become a party to- the agreement because Rev. Hanz was not authorized to bind the church by an agreement to expend subscriptions, in a sum not to exceed $300,000, for the purpose of the erection and maintenance of the proposed school by the church; and that the agreement was merely a transaction between Rev. Hanz and McCanna, without any corporate act on the part of the church authorizing or approving the project, or rendering it a party thereto or bound thereby. In support of that contention the defense argues that the building and maintenance of a high school and the securing of donations and funds therefor are temporal or business matters as to which a religious corporation can act solely through its trustees or governing body acting as a board; and that, consequently, Rev. Hanz’s acts without authoriza[566]*566tion by a board in relation to such a temporal or business matter of the church were not legally binding upon the corporation. On the other hand, the claimant contends that the project was not a mere temporal or business matter, within the province of solely the congregation or its trustees, but that it was a project for religious education and therefore a matter within the authority of the archbishop, and of Rev. Hanz under his supervision, as tO' which the latter, as pastor of the church, was fully authorized to act and to accept subscriptions and donations. Both parties cite sec. 187.12, Stats., under which St. Jude’s Church was organized as a religious corporation. The applicable provisions are:

“(1) Bishop may incorporate. . . . The bishop of each diocese, being the only trustee of each Roman Catholic church in his diocese, may cause any or all congregations therein to be incorporated by adding four more members as trustees as hereinafter provided.

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Bluebook (online)
284 N.W. 502, 230 Wis. 561, 1939 Wisc. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rouech-v-st-judes-church-wis-1939.