Sharp v. Bonham

213 F. 660, 1913 U.S. Dist. LEXIS 966
CourtDistrict Court, M.D. Tennessee
DecidedAugust 9, 1913
DocketNo. 3585
StatusPublished
Cited by2 cases

This text of 213 F. 660 (Sharp v. Bonham) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sharp v. Bonham, 213 F. 660, 1913 U.S. Dist. LEXIS 966 (M.D. Tenn. 1913).

Opinion

SANFORD, District Judge.

This case was heard upon the pleadings, stipulations and depositions before the new equity rules went into effect.

After careful consideration I have reached the following conclusions :

[1] The bill should not be dismissed for want of requisite diversity of citizenship on which to found the jurisdiction of the court. I held originally that as the essential object of this suit was to obtain a decree that the defendants.Rhea, Gaut and Hardison, trustees of the Grace Church property, held title in trust for the exclusive use and benefit of the congregation of that Church, of which the complainants are members, in the absence of any showing of antagonism between them and the complainants they should be aligned upon the same side of the controversy with the complainants, and that as such re-alignment placed them, being citizens of Tennessee, upon the same side of the confroversy with,their co-defendants, also citizens of Tennessee, and the requisite diversity of citizenship was therefore destroyed, the plea in abatement to the jurisdiction of the court must be held good. On appeal to the Supreme Court, however, this was held to be erroneous, the Supreme Court saying that as the controversy in this case is with respect to the > control of the church property which the three trustees held in trust, “as mere title holders, they were properly made parties defendant.” Sharpe v. Bonham, 224 U. S. 241, 243, 32 Sup. Ct. 420, 56 L. Ed. 747.

After the suit had been remanded to this court for further proceedings the other defendants filed an answer in which they alleged that their two co-defendants Gaut and Hardison were at the time this bill [662]*662was filed active members and elders of the Grace Church and as such elders in the possession and control of the.church property, and claimants of the property as against their co-defendants, the members of the Grace Cumberland Presbyterian Church, and that being on the same side of the controversy with the complainants they should be aligned accordingly; and the proof in the case, taken in connection with the averments of the complainants’ bill substantially establishes these facts, which are not, as I understand, disputed. On this state of facts the complainants now insist that as this is, in effect, a class suit for the benefit of the congregation of Grace Church, of which these two trustees are members and elders, and as their interest as members in said •church is identical with that of the complainants, they must now, upon the facts developed subsequently to the decision by the Supreme Court, be re-aligned as parties complainant and the bill dismissed for want of jurisdiction. And in this connection they rely upon the general rule in referen.ee to the duty of the court as to the re-alignment of the parties as stated in my opinion in Stephens v. Smartt (C. C. E. D. Tenn.) 172 Fed. 466, 471, and the cases therein cited. In view of the fact that these two defendants as members of the Grace Church are, in a sense, as it now appears, at least inchoate parties plaintiff with the complainants as members of the class for whose benefit the suit is brought (30 Cyc. 138), there is strong ground for the contention that as their interests as such inchoate parties plaintiff and beneficiaries appears to be identical with that of the complainants, they should be re-aligned upon the same side of the controversy with them. However, no direct authority has been cited by either side upon this precise question, and after careful consideration I am constrained to hold that as the Supreme Court has held that, as mere title holders, the trustees were properly made defendants, the fact that they are now shown to have an inchoate interest with the complainants, as belonging to the class of beneficiaries for whom the complainants have brought this suit, does not so affect their status as parties, as trustees and title holders, in which capacity alone they have, in effect} been brought before the court, as to require a re-alignment of their position in the litigation, especially as they have filed an answer in which they disclaim any personal interest in the litigation and are as trustees taking no part in the contest between the complainants and their co-defendants. I therefore conclude that the bill should not be dismissed for want of Federal jurisdiction.

[2] For reasons analogous to those stated in my opinion, in the companion case of Helm v. Zarecor, 213 Fed. 648, I am of opinion that J. T. Harris and his associates, elders of the Grace Church, are not necessary parties to this suit in determining the essential controversy therein presented, as the bill has been construed by the Supreme Court, that is, the controversy “with respect to the control of the church property which the three trustees hold in trust.”

[3] The next defense relied on is that of res judicata. The bill, as originally filed, was, in effect, a class suit brought by the complainants for the benefit of themselves and all other members of the Grace Church, against the trustees and all members of the Grace Cumberland [663]*663Presbyterian Church, its essential object being to obtain a decree that the trustees held the Grace Church property in trust for the exclusive use and benefit of the congregation of Grace Church, with injunctive relief incident thereto. By an amendment allowed after the case had been remanded to this court the bill was amended so as to show that the complainants sued in behalf of all the members of the Presbyterian Church in the United States of America as well as in their own behalf, but this amendment did not allege that the members of said Church in general had any substantial property interest in this particular church property, nor does the proof disclose such interest ; and in so far as any material property rights are involved they are limited, in so far as disclosed by the proof, to the rights in the property claimed by and in behalf of the members of the Grace Church and the Grace Cumberland Presbyterian Church, respectively.

The essential facts alleged and proven in reference to the defense of res judicata are these:

The original bill in this case contained no prayer for the appointment of a receiver of the church property and no application for the appointment of a receiver was made at any time.

On April 14, 1910, the complainants’ motion for a temporary restraining order was denied.

On March 26, 1910, my memorandum opinion was sent to the clerk holding that the plea in abatement to the jurisdiction should be allowed, and the preliminary injunction therefore denied, and directing that an order be entered accordingly. This opinion was filed on March 28, 1910. On the same day, March 28, 1910, the defendants Bonham and, others, exclusive of the three trustees, and other members of the Grace Cumberland Presbyterian Church, filed a bill in the Chancery Court of Davidson County, Tennessee, entitled E. W. Bonham et al. v. J. T.

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Bluebook (online)
213 F. 660, 1913 U.S. Dist. LEXIS 966, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharp-v-bonham-tnmd-1913.