Smith v. Thompson

266 Ill. App. 165, 1932 Ill. App. LEXIS 537
CourtAppellate Court of Illinois
DecidedApril 25, 1932
DocketGen. No, 35,736
StatusPublished
Cited by9 cases

This text of 266 Ill. App. 165 (Smith v. Thompson) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Thompson, 266 Ill. App. 165, 1932 Ill. App. LEXIS 537 (Ill. Ct. App. 1932).

Opinion

Mr. Presiding Justice O’Connor

delivered the opinion of the court.

By this appeal the complainant, Charles S. Smith, seeks to reverse a decree of the superior court of Cook county sustaining the joint general and special demurrer of the defendants, William Hale Thompson and Richard W. Wolfe,, sued individually and as trustees of the William Hale Thompson Flood Relief Fund, James W. Breen and the Water Way and Flood Control Association of the Mississippi Valley, a corporation, and dismissing the bill for want of equity.

The record discloses that on February 7, 1931, complainant filed his bill. The substance of the allegations, so far as it is necessaryto state for the purpose of this opinion, is that during April and May, 1927, the Mississippi river and its tributaries overflowed their banks and caused great suffering to the residents of the Mississippi valley, a great many persons being made homeless; that the calamity was called to the attention of all the governmental agencies in the country and appeals for aid were broadcast; that on April 19, Grovernor Small of Illinois issued a proclamation calling on all citizens to contribute to funds to assist the flood sufferers in the southern part of Illinois, and designating the American Red Cross as the official recipient of the funds; that President Coolidge issued a call requesting contributions and that $750,000 was informally fixed as Chicago’s quota; that a number of meetings were held in Chicago, and Mayor Thompson issued a proclamation on April 20, 1927, calling upon .all citizens of Chicago to give promptly and generously in the emergency, and stating that such contributions would be received by the mayor’s relief committee in the city hall; that the proclamation was printed in all the newspapers and was broadcast by radio; that while some prominent citizens’ names were used as members of the relief committee, the funds collected and the whole management of the entire matter were conducted by Mayor Thompson; that the mayor stated the fund was for the immediate relief of the sufferers from the Mississippi valley flood; that more than $6,000 subscribed to the fund by teachers and pupils of the public schools was turned over on May 11; that a great many employees of the city and other persons subscribed to the fund, the total amount raised being more than $139,000; that from time to time Mayor Thompson caused to be paid out of the fund for the relief of the sufferers more than $31,000. It is alleged that Mayor Thompson also paid out of the fund sums aggregating about $5,000 for his private and political purposes, in no way related to the relief of the flood sufferers, and that he caused to be turned over more than $103,000 to the “Water Ways and Flood Control Association of the Mississippi Valley,” a corporation organized by himself and the defendants Wolfe and Breen, whose object was “to devise ways and means for the prevention of floods and to promote the development and extension of the waterways of the Mississippi valley, and secure the passage of such legislation as may be necessary therefor.” It was further alleged that all the payments except the $31,000 were diversions and a misuse of the trust fund; that Oscar E. Carlstrom, Attorney General of the State of Illinois, as such had an interest in the proper management and distribution of public charity funds and he was made a party defendant; that complainant was interested in the fund as a contributor, he having contributed $50 to the fund in May, and that he brought suit on behalf of himself and all other persons who had contributed to the fund. The prayer of the bill was for an accounting and a receiver, or, in the alternative that the fund be distributed cy pres to the American Bed Cross.

The Attorney General was served with summons but he filed no pleading and took no part in the suit. Afterward Mayor Thompson was succeeded in office by A. J. Cermak as Mayor of Chicago, who by his corporation counsel asked and obtained leave to intervene. He filed a petition seeking to have the funds turned over to the “Governor’s Unemployment Commission.” As stated, the defendants demurred generally and specially to the bill and to the intervening-petition of Mayor Cermak. The demurrer was sustained and the bill and intervening petition dismissed for want of equity, and complainant alone prosecutes this appeal.

The flood relief fund was a public charity, and as such was a trust fund over which a court of equity has jurisdiction, and it seems to be conceded by counsel for both parties that the court sustained the demurrer on the ground that the complainant, as a contributor of $50 to the fund, had no standing in a court of equity.

The chief question for decision in this case is: Has the complainant, as a contributor of $50 to the fund of $139,000 donated by many hundreds of people to be used for a public charity, a standing in a court of equity to enforce the proper administration of the trust fund?

The defendants’ position is that the Attorney General, or the State’s attorney, on behalf of the People of the State of Illinois, alone has the power to institute such suit. We think the defendants’ position must be sustained. 2 Perry on Trusts and Trustees (7th ed.), p. 1255; Clark v. Oliver, 91 Va. 421; Ludlam v. Higbee, 11 N. J. Eq. 342; Green v. Blackwell (N. J. Eq.), 35 Atl. 375; Strong v. Doty, 32 Wis. 381; 11 Corpus Juris, p. 367; Tyree v. Bingham, 100 Mo. 451; Dickey v. Volker, 321 Mo. 235; Newberry v. Blatchford, 106 Ill. 584; People v. Braucher, 258 Ill. 604; Petition of Burnham, 74 N. H. 492; Nolfe v. Byrne, 142 Tenn. 309.

So far as we are advised by the clear, concise and able,briefs filed by counsel for both parties in this case, the precise point has not been decided by the Supreme Court of Illinois. The question is not free from difficulty, but from a consideration of the authorities we are of the opinion that a contributor to a fund creating a trust for public charitable purposes where, under no circumstances, is there any right of reverter, and the contribution is made without reservation, has no right to call the trustees of the fund to account for a misapplication of the fund or any other breach of the trust.

Perry in his work on the law of Trusts and Trustees, vol. 2 (sec. 732a, p. 1255, 7th ed.), states the rule thus: “When a property has become fully vested in trustees for a valid charitable purpose, neither the donor nor his heirs have any standing' in court in a proceeding to compel the proper execution of the trust, except as relators.”

In Clark v. Oliver, supra (91 Va. 421), contributors to a fund for the education of negro children brought suit for themselves and other contributors, alleging that part of the fund had been diverted for the building of a church instead of being used for a school. A demurrer was sustained to the bill and upon appeal to the Supreme Court the decree was affirmed. The court there said (pp. 424-426): “The contributors to this fund parted with their interest in it, and when it was paid their control over it ceased. They are not described as persons belonging to the class intended to be benefited by the application of the fund. The money was devoted to a charitable use. As we have said, the whole interest of the donors was divested. There remained in them no scintilla of right. How then can they be heard in a court of equity with respect to the disposition of it? There is no such thing as a resulting trust with respect to a charity. . . .

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266 Ill. App. 165, 1932 Ill. App. LEXIS 537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-thompson-illappct-1932.