St. Lawrence University v. Trustees of the Theological School of St. Lawrence University

229 N.E.2d 431, 20 N.Y.2d 317, 282 N.Y.S.2d 746, 1967 N.Y. LEXIS 1280
CourtNew York Court of Appeals
DecidedJuly 7, 1967
StatusPublished
Cited by521 cases

This text of 229 N.E.2d 431 (St. Lawrence University v. Trustees of the Theological School of St. Lawrence University) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Lawrence University v. Trustees of the Theological School of St. Lawrence University, 229 N.E.2d 431, 20 N.Y.2d 317, 282 N.Y.S.2d 746, 1967 N.Y. LEXIS 1280 (N.Y. 1967).

Opinion

Breitel, J.

In an action for a declaratory judgment, plaintiff St. Lawrence University appeals from an order of the Appellate Division, Third Department. The Theological School of St. Lawrence University discontinued operations in 1965 and plaintiff university instituted this action against defendant, the board of trustees of the Theological School, to determine the disposition of an estimated $1,000,000 in assets held by defendant board of trustees. These assets were derived from gifts, grants, and bequests made to plaintiff university for purposes of religious education which, since 1910, have been turned over to the Theological School by the university. Also incidentally at issue is the ownership of a parcel of land conveyed by the university to the Theological School in 1954 by a deed which specified that the property would revert to the university if it ceased to be used for a Theological School. Defendant board of trustees does not dispute plaintiff’s claim to ownership of this parcel.

With respect to the disposition of the $1,000,000 of assets held by defendant board, plaintiff university seeks a judgment declaring that the Theological School is only a department ” of the university and that, when it ceased operations, its assets reverted to the university. Defendant board argues that it has been a separate corporate entity since 1910 when it was “ divorced ” from the university and established as a body corporate by chapter 40 of the Laws of 1910. If the board is held to be a corporation, the parties agree that its dissolution must be ordered by the Regents and its property distributed pursuant to an order of the Supreme Court (Education Law, §§ 219, 220).

While the university and the board disagree as to the manner by which these assets should be distributed, both apparently concur that the property should be used only for “ religious education”. Thus, the university has passed a resolution directing that, in the event it is declared to be the holder of the assets, they will be held in perpetuity as a separate endowment fund and that all the income therefrom shall be used solely for religious education in such manner as the Court may approve”. On the other hand, if the board is a corporation, upon its dissolution, the Supreme Court would determine the [322]*322distribution of the corpus of the fund (as opposed to the income alone), presumably under cy pres principles.

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Bluebook (online)
229 N.E.2d 431, 20 N.Y.2d 317, 282 N.Y.S.2d 746, 1967 N.Y. LEXIS 1280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-lawrence-university-v-trustees-of-the-theological-school-of-st-ny-1967.