St. Stephen Church Cases

25 Abb. N. Cas. 230
New York Court of Common Pleas·Decided May 15, 1890·Published

Opinion

Laebemore, Ch. J., and Bookstaver, J., (orally) reversed the judgment with costs on ground stated in headnote.

II. Action to enjoin consolidation.

N. Y. Court of Appeals;

June, 1890.

1. Religious corporations; consolidation.] In proceedings for the consolidation of two church corporations under L. 1876, c. 110, as amended by L. 1880, c. 167,* it is essential, in the case of Protest[232] ant Episcopal churches, to secure the approval of the bishop and the standing committee of the diocese, and then the approval of the supreme court". In both cases the parties can be heard as to any, ground bearing against the proposed consolidation, and the supreme court may demand that proper notice may be given to all parties, who shall have a full hearing.

2. The same.] An equitable action will therefore not lie and an injunction will not issue to restrain such proceedings for consolidation on grounds of irregularity in the action of the corporations agreeing to consolidation, and allegations of the inadvisability of the consolidation, but the parties will be required to present those objections in the statutory proceeding.

Appeal from order of the general term of the court of common pleas for the city and county of Hew York, affirming an order of the special term continuing an injunction pending the action.

The action was brought by James Maclaury, as trustee, etc., of the Protestant Episcopal Church of St. Stephen, [233] ¿against A. Bloomer Hart and others, as defendants, among whom were said church corporation and also the corporation •of the church of the Holy Trinity of Harlem.

The complaint alleged that plaintiff brought the suit as •a trustee, and in behalf of the rector, church-wardens and vestrymen of the church of St. Stephen, a religious corporation, organized under chapter 60 of the Laws of 1813 and the acts amendatory thereof. That the natural persons named -as defendants, with the plaintiff, had for some time formed the vestry, and were under the law the trustees of said -church, and that the defendant, Hart, was the rector thereof. That the defendant, the church of the Holy Trinity, was a •corporation organized under the same act. That said church of St. Stephen owned certain valuable real property, which was specifically described. That the Holy Trinity church has a place of worship distant four miles from that of the church of St. Stephen, recently built and heavily encumbered. That proceedings of an irregular nature had been taken by certain of the defendants at a special meeting of the vestry of the church of St. Stephen looking to the consolidation of the said two churches, the nature of the business to be transacted at such special meeting having been concealed from plaintiff and others, who consequently omitted to take any measures to prevent the adoption of the scheme. That in •consequence of such concealment, a resolution favoring such •consolidation was passed without proper consideration or discussion.

The complaint then alleged facts tending to show the irregularity of the proceedings and the personal interest of •certain of the individual defendants in securing their con,summation, and that further proceedings toward consolidation had been taken by such defendants under the resolution, and were still proceeding, against the protest of plaintiff and a large majority of the church and congregation. There were further allegations showing reasons why such consolidation should not be made, and of conspiracy on the part of She defendants to secure it.

[234] Judgment was prayed that thé resolution passed at the-special meeting of the vestry be adjudged illegal and set aside, together with the proposed agreement and every contract made by virtue of such resolution, and for an injunction against any act furthering, effecting or consummating the consolidation, or any transfer of the church property.

The plaintiff upon this complaint and the affidavits of’ himself and others obtained an injunction order with a provision requiring defendants to show cause why it should not be continued. After a hearing, at which opposing affidavits-were presented, the court continued the injunction in the following form:

Ordebed : “ That the defendants and each of them, their agents, attorneys and servants refrain from being or causing or suffering to be done, any act or acts of any character or description, for the making, furthering, effecting or consummating any union and consolidation of the said church of St. Stephen with the said Holy Trinity church, or any sale- and transfer of the real estate and property of the said church of St. Stephen to the said Holy Trinity church, under the-resolution of February 6, 1890, or any proposed consolidated church, or any sale or transfer of the church edifice of the-said church of St. Stephen or any agreement or pretended agreement, for any such union and consolidation, or sale and transfer, under the resolutions of February 6,1890, until the final judgment and decree in this action.”

The following opinion was rendered:

Allen, J.

It is a principle of equity jurisprudence that-one of several trustees may invoke the aid of a court of equity to set aside an agreement illegally entered into by his-co-trustees and to restrain the carrying it into effect, as well as to restrain the doing by them of any threatened illegal act.

The resolution for consolidation of the churches of St. Stephen’s and Holy Trinity church, of Harlem, to set aside-which and to prevent its being carried into effect this action) [235] is brought, was passed at a special meeting of the vestry of the church of St. Stephen. The notice calling such meeting did not state the object thereof. At least two of the-trustees were not present. This renders the action taken at the special meeting invalid and illegal. The rule that a notice calling a special or extraordinary meeting must state-" particularly the objects of the meeting, is amply supported by the authorities (Angell and Ames on Corp. § 489; Boone on Corp. § 64; Morawetz on Corp. § 482; Waterman on Corp. Vol. 1, pages 207 and 209, and the cases cited in these-text books). The plaintiff is thus entitled to the relief lie-asks for unless something can be found in the Act of 1876, chapter 176, as amended by the act of 1880, chapter 167,. which debars him from the right of the interposition of a court of equity which he possessed before the passage of' that act. It is contended by the defendant’s counsel that the provision of the act referred to requiring an approval of the-consolidation agreement by the supreme court upon an application being made therefor and providing that upon such application “ all persons interested may be heard,” does so 1 debar him.

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St. Stephen Church Cases, 25 Abb. N. Cas. 230 (N.Y. Super. Ct. 1890).

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