State v. Trustees of Vincennes University

5 Ind. 77
Indiana Supreme Court·Decided May 25, 1854·Published·Cited by 16 cases

Opinion

Perkins, J.

In 1807, the Vincennes university was a legally existing corporate body, and was possessed of the lands constituting Gibson township in this state, under a grant from congress, and an act of the legislature of Indiana. So far, the Supreme Court of the United States, by the decision of a majority of its members, have determined in this case; and by that decision we are bound. The Trustees of the Vincennes University v. The State of Indiana, 14 Howard 268.

That township of land was designed to produce, by its sale, a fund for the support of said university. Subsequently the state assumed the ownership of the lands composing said township, sold them, and appropriated the proceeds to the support of another institution of learning, the state university at Bloomington. In 1844, the Vincennes university, denying the validity of the titles of those who had purchased from the state, brought ejectments against them, which were pending in 1846, when the legislature authorized the state to be sued for the moneys derived from the sale of the lands, substituting herself in effect as defendant in the places of the purchasers, upon an agreement that the suits against them were to be dismissed; the act authorizing the suit against the state specifying that the state should plead such defences as would “ present the case on its merits alone,” but that the state should not be prevented from contesting the then corporate existence of the Vincennes university.

Pursuant to said act, the present suit was instituted in the Marion Circuit Court, in which a decree upon bill, answer, and proofs, was rendered against the defendant.

The state here seeks to reverse that decree, and asserts,

1. That no such corporation as the Vincennes university existed at the filing of this bill.

In the territorial code of laws of 1807, p. 439, is found an act creating the corporation of the trustees of the Vincennes university, and authorizing it to exist “forever.” The act contains this section:

" Be it enacted, That the places of any of the said tras[80]*80tees who shall resign, remove from the territory, die, or wilfully absent himself or themselves from three stated meetings, shall from time to time, be supplied by the board of trustees at their stated meetings, which shall be held on the first Mondays of April and October, yearly and every year, and at such other times as the said board of trustees shall direct, by electing one for every two of those whose seats may be so vacated, so that the whole number shall not be less than fifteen, after which time one trustee shall be elected at the stated meeting above mentioned, to supply every vacancy that may so happen.”

A majority of the trustees, according to the act, constituted a quorum to do business.

The state now claims that said corporation had ceased to exist, through the failure of the trustees to hold semiannual meetings, through the absence of members from said meetings, and by the death and removal of the members of the trustee board.

It is not pretended that the government has ever proceeded against the corporation for mis-user or non-user of franchises, and procured a judicial sentence of forfeiture; and the general rule is well settled, that a plea to an action by a corporation that the charter is forfeited, must show that the forfeiture has been judicially declared in a suit for that purpose at the instance of the government. John v. The Farmers’ and Mechanics’ Bank, 2 Blackf. 367.—Ang. and Ames on Corporations 507.—Sewell’s Fall Bridge v. Fisk and Norcross, 3 Foster’s N. H. Rep. 171.

But it is said there are some exceptions to this rule, as in the case of a surrender of the charter, and in the case (of which the present is claimed to be an example) where the body of the corporation, or an integral part of it, is lost by a failure of the members composing it. In this latter case, however, Courts have sometimes spoken of the corporations as being suspended rather than dissolved, the government being able, by a new appointment of officers, to re-invigorate without re-incorporating them. Ang. and Ames on Corp. 653. And Judge McLean, in his opinion in this case, 14 Howard, supra, applies the doctrine to the [81]*81Vincennes university. But however this may be, the law is well settled, that no loss of members destroys a corporation, so long as a sufficient number remain to continue the succession and fill up the vacancies. Ang. and Ames, supra.

In the case before us, eight trustees, as we have seen, constituted a quorum to do business, to fill vacancies; and the evidence nowhere shows that the trustees of the Vincennes university were ever actually reduced, by declared vacancies, below that number; and, hence, it does show that the succession of said corporation has ever been broken, or the power to fill vacancies lost.

The failure to hold meetings would not, per se, be a dissolution of the corporation; nor would the failure of particular members to attend for three successive meetings, per se, vacate their seats; nor would their removal simply from the state. These acts would be grounds on which the remaining trustees might vacate the seats of such absent members, by electing others in their places. But if no such election took place, the negligent members might still appear in their seats as trustees, and if recognized as such by their colleagues, their acts would be valid. Indeed, simple absence for three meetings was not, by the charter, a ground for vacating the seat of a member. It was wilful absence that constituted such ground, and this would present a question to be tried on an attempt by the remaining trustees to insist on a vacancy for such cause.

The evidence in the case, then, showing a corporation once regularly organized, and acting under a perpetual charter, and nowhere disclosing a loss, by death, or any legal mode, of such a number of the trustees as to deprive that body of the power of filling vacancies, and continuing itself, it does not show a dissolution of the corporation of the Vincennes university. But did the evidence shoyr the state of facts above denied to be shown, still, no proceedings were instituted to obtain, on behalf of the state, a judicially declared forfeiture, but, in 1838, the legislature by, as we regard it, a public act, recognized the existence of said corporation, supplied trustees in the places of such [82]*82as had died, or absented themselves, thus vacating the seats of the absent, and authorized the corporation to continue in its sphere of action. This act was a waiver of all previous forfeitures, and none is shown to have occurred since. It is true, this latter statute provides that it shall not be construed to give the trustees of said Vincennes university any right to the Gibson township of land or its proceeds; but it does not, if it could, require that it should be so construed as to take away any rights said university might possess; and, hence, it leaves the rights of all parties just as they would have been if the proviso had not been enacted.

We come to the conclusion, then, that the Vincennes university existed as a corporation at the commencement of this suit.

2. The state also relies upon the statute of limitations.

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State v. Trustees of Vincennes University, 5 Ind. 77 (Ind. 1854).

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