Stein v. Marks

44 Misc. 140, 89 N.Y.S. 921
CourtNew York Supreme Court
DecidedJune 15, 1904
StatusPublished
Cited by13 cases

This text of 44 Misc. 140 (Stein v. Marks) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stein v. Marks, 44 Misc. 140, 89 N.Y.S. 921 (N.Y. Super. Ct. 1904).

Opinion

Clarke, J.

The plaintiffs allege that they are members, of the Excelsior Literary Society, a membership corporation,, and bring suit against other members and the corporation. The relief prayed is that defendants be enjoined and restrained from disposing of the property of the corporation, or from using it, except as provided in the certificate of' incorporation, and from interfering with the plaintiffs in. the exercise of their rights as members, and from preventing their access to the rooms, and from attending and voting, at corporate meetings, and from interfering with certain of the plaintiffs as officers in the exercise of their powers and. duties; that the defendants be enjoined from admitting new members, except as provided by the constitution and by-laws,, and that certain of the defendants be enjoined from acting, as officers of the corporation, and that all acts done in violation of the plaintiffs’ rights be adjudged void. The answers; deny -that plaintiffs are members and. officers in good', standing and allege that plaintiffs have an adequate remedy at law. The corporation was organized under the Membership Corporations Law and its objects were defined in its-certificate of incorporation to be: “ To advance the mental development of the members by means of literary exercises,, debates and lectures and to foster sociability among its members; also to provide a clubroom or house for the use-of said members.” Some time after the incorporation a constitution was adopted pledging the support of the corporation to another organization formed for political purposes. The-corporation Subsequently appointed a committee to report-on the advisability of amending the. constitution so as to-withdraw the support of the corporation from this political organization. On September 29, 1902, the meeting, at which this committee was to report, was broken up and no-[143]*143vote was permitted to be taken upon the report. It also appears that the plaintiffs have ever since been refused admission to the elubrooms and prevented from attending meetings and from taking part in the affairs of the corporation, on the ground that they were suspended and subsequently expelled, and on the further ground that the plaintiffs had forfeited their membership because they had not remained loyal to the society. It is well settled that no judicial tribunal will interfere with the internal government of the affairs of either voluntary associations or membership corporations where the action complained of has been fairly taken in conformity with the reasonable by-laws and regulations adopted for the orderly administration of their affairs. Baxter v. McDonnell, 155 N. Y. 83, 101; Matter of Haebler v. New York Pro. Exch., 149 id. 414, 427; Lewis v. Wilson, 121 id. 284. But such bodies must conform to their own rules and regulations and no disciplinary action will be valid unless it be taken as prescribed by their by-laws and the statutes governing their procedure. People ex rel. Deverell v. Musical M. P. Union, 118 N. Y. 101. In the case before me the meeting of September twenty-ninth was broken up (by whom is immaterial) and the defendants and their friends met on the next evening and attempted to suspend the plaintiffs. This meeting was not a meeting of the corporation. It was neither an adjourned meeting, for there had been no adjournment, nor a special meeting, for it was not called by a quorum of seven members and upon notice to all members by the secretary, as provided by article 2, section 4, of the by-laws. Were there no such by-laws, notice to members would, nevertheless, be necessary to enable the members to take corporate action. The rule is well stated in People v. Batchelor, 22 N. Y. 128, 134: “ It is not only a plain dictate of reason, but a general rule of law, that no power or function intrusted to a body consisting of a number of persons, can be legally exercised without notice to all the members composing such body,” and the statutes of this State expressly secure to every member his right to vote at every meeting of the members of any corporation, unless he be disqualified by the certificate of [144]*144incorporation or the by-laws (section 20, General Corporation Law). Moreover, had this meeting been properly called the action taken against the plaintiffs must nevertheless be held void. A member of a voluntary association or corporation, who is entitled to privileges or rights of property therein, cannot be expelled therefrom without notice of the charge preferred against him and an opportunity to be heard in his own defense. Wachtel v. Noah W. & O. Soc., 84 N. Y. 28; People ex rel. Johnson v. New York Prod. Exch., 149 id. 401, 409; Loubat v. Le Roy, 40 Hun, 546. The by-laws of this corporation, by article 10, properly provide for such notice and hearing, but no notice nor hearing was given the plaintiffs. The subsequent proceedings against the plaintiffs, in January, 1903, were equally objectionable. The plaintiffs were not only excluded from the meeting, but the committee which tried them consisted of persons who had never been elected members of the society. The defendants and their associates have proceeded in violation of their own rules and regulations, in violation of the law and with utter disregard of that fair dealing which should be characteristic of the administration of justice, whether by laymen or by the courts. But the defendants urge that the plaintiffs have forfeited all rights as members' of the society because of their disloyalty to its constitution; that the rights of the members of the corporation were determined by the constitution; that the constitution of the society pledged the support of the corporation to the political organization, and when the plaintiffs attempted to withdraw that support they f o'rf eited their .rights as members whether they constituted a majority or not. It is true a minority can insist upon carrying out the purposes of the society, at least so far as property is concerned, whether the society is incorporated or voluntary. The rule was early applied to church organizations. Watson v. Jones, 13 Wall. 679, 723. In McGinnis v. Watson, 41 Penn. St. 9, it was held that “ title to church property adheres to that party which is in harmony with its own laws.” So also where a lodge withdraws from the jurisdiction of a [145]*145grand lodge, surrenders its charter and forms a new lodge, the members who continue steadfast in their allegiance are held entitled to the property of the society. Altmann v. Benz, 27 N. J. Eq. 331; McFadden v. Murphy, 149 Mass. 341; Gorman v. O’Connor, 155 Penn. St. 239. These cases upon which the defendants rely are all in One of two classes. Either the offender was disloyal, in the case of a voluntary unincorporated association, to its constitution, or, in the case of a corporation, the offender was disloyal to the objects stated in the charter or certificate of incorporation. The error in the defendants’ position is that they are members of a corporation whose members derive their rights primarily from their charter and not from the constitution. In the case of voluntary or unincorporated societies the rights of the members depend upon the constitution or articles of association. Belton v. Hatch, 109 N. Y. 593. The relation is contractual and a member acquires only such rights as the constitution and by-laws of the association give him, and the courts will not interpose its control unless public interests intervene. White v. Brownell, 4 Abb. Pr. (N. S.) 162, 191; O’Brien v. Grant, 146 N. Y. 163, 173; Weston v. Ives, 97 id. 222; Hess v. Johnson, 41 App. Div. 465; Lafond v. Deems, 81 N. Y. 508.

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Bluebook (online)
44 Misc. 140, 89 N.Y.S. 921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stein-v-marks-nysupct-1904.