Stokes v. Phelps Mission

54 N.Y. Sup. Ct. 570
CourtNew York Supreme Court
DecidedMarch 15, 1888
StatusPublished

This text of 54 N.Y. Sup. Ct. 570 (Stokes v. Phelps Mission) 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
Stokes v. Phelps Mission, 54 N.Y. Sup. Ct. 570 (N.Y. Super. Ct. 1888).

Opinion

Yan Brunt, P. J.:

Tbe facts alleged in tbe amended complaint and tbe amended supplemental complaint, so far as tliey relate to tbe questions necessary to be determined upon tbis appeal, seem to be as follows:

Tbe Pbelps Mission is a corporation created and organized in March, 1876, under tbe laws of tbe State of New Yorb, authorizing tbe formation of societies to establish free churches, passed in 1854 (chap. 218), and of such corporation tbe plaintiff and tbe individual defendants are trustees. That tbe defendant, Anson G-. P. Atterbury, is a clergyman and a minister and pastor of tbe Eighty-fourth Street Presbyterian Church in tbe city of New York hereinafter mem tioned. That there have been large donations of property and money to said Pbelps Mission to enable it to carry on tbe objects for which it was incorporated, and that since its organization such mission has been maintained as a free church. That on tbe 13th day of October, 1886, at a meeting of tbe board of trustees of said mission, at which were present five of said trustees, a series of reso[572]*572lutions were submitted by oue of the trustees present, the said Anson GL P. Atterbury,' which were adopted, whereby it was resolved that the Phelps Mission enter into an agreement with the Eighty-fourth Street Presbyterian Church for the union and consolidation of said two corporations. That the said Eighty-fourth Street Presbyterian Church is a corporation organized under the laws of the State of New York relating to the incorporation of religious societies, passed in 1813, and the acts amendatory thereof. That the said Presbyterian church is by its organization and rules governed differently from a free church, organized as is the Phelps Mission; that its trustees are elected by its pew-holders and attendants from time to time; that it is subject to the government and rule of the presbytery, and that as a rule the sittings are not free to all attendants.

That the said Phelps Mission, as organized, has not and cannot have any members who have voice in the managements of its property and affairs, but that its affairs must be managed by its board of trustees, which is self-perpetuating and that the sittings in it and all the privileges connected with it must be free. That since the commencement of this action and in January, 1887, the trustees of the Phelps Mission, except the plaintiff, made an application to this court for an order consolidating the said mission with “ the trustees of the Eighty-fourth Street Presbyterian Church” (a religious corporation created in 1853, under, the act for the incorporation of religious societies, passed in 1813). That such order was granted creating a new corporation and conferring upon it the name of the Park Presbyterian Church. That the said order further provided that the Phelps Mission should make a conveyance of its property to the’ said new corporation, the Park Presbyterian Church, in pursuance of which order the trustees of the Phelps Mission have pretended to make a conveyance thereof. That the plaintiff brings this action as a trustee of and on behalf of the Phelps Mission, because the corporation cannot bring the action as the acts Complained of were participated in by all the trustees except the plaintiff.

The defendants demurred upon the ground that the plaintiff had no legal capacity to sue, and that the complaints did not state facts sufficient to constitute a cause of action.

[573]*573. That actions may under certain conditions be brought upon behalf of a corporation by one of its trustees to redress wrongs done to the corporation seems to be toó well settled to require citation of authority, and that this right exists as well in respect to religious corporations as to civil corporasions is equally well settled.

As a prerequisite to the maintenance of such action, it is necessary that the plaintiff should make it appear that he has applied to the trustees of the incorporation to bring the action in its,name and that they have refused so to do, or that he has not applied because it would be useless to make such application, the trustees themselves beng the wrong-doers, whose acts are to be attacked. This condition the plaintiff has fulfilled. He has shown that all of his associate trustees were engaged in the conspiracy to deprive the Phelps Mission of vitality and rob it of its property for the benefit of another corporation in the success of which one of them was deeply interested, being the pastor of the recipient of the stolen goods. The fact that one of the trustees of the Phelps Mission, and who is alleged to have been the chief promoter of this scheme of consolidation was also the pastor of the Eighty-fourth Street Presbyterian Church would of itself be sufficient, if no other ground existed, to invalidate the whole proceeding.

The principle that corporations having common officers and trustees cannot enter into valid contracts with each other has become well established in the jurisprudence of this country and in England (Metropolitan Elevated Railway Co. v. The Manhattan Railway Co., 11 Daly, did, and cases there cited), and needs ho elaboration here.

It is held that each corporation has the right to the unbiased counsel of each of its officers and trustees; and where an officer or trustee is connected with two different corporations, each, in any dealings between the two, will be deprived of that to which they are entitled, viz., the unbiased aid and counsel of such trusteee; and, therefore, they must not contract, and if they'do so, such contract will be set aside at the instance of any party having the right to call the transaction in question. A more striking illustration of the salutary tendency of this rule has never been presented to, any court than is established by the facts alleged in the complaint in this action. The pastor of the Eighty-fourth street church, also a [574]*574trustee of the corporation, called the Phelps Mission, assumes that it would be greatly for Ms advantage if he can, by means o± his Eighty-fourth street church, swallow up property of the Phelps Mission, which he also represents, and apply the same to the sup port of the church over which he ministers; and he sets about the consummation of this purpose, and as trustee of the Phelps Mission he brings about the surrender of the whole of its property to the Eighty-fourth street church, of which he is pastor.

It is clear that the whole interest of this pastor was in the Eighty-fourth Street church, and that the Phelps Mission, as far as he was concerned, not only did not have the benefit of his aid and counsel, but that he used his position as a trastee of said mission to accomplish the object of absorbing, for the benefit of the church to which he must look for his support, all the property and assets of the mission. But there is another difficulty in the way of the consummation of this scheme, and that is, that a corporation formed for the purpose of founding and continuing one or more free churches, pursuant to the provisions of chapter 218 of the Laws of 1851, as the Phelps Mission was incorporated, cannot be consolidated with a corporation formed under the act entitled “An act to provide for the incorporation of religious societies,” passed in 1813, as the Eighty-fourth Street Presbyterian Church, was incorporated.

It is sought to sustain this attempted consolidation under the provisions of chapter 176 of the Laws of 1876, but we think that a very brief examination of the acts referred to will demonstrate that the claim is without foundation.

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Bluebook (online)
54 N.Y. Sup. Ct. 570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stokes-v-phelps-mission-nysupct-1888.