Storey v. Knapp

93 N.E.2d 63, 56 Ohio Law. Abs. 545, 41 Ohio Op. 200, 1949 Ohio Misc. LEXIS 257
CourtCourt of Common Pleas of Ohio, Hamilton County
DecidedAugust 25, 1949
DocketNo. 136432
StatusPublished

This text of 93 N.E.2d 63 (Storey v. Knapp) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Hamilton County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Storey v. Knapp, 93 N.E.2d 63, 56 Ohio Law. Abs. 545, 41 Ohio Op. 200, 1949 Ohio Misc. LEXIS 257 (Ohio Super. Ct. 1949).

Opinion

ORAL OPINION

By BELL, J.

This lawsuit has been in this court and the Court of Appeals for a period of over forty years. The suit was commenced in 1907, at which time this court took over the operation of this school. Whether the person appointed to administer the affairs of the institution at that time was called a receiver or a business manager is not, in our opinion, highly important. The court did administer this institution, and it was there declared and decided that this was a public, charitable Trust. An election was held, and certain trustees were elected as a result of that original hearing.

Some twenty years later the matter was again brought to the attention of the court, and at that time the court appointed three trustees, and ordered that each year a report by those trustees of the financial position of this institution should [546]*546be filed with the court, but, as it appears in the record, that part of the Court’s Order with regard to filing annual reports was not obeyed. That decision was taken to the Court of Appeals, wherein, so far as the right of the court to appoint the trustees and to make the Order, the judgment was affirmed. That decision of the Court of Appeals became the law of this case. There is no question at this time as to the right or jurisdiction of this court with reference to the appointment of trusteed in the effort to save this institution.

After another period of about twenty years, in 1947, the matter again came to the attention of the court. The court still having continuing jurisdiction, a complaint was made by the Superintendent of the Division of Securities of the State of Ohio that 'this institution was violating the laws of the state. The court then, of its own motion, appointed auditors to determine the financial situation and to report to the court its findings. That was done. It is quite apparent that this court was dissatisfied with the conduct of the then trustees, Rev.- Meredith Standley, Bessie Standley, and Mrs. Knapp. The Standleys resigned as trustees. Mrs. Knapp refused to resign and was removed by a judgment of this court. That judgment was appealed to the Court of Appeals, and, by affirming the judgment, the court again recognized the right of this court to appoint and to remove trustees.

Prior'to the resignation of those two trustees and the removal of the third, this court saw fit to appoint a former judge of this court, define his powers by entry, and styled him a “Business Manager.” We do not think that it is important whether he was called a “receiver” or a “business manager.” His powers were those of a receiver. By this action of the court, the creditors’ hands were tied. They had no right from July 6, 1948, and have no right now, to proceed to enforce any of their claims without going through the business manager, the trustees, and the permission of the court.

The asset here is the going institution, and the question, as we see it, is whether there has been an attempt made to destroy that asset. The court is firmly convinced that where a court takes over an institution for the purpose of straightening out its affairs, and paying off its creditors, that any one who attempts to destroy that asset may be guilty of contempt of court. We do not hold any brief for the conduct of this institution under the Standleys. It was in a muddled financial condition when the court, on July 6, 1948, took it over to straighten out its affairs and put it, if possible, on a sound financial basis. After the business manager was appointed, [547]*547he retained the Standleyá as employees to do certain work under him at a stated compensation. That was the situation when the first of the documents complained of made its appearance. In passing, it might be noted here that one of the defendants, Hershberger, was an employee at the time the business manager was appointed, that he continued as an employee for some time thereafter, and that he did submit his resignation after it was suggested by the business manager that after his vacation he had better look for other employment.

This record discloses that as far back as the year 1945, the Division of Securities of the State of Ohio made what is called a “Cease and Desist Order,” and by that Order this institution was ordered to cease and desist from certain practices in which it was engaged. The defendant Hershberger continued thereafter to do the very things that the Cease and Desist Order would not further permit had it been complied with, but he excuses his conduct on the basis that he was ordered so to do by the Standleys.

That brings us to the present situation. After the business manager had run the business for some little time, and after the Standleys resigned as trustees and Mrs. Knapp was removed, the court appointed five trustees of its own choosing. Included amongst those five was the business manager, and from that time until the present Judge Allen Roudebush has occupied a dual capacity, as business manager and trustee. After Hershberger resigned, he contacted one of the other defendants, Orville Green. The testimony shows that Orville Green had once been an employee of this institution. However, for many years he took no active part in the management of the institution until he became active in publishing the documents complained of.

This record discloses that Green was not a member of any of the churches connected with the “Holiness” movement. However, after the visit of Hershberger he became very active with Hershberger, and, on the stand, admitted a joint responsibility for these publications. The record discloses that the defendant Green is a brother-in-law of Mrs. Standley. He is also related by marriage to Mrs. Knapp. He is also related to one of the defendants, Mrs. Marian Handel.

As to the documents complained of, three of them were published anonymously. Three of them were published with the name of Green as editor.

In order to determine whether these defendants are guilty of contempt of this court, it is of course necessary to determine not only what they did but what was their intention [548]*548in doing it, and what was the highly probable result of their doing it. These publications disclose to a large number of the “Holiness” movement the information that the Standleys were removed by the court. That is untrue. The attack by these publications is not an attack upon the trustees appointed by the court, but is an attack upon the Standleys and, incidentally, an attack upon the business manager because in his wisdom he saw fit to continue the Standleys as his employees in the handling of this institution.

There can be no question that God’s Bible School and Missionary Training Home could not exist for a period of six months in the absence of contributions by its friends, its admirers, and those engaged in the “Holiness” movement. One ■of these publications advises all of the people who came in contact with that publication that they should stop their contributions until they conferred with their ministers. That clearly shows an intention to stop the ■ contributions and destroy the school. In addition to that, Hershberger in his testimony on the stand, took the position that it would be better to destroy this institution than to permit the Standleys to remain in the “Holiness” movement. In answer to one question he said that he knew that the effect of these publications, if the advice offered therein was followed, would be to stop the contributions to this institution.

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Bluebook (online)
93 N.E.2d 63, 56 Ohio Law. Abs. 545, 41 Ohio Op. 200, 1949 Ohio Misc. LEXIS 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/storey-v-knapp-ohctcomplhamilt-1949.