Swenson v. Board of Christian Service

277 N.W. 529, 202 Minn. 31, 1938 Minn. LEXIS 782
CourtSupreme Court of Minnesota
DecidedJanuary 21, 1938
DocketNo. 31,464
StatusPublished
Cited by2 cases

This text of 277 N.W. 529 (Swenson v. Board of Christian Service) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swenson v. Board of Christian Service, 277 N.W. 529, 202 Minn. 31, 1938 Minn. LEXIS 782 (Mich. 1938).

Opinion

Julius J. Olson, Justice.

The appeal is from a judgment which has for its foundation the following facts: Clara Peterson, a resident of Wright county, died testate September 21, 1934. Born in Sweden, she came to this country when 13 years of age. Her education Avas meager, her lifetime occupation being mainly devoted to housework, of Avhich some 25 years were spent Avith one family. She Avas a spinster, 74 years of age at time of death.

By industry and thrift she managed to accumulate an estate in-Arentoried at $24,505.82, more than $20,000 of Avhich Avas in cash, mortgages, bonds, etc. The real estate consists of a modest home in Cokato, and a 40-acre tract of farm land near there. The appraised value of all the real estate is $3,500 and that of furniture and household goods only $300. On March 17, 1933, she made her will, Avhich was, on April 6, 1935, duly admitted to probate Avithout [33]*33contest. Under the terms thereof she gave modest sums to her relatives, appellants amongst them, but devoted much the greater part thereof to religious, charitable, educational, and other activities of mercy and charity, all having to do with what is generally regarded as tending to the accomplishment of bettering humanity spiritually and morally. All of the activities to which the benevolence of testatrix was directed have some connection with the people of her native country or their descendants. The issues involved arise by virtue of the residuary clause of the will (art. 15), which reads as follows:

“All the rest, residue and remainder of my estate of whatever nature and wheresoever situate, I give, devise and bequeath to the Bethesda Deaconess Home in St. Pa/ul; the Bethesda Home for the Aged at Chisago City; and the Vasa Orphans Home, share and share alike.” (Italics supplied.)

Such proceedings were duly had in and by the probate court that all debts, expenses of administration, and specific bequests were fully paid, leaving available for immediate distribution under the quoted article $10,000 in cash. To accomplish that purpose, the executor petitioned the court for a decree of partial distribution. At the hearing thereon appellants Ellen Swenson, a sister, and Albert T., Fred D., and Helen Hartford, children of a deceased brother, appeared, claiming the right to take the entire remainder of the estate for reasons which will be discussed later. But it is appropriate to mention here that Richard M. Peterson, the only son and heir of another deceased brother of testatrix, and the executor of the will, has acquiesced in the result reached by the probate court and the district court as well, to which the other heirs, appellants here, appealed. It will thus be seen that on]y as to two-thirds of the residue is there any real contest; that is to say, the surviving sister and the Hartford children are the only ones who complain of the result reached below.

Hereafter we shall refer to appellants as thus limited. For them it is claimed: (1) That the beneficiaries named in the residuary clause of the will “are not corporations or unincorporated associa[34]*34tions or societies” and that as snch “they have no capacity to take the bequests”; hence that the residuary clause is void in its entirety and that the residue of decedent’s estate descended to decedent’s heirs at law under the intestacy law; (2) that the “Bethesda Deaconess Home in St. Paul” had been discontinued and abandoned “as a Conference activity” before the will was made, hence that “the bequest to it is void also for that reason”; (3) “that the residuary clause is also void as a devise of real estate.”

Respondents do not contest appellants’ claim that “if the residuary clause is void as to any property or any gift, such property or gift, or both, pass to the heirs at law as intestate property.” We may therefore safely pass to the first point made, namely, that the beneficiaries named are not entities, corporate or otherwise, and as such have no capacity to take the property.

We may grant the claimed legal incapacity of the named beneficiaries to take property, but that does not necessarily destroy the gift under the facts here appearing. In this connection it is deemed expedient to state certain other facts not heretofore recited: .The Evangelical Lutheran Augustana Synod of North America (hereinafter referred to as Synod) is an unincorporated church organization existing throughout this country and parts of Canada. It has territorial subdivisions referred to as “Conferences” consisting of congregations, which in turn are composed of people of Swedish birth or extraction who adhere to the doctrines of the Synod.

The Board of Christian Service (hereinafter referred to as the Board) is a Minnesota corporation and is a subsidiary of the Lutheran Minnesota Conference, also a duly incorporated entity under our laws. The Board as a corporate entity was organized and established to operate for the advancement of “religious, moral, educational or benevolent purposes.” As such it owned and operated, and still so continues to own and operate, amongst many other activities, an old people’s home at Chisago City, known as “Bethesda Old People’s Home,” and a children’s home known as “The Vasa Children’s Home,” formerly located near Vasa but now located between Vasa and Red Wing, in Goodhue county. The funds, prop[35]*35erty, and accounts of each of said institutions so under the control of the Board are kept separate and distinct, and strictly applied to the uses and benefits of the respective activities for which gifts or bequests are made. There is not, nor has there ever been, another home for the aged at Chisago City than the said Bethesda Old People’s Home. The same is true respecting the Yasa Children’s Home.

Prior to October, 1930, the Board also owned and operated the Bethesda Deaconess Home in St. Paul. The objects and purposes of that activity were to train and educate deaconesses to enable them to “go forth to do all kinds of work of mercy and charity.”

Respondent The Immanuel Deaconess Institute (hereinafter referred to as the Institute) is a Nebraska corporation organized in 1904 by the Synod. It owns and operates a deaconess home at Omaha. The purposes, rules, and regulations of the Institute are identical with those of the Deaconess Home in St. Paul. There were but seven deaconesses attached to the St. Paul home when in October, 1930, the Board and the Institute entered into an affiliation or merger agreement. In accordance therewith, the deaconesses in the Minnesota home were transferred to the Omaha home. It was agreed between the Board and the Institute that the former should pay to the latter a proportion of the appropriation which would be set aside for the work of the deaconesses in Minnesota for 1930 and 1931. In return, the Institute guaranteed to and did furnish the services of at least six deaconesses to the Minnesota Conference. As a matter of fact, six of the seven deaconesses then in the Minnesota home remained in the same service under the Minnesota Conference. The seventh was then and continued to remain in the foreign service field in China.

There is no suggestion of lack of corporate authority to effectuate the affiliation or merger of the two activities. The corporate parties entering into the agreement were in law capable of contracting, each being a corporate body. The record abundantly establishes that the activity of the St. Paul home is and hereafter will be adequately performed by the Institute in full compliance with the merger.

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Related

State v. Lahiff
45 N.W.2d 807 (Supreme Court of Minnesota, 1951)
In Re Estate of Peterson
277 N.W. 529 (Supreme Court of Minnesota, 1938)

Cite This Page — Counsel Stack

Bluebook (online)
277 N.W. 529, 202 Minn. 31, 1938 Minn. LEXIS 782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swenson-v-board-of-christian-service-minn-1938.