Talton v. Behncke

199 F.2d 471
CourtCourt of Appeals for the Seventh Circuit
DecidedNovember 21, 1952
Docket10660_1
StatusPublished
Cited by19 cases

This text of 199 F.2d 471 (Talton v. Behncke) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Talton v. Behncke, 199 F.2d 471 (7th Cir. 1952).

Opinion

LINDLEY, Circuit Judge.

Plaintiffs, members of the Air Line Pilots Association commonly known as Alpa, brought a class suit to restrain defendant from acting or attempting to act as president. Defendant filed a counterclaim seeking to enjoin plaintiffs from holding out Clarence N. Sayen as president. Upon joinder of issues, the cause was referred to a Master, whose report recommended that an injunction issue as prayed in the complaint and that the counterclaim be dismissed. Both parties filed objections. The District Court, contrary to the recommendation of the Master, entered judgment as prayed in the counterclaim. It did not expressly sustain any obj ection, but its opinion indicates that it adopted three propositions of law which were involved in some of the objections. Essentially, therefore, the court sustained only the objections covering the three conclusions. Upon plaintiffs’ appeal¡ we are concerned only with the propriety of the court’s judgment in this respect. The ultimate issue is whether, under the record in this case, defendant was rightfully recalled from the office of president and whether Sayeñ was authoritatively made his successor. This issue is dependent upon certain subordinate questions: 1), whether the Constitution was properly amended, so that the Board of Directors might legally recall defendant; 2), whether, if the Constitution was properly amended, defendant was properly recalled, that is, whether the proceedings were such as to interfere improperly with any right he had, and, 3), whether, if the Constitution was properly ■amended and if under this amendment the defendant was properly recalled, the Board of Directors had a right to designate a new president. A further question is presented' as to whether the cause has become moot.

Alpa is a labor organization having a membership of some 6000 air-line pilots. Its internal workings are governed by its Constitution and By-Laws, Section 12 Article I of which provides that “The constitution and by-laws may be amended, added to, or any part or parts thereof may be repealed by' an affirmative vote of the majority of the delegates in attendance at a convention. The provisions of this section notwithstanding, the constitution and by-laws may be amended, added to, or any part or parts thereof may be repealed between conventions by a majority vote of the Board of Directors at any meeting called by its Chairman at which seventy-five per cent of all such directors are present in person or by proxy, or by ballot mailed by him to all the members of the Board of Directors.” On July 16, 1951 the Board met, between sessions of the convention, as it was properly authorized to do, and, at that, time, in pursuance of the section quoted, amended Section 10 of Article 8 of the Constitution, which then provided a procedure whereby an office? might be recalled, prescribing as a preliminary, a petition by 30 per cent of the entire active membership in good standing and thereafter a ballot of the members resulting in a two-thirds majority vote for recall. The section as amended reads: “Recall of officers. The recall of the *473 President, First Vice President, Secretary and Treasurer of the Association shall be by action of the Board of Directors, in meeting assembled, as hereinafter provided: (a)' For the purpose of recall, directors representing 75 per cent of the Association’s members in good standing shall constitute a quorum, (b) Recall shall require the affirmative vote of Directors representing a majority of the members in good standing who are represented by the Directors voting. (e) A recalled officer shall upon recall be divested immediately of all authority, •privilege, rights and responsibilities commensurate to his office.”

After adopting the amendment the Board •proceeded to recall the defendant from the ■office of President by a vote of 5562 for and 269 against, each director casting the number he was authorized to vote under the ■Constitution and By-Laws. More, than 75 per cent of the membership of the Board ■attended and participated in the meeting. After recalling defendant, the directors proceeded to elect Sayen president. Despite these proceedings, defendant refused to relinquish the office and this litigation resulted.

The Master found that 167 out of 218 board members, constituting approximately .76.5 per cent of the membership, attended the meeting; that the question of amending Section 10 Article 8 was legally presented; that a majority voted in favor of the amendment; that the defendant was duly recalled, by the Board under the provisions of the section as amended, by a vote of directors representing 5562 members out of a total membership of approximately 6500, which represented more than 75 per cent of the total membership in good standing, as. ■against 269 members voting in the negative.

The court, in overruling the Master and finding that Behncke was not properly recalled, relied upon the postulates that defendant was entitled to notice and hearing and had been given none; that the directors bad no power to amend the recall provision and that the notice of the meeting, in order to justify amendment, should have included advice as to such subject matter. In so bolding, as a matter of law, the court seems to have applied the rules governing corporate elections at common law. In this we think it was in error. An unincorporated society such as this, so far as procedure is concerned, has no governing law other than and except its Constitution and By-Laws which constitute a binding contract between all the members and officers. Elevator Operators, etc., v. Newman, 30 Cal.2d 799, 186 P.2d 1. Whether such an association acts properly is to be determined by the authority granted, not by virtue of any statute but by virtue of the Constitution and By-Laws under which it exists and by which the propriety of all its actions is measured. By this compact, plaintiffs, defendant and all other members were bound. Consequently, in examining the validity of the actions of the Board of' Directors, we can have recourse only to the question of whether the Constitution and By-Laws authorize the action taken.

We have seen that the Constitution itself provides that it may be amended by a convention or, between conventions, by a majority vote of the Board at any meeting at which 75 per cent of the directors are present. This provision, then, measures the power of the Board to amend. The meeting in question was called, not by Behncke, the president, but, as plaintiffs claim because he refused to call it, by a subordinate officer. It appears that a duly authorized investigating committee had indicated its readiness to report and that, though telegraphic notice that the meeting was to be held was given defendant and that though, when he was asked orally whether he would attend, he said he did not know, he did not appear. Inasmuch as the Constitution constitutes a binding contract between the parties and measures the authority of the directors, it is obvious that the defendant well knew that at‘any board meeting between conventions, the Constitution, by its own terms, might be amended. Though he was bound to know that any action authorized by thé Constitution and By-Laws might be taken by the Board, he did not attend. Obviously it does not lie within his right now to complain that he had no advance notice of the amendment. He was bound to know that it might be made.

*474

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Bluebook (online)
199 F.2d 471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/talton-v-behncke-ca7-1952.