Trustees of Phillips Academy v. King

12 Mass. 545
Massachusetts Supreme Judicial Court·Decided November 15, 1815·Published·Cited by 31 cases

Opinion

Thatcher, J.

íhe facts agreed by the in this case are too voluminous to be repeated on this occasion ; and it will be sufficient to observe, that they are chiefly the contents of the deeds of the original founders of the Academy, of the several posterior benefactors and donors to the same, the statutes of the Theological Institution, and of the associate foundation, including the religious creed of these two foundations. It is the less necessary to recite these facts in detail here, as the counsel for the defendants have reduced [480] their arguments to a few specific objections in writing, which will be particularly noticed, and in discussing which the whole subject will be explained.

The first objection is, that “ the devise is void, because a corporation is not capable of taking and holding property as a trustee.”

It being generally admitted that corporations are the mere creatures of the legislature, which can invest them with more or fewer powers and capacities, and these more or less enlarged, according to ns own good pleasure ; it has appeared to my mind a little singular, how the principle of this objection could have become a question of general discussion. What are the powers and capacities of a particular corporation may very naturally be a subject „f inquiry. In some cases the inquiry might be a question of law, and sometimes a matter of fact, to be decided respectively by the court or jury. I can only account for the general inquiry, by supposing that the oldest corporations were of prescriptive origin, and that immemorial usage did not permit them to take property in trust for third persons ; and that, instead of reasoning from the abstract nature of corporations, or the power of the Crown or of Parliament to create new ones, lawyers drew too strict a conclusion, in the nature of a maxim, from those in existence, and applied it, as a principle of [*554] construction, * to all of a more modern date, as they were beginning to exercise powers in trust.

There is nothing in the nature of corporations, as described by Kyd, (who seems to have made up his definition from a careful examination of all the various kinds of such bodies known in the English law,) that would exclude them from taking property to the use of others besides themselves. “ They are,” he says, “ a collection of many individuals, united into one body, under-a specific denomination, having perpetual succession under an artificial form, and vested, by the policy of the law, with the capacity of acting, in several respects, as an individual, particularly of taking and granting property, of contracting obligations, and of suing and being sued, of enjoying privileges and immunities in common, and of exercising a variety of political rights, more or less extensive, according'to the design of its institution, or the powers conferred upon it, either at the time of its creation, or at any subsequent period of its existence.” He again says, a corporation had been called by some a mere-capacity to sue and be sued, and to take and to grant, which, he observes, is as ridiculous as it would be, to say that a man is a mere capacity to walk with two feet. It is not a capacity, but a political person in which many capacities reside. As, then, it can take and grant property generally, and exercise a variety of political rights, more or less extensive according to the design of its institution ; who shall s-av. without some evidence from immemorial usage, or drawn [481] from the charter of its creation, that it cannot take and hold as trustees ?

The author before cited, in speaking of the distribution of corporations into their different kinds, and particularly of those called sole corporations, which he thinks ought not to be called corporations, although they had always been considered as such in the English law, says they are divided into two kinds, namely, those which have a corporate capacity for their own benefit; and those which act only as trustees for the benefit of others. Of this latter kind is the * Chamberlain of London, who may take a recogni- [ * 555 ] zance to himself and successors, in his political capacity, in trust for the orphans.(2)

It has been said, that a corporation aggregate cannot, by the strict rules of the common law, be seized of the lands to the use of another ; because this is foreign to the purpose of its institution ; as the persons who compose the corporations might, in their natural capacities, have been seized to the use of others, it would be nugatory to allow them to do that in their corporate capacity, which they had power to do in their natural; since the purpose of incorporating them was to confer powers to do something, which they could not before do.

This is begging the question ; and, at most, can only be true of those corporations at common law, where the usage proves that they were excluded from taking to the use of third persons. There is a fallacy in the reason assigned for an incorporation, that it is to enable the persons to do something in their corporate capacity, which they could not do in their natural ; and it is a sufficient reply to say, that, although certain individuals might get along with the business, as trustees of an academy, and possibly execute the will of the founder, yet, by having corporate powers given them, the intent of the founder may be more effectually carried into execution.

At the time of passing the statute of uses, it was unsettled, (says William H. Rowe, in his 113th note upon Bacon on Uses,) whether a corporation could take to any other use than its own. Brook in the 14 Hen. 8, inclined to the opinion, that a corporation might be enfeoffed to an express use.(3) But, in a subsequent case,(4) he states it as being the better opinion, that a corporation cannot be seized to an use ; for their capacity is only to take to their own use. And in a case, 28 Hen. 8, the next year after the statute of uses, it was said that an abbey and convent could take only to their own Use.(5) The same writer continues, “ It is to be observed that the [482] foregoing cases are to show that a corporation cannot take [*556] to the use of another. For as to * the case generally, whether a corporation can stand seized to an use, a material distinction is to be made between their capacity of standing seized to an use, where they are enfeoffed to an use originally, and so take to that use in the first instancé, and where they stand seized to an use by limiting an use out of, or charging an use upon, possessions already theirs. In the case of Sir Thomas Holland,(6) this distinction is taken, and upon it Chief Baron Comyns concludes, that a corporation may give an use, though they cannot be seized to an use;(7) which conclusion, says Rowe, is now generally received , although it appears that no such conclusion is warranted by that case, but, on the contrary, if it amounts to any thing, it is that a corporation may be seized to the use of another.”

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Trustees of Phillips Academy v. King, 12 Mass. 545 (Mass. 1815).

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