Trustees of Phillips Academy v. King

12 Mass. 545
CourtMassachusetts Supreme Judicial Court
DecidedNovember 15, 1815
StatusPublished
Cited by31 cases

This text of 12 Mass. 545 (Trustees of Phillips Academy v. King) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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]*480their 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]*481from 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.

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Bluebook (online)
12 Mass. 545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trustees-of-phillips-academy-v-king-mass-1815.