United Brotherhood of Carpenters & Joiners of America, Local No. 1846, Inc. v. Stephens Broadcasting Co.

39 So. 2d 422, 214 La. 928, 1949 La. LEXIS 899
CourtSupreme Court of Louisiana
DecidedFebruary 14, 1949
DocketNo. 39110.
StatusPublished
Cited by13 cases

This text of 39 So. 2d 422 (United Brotherhood of Carpenters & Joiners of America, Local No. 1846, Inc. v. Stephens Broadcasting Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Brotherhood of Carpenters & Joiners of America, Local No. 1846, Inc. v. Stephens Broadcasting Co., 39 So. 2d 422, 214 La. 928, 1949 La. LEXIS 899 (La. 1949).

Opinion

HAWTHORNE, Justice.

Plaintiff, United Brotherhood of Carpenters & Joiners of America, Local No. 1846, Inc., instituted this suit against Stephens Broadcasting Company, Inc., for specific performance of a contract to purchase certain real property designated in the contract as 836 Carondelet Street in the City of New Orleans, fully described in the petition, which is the same property acquired by an unincorporated association designated as United Brotherhood of Carpenters & Joiners of America, Local No. 1846, at sheriff’s sale in the matter entitled James J. Plauche, E. Lawrence Butler, and Robert R. Rainold v. Knights of Columbus Benevolent Association, as per sheriff’s deed dated May 29, 1941. (

After trial on the merits, the lower court rendered judgment as prayed for, and defendant has appealed.

Defendant-appellant, in refusing to accept title, takes the position that a good, valid, and merchantable title cannot be transferred to it for the reason that the United Brotherhood of Carpenters & Joiners of America, Local No 1846, a labor *931 union, at the time the contract was made was an unincorporated association; that each and every member thereof acquired an undivided interest in the property by virtue of membership in the association, and that this undivided interest could not and cannot be divested without the written consent of the members, evidenced by an act of sale or other instrument in writing signed by each of such members and reciting a valid consideration.

On May 6, 1914, the United Brotherhood of Carpenters & Joiners of America issued a charter to Carpenters Union No. 1846 of New Orleans, Louisiana, and in this charter the local organization agreed by the acceptance of the charter to conform to the constitution, rules, and regulations of the United Brotherhood.

On May 29, 1941, the property in question was adjudicated to the United Brotherhood of Carpenters & Joiners of America, Local No. 1846, at sheriff’s sale, as set out herein-above. On September 17, 1947, this association accepted the offer of Stephens Broadcasting Company, Inc., to purchase the property so acquired by the association, and this is the contract of which plaintiff herein now seeks specific performance.

Thereafter, on January 20, 1948, this association became incorporated as a non-trading corporation under the provisions of Act No. 254 of 1914, as amended, under the name of United Brotherhood of Carpenters & Joiners of America, Local No. 1846, Inc., and this corporation is the plaintiff in the instant suit. The articles of incorporation, among other things, provided that the corporation was created for the purpose of acquiring the property in question. Subsequently to the incorporation, on April 5, 1948, at a meeting of the membership of the unincorporated association a resolution, reciting that it was unanimously adopted, authorized and empowered certain designated officers of the association to execute for and on behalf of the membership of the association an act transferring to the corporation so formed the property which the Stephens Broadcasting Company, Inc., had contracted to purchase, standing at that time in the name of the association. Pursuant thereto, on April 6 the officers so authorized conveyed the property to the corporation by notarial act. This act recites that these officers were acting under, and by virtue of, and pursuant to, the resolution adopted by the membership of the unincorporated association at its meeting held on April 5, 1948, and a copy of this resolution was attached to the deed.

At the time the association acquired the property, as well as on the date on which the corporation was formed, the association had over 2000 members, each one of whom, according to the testimony, was required to pay dues and all of whom paid initiation fees with the exception of ex-servicemen.

Under the general rule at common law, a voluntary, unincorporated association, such as the association which acquired *933 the property at sheriff’s sale in the instant case, prior to its incorporation has no legal existence and is unable to hold title to real property. This rule is well stated in Popovich et al. v. Yugoslav Nat. Home Soc., Inc., et al., 106 Ind.App. 195, 18 N.E.2d 948, 951, as follows:

“Unincorporated associations, clubs, and societies, unless recognized by statute, have no legal existence. * * * Accordingly, in the absence of statutory authorizations, such organizations cannot take or hold property in the associate name, either by way of gift or purchase. * * * ”

Dangel and Shriber, Labor Unions, 1941, sec. 226, p. 249, sets out the rule in the following language:

“It is a general rule, that, unless a statute provides otherwise, a grant or devise of realty to an unincorporated labor union conveys no legal title, since as a body a labor union is not a legal entity, and it is not intended that the individual members take title as individuals. * * * ”

To the same effect, see Shenango Pottery Workers Ass’n et al. v. Crawford et al., 1947, 6 Lawrence 91, 59 Pa. Dist. & C. 426; 4 Am.Jur., Associations and Clubs, sec. 35, p. 477; 7 C.J.S., Associations, § 14(a), page 38; Patton on Titles, 1938, sec. 228, p. 749; Note, 46 Mich. L.Rev. 824 (1948).

In some common-law jurisdictions it has been held that, when title to real property is taken in the name of such an organization, title vests jointly in the members of the association. See Popovich et al. v. Yugoslav Nat. Home Soc., Inc., et al., supra; Dangel and Shriber, op. cit. supra; 4 Am.Jur., op. cit. supra; 7 C.J.S., op. cit. supra.

The common-law rule' that such an organization is unable to hold title to real property does not prevail in this state. Article 446 of the Civil Code especially provides that such associations may acquire and possess estates and have common interests. That article reads:

“Corporations unauthorized by law or by an act of the Legislature, enjoy no public character, and can not appear in a court of justice, but in the individual name of all the members who compose it, and not as a political body; although these corporations may acquire and possess estates, and have common interests as well as other private societies” (Italics ours.)

In Le Blanc et al. v. Lemaire et al., 105 La. 539, 30 So. 135, 136, a minority group of the members of an unincorporated church association sought to have partitioned real property belonging to the church association. In that case this court in referring to Article 446 of the Code made the statement that “Our law speaks of unauthorized corporations and private societies, and refers to them as capable of acquiring and possessing estates and having common interests.”

In that'case, plaintiffs, a minority group, alleging themselves to be fnembers of the association and as such common owners of the real- estate belonging to the church, *935 sought a partition by licitation.

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39 So. 2d 422, 214 La. 928, 1949 La. LEXIS 899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-brotherhood-of-carpenters-joiners-of-america-local-no-1846-inc-la-1949.