United States v. Church of Jesus Christ of Latter Day Saints

5 Utah 538
CourtUtah Supreme Court
DecidedJanuary 15, 1888
StatusPublished
Cited by2 cases

This text of 5 Utah 538 (United States v. Church of Jesus Christ of Latter Day Saints) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Church of Jesus Christ of Latter Day Saints, 5 Utah 538 (Utah 1888).

Opinions

Boeeman, J.:

In this suit, brought to wind up the affairs of the late corporation of the Church of Jesus Christ of Latter-Day Saints, a receiver was appointed of the property and effects of said late corporation, and the receiver has filed his petition herein, alleging that certain personal property of said late corporation is in the possession of certain of the defendants, namely, John It. Winder, Bobert T. Burton, and William B. Preston, and prays that an order be made commanding said defendants to deliver the property to the receiver. Said defendants, Winder, Burton, and Preston, answered to said petition, denying that Winder or Burton ' had possession of said property, and denying that Preston had possession of it in the capacity of agent for said church, or for any of the defendants; and they allege, as further and separate answer, that on the 28th of February, 1887, John Taylor was trustee-in-trust for the said church, and was in possession of said property, and assigned and delivered the same to another corporation called the “Church Association of the Salt Lake Stake of Zion;” and that said association, on the 12th day of March, 1887, assigned, transferred, conveyed, and delivered said property -to William B. Preston, presiding bishop of said church, in trust, to be used and employed in the construction of the Salt Lake Temple; said temple being owned by the said Church'of Jesus Christ of Latter-Day Saints,- and at all times used exclusively for religious purposes. That said Preston, presiding bishop, then took possession of said personal property, except such as had been expended in the use and construction of the temple, and that such property now in his possession is being used for said designated purpose and none other. Upon the issues thus raised, a large amount of testimony' has been taken, from which it appears that this property had come into the possession of John Taylor, as trustee-in-trust for the Church of Jesus Christ of Latter-Day Saints; that the purpose of the members of that church in donating the property was that it be used to aid in the construction of the Salt Lake Temple; that said Taylor, as' such trustee in trust, executed a transfer of said property to the Church Association of Salt Lake Stake of Zion, a [540]*540corporation within the said church, and in said transfer the conveyance was treated as creating a trust in the association, for the purposes therein specified, and among such purposes was the construction of the temple. And, after this association had acted a few days in the matter, it, in turn, conveyed the property to William B. Preston, presiding bishop of said church, in trust to aid in the construction of the temple; it being understood, as the witnesses state, that the property was originally donated for that purpose. The purpose for which the property was to be used was not changed by any of the transfers. It was used by each holder or possessor for aiding in the construction of the temple.

The defendants contend that the receiver’s power is confined and limited to the rights of the corporation of the Church of Jesus Christ of Latter-Day Saints at the date of its dissolution. The receiver’s power is no doubt confined and limited to such property as the corporation owned at the date of its dissolution; but it would not follow that the receiver’s power is confined and limited to the rights of the corporation at the date of the dissolution. The late corporation, or John Taylor, its trustee in trust, might not have had the authority to impeach the assignment or transfer to the church association; yet it vrould not follow that the receiver might not have that power. It is urged that he can have no such power, because he simply represents the court, and that the court’s authority is in the nature of that of an administrator, and it represents only a deceased person. If the statement were correct that the receiver represents only the late corporation, perhaps he could not attack the transfer to the church association; but the fact is that the receiver represents other interests than those of the late corporation. He represents the government, and represents all who have interests in the property. The receiver does not come in as the appointee or the successor of the late corporation. He comes in by authority of the law, to act for the court in holding and possessing all property of the late corporation, subject thereafter to distribution or disposal according to the law and rights of parties. The court is in no sense the representa-[541]*541live of the late eorpoi’ation. The court takes charge of the' affairs of the late corporation, under an act of Congress, for the purpose of winding fch'em up; the 'corporation itself having become defunct. The receiver acts for the court, and, although the assignment to the church association may be good between the parties, yet, if the assignment or transfer were illegal, the receiver can impeach it by reason of his representing other interests than those of the dead corporation. It must be legal and valid against all parties, to preclude the attack. Porter v. Williams, 9 N. Y., 147-150. The assignment is in the nature of a gift for certain trust purposes.

The matter for our consideration, then, at this point, seems to be, was the assignment or transfer made by Taylor, trustee-in-trust, to the church association illegal? The transfer is dated the 28th day of February, 1887, but no delivery or notice tlfereof to the assignee took place, or is claimed to have taken place, until the 2d day of March following. Whether there was any delivery of the transfer or assignment on the 2d of March is not clear from the evidence; yet, if it took place on the 2d of March, the further . inquiry arises as to whether there was a delivery of property on that day. A delivery at any subsequent time could not have taken place, as with the 2d day of March the life of the assignor corporation went out, and its existence ceased. No single witness swears positively that there was a delivery of the property on that day. Some attempt so to do, but before closing their testimony the inconsistencies and indefiniteness of their statements leave the question in doubt. Mr. A. M. Cannon, who seemed to act as the representative of the church association in the matter, refused to accept the possession of the property until it was listed to him, and that was not done for several days after the 2d of March. He took control in the office on 2d of March, but nothing further wasd one on that day. He claimed to have taken possession on the morning of the 2d of March, but was not positive. He was positive that he took possession in the morning of some day. If such was the fact, it would follow that the accounts should have begun on that day, and that the workmen who were operat[542]*542ing under him should have had their pay for that day. But, as appears from the pay rolls in evidence, their pay began on the 3d of March. The inference from this is that he took charge of the office on the 3d of March. The evidence, taken as a whole, does not show that Mr. Cannon took possession on the 2d of March, but rather at a subsequent day. No one could deliver the property to him at any subsequent day. The corporation itself having gone out of existence, no one had authority to act for it. But at a subsequent day he did undoubtedly have possession, as the president of the church association, and retained it for several days. The transfer to the church association did not purport to give an absolute title to the association, but a title for certain purposes. The association was to hold the property in trust, with the privilege of appropriating it for temple purposes, or other specified purposes.

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Bluebook (online)
5 Utah 538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-church-of-jesus-christ-of-latter-day-saints-utah-1888.