Voelker v. Saint Louis Mercantile Library Ass'n

359 S.W.2d 689, 1962 Mo. LEXIS 628
CourtSupreme Court of Missouri
DecidedSeptember 10, 1962
Docket49027
StatusPublished
Cited by22 cases

This text of 359 S.W.2d 689 (Voelker v. Saint Louis Mercantile Library Ass'n) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Voelker v. Saint Louis Mercantile Library Ass'n, 359 S.W.2d 689, 1962 Mo. LEXIS 628 (Mo. 1962).

Opinion

BOHLING, Commissioner.

This is a suit by Frederic E. Voelker, Lucy M. Schwienher, Haille Robinson, Forrest Boecker and Anton A. Tibbe, as members of the Saint Louis Mercantile Library Association, a corporation, referred to as “Library” or “Library Association,” on behalf of themselves and all other members of said Library Association, against said Saint Louis Mercantile Library Association, the First National Bank in St. Louis, a corporation, referred to as “Bank,” Five-Twelve Locust, Inc., a corporation, and Saint Louis Union Trust Company, a corporation, referred to as “Trust Company,” to cancel a certain lease and amendment thereto by said Library of its ground and part of its building at Broadway and Locust in the City of St. Louis to said Bank on grounds that said lease and amendment are unreasonable, voidable, ultra vires, and a breach of trust by the officers, directors and trustees of defendant Library. The motions of the defendants to dismiss plaintiffs’ amended petition were “sustained with prejudice on the grounds (1) that plaintiffs, and each of them, lack the legal capacity to sue, and (2) the petition fails to state a cause of action upon which relief can be granted.” The plaintiffs have appealed. Defendants contend the court was correct on both rulings.

This suit was filed January 3, 1961. Plaintiffs alleged that the reasonable rental of the demised premises for a term ending July 14, 2019, had a value of more than three times the agreed-upon annual rental of $59,000. The judgment of dismissal was entered July 14, 1961. This court has appellate jurisdiction by reason of the amount in dispute at the time of the appeal. Consult Newco Land Co. v. Martin, 358 Mo. 99, 213 S.W.2d 504[1]; C. Bewes, Inc. v. Buster, 341 Mo. 578, 108 S.W.2d 66[1].

It will aid in an understanding of the issues to narrate certain facts within the allegations of the petition, the exhibits and the stipulations at this point.

By Laws 1846-47, p. 153, approved February 16, 1847, the General Assembly passed an act incorporating the “ ‘Saint Louis Mercantile Library Association,’ ” expressly stating “the object of which is the establishment of a library and reading room, the collection of a scientific cabinet and apparatus and of works of art and for other literary *691 and scientific purposes.” Said act provided that said corporation “shall have perpetual succession,” and continued in effect the then constitution and by-laws “until regularly altered or repealed by the association.”

By Laws 1850-51, p. 74, approved February 17, 1851, the “ ‘Mercantile Library Hall Company of St. Louis,’ ” was created a body corporate and (§ 3) directed to expend its funds “in buying an adequate lot or piece of ground and erecting thereon a building sufficient and commodious for the use of the ‘Saint Louis Mercantile Library Association,’ which ground and building while the same or any part thereof shall be occupied and used as a public library shall not be subject to taxation.” Said act (§ 4) contemplated the lease of the ground and building to the Library, with right of subletting part of the building, and (§ 5) required the conveyance of the land and building to the Library as soon as the Library had reimbursed the Hall Company for its outlays. Section 7 of the act is more appropriately quoted later.

The Library Association acquired the real estate specifically described in plaintiffs’ petition.

Under the original lease (referred to in the petition as “Exhibit A”) defendant Library leased to defendant Bank, for a term beginning October 1, 1948, and ending October 1, 1952, all of the described premises with the improvements thereon, a six story and basement stone and brick building, except the sixth floor of said building, reserved by the Library, and the user of certain other portions of the building appropriate to the functioning of said Library. Said lease and an amendment thereto vested the Bank with certain options for the extension of the terms of the lease. Under an amendment of said lease, dated December 18, 1956 (referred to in the petition as “Exhibit B”), said lease was extended to terminate on July 14, 2019, and the Bank obtained Library’s consent to assign the lease to the Bank’s wholly owned subsidiary, Five-Twelve Locust, Inc., and to the use of the lease by the latter as security for bonds or debentures not to exceed $6,- 500,000, but said Bank is expressly held liable for all it obligations as lessee notwithstanding any such assignment or encumbrance. The Library, under Exhibit B, obtained an increase in the annual cash rent to $59,000 from $56,000, and more favorable provisions with respect to lessee Bank’s obligations for the maintenance, repair, upkeep, et cetera, of the building, for the proper functioning of the Library, and a provision that rent should continue notwithstanding any damage to or destruction of the building.

Plaintiffs’ amended petition contains allegations with respect to the facts herein-above set forth; and in ¶ 6 thereof, among other things, alleges that defendant Library and defendant Bank entered into the lease marked Exhibit A “for a term which has been extended to terminate on July 14, 2019, that is, a term of seventy years, nine months and thirteen days. By an amendment to said lease, * * * marked ‘Exhibit B,’ the leasehold has been assigned to defendant Five-Twelve Locust, Inc. * * * Defendant Five-Twelve Locust, Inc., has in turn assigned the leasehold to defendant Trust Company as trustee to secure an indebtedness of $6,500,000.00, due December 1, 1981, and has surrendered various portions of said leasehold to defendant Bank and defendant Trust Company.”

Paragraph “7” of said petition is quoted more appropriately hereinafter.

We quote portions of plaitniffs’ petition upon which they rely in their brief in support of their contention that the lease and amendment thereto are unreasonable, voidable, ultra vires and a breach of trust.

“9. The term of said lease is unreasonably long, extending far beyond the reasonably foreseeable future, and the assets of a charitable trust ought not to be tied up for such a period of time.

*692 “10. The rental payable under said lease, as amended, being fixed for the entire term thereof in the amount of some $59,000 per year, is unreasonably low for the premises let thereunder, which comprise some 70,000 square feet of very valuable downtown office and commercial space, conservatively worth more than three times the stated rental, and reasonably to be expected to increase in value as time goes on.

“11. The terms of said lease, as amended, are unreasonable in that there is included no ‘escalator clause,’ that is, no clause providing for an adjustment in the amount of rent commensurate with changing price levels and other circumstances affecting the rental value of the premises. * * *

7T2. Said lease, as amended, contemplates the alteration of the entire structure let thereunder to meet the special requirements of defendants Bank and Trust Company, rendering the premises unsuitable for use by any other tenants, without any provision for defendants to pay the cost of further altering the building so as to render it suitable for general use in the event the tenancy of defendants is terminated. * * *

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Bluebook (online)
359 S.W.2d 689, 1962 Mo. LEXIS 628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/voelker-v-saint-louis-mercantile-library-assn-mo-1962.