Walrath v. Campbell

28 Mich. 111, 1873 Mich. LEXIS 168
CourtMichigan Supreme Court
DecidedOctober 14, 1873
StatusPublished
Cited by11 cases

This text of 28 Mich. 111 (Walrath v. Campbell) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walrath v. Campbell, 28 Mich. 111, 1873 Mich. LEXIS 168 (Mich. 1873).

Opinion

Christiancy, Ch. J.

It is hardly necessary to say, that as the defendant could not in any event be entitled to recover beyond the value of the property, and there was no evidence of its value except that furnished by the appraisal made under and returned with the writ of replevin, which was only $107 10, the allowance of the amount of $208 (because that was the amount of defendant’s lien) was clearly erroneous. Upon the hypothesis that the defendant was entitled to recover at all, his recovery should have been limited to the value as shown by the appraisal.

But, there being no other evidence upon the point, we think this appraisal was prima facie evidence of the value, and if the defendant was entitled to recover at all, he was entitled to recover to the amount of the appraisal; upon this point the case comes within the principle of our decision in Worthington v. Hanna, 28 Mich., 580.

Should this be the only error, this being a case made, we might correct this error by merely reducing the judgment to its proper amount.

But there are several other questions raised which we proceed to consider.

We see no error in. the admission of parol evidence to prove the official character of the persons mentioned as trustees at the time the mortgage was executed. It was sufficient prima facie proof to show that the persons named were acting trustees or such officers de facto of the society, which would furnish the presumption that they were so de jure; and for this purpose parol evidence was clearly admissible. — Cahill v. Kalamazoo Mutual Ins. Co., 2 Doug. (Mich.), 124; Druse v. Wheeler, 22 Mich., 439. The testimony was, that they were such trustees at the time, and the evidence further shows that they acted as such, and this evidence was uncontroverted. And if the defendant was allowed to go further, and to show by parol their actual election and qualification as such (which, when necessary [118]*118to be shown at all, might be required to be shown by the record), parol proof of such facts could in no way prejudice the plaintiff, since those facts were unnecessary to be proved by the defense, the official character of the trustees named being sufficiently shown without the objectionable evidence.

The next objection is to the parol proof of the contents of the written notice of a meeting of the society for the first of August, which the defendant testified he read to his congregation on three successive Sabbaths in the month of July, and showing the object for which such meeting was called. And in' connection with this, may also be considered the question arising upon the objection to the proof by parol evidence of “what directions the meeting gave to the trustees, as to giving mortgages upon the property of the society.”

The object of introducing the evidence upon both these points, so far as we can judge from the case, seems to have been to show the power of the trustees to execute the mortgage under which the defendant claimed, for which purpose it seems' to have been thought necessary to show that the trustees gave the mortgage in pursuance, and with the vote or directions, of a meeting of the society, duly notified for the purpose.

To authorize the trustees to execute a mortgage of real estate (and there were such mortgages executed by them 'on the same occasion), it would have been necessary under section 3062, Compiled Laws, as amended in 1869 (Sess. L. 1869, p. 67), that they should have “ the assent of two-thirds of the voters present at a meeting of the society, duly and specially called for the purpose;” and in such case, and so far as such meeting and such vote, or the consent of the society was necessary to the giving of the present mortgage, the notice of such meeting, as well as its action, or any vote or direction it may have given, must have been proved by the best evidence, the written notice itself, and the record of the meeting, or the loss or inability [119]*119to procure the written notice or record, must have been shown before secondary evidence could have been given of its contents. This certainly would be clearly so of the contents of the record, and I think equally of the contents of the notice; as the written notice was not one delivered over to the parties receiving it, but merely read by, and therefore (in the absence of evidence to the contrary) to be presumed to have remained in the possession of, the defendant, who is seeking to prove the notice to establish a claim of right in himself. Its non-production, therefore,' and a resort to secondary evidence, are open to the same suspicion as parol evidence in ordinary cases where the fact sought to be proved is the contents of a written instrument.

But the provision of the statute requiring a vote of the society at a special meeting called for the purpose, does not apply to a mortgage or sale of personal property. The statute, it is true, grants express power to sell or mortgage real estate, in pursuance of a vote at a meeting thus called, and is silent as to the power to sell or mortgage personal property; and for this reason, and because the amendment of the same section in 1861 (Sess. L. 1861, p. 228), which first gave to religious societies express power to execute mortgages, authorized the trustees to execute mortgages upon any of their property, extended the power only to the securing of liabilities incurred in the erection or repair of their churches, meeting houses and other buildings, and the act of 1867 (Sess. L. 1867, p. 100) amending the same section, only added to this the right to execute such mortgages upon the property of the society to secure the payment of liabilities for the purchase of sites for such buildings, and the section, as amended in 1869 (first above cited), only extends the power to real estate, — the plaintiff’s counsel therefore infers and insists that the trustees, under this statute, had no power to execute a mortgage upon the personal property of the society.

But we think there is no sufficient ground for such an inference. The power to mortgage or sell real estate of [120]*120such religious societies, for many peculiar reasons, might have been a doubtful one without some enabling statute; but that the trustees, who in fact constitute the corporation, would, without an enabling statute, have the right to sell an organ, a chair, stove, or carpet, which they might happen to own and wish to dispose of, can hardly admit of a doubt; and generally the power to sell includes the more limited power to mortgage. And we think the power to execute a mortgage upon their personal property, to secure their debts, is one which is incident to the existence of a corporation, and that it requires some express or clearly implied prohibition by the legislature to take it away. — Angell & Ames on Corp., §§ 187, 191, and authorities cited; 2 Kent's Com., 280.

It was usual in England to restrain both the power of acquisition, and the power of sale of ecclesiastical corporations, and a similar policy has been adopted in some of the American states in reference to the real estate of such corporations; and certain restrictions of this kind will be found in our own statutes.

But these restrictions are confined to real estate; and our statute furnishes no clear intimation of any intention to limit the power of such corporations to sell or mortgage their personal property.

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Bluebook (online)
28 Mich. 111, 1873 Mich. LEXIS 168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walrath-v-campbell-mich-1873.