William Buchanan Foundation v. Shepperd

283 S.W.2d 325, 1955 Tex. App. LEXIS 2134
CourtCourt of Appeals of Texas
DecidedSeptember 8, 1955
Docket6813
StatusPublished
Cited by14 cases

This text of 283 S.W.2d 325 (William Buchanan Foundation v. Shepperd) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William Buchanan Foundation v. Shepperd, 283 S.W.2d 325, 1955 Tex. App. LEXIS 2134 (Tex. Ct. App. 1955).

Opinion

FANNING, Justice.

This was a suit for declaratory judgment brought by John Ben Shepperd, Attorney General of Texas, to determine the beneficiaries of a charitable trust created by William Buchanan, with prayer for in-junctive relief. The defendants were The William Buchanan Foundation and its Trustees; the Board of Regents of the University of Texas and the members thereof; the Board of Trustees of the University of Arkansas and certain members thereof, the State of Arkansas, its Governor and its Attorney General. Answers were filed by all defendants except the Arkansas defendants above named, which Arkansas defendants were duly served with non-resident notices under Rule 108, Texas Rules of Civil Procedure, but did not answer or otherwise appear.

The trial court (the trier of the facts as well as of the law in this cause) decreed that the primary beneficiaries of the trust are the residents of Bowie County, Texas, and of the counties adjoining thereto; that the William Buchanan Foundation must be domiciled in Texarkana, Texas; that under the terms of the trust such charitable enterprises, activities, and institutions should be established as to give full effect to the purposes of the trust and that such enterprises, activities, and institutions must be administered, managed, controlled and conducted in Bowie County, Texas, for the benefit of the residents of Bowie County, Texas, and of the counties adjoining thereto, and for the benefit oí such other persons as in the judgment of the Trustees should receive the benefit of the activities or institutions so established.

The trial court enjoined the Foundation from fulfilling commitments theretofore made to the University of Arkansas in the amount of $500,000, and -to the University of Texas in the amount of $38,000, and also enjoined the Foundation from conducting its charitable enterprises outside of Bowie County, Texas. The court also directed the Trustees of the Foundation to institute and establish in Bowie County, Texas, all charitable agencies, activities and institutions authorized and required by the trust and to administer, manage, control, and conduct said agencies, activities and institutions so established for the benefit of citizens and residents of Bowie County, Texas, and adjoining counties, ar>¿ for the benefit of such other persons as in the judgment of the Trustees should receive the benefits of the agencies, activities and institutions so established. The defendants the William Buchanan Foundation and its Trustees, and the University of Texas and its Board of Regents have appealed.

*327 The Foundation was created on October 9, 1923, when William Buchanan executed a deed of trust placing the sum of one million dollars in cash and Government bonds in the hands of designated trustees to be expended for certain charitable purposes. The Trustees, under authority of the instrument, in 1930 secured a charter for a charitable corporation named The William Buchanan Foundation. The assets of the Foundation at the time of the trial were in excess of $2,600,000.

The pertinent provisions of the trust instrument in question are as follows:

“The purpose of this conveyance and delivery of the Trust Fund is to create and endow a charitable enterprise, to be known as ‘The William Buchanan Foundation’ in the City of Texarkana, Texas, under which name and title its activities shall be carried on in the manner and for the use and purposes following, to-wit:
• “1. The Trust Fund and the income therefrom shall be held, used and expended by said Trustees and their successors in this Trust for charitable purposes and for the alleviation of suffering and distress, and to that end the Trust Fund may be used for the establishment and maintenance of charitable and benevolent activities, agencies and institutions and for the aid of such activities, agencies and institutions already established, or expended through such other means or agencies which, from time to time, shall seem expedient to the Trustees in this Trust. The Trust Fund and the income therefrom shall be administered in Bowie County, Texas, but for the benefit not only of the citizens or residents of said county, but also for the benefit of the citizens or residents of adjoining counties, as well as for the benefit of such other persons as in the judgment of the Trustees should receive the benefits of the activities or institutions established hereunder.
“2. Without in any way limiting the power of the Trustees with respect to any of the activities mentioned in the preceding paragraph, I suggest that the Trust Fund be employed, for the most part, in some concentrated charitable enterprise of broad usefulness, such as the establishment and maintenance of a children’s hospital and clinic or some other charitable institution or institutions of a kindred nature, leaving said Trustees, however, free to use the Trust Fund for any of the other purposes mentioned in the preceding paragraph if, in their judgment, it becomes wisfe or advisable not to use the Trust Fund for the purposes mentioned in this paragraph.
“3. The Trustees shall have power to sell, transfer and convey the Trust Fund, or any part thereof, and to invest and reinvest the principal or income therefrom, and to deal with and expend the income and principal of the Trust Fund as in the judgment of the Trustees will best promote the object and purposes of this Trust. * * * ■
“4. * * * Said Trustees shall also have the power and authority to appoint agents * * *
“5. The trustees and their successors shall have power and authority to organize a corporation if in their judgment it becomes advisable to do so to carry out the purposes of this Trust. ⅜ ⅜ ‡
“6. * * * All Trustees hereafter elected shall be persons of high intelligence, of good moral character, interested in the purposes for which this Trust is created, and in a position to enter actively upon the duties of said Trustees, as herein contemplated. * * * All questions arising herer under shall be decided by a majority vote of the whole Board of Directors.
“7. No Trustee shall be liable personally for anything done hereunder, *328 acts or omissions involving dishonesty or moral turpitude excepted. * * *
“8. In creating this Trust it has been my aim to establish a Foundation on a basis of such financial soundness, under such competent and conservative management and with the prospect of such great usefulness, that other charitably inclined persons may be led to contribute to its endowment and thus take part in promoting its objects and benefits to humanity. The privilege of participating in this undertaking is therefore extended to any one desiring to lend a helping hand in enlarging its scope and usefulness.”

The trial court filed the following findings of fact and conclusions of law:

“Findings of Fact
“1. The William Buchanan Foundation is a private corporation duly organized and existing under the laws of the State of Texas, having its domicile and principal place of business in Bowie County, Texas.
“2. Mrs. Helen B. Seeger, James G. Boyce, John W. O’Boyle, Mrs.

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Bluebook (online)
283 S.W.2d 325, 1955 Tex. App. LEXIS 2134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-buchanan-foundation-v-shepperd-texapp-1955.