Josey v. Union Loan & Trust Co.

Decision Date04 March 1899
PartiesJOSEY et al. v. UNION LOAN & TRUST CO.
CourtGeorgia Supreme Court

Syllabus by the Court.

A voluntary association of persons, organized for religious purposes, which has regularly appointed trustees to hold and manage its property, is liable to have such property subjected to the payment of money furnished for the use of such trust estate under proceedings authorized by statute. To such proceedings, where the trustees reside in the county where suit is brought, they are the only necessary parties defendant.

Error from city court of Atlanta; H. M. Reid, Judge.

Action by the Union Loan & Trust Company against Robert Josey and others, trustees. There was a judgment for plaintiff, and defendants bring error. Affirmed.

Simmons & Corrigan, for plaintiffs in error.

M. A Hale and Jas. K. Hines, for defendant in error.

LITTLE J.

The defendant in error instituted an action, naming certain trustees of Mt. Zion Baptist Church as defendants. The petition contained two counts. In the first count it was alleged that eight persons named were, as trustees of Mt Zion Baptist Church, indebted to the petitioner in the sum of $600, besides interest, on a promissory note, and that the same was due, etc.; which note was secured by a mortgage on certain property of the church, being real estate fully described in the petition. The second count alleged that the petitioner held a claim against the trust estate of Mt. Zion Baptist Church to the amount of $600, besides interest, etc which estate was held and owned by the trustees named, for the benefit of the church; that this sum of $600 was furnished for the use of the trust estate, which estate consists of the land described; that the sum of money mentioned was furnished to the trustees for the use of the trust estate, in paying off and discharging a material man's lien held by the Willingham Lumber Company against the trust estate, for material furnished for the building of the church known as "Mt. Zion Baptist Church," on the lot of land described; that the amount so paid to the lumber company was $349.03; that said money was also used in the payment of a debt of $64.70, due to Mrs. Payne on a mortgage held by her against the trust estate, and in paying off and discharging claims and demands of the city of Atlanta against said trust estate for Belgian blocks and other street improvements made by the city on the streets upon which the land described abuts, and for all of which the trust estate was liable; that the cestuis que trusted of said trust estate are the members of Mt. Zion Baptist Church, colored; that they prayed a judgment subjecting the trust estate to the payment of the claim. Service of this petition was made on the persons named and alleged to be trustees of said church. The defendants answered the petition, and denied that they were indebted as alleged. They denied the right of the plaintiff to institute an action. They admitted the execution of the mortgage, but averred that it conveyed no greater interest than the defendants themselves had in the property that there were about 1,000 members of the church, and the plaintiffs were only entitled to have a judgment against the defendants, as trustees, to the extent of the respective interests of the latter in the property. They denied that the plaintiff has any greater claim against the church property, by reason of having furnished money for the use of the trustees, than they would have on the promissory note, and denied the right of the plaintiff to the relief sought. They denied that the Willingham Lumber Company had any lien upon the property, and denied that the other debts, alleged to have been paid off, constituted any lien on the trust estate. They admit that the property named belongs to the members of Mt. Zion Baptist Church, and contend that, under the law, all the members of the church should be made parties defendant to the suit; that no judgment rendered on the petition against the church will be binding on the church property,--which facts they plead in abatement, and pray that the plaintiff be required to make all the cestuis que trusted parties defendant in the case, and that suit can only be maintained against all of the members of the church, and not against the defendants, as trustees, alone. They further allege the debt claimed to be usurious to the extent of $40. On the trial of the case, evidence was introduced tending to show that, at the time of making the note, the church owed Venable Bros., for curbing, $45.81; another bill to the city of Atlanta for curbing, $25.55; and another bill for street improvements, to the city of Atlanta, $180.44. That the church also owed, to Willingham & Co., $349.03 for material used for the improvement of the church; to J. Carroll Payne, $64.70 on borrowed money. That, in order to obtain the loan to pay off these debts, there was a called meeting of the members of the church, and more than 50 members were present. That there were from 700 to 1,000 members of the church. That the church meeting called to authorize the loan was duly and regularly called, and notice given. That the loan was authorized by that meeting. That Willingham's debt and the debts for the sidewalk and granite blocks were pressing. That Hale, agent of the lienors, paid out, under the direction of the deacons of the church, the debt to Willingham, the debts for the sidewalk and granite blocks, and that due to Mrs. Payne. That more than $600 was paid out by Hale on these debts of the church. That in Baptist churches a majority vote of the members present controls in the conduct of their business. Hale testified that the loan was made through him; that the trustees, to the number of 10, came to him as a body, and stated that Willingham was about to sell them out on a material man's lien; that they owed interest to Mrs. Payne and taxes for granite blocks and sidewalks; that the amounts were due, and about to be enforced; that they wanted this $600 to pay these pressing claims; that the trustees executed the notes; that the money was not paid to them, but he was to pay these several claims, and he did pay Willingham $349.03 for his debt due by the church; to Mrs. Payne, for interest on mortgage, $64.70; Venable Bros., for sidewalk, $45.81; to the city for granite blocks and sidewalk, $180.44,--the amounts paid out amounting to $639.98. The proceedings of the church meeting were introduced, in which it appeared that the trustees of the church, in their official capacity, were authorized to secure the loan, to execute a note for the...

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1 cases
  • Josey v. Union Loan & Trust Co
    • United States
    • Georgia Supreme Court
    • 4 Marzo 1899
    ...32 S.E. 628(106 Ga. 608)JOSEY et al.v.UNION LOAN & TRUST CO.Supreme Court of Georgia.March 4, 1899. Religious Societies—Trustees—Debts—Actions —Parties. A voluntary association of persons, organized for religious purposes, which has regularly appointed trustees to hold and manage its proper......

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