Baldwin v. Hosmer

• Decision Date: 16 June 1894
• Citation: 101 Mich. 119,59 N.W. 432
• Court: Michigan Supreme Court
• Parties: BALDWIN v. HOSMER, CIRCUIT JUDGE.

59 N.W. 432

101 Mich. 119

BALDWIN v. HOSMER, CIRCUIT JUDGE.

Supreme Court of Michigan

June 16, 1894

Application by Stephen Baldwin for mandamus to compel George S. Hosmer circuit court judge, to punish as for contempt certain persons who are officers in a local branch of the Order of the Iron Hall. Mandamus denied.

Carlos E. Warner, for relator.

Charles A. Kent, for respondent.

LONG J.

This is an application for a writ of mandamus to compel the respondent, who is one of the judges of the circuit court for the county of Wayne, to punish as for contempt certain persons who are officers of a local branch of the Order of the Iron Hall. The petition alleges substantially that the Order of the Iron Hall is a corporation organized at the city of Indianapolis, Ind., in the month of July, 1881, under and pursuant to the provisions of article 8, c. 24, of the Revised Statutes of the State of Indiana; that, after its formation, it entered upon the business for which it was organized, and solicited memberships throughout the different states of the Union. The business of the order was carried on by and through the instrumentalities of so-called "local" or "sisterhood" branches, which were responsible to the main organization and which, as declared by their constitutions, were required to consist of no less than 16 members, who should possess certain powers and privileges under the jurisdiction of the Supreme Sitting. There were about 1,190 local branches established in the United States, and 9 in Canada, making a total membership exceeding 60,000 persons, including those in the benefit division and life division, all of whom were subject to the authority and control of the main organization and its officers, under the articles of association constitution, laws, and regulations of the Supreme Sitting, and each of which said local branches has in its hands, accumulated as a reserve fund, a large amount of money, the amount in Detroit alone ranging from $300 to $14,000. The Supreme Sitting continued to exist and carry on its business until about the 29th of July, 1892, when it became insolvent; and upon a bill filed in the superior court for Marion county, Ind., one James F. Failey was on the 23d day of August, 1892, appointed receiver of all the property and effects of every kind of the Iron Hall, both within and without the state of Indiana, with full power to receive, demand, and collect in his own name, as receiver, from the defendant and all of its officers, agents, branches, bankers, and any and all other persons, whether within or without said state, and to take, hold, and keep in his possession, under the direction of said court, all of said property, rights, credits, and effects, books, papers, and things, of any and every description, belonging to the defendant at the time of bringing such action on July 29, 1892, or since acquired, and to do and perform all and singular the duties imposed upon him and required by law. Mr. Failey duly qualified as such receiver, and entered upon the performance of his trust.

On the 2d of December, 1893, a final decree was entered in that court and cause, in which it was adjudged that the Order of the Iron Hall, at the commencement of said action, was, and ever since had been, insolvent and unable further to carry on the business for which it was organized, and that its assets and property should be reduced to money, paid and applied upon its debts and outstanding obligations; and Mr. Failey was continued and confirmed as permanent receiver of said order. September 27, 1892, a bill of complaint was filed in the circuit court for the county of Wayne, in chancery, by one Lewis P. Durkee, in behalf of himself and all others interested who should choose to come in and be made parties, praying that a receiver be appointed in aid of and ancillary to the administration and receivership of all the property and effects of the defendant corporation appointed by the court in Indiana; and on the 1st of October, 1892, an order was entered in said Wayne circuit court, in chancery, appointing Stephen Baldwin, of Detroit, this state, as such ancillary receiver of all the property and effects of the order within the state of Michigan. Mr. Baldwin thereupon duly qualified, and entered upon the discharge of his trust, and such proceedings were thereafter had that on February 9, 1894, a final decree was entered in said Wayne circuit court, in chancery, in which it was declared that the defendant corporation, or Supreme Sitting of the Order of the Iron Hall, was on the 29th of July, 1892, and ever since has been insolvent; that it was unable further to carry on the business for which it was organized within the state of Michigan and elsewhere; and that its assets and property should be reduced to money, and applied upon its debts and outstanding obligations and liabilities,-and in which decree Mr. Baldwin was further continued and confirmed as ancillary permanent receiver of all such assets within the state of Michigan, with direction and authority, among other things, to take, hold, and convert into money, under the order and direction of the court, all the property, real, personal, and mixed, of every kind, belonging to said Supreme Sitting of the Iron Hall, with full power to demand, receive, and collect in his name as receiver or otherwise, as he might deem proper, from the defendant and all its agents, officers, branches, bankers, and any and all other persons within the state of Michigan, all such property and effects, and to take, hold, and keep in his possession, under the direction of the court, all such demands and effects, books, papers, and property, and other things, of every description, belonging to the defendant corporation on July 29, 1892, or since acquired, and to do and perform all and singular of the duties imposed upon him or required by law. It is further alleged in the petition that the organization was effected and existed only under the laws of the state of Indiana, and that the branches of the order existed, not by independent authority in any state in which they are situated, but solely by the authority of the charter granted to them in pursuance of the constitution and laws of the order under which they were permitted and organized. It is further shown that local sisterhood branch No. 5, so called, was one branch of the Supreme Sitting of the order in the state of Michigan, and was organized as such under the rules, regulations, constitution, and laws of the Supreme Sitting; that, at the time of the filing of the bill in this cause, Peter J. Schiffer, Jr., was the chief justice of said branch, Fred K. Kirtz accountant, John J. Starling cashier, and George Leitch, Fred. Linsell, and Charles Hampshire trustees; that afterwards Fred J. Kirtz removed from the city of Detroit, and one Carlton H. Royce was appointed or elected his successor, and that Charles Hampshire died, and Charles Beck was afterwards appointed or elected his successor, as trustee; that, at the time of filing the bill in this case, the said chief justice, accountant, cashier, and trustees had charge of the funds, property, and assets of the Supreme Sitting, which were collected and received through the instrumentality of said local sisterhood branch No. 5; and that they then held in moneys, property, and securities of said order the sum of about $20,000, which was subject to the order and direction of the Supreme Sitting, subject to the decree before mentioned; and that, at the time of filing this petition, the said officers and trustees held the moneys in the possession of the branch, which sum was subject to the order and direction of the Supreme Sitting, subject to said decree. It is further alleged that the petitioner caused a copy of the order appointing him receiver in this state, and a copy of the final decree in the cause, to be served upon the officers and trustees of said branch No. 5, and also caused personal written demands to be made upon each and every of said officers and persons for all moneys, property, goods, chattels, and effects in their hands belonging to the Supreme Sitting; but that said officers and trustees refused to comply with such demands and pay over the said moneys, property, and effects to the petitioner.

It appears that on March 12, 1894, the petitioner caused a petition to be filed in the Wayne circuit court, in chancery praying that the officers of local branch No. 5 of said order might be ordered and required to show cause in said court why they should not be punished for contempt in neglecting and refusing to turn over to the petitioner such moneys, property, and effects in their hands and under their control, and that an attachment or other process might be issued requiring the persons named to comply with such order; and that, on said 12th day of March, that court entered an order requiring such persons to show cause on the 19th of March why they should not be punished for contempt, and why an attachment should not issue as prayed in the order. On the 19th day of March, in response to the order, the officers and trustees of said local branch appeared and answered the petition. In their answer they say: (1) That they were not parties to or bound by the proceedings by which Mr. Baldwin was appointed receiver ancillary to the receiver appointed by the court of Indiana; and, upon information, they assert that the appointment of Mr. Baldwin was made at the instance of the Indiana receiver, though, as he is not a party, he cannot be bound thereby, and for the purpose of taking all the funds belonging to branch No. 5, as well as those belonging to other branches, out of the state, and distributing them mainly among persons who have not contributed to them, and against the equitable...