Crawley v. Am. Soc'y of Equity of N. Am.

• Decision Date: 28 January 1913
• Citation: 139 N.W. 734,153 Wis. 13
• Parties: CRAWLEY v. AMERICAN SOCIETY OF EQUITY OF NORTH AMERICA ET AL.
• Court: Wisconsin Supreme Court

153 Wis. 13

139 N.W. 734

CRAWLEY

v.AMERICAN SOCIETY OF EQUITY OF NORTH AMERICA ET AL.

Supreme Court of Wisconsin.

Jan. 28, 1913.

Appeal from Circuit Court, Sauk County; E. Ray Stevens, Judge.

Action by N. C. Crawley against the American Society of Equity of North America and another. From a judgment dismissing the action, plaintiff appeals. Affirmed in part, and reversed and remanded in part, with directions.

Action to recover for services. The American Society of Equity of North America (hereinafter called American Society) is a corporation without capital stock organized under the laws of the state of Indiana. Its objects are, in general, to promote the interests of farmers. The organized forms of the American Society are local unions, county unions, state unions, and a national union, or the American Society, also department and district unions. The national union is the supreme head of the organization, and grants charters to subordinate unions. January 11, 1906, the Wisconsin State Union of the American Society of Equity (hereinafter called Wisconsin State Union) was organized at Eau Claire, receiving a charter from the national union. Its officers were and are a president, a vice president, a secretary, a treasurer, and a board of directors of which the above-mentioned officers are ex officio members, also one state organizer, and as many local organizers as the board of directors may see fit to commission. At the annual state convention of the Wisconsin State Union held in Eau Claire in 1908 the plaintiff, who previously had been a district organizer for the American Society, was elected state organizer of the Wisconsin State Union, and the board of directors at a meeting held January 17, 1908, passed a resolution engaging him as state organizer and fixing his compensation. He continued to render services as such state organizer till some time in March, 1909. This action was originally brought against the American Society to recover balance of $370.43 claimed to be due him. The American Society put in a general denial, and alleged that whatever services were performed were rendered for the Wisconsin State Union, and not for it, whereupon the Wisconsin State Union was made a party. Among other defenses, it alleged that it is a society with authority to act, and which has acted, under sections 2002 and 2003 of the Stats., and the acts amendatory thereto, and not otherwise, and that the Wisconsin State Union is not capable of suing or being sued. The case was referred, and the referee, in addition to the facts above set out, found that the Wisconsin State Union is not organized under chapter 92, Stats., which includes sections 2002 and 2003; that there was a balance of $99.40 due plaintiff, for which he was entitled to judgment. The trial court held that no liability was shown against the American Society, and that the Wisconsin State Union could not be sued in the name of its organization, and entered judgment dismissing the action as to both defendants. From such judgment the plaintiff appealed.Grotophorst, Evans & Thomas, of Baraboo, for appellant.

R. E. Bundy and J. R. Mathews, both of Menomonie, for respondents.

VINJE, J. (after stating the facts as above).

[1] The court properly dismissed the action as to the American Society. The plaintiff stood in no contractual relation to it, and the services were not rendered under such circumstances as to imply an intention on its part to pay therefor, within the rule of Wojahn v. National Union Bank, 144 Wis. 646, 129 N. W. 1068, and kindred cases. The services were not performed at its request, and there is nothing to show that it knew they were being rendered for the Wisconsin State Union, except the fact that, out of every initiation fee of $1, 80 cents were sent to it, 50 cents of which went to support the official paper of the society, and 30 cents to the support of the society itself. It is also true that membership in the Wisconsin State Union entitled one to membership in the American Society. But plaintiff was hired exclusively by the Wisconsin State Union, and was paid by it. The fact that his services to it ultimately benefited the American Society cannot under the circumstances of this case be held to raise an implied promise on its part to pay therefor. It would be a dangerous and unreasonable doctrine to hold national unions or lodges responsible for services rendered to subordinate local unions or lodges on the ground that such services ultimately benefit the national union or lodge. The subordinate union, for the purposes of furthering its own interests, must alone be held liable for services rendered it under an express contract by it to pay therefor, in the absence of facts or circumstances raising an implied promise to pay on the part of the superior union or lodge. Especially must this be so where, as here, the subordinate union alone paid for such services for several years, and the action was for a balance due under the same contract under which services had been rendered to, and payment made by, it.

[2] Was the action also properly dismissed as to the Wisconsin State Union? As we understand it, such dismissal was upon the ground that, since the union was not organized under our statutes, it could not be...