Kline v. Knights of the Golden Eagle

• Decision Date: 28 July 1933
• Citation: 167 A. 758
• Parties: KLINE v. KNIGHTS OF THE GOLDEN EAGLE et al.
• Court: New Jersey Court of Chancery

167 A. 758

KLINE

v. KNIGHTS OF THE GOLDEN EAGLE et al.

Court of Chancery of New Jersey.

July 28, 1933.

Syllabus by the Court.

1. An unincorporated association is entitled to protection against pirating its name.

2. Members of an unincorporated association, enough to insure a fair trial of the matter in dispute, may file a bill in equity in behalf of the body.

3. Unincorporated bodies of seven or more members may be sued in equity (P. L. 1925, c. 156, p. 395 [Comp. St. Supp. §§ 33— 126a to 33—126d]), but they cannot sue; there is no enabling act.

4. Section 40 of the Practice Act, 3 Comp. St. 1910, p. 4064, authorizing unincorporated organization to be sued, was amended to allow them to sue. P. L.1928, c. 33 (Comp. St. Supp. § 163—40). The Practice Act relates only to suits at law.

Bill by Norman E. Kline, suing for the benefit of Grand Castle, Knights of the Golden Eagle, against Knights of the Golden Eagle, a corporation of New Jersey, and others. On final hearing.

Injunction granted.

Gabriclson, Conover & Stasse, of East Orange, for complainant.

Otto A. Stiefel, of Newark, for defendants.

BACKES, Vice Chancellor.

The Knights of the Golden Eagle, an unincorporated national fraternal association, is represented in Plainfield by Freedom Castle, No. 42, Knights of the Golden Eagle, chartered by the Grand Castle, the state body, under the authority of the Supreme Castle, the national organization. The Grand Castle has exclusive jurisdiction over all local castles in the state; enacts their laws; issues, suspends, and forfeits their charters; hears their appeals; and redresses their grievances and generally supervises their affairs. Included in the benevolent objects of the order is the payment of sick and death benefits to members.

Allen, the principal defendant, was one of the organizers of Freedom Castle and for a time its most helpful as well as domineering spirit. Not unusual, when one becomes conspicuous in a small group, factions set up and there was friction, and, piqued, Allen tendered his resignation, and because it was accepted was offended. He appealed to the Grand Castle, and receiving scant treatment, organized a castle of his own under the name of Knights of the Golden Eagle and established headquarters in a nearby building in the town, where he and his associates advertise and hold themselves out as Knights of the Golden Eagle under a charter filed by them, under the statute, for the incorporation of associations not for pecuniary profit, wherein they adopted the name "Knights of the Golden Eagle," with power to establish a fund to provide for destitute and disabled members, pay death benefits, have perpetual successions, a common seal, make by-laws, contracts, sue and be sued, etc.

The bill is properly brought by the complainant on behalf of the order. The unincorporated body could not sue and its members are too numerous—they run into the thousands—to be made parties. The Grand Castle, in convention assembled, commissioned the complainant to sue in its behalf; he is its representative. Members of an unincorporated association, enough to insure a fair trial of the matter in dispute, may file a bill in equity in behalf of the body. Van Houten v. Pine, 36 N. J. Eq. 133. One appointed by the entire body for the...