Rockhill Tennis Club of Kansas City v. Volker

• Citation: 56 S.W.2d 9,331 Mo. 947
• Parties: Rockhill Tennis Club of Kansas City v. William Volker et al., Trustees of Nelson Estate, Appellants
• Decision Date: 20 December 1932
• Court: United States State Supreme Court of Missouri

56 S.W.2d 9

331 Mo. 947

Rockhill Tennis Club of Kansas City v. William Volker et al., Trustees of Nelson Estate, Appellants

Supreme Court of Missouri

December 20, 1932

Appeal from Jackson Circuit Court; Hon. Brown Harris Judge.

Reversed and remanded (with directions).

Wilson Bundschu & Bailey for appellants.

(1) Equity will not aid a corporation to enforce an executory ultra vires contract. Sec. 507, R. S. 1929; 3 Thompson on Corporations (3 Ed.) sec. 2470, p. 68; 4 Thompson on Corporations (3 Ed.) sec. 2903, (4), p. 612; Prairie Slough Fishing & Hunting Club v. Kessler, 252 Mo. 424 159 S.W. 1080; Society of Helpers of Holy Souls v. Law, 267 Mo. 667, 186 S.W. 718; Anderson v. Johnson, 277 Mo. 132, 210 S.W. 23; Ales v. Epstein, 283 Mo. 434, 222 S.W. 1012; In re Doe Run Lead Co. v. Maynard, 283 Mo. 646, 223 S.W. 600; Schlitz Brewing Co. v. Mo. Poultry & Game Co., 287 Mo. 400, 229 S.W. 813; Thompson on Corporations (3 Ed.) secs. 2470, 2182, 2903; Lemp Hunting & Fishing Club v. Hackman, 172 Mo.App. 549, 156 S.W. 791, Note to L. R. A. 1917B, 866; Lemp Hunting & Fishing Club v. Cottle, 172 Mo.App. 574, 156 S.W. 799, Note to L. R. A. 1917A, 756; Bowman Dairy Co. v. Mooney, 41 Mo.App. 665; Pennsylvania Ry. Co. v. St. Louis Railroad Co., 118 U.S. 290, 30 L.Ed. 94; 14a C. J. pp. 318, 586; 29 Am. and Eng. Enc. of Law, p. 50; Kohlruss v. Zachery, 139 Ga. 625, 77 S.E. 812, 46 L. R. A. (N. S.) 72; 4 Thompson on Corporations (3 Ed.) sec. 2828, p. 529; 14a C. J. 582; Orpheum Theatre & Realty Co. v. Seavey, 197 Mo.App. 661, 199 S.W. 257; Case v. Kelly, 133 U.S. 21, 10 S.Ct. 216, 33 L.Ed. 513; Conn. Mut. Life Ins. Co. v. Smith, 117 Mo. 261, 22 S.W. 623; Wilson v. Torchon Lace & Merc. Co., 167 Mo.App. 305, 149 S.W. 1156; Pacific Railroad Co. v. Seely, 45 Mo. 212; First Nat. Bank v. Am. Natl. Bank, 173 Mo. 153, 72 S.W. 1059; McCormick v. Market Natl. Bank, 165 U.S. 538, 41 L.Ed. 822; California Natl. Bank v. Kennedy, 167 U.S. 362, 42 L.Ed. 201; Ward v. Joslin, 186 U.S. 142, 46 L.E. 1093; Central Transportation Co. v. Pullman's Palace Car Co., 139 U.S. 24, 35 L.Ed. 55; Richard Hanlon Millinery Co. v. Miss. Valley Trust Co., 251 Mo. 553, 158 S.W. 363; Cantley v. Little River Drain. District, 318 Mo. 1120, 2 S.W.2d 607; Illinois Fuel Co. v. Mobile & O. Ry. Co., 8 S.W.2d 834; 13 C. J. 245; 27 R. C. L. 346; 6 R. C. L. sec. 9, p. 590; Land v. Coffman, 50 Mo. 255. (2) The option is invalid because the trustee had no authority to give an option. 26 R. C. L. sec. 129, p. 1279; Moore v. Trainer, 97 A. 460; Dickey v. Volker, 321 Mo. 235, 11 S.W.2d 278; Loud v. St. Louis Union Trust Co., 313 Mo. 552, 281 S.W. 744; Crown Co. v. Cohn, 88 Ore. 624, 172 P. 806; Lackland v. Walker, 52 S.W. 414, 151 Mo. 210; In re Armory Board, 60 N.Y.S. 882; Hickok v. Still, 168 Pa. 155, 31 A. 1100; Midland County v. Slaughter, 61 Tex. Civ. App. 328, 130 S.W. 612; Hedgecock v. Tate, 168 N.C. 660; Swift v. Erwin, 148 S.W. 267; 26 R. C. L. p. 1342, sec. 206; 25 R. C. L. p. 244, sec. 46. (3) The option is invalid because the trustee had no power to delegate a discretionary duty. 39 Cyc. 304; Markel v. Peck, 129 S.W. 243, 144 Mo.App. 701; Cassada v. Wallace, 15 S.W. 138, 102 Mo. 575; Polliham v. Reverley, 81 S.W. 182, 181 Mo. 622. (4) The option is invalid because the will of William Rockhill Nelson expressly prohibits any irrevocable delegation of power by the trustees. (5) Equity will not grant the specific performance of a contract to arbitrate. St. Louis v. St. Louis Gas Light Co., 70 Mo. 69; Strohmaier v. Zeppenfeld, 3 Mo.App. 429; Biddle v. Ramsey, 52 Mo. 153; Hug v. Van Burkleo, 58 Mo. 202; Arnot v. Alexander, 44 Mo. 25; Ferrell v. Ferrell, 253 Mo. 167, 161 S.W. 719; Terry v. Michalak, 319 Mo. 290, 3 S.W.2d 701; Baldwin v. Corcoran, 7 S.W.2d 967; Bales v. Gilbert, 84 Mo.App. 675. (6) Equity will not grant specific performance of a contract where its enforcement would result in great and irreparable injury to the trust estate, to the public at large, and to Kansas City in particular. Hilgedick v. Nothstine, 289 S.W. 939, 316 Mo. 333; Brevator v. Creech, 186 Mo. 558, 85 S.W. 527; McGinnis v. Broderick, 192 S.W. 420; 36 Cyc. 620; McCall v. Atchley, 256 Mo. 39, 164 S.W. 597; Gibb v. McMahan, 11 Ont. Law Reps. 522, 4 A. & E. Ann. Cases 952. (7) The trial court went outside the pleading and proof in fixing the purchase price which was not within the contemplation of either the plaintiff or the defendants and was not supported by any evidence. State ex rel. McManus v. Muench, 217 Mo. 124, 117 S.W. 25; Lewis v. Scholl, 244 S.W. 92; Hecker v. Bleish, 3 S.W.2d 1008, 319 Mo. 149; 10 R. C. L. p. 557, sec. 340; 10 R. C. L. p. 555, sec. 338; Peterson v. Larson, 285 Mo. 119, 225 S.W. 706; Needles v. Ford, 167 Mo. 495, 67 S.W. 244; Fielder v. Fielder, 6 S.W.2d 968.

Sebree, Jost & Sebree for respondent.

(1) The respondent has the right under the Constitution and laws of Missouri to buy and own the small tract of real estate for the purposes of its organization, and its contract to purchase is not void, Art. 10, Chap. 33, R. S. 1909, (now Art. 10, Chap. 32, R. S. 1929); Art. 12, Sec. 7, Const. of Mo.; Sec. 4555, R. S. 1929; Art. 2, Sec. 8, Const. of Mo.; State ex inf. v. College, 315 Mo. 111; State ex inf. Harvey v. Athletic Club, 261 Mo. 600; Secs. 4933, 4940, 5007, R. S. 1929; Helpers of Holy Souls v. Law, 267 Mo. 667; Benevolent Society v. Murray, 145 Mo. 622; Fishing & Hunting Club v. Kessler, 252 Mo. 424; State ex rel. v. Trustees William Jewell College, 234 Mo. 311; Jackson v. Emerson, 39 Mo. 89; Moran v. Stewart, 122 Mo. 295; Title Trust Co. v. Sessinghaus, 28 S.W.2d 1001. (2) Appellants are estopped from pleading ultra vires. Cantley v. Little River Drainage District, 318 Mo. 1120, 2 S.W.2d 607; Illinois Fuel Co. v. Mobile & O. Ry. Co., 319 Mo. 899, 8 S.W.2d 834; State ex rel. Am. Surety Co. v. Haid, 325 Mo. 949; Schlitz Brewing Co. v. Mo. Poultry Game Co., 287 Mo. 400, 229 S.W. 813; McCornick & Co. v. Citizens' Bank, 304 Mo. 270; Bank v. Trust Co., 187 Mo. 494; Prairie Slough Fishing & Hunting Club v. Kessler, 252 Mo. 424; Society of Helpers of Holy Souls v. Law, 267 Mo. 667; Lemp Hunting & Fishing Club v. Hackman, 172 Mo.App. 549; Lemp Hunting & Fishing Club v. Cottle, 172 Mo.App. 574; Mutual Life Ins. Co. v. Stephens, 214 N.Y. 488; Osmero v. Brokerage Co., 155 Mo.App. 211; Connelly v. Haggarty, 65 N.J.Eq. 596; Dick & Gammon v. Riddle, 139 Mo.App. 589; Interurban Ry. Co. v. Light Co., 277 Mo. 617; Cave v. Wells, 5 S.W.2d 643; Alexander v. Alexander, 150 Mo. 597; Kirkpatric v. Pease, 202 Mo. 471. (3) Mrs. Nelson and Laura Nelson Kirkwood, Trustees under the will of William Rockhill Nelson had power to make the contract. Loud v. Union Trust Co., 313 Mo. 552, 281 S.W. 744; Crown Co. v. Cohn, 88 Ore. 624, 172 P. 806; Dickey v. Volker, 321 Mo. 235, 11 S.W.2d 278; City of Mountain View v. Farmers Tel. Co., 294 Mo. 623; Town of Monte Vallo v. School District, 268 Mo. 217; St. Joseph v. St. Joseph Terminal, 268 Mo. 47; State v. Nelson, 275 S.W. 927; Gillilan v. Gillilan, 278 Mo. 115; Drake v. Crane, 127 Mo. 85. (4) The arbitration clause of the option. Phelps v. Harris, 101 U.S. 370, 25 Law Ed. 855; Castle Creek Water Co. v. City of Aspen, 146 F. 8; Gunter v. Carroll, 101 U.S. 427; Bales v. Gilbert, 84 Mo.App. 679; William v. Cow Gulch Co., 270 F. 9; 36 Cyc. 578; Strohmaier v. Zeppenfeld, 3 Mo.App. 429; Black v. Rogers, 75 Mo. 441; Hug v. Van Burkleo, 58 Mo. 202; State Reserve Bank v. Swift & Co., 32 F.2d 590; Mutual Ins. Co. v. Stephens, 214 N.Y. 488; Grody v. Silverman, 226 N.Y.S. 468. (5) The value of the land. (6) The real reason for the violation of the contract by the appellants. Gillilan v. Gillilan, 278 Mo. 115. (7) The court having jurisdiction of the case will do full justice. Kirby v. Balke, 306 Mo. 109; 25 R. C. L. p. 345, secs. 172, 173; Pomeroy Specific Performance (3 Ed.) sec. 474; Munford v. Sheldon, 9 S.W.2d 911; Marston v. Catterlin, 290 Mo. 193; Seested v. Dickey, 300 S.W. 1101; McLure v. Natl. Bank of Com., 252 Mo. 519; Holland v. Anderson, 38 Mo. 336; Gibson v. Shull, 251 Mo. 491.

George Kingsley, City Counselor, and J. C. Petherbridge, Assistant City Counselor, for Kansas City, amicus curiae.

Sturgis, C. Ferguson and Hyde, CC., concur.

OPINION

STURGIS

This suit is for the specific performance of a contract to convey real estate, something over three acres of land in Kansas City, part of the estate of the late William Rockhill Nelson, well known editor and philanthropist. The plaintiff, as its name indicates, is a tennis club organized and incorporated by a pro forma decree of the Circuit Court of Jackson County under our statutes relating to the incorporation of organizations for benevolent, religious, scientific and educational purposes, now Article 10 of Chapter 32, Revised Statutes 1929, Sections 4996, et seq. The plaintiff desires to own this tract of land and maintain a club house, tennis court, seating facilities, etc., in connection with games of tennis, tournaments, etc., but asks to have the title vested in it in fee simple and without restrictions. The defendants are what are denominated university trustees, holding this land and much other property, real and personal, amounting to ten or twelve million dollars in trust under the will of William Rockhill Nelson, deceased, the ultimate object of the trust being the establishment and maintenance in Kansas City of a gallery of art for the delectation and enjoyment of the public.

Plaintiff's claim to this tract of land arose in this way: The original trustees of the Nelson estate were his wife, Ida H. Nelson and daughter, Laura Nelson Kirkwood. The gallery of art was not to be established till after the death of such wife and daughter, they having a life estate and certain contingent interests in part of...