Rush Hospital Benev. Ass'n v. Board of Sup'rs of Lauderdale County

• Court: Mississippi Supreme Court
• Writing for the Court: Ethridge, P. J.
• Citation: Rush Hospital Benev. Ass'n v. Board of Sup'rs of Lauderdale County, 192 So. 829, 187 Miss. 204 (Miss. 1940)
• Decision Date: 08 January 1940
• Docket Number: 33918
• Parties: RUSH HOSPITAL BENEV. ASS'N v. BOARD OF SUP'RS OF LAUDERDALE COUNTY

192 So. 829

187 Miss. 204

RUSH HOSPITAL BENEV. ASS'N v. BOARD OF SUP'RS OF LAUDERDALE COUNTY

No. 33918

Supreme Court of Mississippi, Division B

January 8, 1940

APPEAL from the circuit court of Lauderdale county HON. ARTHUR G BUSBY, Judge.

Proceeding by the Rush Hospital Benevolent Association against the Board of Supervisors of Lauderdale County for exemption from taxation. From an adverse judgment, the association appeals. Reversed and rendered.

Reversed and rendered.

Wilbourn Miller & Wilbourn, of Meridian, for appellant.

Rush Hospital Benevolent Association appealed to the Circuit Court of Lauderdale County, Mississippi, from an assessment made by the Board of Supervisors of Lauderdale County, Mississippi of its properties, both real and personal, for the fiscal year 1938, claiming an exemption thereof under paragraph (f) of Section 3108, Mississippi Code of 1930.

We submit that the court below erred in refusing to grant a directed verdict and that this court should reverse the cause and render a judgment here.

Appellant has shown that the proof which is uncontradicted was to the effect that all during the year 1938 and under all of the circumstances, Rush Hospital Benevolent Association in the operation of its hospital maintained one or more wards for charity patients; that in the event the charity beds or wards were occupied, charity patients were given beds or rooms ordinarily used for pay patients; that members of the staff associated with the hospital were available at all times and at all hours for charity services; that in addition to those cases requiring beds, any number of persons not having the money to pay for same, were given emergency treatment free.

The testimony further reflects without contradiction that all the income from said hospital and nurses' home was used entirely for the purposes thereof and no part of same for profit.

Rush Hospital Benevolent Association, we submit, is exempt from the payment of all ad valorem taxes on its real and personal property including the nurses home because the plain provisions of the statute itself exempt it. Clearly, it was the intention of the legislature to exempt all property used for hospital purposes and nurses home where a part thereof, and which maintains one or more charity wards that are for charity patients, and where all the income from said hospital and nurses home is used entirely for the purposes thereof and no part of same for profit.

The testimony is uncontradicted that this hospital maintained two charity wards, one for white patients and the other for colored. That these two wards were devoted to the use, call, and treatment of charity patients and such patients were received and treated and no charge made therefor and the services of its staff of physicians were furnished without charge. If these charity wards were filled with patients, emergency charity patients were received and cared for in a ward provided for patients who paid for hospital services.

The proof is uncontradicted that the Rush Hospital Benevolent Association lost money in the operation of the hospital during the year 1938 and has never since the incorporation of such hospital made any profit; that all the receipts of the hospital were expended upon the maintenance and operation of it.

Appellant appreciates that this statute allowing exemption from taxation must be strictly construed against the exemption and that Rush Hospital Benevolent Association has the burden of showing the right thereto. The evidence shows that Rush Hospital Benevolent Association has complied with the provisions of its charter and that it maintained in good faith two wards for charity patients and that all income from the hospital and nurses home was used entirely for the purposes thereof and no part of same for profit. Appellee has not contradicted in any way this testimony.

There is no evidence that there was any fraud in the organization of Rush Hospital Benevolent Association. There is no evidence that such association was fraudulently organized for the purpose of evading taxes. Every statute requirement has been fully met. Rush Hospital Benevolent Association, as shown by the record, is honestly and in good faith rendering the public the service required of it by the legislature and is entitled to the exemption from taxation.

This case is controlled by the following cases decided by this court, to-wit:

Warren County v. Vicksburg Hospital, 173 Miss. 805, 163 So. 382; Hinds County v. Jackson Hospital Benevolent Assn., 180 Miss. 129, 177 So. 27.

J. V. Gipson and C. L. Denton, both of Meridian, for appellee.

The law referred to in the appellant's brief is the correct statute law and decisions of this court as the appellee understands it on questions therein involved and determined but the appellee respectfully contends that conditions precedent were not met herein and the appellant did not comply with the prerequisites of the said law and did not qualify under said laws cited which are Section 3108 of the Mississippi Code of 1930 as amended by Chapter 137 of the Mississippi Laws of 1932 as amended by Chapter 157 of the Mississippi Laws of 1934 and Chapter 128 of the Mississippi Laws of 1938 and the cases cited in appellant's brief which are Board of Supervisors of Warren County, Mississippi v. Vicksburg Hospital, 163 So. 382, and Board of Supervisors of Hinds County, Mississippi v. Jackson Hospital Benevolent Association, 177 So. 27, and there was no substantial proof in either of said cases that made up an issue to be decided by the jury as to whether or not all of the income of the hospital involved in the suit was used for hospital purposes and as to whether or not any part of the income of the hospital involved went to the profit of the stockholders, and said cases differ from this case as all of the stockholders of appellant benefited by or profited from their investment in hospital same as if a large dividend had been declared.

The appellee contends that the exemption laws are strictly construed against appellant and that the burden of proof is on the appellant corporation to prove by a preponderance of the evidence that this corporation is legally entitled to the tax exemption and that said appellant operates its hospital, nurses' home, and spends all income under and according to the law authorizing it to a tax exemption and the appellee contends that the appellant corporation has failed to do this and that this case was a question for the jury and that the jury found against the appellant on this question of fact and that there being ample testimony on which the jury could legally base their verdict that said finding of said jury should not be disturbed by the Supreme Court of this state in this cause and that this cause should be affirmed.

OPINION

Ethridge, P. J.

Prior to the 28th of December, 1937, Mrs. J. H. Rush owned a hospital and nurses' home, called Rush's Infirmary. Two of her sons, who were physicians, made use of the hospital in the treatment of their patients having purchased and installed certain valuable equipment, suitable for hospital purposes. On the 28th day of December, 1937, a charter of incorporation was taken out under the name given in the style of the case, said charter, among other things, containing the following provision:

"The purpose for which it is created: Is to acquire, own and operate a general hospital in the City of Meridian Mississippi, for the care of the sick, injured and infirm and others needing hospital care; for the treatment of diseases of the human body and may provide, build equip and maintain operating rooms for the purpose of performing surgical operations and may maintain and operate X-Ray machines and other machines and appliances used by the medical profession necessary to operate a modern hospital; and may organize, conduct and carry on a training school for nurses and may provide a course of study and prescribe a curriculum which, if completed and complied with may graduate said nurses and issue certificates of graduation or diplomas thereto and to this end may buy, equip and maintain real estate for the purpose of providing a home for said nurses. Provided, however, no profit or gain shall be made from the operation of said hospital and nurses' home. There shall always be maintained one or more charity wards for charity patients; and that all the income and revenue derived from the operation of said association and nurses' home be used entirely and appropriated exclusively for the maintenance and operation of the said Rush Hospital Benevolent...