Sayre v. Louisville Union Benevolent Association

• Court: Kentucky Court of Appeals
• Writing for the Court: Bullitt
• Citation: Sayre v. Louisville Union Benevolent Association, 62 Ky. 143 (Ky. Ct. App. 1863)
• Decision Date: 26 February 1863
• Parties: Sayre vs. Louisville Union Benevolent Association.

Page 143

62 Ky. 143

Sayre vs. Louisville Union Benevolent Association.

Court of Appeals of Kentucky.

February 26, 1863.

APPEAL FROM LOUISVILLE CHANCERY COURT.

JEFF. BROWN for appellant.

C. RIPLEY for appellees.

JUDGE BULLITT DELIVERED THE OPINION OF THE COURT:

The Louisville Union Benevolent Association was incorporated by an act of the Legislature, with authority to afford relief and assistance to its sick or disabled members, and to the families of deceased members; to sue and defend, and acquire, hold, and dispose of any kind of property; to "create a fund by initiation fees, dues, contributions, or otherwise;" "to adopt such rules for their mutual interest as individuals, and as common carriers, as to them shall seem proper and promotive of mutual confidence and good will; and to recover all such fees, fines, or contributions as any member may be liable by the terms of their by-laws to pay, in the same manner as other debts due to the association; and to make by-laws for their government, and for prescribing the terms of admission and continuance of members: Provided, Such by-laws shall not be repugnant to the laws and constitution of the Commonwealth"

The association adopted by-laws, excluding from membership any person who has not been a captain, owner, or part owner of a steamboat on the Mississippi or Ohio river, or tributaries; declaring that no member "shall go into any river or trade and work for less than the wages, nor take, bargain for, or carry any freight for less than the established rate in the trade;" and that any member so doing shall be fined not less than one nor more than ten hundred dollars; prohibiting the members from employing agents who do not belong to the association, or to some association acting in concert with it; prohibiting members from advertising or working for any boat not represented in this or some other association acting in concert with it; requiring each member to pay certain monthly dues, and certain tonnage dues for each trip he may make with any steamer, and certain fines for non-attendance, and additional fines for failing to pay fines or other dues; and making provision for the relief of sick or disabled members, and for the families of deceased members, and other provisions which we need not notice.

The appellant, Sayre, became a member of the association, and, like the other members, expressed his consent to the by-laws by subscribing his name to them.

The association sued him for the sum of $329 45. The claim consists of tonnage and monthly dues, to the amount of $19 45; fines, for not paying said dues, to the amount of $60; and a fine of $250 for carrying freight for less than the established rate.

A demurrer to the petition having been overruled, the defendant answered, that the association was not authorized to make said by-laws, and that the same were illegal, and presented other defenses, which were not sustained by proof and need not be noticed.

A judgment was rendered for the sum claimed in the petition, from which Sayre appeals.

The power of a corporation to make by-laws for the government of its members does not authorize it to violate law, nor to require its members to do so. The power is limited by the nature of the corporation and the laws of the country. It can make no rule which is contrary to law, good morals, or public policy. (Angell & Ames on Corp., sec. 335, and cases cited.)

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