Wicks v. Monihan

• Decision Date: 01 December 1891
• Parties: WICKS v. MONIHAN et al.
• Court: New York Court of Appeals Court of Appeals

130 N.Y. 232

29 N.E. 139

WICKS

v.MONIHAN et al.

Court of Appeals of New York,

Second Division.

Dec. 1, 1891.

Appeal from supreme court, general term, third department. Affirmed.

This was an action brought by Jay Wicks, as treasurer of Local Assembly No. 4,119 of the Knights of Labor, against Edward H. Monihan and John C. Stack. From a judgment of the general term affirming a judgment in favor of the plaintiff on the report of a referee defendants appeal.

Edward J. Meegan, for appellants.

Charles S. Nisbet, for respondent.

FOLLETT, C. J.

This action was begun August 1, 1887, to recover the amount due on the following note: ‘$500. Amsterdam, N. Y., Nov. 23d, 1886. Six months after date we promise to pay to the order of William Perry, William Ryland, John Silber, trustees, and Jay Wicks, treasurer, five hundred dollars at the First National Bank of Amsterdam, value received, with three per cent. use. E. H. MONIHAN. JOHN C. STACK.’ It is conceded that the note was given for money owned by the society, and loaned to the defendants, and that no part of it has been paid. The defenses interposed were: (1) That the note was given for money advanced and used to sustain a strike, upon the agreement that it was not to be paid if the strike failed, and that it did fail; (2) that the plaintiff, as treasurer, could not maintain the action; (3) that Local Assembly No. 4,119, has been dissolved by a decree of the General Assembly of the Knights of Labor of America, and all of the property of the former has become vested in the latter. The defendants testified that the money was advanced to promote a strike, upon the agreement that it was not to be paid in case the strike failed, and that it did fail. This was denied by the plaintiff's treasurer, who made the loan, and this issue of fact was determined by the referee in favor of the plaintiff. The referee found that Local Assembly No. 4,119 was, when the note was given, and when the action was brought and tried, an unincorporated association consisting of seven or more persons; and if these facts were well found, the action was properly brought in the name of the treasurer. Code Civil Proc. § 1919. It is conceded that when the note was given and when this action was tried an unincorporated voluntary association, with more than seven members, existed at Amsterdam under the name of ‘Local Assembly No. 4,119 of the Knights of Labor.’ While the existence of the association is not denied, it is urged as a defense that the associated persons had ceased to be a local assembly of the Knights of Labor by reason of a decree of the General Assembly of the Order of Knights of Labor of America, which assumed to annul the charter of Local Assembly No. 4,119, and directed that all of its property should be turned over to the secretary of the general assembly. There exists in America a voluntary unincorporated association of persons known as ‘Knights of Labor,’ having a written constitution, sections 1 and 2 of article 1 of which provide: ‘Section 1. This body shall be known as the General Assembly of the Knights of Labor of America,’ and shall be composed of representatives or alternates selected according to article 11 of this constitution. Sec. 2. This general assembly has full and final jurisdiction, and is the highest tribunal of the order of the Knights of Labor. It alone possesses the power and authority to make, amend, or repeal the fundamental and general laws and regulations of the order; to finally decide all controversies arising in the order; to issue all charters to the state, district, and local assemblies. * * *' How the ‘representatives or alternates' composing the general assembly are selected does not appear, as the second article of the constitution is not given. The constitution also provides: ‘A district assembly shall be composed of duly accredited delegates from at least five local assemblies;’ but how they are selected is not disclosed. It does appear that the organizations known as ‘local assemblies' are the units of the society, and that they are connected, in some manner not shown by the record, with district assemblies, and that both local and district assemblies are attached and owe allegiance to the general assembly. It does not appear from the record that any contractual relations exist between the district and local associations: or between them, or either of them, and the general assembly. The case was defended on the theory that the general assembly possessed, and could rightfully exercise, autocratic governmental powers over all subordinate branches of the society; and that it could, by its order, without a hearing, expel from the organization any local or district assembly, and by that act become entitled to all the property of the assembly whose charter...