138 Tenn. 616 | Tenn. | 1917
delivered the opinion of the Court:
This was an action brought in the circuit court of Davidson county against Vanderbilt University and its executive committee to recover damages for injuries inflicted upon the plaintiff’s intestate by the falling of an elevator in an office building owned and operated by the university.
The first count of the declaration contains all of the matters necessary to be considered in connection with the demurrer on which the questions for decision arise.
“ (1) That defendant Vanderbilt University is a corporation created and organized nnder the laws of Tennessee and having its situs at Nashville, in said State, and is engaged, and has been for many years, among other things, in the renting and operation of a large building for office purposes, owed by said defendant and situated at Nos. 311 and 313 Fourth Avenue North, formerly Cherry street, in the heart of the business district of said city of Nashville and remote from and wholly separate and distinct from its university buildings and grounds, which are situated in the suburbs of said city.
“(2) That said building consists of five stories, besides a basement, and contains numerous offices which are and have been for many years rented out annually to business and professional persons, firms, and corporations wholly disconnected with said Vanderbilt University or its educational work, in like manner in all respects as other office quarters are owned and rented out to tenants by other property owners of said city, and from whom are collected monthly rentals by said defendant in like manner in all respects a.s such rentals are collected by other landlords from their tenants in said city,
“(3) That said defendant owns, maintains, and operates in said building, and has done so for many years, an elevator for the use of its tenants therein, in like manner in all respects as elevators are owned,*620 maintained and operated by other owners in other office buildings in said city.
“ (4) That, only a small part of said building is and has been at any time used by said defendant for its law department, and for its law library for the use of its law students, and the larger portion of said building is and has been for many years rented out, as aforesaid, to tenants as business offices, and the principal use to which the said building is and has always been devoted is that of rented offices, and from which said def endant derives a large annual income, to wit, the sum of between $5,000 and $10,000, and the rentals charged and collected are the full, usual, and customary rates charged for similar offices in said city.
“(5) That said defendant owns and operates and has for many years owned and operated other buildings in the business portions of said city of Nashville, which it rents out and has rented out for many-years for business, hotels, banking, and residence purposes, to persons, firms-, and corporations in no way connected with its university of institution of learning, and from which it receives and has been for many years receiving an annual income of many thousands of dollars — in fact, said defendant is and has been for many-years one of the largest business property owners of said city of Nashville.
“(6) That’the foregoing facts and conditions existed at and before the time of the injuries hereinafter complained of.
*621 “(7) That at and before the time of the injuries complained of defendants J. H. Kirkland, W. R. Cole, Gr. M. Neeley, and Jno. B. .Ransom were members of the executive committee of said defendant Vanderbilt University, and as such had charge and control of the building aforesaid on Fourth Avenue North, and they and their associates and their appointees, agents, servants, and employees were charged with the duty of supervision, management, and operation of said building and the elevators therein.
“(8) That plaintiff’s said husband, Tip Cambie, at and before the time of the injuries herein complained of, was a tenant of defendants, occupying an office on the fourth floor of said building of defendants at 311 and 313 Fourth Avenue North, to wit, in the. year 1908.
“ (9)That on or about the 25th day of November, 1908, during business hours, the plaintiff’s said husband, a lawyer, being at that time a tenant of said building as aforesaid, and lawfully therein, entered the said elevator at the said fourth floor, for the purpose of descending to the street or first floor, the said elevator being at the time in charge of and operated by a temporary servant of defendants, and not the regular operator or conductor, when, as the said elevator descended, the said temporary operator or conductor, by reason of his negligence and incompetence, and the defective, worn, and unsafe condition of the said elevator, lost control thereof and it fell rapidly to the bottom, where the violent and sudden stop and con-*622 cnssion so severely jarred and injured plaintiff’s said husband that, by reason of such violent and sudden concussion and injury which was wholly without any fault' or negligence on his part, he suffered great bodily and mental pain and anguish, and was forced to incur, pay out, and expend a large sum of money, to wit, the sum of $1,000, for medical and other treatment and service in and about efforts for his cure for a long space of time, to wit, until the 2nd day of January, 1909, when, as the result of said injury, he died.
“(10) And so the plaintiff avers that the death of her said husband, Tip G-amble, was caused by the negligence of the defendants and their agents, servants, and employees in suffering and permitting the said eleva.tor and its braking and controlling apiaratus and machinery to be, become, and remain defective, worn, out of repair, unsafe, and insufficient to control the movements of said elevator and so as to render said elevator unsafe and dangerous to tenants and other persons lawfully in said building, "and which defects were known to defendants and not known to plaintiff’s said husband; and also by the negligence of defendants in employing and placing in charge of said elevator an unskilled, inexperienced, and incompetent servant as conductor or operator thereof, and whose inexperience and incompetency resulted in his loss of control- or inability to control the movements of said elevator; and also by the negligence of the said temporary operator or conductor in failing to operate the same ,.*623 ■with reasonable care — to plaintiff’s damage $25, 000, and’ therefore she sues and demands a .jury to try the canse.”
There are several grounds of demurrer, but we need consider only the third, which presents the point that the defendant corporation is a charitable institution, and, as such, holds its funds in trust for eleemosynary purposes, and therefore it. cannot be held liable in damages for the injuries complained of.
This ground of demurrer was sustained in the trial court, and also in the court of civil appeals, and the case is now here on the writ of certiorari to the latter court to review its decision.
We shall defer, for the present, the consideration of the case of the executive committee.
It is conceded by the plaintiff that the defendant is a charitable institution, and the counsel for the latter have so treated the case. Therefore we need not consider whether the declaration charges the fact with sufficient clearness.
The question for determination is whether the defendant charitable corporation is exempt from liability in an action of damages for the tort averred in the declaration.
We had occasion to consider the general subject in Abston v. Waldon Academy, 118 Tenn., 24, 102 S. W., 351, 11 L. R. A. (N. S.), 1179. In that case it was held that the defendant, a charitable corporation, was not liable for an injury to one of its students
However, we shall observe here that the doctrine designated as the trust fund doctrine, as applied to charities, in relation to the subject we now have in hand, seems to have had its origin in Feoffees of Heriot’s Hospital v. Ross, 12 Clark & Finnelly, 507. There an effort was made to hold the corporation liable for the wrong committed by the trustees in refusing to admit to the enjoyment of the charity one who fell within the class intended to be served by it. To sanction such a demand on the trust estate it. was said would be naught less than consent on the part of the court
“The trustee in. this case appears to have meant well, to have acted with due diligence, and to have employed a proper agent to do an act the directing of which was within the due discharge of his duty. The agent makes a mistake, the consequences of which subject the trustee to legal liability to a third party. I am of opinion that this liability ought, as between the trustee and the estate, to be borne by the estate.”
In case of charitable trusts the principle of immunity was at first applied as a general one, then subsequently limited in some jurisdictions as we have
As stated, while we are disposed to adhere to the general doctrine already announced' in the Abston Oase, yet we are of the opinion that a distinction should be taken on the facts of the present case, arising out of the operation by the defendant corporation of the large office building described in the declaration. This is averred to be “remote from and wholly separate and distinct from the university buildings and grounds, which are situated in the suburbs of the city,” that this building consists of five stories, besides the basement, and contains numerous offices which are and have been for many years rented out annually to business and professional persons, firms, and corporations wholly disconnected from the university, or its educational work, in like manner in all respects as other office quarters- are owned and rented out to tenants by other property owners of the city, and from whom are collected monthly rentals by the defendant in like manner in all respects as such ren-
Although this building was lawfully operated by the university as an investment for the purpose of making profits to be used in its educational work, as held in Vanderbilt University v. Cheney, 116 Tenn., 259, 94 S. W., 90, yet it was in our judgment an enterprise sufficiently distinct and remote from the central activities of the charitable organization to make it in-advisible, from the viewpoint of public policy, to extend the exemption from liability thereto. Nor indeed can we believe that the welfare of .the charity would be advanced or promoted by such extension,
“Were tbe trustees of tbe Girard estate permitted to manage tbe real estate, as now improved, without liability on tbe part of tbe fund for tbe negligent acts of tbe servants necessary to tbe usefulness of tbe property, it would impose an unwarranted risk upon tbe public and upon tbe tenants. Such a condition would certainly result in injury to tbe trust itself, since tenants and frequenters would scarcely be attracted to a building with such extraordinary pro*633 tection against liability for negligent employees, thrown around its ownership.”
To the same general effect, see Holder v. Massachusetts Horticultural Society, 211 Mass., 370, 97 N. E., 630.
We do not think the operation or validity of the exception we have stated is in any wise impaired by the fact that a small part of the building in question is used for the accommodation of the defendant’s law department. That is but an incidental use. The main purpose of the building and its chief use is found in its service as an office building let for hire to the general public.
Furthermore, we do not mean to hold that any judgment that may be recovered can be levied upon or collected out of the university grounds or buildings, or any property therein or thereon located capable of use for the conduct of the charity. The declaration shows that there is ample property aside from the university grounds and buildings out of which may be realized any judgment likely to be recovered. It should be noted that in this class of cases the court will not permit judgment to be rendered when it is apparent there is no property out of which it can be collected. Abston v. Waldon Academy, supra. Even after judgment the court will restrain any effort to subject the. property of the charity not liable to execution because of its exempt character. Fordyce v. Woman’s Christian National Library Ass’n., supra. It is to be observed also that in a
“Nor are we to be understood as holding the trust funds of the defendant may be applied to the payment of this verdict. The question is not involved. Defendant is not supported exclusively from such funds, On the contrary, its maintenance would seem from the evidence to come principally from patients who pay for services rendered them.” McInerny v. St. Luke’s Hospital Ass’n., 122 Minn., 10, 141 N. W., 837, 46 L. R. A. (N. S.), 548.
In the case before us the facts stated with regard to the defective elevator and its negligent management resulting in the injury of plaintiff’s intestate exhibit a clear cause of action.
We are of the opinion, therefore, that the court of civil appeals committed error in sustaining the demurrer filed by Vanderbilt University.
Now as to the case against the members of the executive committee.
Their demurrer is, in effect, that the declaration states no cause of action against them.
These defendants were not the trustees of the charity in whom the title was vested, therefore the under-servants through whom they discharged their duties were not their servants, - but the servants of the. corporation. Under the averments of the declaration the members of the committee were only intermediate
For nonfeasance an agent is responsible to his principal only. For misfeasance he may be responsible to third parties also. Nonfeasance is doing nothing. Misfeasance “is a failure to use in the performance of a duty owing to the individual, that degree of care, skill, and diligence which the circumstances . . . reasonably demand.” State v. McClellan, 113 Tenn., 616, 621, 85 S. W., 267, 3 Ann. Cas., 992. “It is often said in the books,” writes the Supreme Judicial Court of Massachusetts, “that an agent is responsible to third persons for misfeasance only, and not for nonfeasance. And it is doubtless true that if an agent never does anything towards carrying out his contract with his principal, but wholly omits and neglects to do so, the principal is the only person who can maintain any action against him for the nonfeasance. But if the agent once actually undertakes and enters upon the execution of a particular work, it is his duty to use reasonable care in the manner of executing it, so as not to cause any injury to third persons which may be the natural consequence of his acts; and he cannot, by abandoning its execution midway and leaving things in a dangerous condition, exempt himself from liability to any person who suffers injury by reason of his having so left them without proper safeguards. This is not nonfeasance, or doing nothing, but it is misfeasance, doing improperly.” Osborne v. Morgan, 130
There is nothing in the foregoing in the least out of harmony with our oases Nunnelly v. Iron Co., 94 Tenn., 397, 29 S. W., 361, 28 L. R. A., 421, Drake v. Hagan, 108 Tenn., 265, 67 S. W., 476, or Lumber Co. v. Sessler, 128 Tenn., 665, 163 S. W., 812, Ann. Cas., 1915C, 103. The second of these was a case in which at most the agent was guilty of a mere nonfeasance. In Lumber Co. v. Sessler, the manager or intermediate agent was guilty of no wrongdoing at all, but was sought to be held liable for the negligence of a subordinate servant. The court correctly held that the ultimate master was the responsible party, not a mere intermediate servant. In Nunnelly v. Iron Co., it was held that the officers of a corporation participating in its wrongdoing were guilty with it to a third party for an injury inflicted.
It results that on this branch of the case the court of civil appeals is affirmed.
An order will therefore be entered reversing the court of civil appeals on the first branch of the case, affirming it on the second branch, and remanding the cause to the circuit court of Davidson county for further proceedings.
The defendants will pay the costs of the appeal.