41 W. Va. 59 | W. Va. | 1895
J. Hiifus Smith, President of the Board of Trustees of
A question which at once calls for decision in this case is, have the plaintiffs a right to maintain this bill? This renders it pertinent, if not indispensable, to ascertain the ownership of the grounds at the town sometimes called “Bath,” sometimes “Berkeley Springs”—the county seat of Morgan county,known as the“Public Grounds,” containing those springs whose waters have been famous for their medicinal properties for one hundred and fifty years—since that ownership will indicate who is to prevent the illegal alienation of the properly and its diversion from its proper use.
At this date the Court can have no difficulty in asserting that those grounds are the property of the state of West Virginia. Were we back in time near the Act of October, 1776, we likely could not assert the public right to this beautiful property with so much confidence. By that Act the Virginia legislature (9 Hen. St. p. 247) it would seem, simply seized fifty acres of the land of Thomas, Lord Fair-fax, the celebrated proprietor of the Northern Neck of Virginia, by vesting it in trustees to be laid off into quarter-acre lots, with convenient streets, and established them as a town by the name of “Bath,” and authorized the trustees to sell those lots for building purposes, to “accommodate numbers of infirm persons who frequent those springs yearly for the recovery of their health.” The act reciting no consent on the part of Lord Fairfax, nor providing for obtaining his consent, and from its mercifully reserving to him “one large and convenient spring, suitable for a bath,” and exempting from sale any lot whereon he may have
Perhaps it was because of his known disloyalty to the colonies that this act of 1776 was passed. Was it valid? We need not inquire. The old lord, bent with age, made no resistance to it. Neither did the Reverend Denny Martin, his nephew and devisee, nor tho.-e who subsequently claimed under him. The commonwealth of Virginia, claimed it to be, as it was in fact long held in actual possession for public use, its property.
In March, 1857, we find an act of ils legislature recog
By chapter 231, Acts 1872-73, the legislature assumes control over the property, authorizing a lease or mortgage. By chapter 202, Acts 1882, the legislature again declares that the property, in the language of the act of 1857, shall be held by trustees for public use, and appoints trustees, and declares them a corporation.
Thus, we find, by the two states, unbroken possession for one hundred and nineteen years, with claim of title and ownership, and no one disputing it. Of course, under the statutes of limitation, the state acquired indefeasible title. And so, from this great lapse of time, we would com 1 naively presume either a grant or a dedication . from Lord Fairfax—either or both, as might be requisite to sustain the state’s title. Campbell v. Wheeling, 12 W. Va. 36; Archer v. Saddler, 2 Hen. & M. 370; 1 Lomax, Dig. p. 782 tit. “Pre
Question might arise whether the act of 1882 vested title or only control in the body corporate; but as the act of 1857 used the word “vest,” and clothed the corporation with title, and the corporation has had continuous being since, though its members have changed, and the act of 1882 continues it “under the management and control of the trustees in trust as heretofore, for public use,” I think the dry title is in the corporation; the state being the beneficial owner, with power to resume all title at its will..
Thus, the state being owner, who but it shall, who but it can, through its law officer, the attorney-general, or by some action of the legislature*assail the action of the trustees in making the lease to Cornelius? Here is a corporation —not a private joint-stock one, huta public one—managing public property for public ends, with no private interests in it. I here borrow language from Green’s Price’s Ultra Vires (page 698) as pointedly expressive of the law on this point,, and abundantly supported by authorities from all quarters : “No person may institute proceedings with respect to wrongful acts which, if of a private nature, are not wrongs to himself, and, if of a public nature, do not specially affect himself.” Same author says, on page 700 that the attorney-general is the party to move, and, until he does so, no other one can. No refusal by the attorney-general to move in the matter is here shown, and, it’ it were, these trustees could not do so for want of inter-e.'t. This rule is applicable though the act be one ultra vires, says same author (page 703). See Talbott v. King, 32 W. Va. 6 (9 S. E. Rep. 48); High, Inj § 7 17; 1 Beach, Pub. Corp. §§ 13,351,352; Springer v. Wallers, 139 Ill. 419 (28 N. E. Rep. 761); State v. Cunningham, 81 Wis. 440 (51 N. W. Rep. 724;) Grant. Corp. 138; 2 Dill. Mun. Corp. p. 1100, § 909, note 1;Id. § 910; Seager v. Kankakee Co., 102 Ill. 669. See, specially, Attorney-General v. Railroad Cos., 35 Wis , on page 526. A suit to enjoin the sale and injury of a public park by a city can not be brought by an individual, but only by the attorney-general or properly authorized officer. Mowry
But the plaintiffs, to sustain their right to sue, say they are not simply private individuals, but president and members of the board of trustees. This does not give them capacity to sue. Directors are only agents of the corporation to conduct its business, and not the corporation, and, as such, have not a shadow of interest in its property, and need not be stockholders, unless statute or by-law so requires, and can not act individually, as they have no inherent power as agents, but only collectively as a board. Pennsylvania Lightning Rod Co. v. Board of Education, 20 W. Va. 360. They are but officers ‘-representing the interests of that abstract legal entity, the corporation, and those who own shares of its stock.” Addison v. Lewis, 75 Va. 702; Burr v. McDonald, 3 Grat 215; 4 Thomp. Corp. § 4875; 3 Thomp. Corp. §§ 3904, 3905; 1 Mor. Priv. Corp. § 531. “They can act in behalf of the corporation only as a board. Their power is no! joint and several, but joint,” Buttrick v. Railroad, Co., 13 Am. St. Rep. 578. They are not even proper defendants in suits against the corporation. 1 Mor. Priv. Corp. § 258. How, then, can we say that the act of the plaintiffs in bringing this suit, without any authority from the board, is even an official act? The corpo
The plaintiffs are not stockholders. The slate is the only owner of the corporate property, though the technical legal title may be in the corporation. Stockholders of joint-stock companies may sue because of their interest as such, to vindicate corporate rights under certain circumstances stated in Crumlishs’ Adm'r v. Railroad Co., 28 W. Va. 623; Park v. Oil Co., 26 W. Va. 486; Moore v. Schoppert, 22 W. Va. 282; Rathbone v. Gas Co., 31 W.
Another question very important in the case is whether the action of the board in making the lease to Cornelius transcended its powers, rendering that lease unlawful. For myself, 1 have had no question since the oral argument, and now, since I have carefully examined, I have no question but that this lease is an act beyond the powers of the board, and void; and this whether we view the subject as under the common law of corporations or under the act which constitutes the charter of the corporation known as the “Trustees of the Berkeley Springs.” View the matter
Another reason against the validity of this lease is that it is flatly in the teeth of a prohibition in the act giving life to this corporation, and direction to its trustees. That act, after creating the corporation, and vesting it with its property and powers, inserts a proviso—I say a proviso— “that the said trustees shall have no power to mortgage or otherwise alien the public property aforesaid, nor shall they grant to the proprietor of any hotel, or any other person, any special or exclusive privileges in the use or enjoyment of said springs or public grounds.” The word “alien” is used. My search in Abbott’s, Anderson’s, Bouvier’s, and Black’s Law Dictionaries does not tell me that the word means anything in law but to transfer property, thus covering a lease as well as a conveyance in fee. The transfer of an estate for years as much falls under the broad word “alien” as a transfer of the fee. The lease conveys the very title, not in fee, but the whole title, for its term. It is absolute for that term, not a mere deed of trust with power to end it by redemption. A particular estate is carved out of the fee, and title to it conveyed. Surely, a conveyance of the absolute possession for ninety nine years is an alienation. It is certainly so within the sense of this proviso ; for it can not be thought that the legislature intended to forbid only the transfer of the fee, and yet allow an absolute lease, carrying the possession and use for so long a period as ninety nine years. The word “otherwise” here has force. The language is “mortgage or otherwise alien,” meaning in any wise alien. The act of 1857 contained this same prohibition. The act of 1873 gave authority to lease, notwithstanding any prior law ; but the act of 1882 returned to-the policy of the act of 1857, by reinserting the same prohibition as that found in the act of 1857,repealing all acts in conflict, thus affording a reason to say that by the lute act it was meant to repeal the act of 1873. And this lease, be
Thus, I am clear in the opinion that the trustees had no color of authority to make this lease. Whether it was advisable or not we have no right (o say. No power could authorize it' but the legislature. Of this want of power in the trustees, Cornelius and all others must take notice, for no one can plead ignorance of law ; and “persons dealing with corporations must take notice of what is contained in the law of their organization, and they must be presumed to be informed as to the restrictions annexed to the grant of power, by the law by which the corporation is authorized to act.” Silliman v. Railroad Co., 27 Grat. 119; Haden v. Association, 80 Va. 683; Relfe v. Rundle, 103 U. S. 222.
Objection is made that the case was not matured as to the unknown assigns of Cornelius. The bill makes the unknown assigns parties, but does not aver any alienation by Cornelius. His answer does not aver any, or give any names of alienees, but, to the reverse, states a mere hope to effect one. I do not think that if a bill states and exhibits a deed from A. to B. and his assigns, no assigns appearing, it renders it necessary to make them parties. The title is yet in Cornelius, for aught that appears. Multitudes of old deeds convey to a person and his assigns. In a bill to set such a deed aside, must assigns be made parties, it not appearing there are any? I should think not.
It is assigned for error that the court allowed an amended bill to be filed, first, because the original was yet at rules, and there had been no proceeding but a motion to dissolve made in term, at which time the amended bill was tendered, and the amended bill was allowed at a subsequent term, while the original was still at rules. We should construe the statute for amendment liberally. If there was reason for the amendment, I think it could be tendered in term, and allowed in term, though the case on the original be at rules. Was there need of the amendment? Surely, there was, as the corporation was not a party, and it was a necessary party. Like a natural person, if its rights are involved, it ought to be before the court; and, if the parties do not
Secondly, it is objected that all the matter of this second bill was known to the plaintiffs before it was filed, and therefore leave to file it ought not to have been given. I do not understand our liberal practice as debarring an amended bill simply because the party, when he filed the original, knew a fact which, by inadvertence, he omitted or did not deem it pertinent. That would be a harsh rule, exacting perfect recollection and judgment at the first step. It is within the discretion of the court. If unreasonable delay in asking to file it exists, and there is no excuse, doubtless leave might be refused.
But here there was no unreasonable delay in tendering it. This bill charged that the board had sanctioned the lease, by subsequent action, and it made the corporation for the first time a party. It was proper to charge this ratification, and absolutely indispensable to bring the corporation before the court, and this alone justified the amended bill.
It is objected that the defendant entered a motion to dissolve, and that instead of passing on it alone, leaving the injunction stand, the court went on to perpetuate it, while the original bill was at rules, and the case not on the hearing docket. The case was in the court, though at rules. Cornelius filed his answer to the original bill on May 14th, and on May 17th the motion to dissolve and to file amended bill were argued; and on June 25th leave to file amended bill was allowed, and the defendants appeared, waived further service of process, and adopted, as their joint and several answers to both bills, the answer already filed by Cornelius ; and the case was heard on the bills, said answer, replications, depositions, and exhibits, and argument of counsel. No continuance asked. No objection to hearing, though that hearing, as just shown, was on the merits. No
There was a demurrer to the bill. It ought to have been sustained, and the bill dismissed, for want of capacity and interest in the plaintiffs to maintain it; and, as the only plaintiffs had no interest, the bill was not amendable by the substitution or introduction of the state or corporation as plaintiffs. There was no community of interest between them to be brought in. Opinion in Stewart v. Thorntor, 75 Va. 221.
We sustain the demurrer and dismiss the bill. It is needless to say that this is without prejudice to a suit by the state or the corporation.