DocketNumber: No. 2648.
Judges: Tirey, Lester
Filed Date: 11/23/1945
Status: Precedential
Modified Date: 10/19/2024
This is a formal suit of trespass to try title, Rule 783, Texas Rules of Civil Procedure, to lot 1 in Block 105 of the Houston Texas Central Railroad Addition to the City of Corsicana, Navarro County, Tex. Plaintiff brought the suit against Jerusalem Lodge No. 67 (Negro), Free Accepted Masons (unincorporated), Ben Morgan, Worshipful Master, and F. M. Nelson, L. E. Lister, W. M. Buchanan, Robert Jewell, James Edwards, R. H. Durham and W. M. Rogers, as former members of the Lilly of *Page 923 the Valley Lodge No. 1933 (Negro), Grand United Order of Odd Fellows of Texas, as a class representing all former members similarly situated. Plaintiff specially pleaded that it had title to all of the property in controversy by virtue of the three, five and ten year statutes of limitations. Arts. 5507, 5509 and 5510, Rev.Civ.Stats. Jerusalem Lodge and Lilly of the Valley Lodge each entered a plea of not guilty, and in addition thereto specially pleaded that each had title to one-half of the property in controversy by virtue of said statutes of limitations, supra. By cross-action each defendant asked for relief in formal suit of trespass to try title. At the conclusion of the evidence all parties filed motions for instructed verdict. The court denied plaintiff's motions and granted defendants' motions, and plaintiff excepted.
A comprehensive statement is necessary. Prior to September 10, 1880, all of the Negro Odd Fellow lodges in Texas organized themselves into a district grand lodge and secured from the Sub-Committee of Management a charter which recognized said organization as District Grand Lodge No. 25, Grand United Order of Odd Fellows of Texas. Said Grand Lodge was an unincorporated fraternal benefit society and it adopted a constitution and by-laws in the year 1898 for its government. The certificate to the constitution and by-laws tendered in evidence certified in effect that such constitution and by-laws, with amendments thereto, were revised and duly adopted by District Grand Lodge No. 25 at the annual session held during the month of August, 1917, and further certified in effect that the same had been in full force and effect since the adoption in 1917, and that there were no amendments from August, 1917, up until the date of the certificate, which was the 12th of September, 1939. The constitution and by-laws of the Grand Lodge tendered in evidence contain Article 10, which article and provisions pertinent here are set out in the opinion of the Supreme Court in the case of District Grand Lodge v. Jones,
"Sec. 5. In the District Grand Lodge is vested the power of government and superintendence of the subordinate lodges within its jurisdiction, in accordance with the General Laws and Regulations of the Grand United Order of Odd Fellows and subject to the supervision and control of the Committee of Management."
"Sec. 7. The jurisdiction of the District Grand Lodge shall be coextensive with the State, Territory, Province, or Island in which the same is created or formed. It shall have no right to interfere with any Lodge not within its jurisdiction, and it shall be the duty of the District Grand Lodge to see that the General Laws of the Order are enforced and are in no way transgressed or disobeyed, either by its own body or any member thereof or by any Lodge under its jurisdiction, and to protect every Lodge and all members in their just rights."
Lilly of the Valley Lodge, acting through its trustees, acquired the property in question from the agreed common source of title by general warranty deed dated February, 1904, and all of the consideration was paid by the local lodge. This deed recites in effect that the consideration was paid by the Trustees of Lilly of the Valley Lodge, acting for said Lodge, but was conveyed to said Lilly of the Valley Lodge No. 1933, Grand United Order of Odd Fellows of the County of Navarro, State of *Page 924 Texas, its successors and assigns forever. It is without dispute that said Grand Lodge was operating under Chapter 8 of Title 78 of Rev.Civ.Stats. of 1925, Vernon's Ann.Civ.St. art. 4820 et seq.; and the various annual licenses obtained by said lodge from the Insurance Commissioner were tendered in evidence, the first one being for the year ending March 31, 1915, and the last one being for the year ending March 31, 1938. In August, 1935, Lilly of the Valley Lodge (without permission of the Grand Master), pursuant to resolution passed at a meeting of the local lodge, and for a consideration of $727.45, executed a deed to a one-half interest in the property in question to Jerusalem Lodge. This deed, among other things, provided that the one-half interest covered a one-half interest in the hall and fixtures. Jerusalem Lodge has had joint use and possession of said property with Lilly of the Valley Lodge from the date it acquired its one-half interest therein.
Appellant contends substantially that the court erred in its failure to grant its motions for instructed verdict against each defendant and in granting each of defendant's motions for instructed verdict against it, because the evidence shows without dispute that Lilly of the Valley Lodge was a subordinate lodge of the Grand Lodge, and that by virtue of the provisions of Article 10 of the Constitution and By-Laws of the Grand Lodge and by reason of the doctrine announced in the Jones case, supra, an unrecorded express trust was created and impressed upon the land in favor of said Grand Lodge as against Lilly of the Valley Lodge and its members, and that Jerusalem Lodge had notice that neither Lilly of the Valley Lodge nor its officers had the power to convey said property, and that Jerusalem Lodge was not an innocent purchaser of the property for value without notice; and since Lilly of the Valley Lodge was the common source of title and said property could be conveyed only by the written consent of the District Grand Master (which was not obtained), and since appellant had acquired title to said property through mesne conveyances from the Grand Lodge, the trial court erred in refusing appellant's motions for verdict, and likewise erred in granting each of defendant's motions for instructed verdict against appellant. We sustain these contentions.
After a most careful consideration of the opinion in the Jones case, supra, it is our opinion that the rule announced in the Jones case is applicable to the factual situation in the case at bar.
Sections 1 and 2 of Article 10 of the Constitution and By-Laws provide:
"Sec. 1. The title to all property, real, personal or mixed acquired by any subordinate lodge or Household of Ruth, by purchase, gift, devise or otherwise, shall be acquired by such subordinate Lodge or Household of Ruth as trustee for the District Grand Lodge No. 25, Grand United Order of Oddfellows; and, the same shall be held in trust by such subordinate lodge or Household of Ruth for the benefit of the District Grand Lodge, so long as such subordinate lodge or Household of Ruth is alive and has complied with the rules, regulations and laws of the District Grand Lodge."
"Sec. 2. No property held by any subordinate lodge or Household of Ruth of the District Grand Lodge No. 25, Grand United Order of Oddfellows shall ever be mortgaged, sold, or encumbered in any manner, by the officers or members of such subordinate lodge, or Household of Ruth, without the written permission and consent of the Grand Master of the District Grand Lodge."
It is clear that under the provisions of Section 1 that Lilly of the Valley Lodge held the legal title to the property in trust for District Grand Lodge No. 25, and it had the right to so hold it as long as it was alive and complied with the rules, regulations and laws of the District Grand Lodge. Did it violate such rules, regulations and laws of the District Grand Lodge and thereby breach the duty it owed as trustee to said Grand Lodge? We think it did. Section 2 provides that a subordinate lodge cannot sell its property without the written permission and consent of the Grand Master of the District Grand Lodge, and the evidence is without dispute that Lilly of the Valley Lodge did sell, without permission of the Grand Master, a one-half interest in its property to the Negro Masonic Lodge, as evidenced by deed dated in August, 1935.
The next question that arises is: Is appellant entitled to recover the property in a formal action of trespass to try title? We think so. For general rule see 41 Tex.Jur. § 78, pp. 557, 558; Id., § 15, p. 470; 42 Tex.Jur. 774, § 153; Binford v. Snyder, Tex.Sup.,
Appellees attach great importance to the fact that they tendered evidence from the Grand Secretary of the parent body to the effect that Article 10 of the Constitution and By-Laws of the District Grand Lodge No. 25, under consideration, was never approved by the Committee of Management of the parent organization and by reason thereof Article 10 was of no effect. We are not in accord with this view. This record is without dispute that Article 10 of said Constitution was adopted by District Grand Lodge No. 25 in 1898 and that it had been in force and effect since its adoption. "It has been frequently held, however, that, when the evidence of an interested witness is direct and positive on the point at issue, and where there are no circumstances in the record tending to discredit or impeach his testimony, a verdict contrary thereto will be set aside, that such testimony will justify an instructed verdict, and that a judgment contrary thereto may be reversed and rendered." Dunlap v. Wright, Tex. Civ. App.
But appellees contend that Jerusalem Lodge was an innocent purchaser of a one-half interest in the property for value without notice. We overrule this contention. Since it is without dispute that Lilly of the Valley Lodge was a subordinate lodge of District Grand Lodge No. 25 and that said Lodge was an unincorporated fraternal benefit society operating under the provisions of Arts. 4820 et seq. R.C.S., supra, the provisions of Chapter 9, Title 32, R.C.S. (as we understand the Supreme Court in the Jones case, supra) are applicable to the case at bar. Article 1402, Title 32, R.C.S. provides: "Such orders, grand and subordinate, shall have the right to acquire and hold such lands and personalty as may be necessary or convenient for sites upon which to erect buildings for their use and occupancy, and for homes and schools for their widows, orphans or aged or decrepit or indigent members, and to sell or mortgage the same, such conveyances to be executed by the presiding officer, attested by the secretary with the seal. The power and authority of such subordinate bodies to sell or to mortgage shall be subject to such conditions as may be from time to time prescribed or established by the grand body to which the subordinate is attached." This statute is applicable and controlling to the factual situation here. It is obvious that while Lilly of the Valley Lodge held the record title to the property, nevertheless under the constitution and by-laws and under the doctrine announced in the Jones case, Lilly of the Valley Lodge held title to said property as trustee for the Grand Lodge, and Jerusalem Lodge had constructive notice of such relationship. (Since defendants Nelson, Lister, Buchanan and Jewell were not holding individually under a recorded deed, it is obvious that none of the statutes of limitation are applicable in their behalf as individuals).
But appellees contend substantially that there was such repudiation of the trust relationship by Lilly of the Valley Lodge as to invoke the five year statute of limitations. We overrule this contention. "The rule is elementary that limitation does not run against the beneficiary of a trust in favor of a trustee so long as the trustee acknowledges his interest." Long v. *Page 927
McCoy, Tex. Civ. App.
It is true that Lilly of the Valley Lodge made a request of the Grand Lodge for aid (which was refused) before it executed a deed to a one-half interest in the property to the Masons. The District Grand Master from 1931 to 1939 testified substantially to the effect that the Grand Master did not give permission to Lilly of the Valley Lodge to sell a one-half interest in the property and that he knew nothing about the sale. The Permanent Secretary, defendant Lister, testified in part: "Well, I'll tell you how that is now; when I came back from Houston (1936) I made my report to the lodge; the men didn't like the increase in premiums; * * * and we said `we will keep up the fraternal side of our insurance and the ones that want to send in their endowment can send it,' and we held ourselves together locally, hoping some change would take place; we had three members who continued to send their endowments until this thing closed up." He said it closed in 1939. He further testified after he came back from Houston: "We had a committee in our Order to look after the rents and collect the rents; I didn't never know anything about that, I just reported it. * * * Q. You have been renting that hall all these years. A. Yes, sir. Q. And you divided that money with the Masons. A. Supposed to have been." He further testified to the effect that he did not write the Grand Lodge about the local lodge attempting to sell a one-half interest in the property and that he had never made a report of the sale to the Grand Lodge. He further testified with reference to the Minutes in a book about which he was being interrogated: "If I understand you, I looked at the first minutes and it was written in the book here `December 12, 1935', and the last meeting was January 6, 1944, I believe." Applying the rule announced in Long v. McCoy, supra, and Collins v. Griffith supra, our view is that this testimony does not raise the issue of knowledge of the repudiation of the trust relation.
Now it is without dispute that on May 21, 1939, at a meeting of the Grand Session of the District Grand Lodge, a resolution was adopted providing "for the working out of a plan of re-insurance of the policyholders with full power vested in Grand Master Ewing and Endowment Secretary J. W. Rice to work out this plan, which must have the approval of the Insurance Department." Said officials (pursuant to said resolution) thereafter executed deeds conveying their properties in Texas: (1) by deed from District Grand Lodge to District Endowment
Burial Association dated June 7, 1939, acknowledged on September 26, 1940, and recorded March 8, 1944; and (2) by deed from District Endowment Burial Association to Modern Mutual Health Accident Insurance Association dated July 15, 1939, acknowledged September 26, 1940, and recorded March 8, 1944. Since the record shows that Lilly of the Valley Lodge had not repudiated its trust relationship to the Grand Lodge so as to set in motion the running of the statutes of limitation under the cases above cited, and since the Grand Lodge was holding under mesne conveyances, and since the Grand Lodge was not liquidated until subsequent to May 1, 1939, and since the assignees of the Grand Lodge brought this suit in April, 1944, the provisions of the five year statute of limitations are not applicable to Lilly of the Valley Lodge, and for these reasons neither Lilly of the Valley Lodge, nor its members, can prevail in this suit. The three year statute of limitations is not applicable to any of the defendants for the reasons stated in District Grand Lodge No. 25 v. Logan, Tex. Civ. App.
But appellees contend in substance that since the deed from Lilly of the Valley Lodge to Jerusalem Lodge was executed in August, 1935, and recorded in July, 1936, and since plaintiff did not bring its suit until April, 1944, title to a one-half interest in the property had fully ripened in Jerusalem Lodge by virtue of the five year statute of limitations, Art. 5509, Rev.Civ.Stats. Assuming, without deciding, that the tax provision of the statute has been complied with, we cannot agree with this contention. (1) It is clear that *Page 928
Jerusalem Lodge was not an innocent purchaser for value without notice of the property because of the provisions of Article 1402, supra. See District Grand Lodge v. Jones, supra. It follows that Jerusalem Lodge had constructive notice as a matter of law of the trust relationship existing between Lilly of the Valley Lodge and the Grand Lodge. The question then arises: Is limitation available to Jerusalem Lodge? We think not. It is true that Jerusalem Lodge duly recorded its deed and openly occupied the property under the provisions of such deed for a period of more than five years before the plaintiff brought its suit, but such use and occupancy was joint with Lilly of the Valley Lodge. Our Supreme Court, in Schneider v. Sellers,
It follows that the judgment of the trial court must be reversed and rendered in favor of appellant against all defendants, and it is so ordered.
Chief Justice LESTER took no part in the consideration and disposition of this case.
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