Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-03-31
BUILDING ASSOCIATIONS.
An Important Opinion by Judge Simons
Denying the Right of an Association to


Denying the Right of an Association to
Force the Retirement of Stockholders.
Two voluminous and very important de-
cislons were rende red by Judge Simons yester-
day in the cases of Solomon Bergman and Julia
.rgmau against the St. Paul Mutual Build
ing association No. l. Both cases involved
nearly or quite the same question and they
were tried tog thrr.
In tn case If Plaintiff Solomon Bergman
action was brought 10 Ell JOIN the association
from retiring number of shares of stock,
under color OF resolution and supplementary
bylaws adopted by the directors, and VIII oh
are held to be in opposition tn the spirit of the
or ginal constitution. The plaintiff owned
two shal es of the fifth series of stock, which
matured March, 1882, at which time they
woul be worth $500 each; also thlrty-ive
shares in the seventh Sfies OF stock, maturing
September, 1888, and Birth 20 each.
In 1877 the director&5net and adopted a res
Olution which prov ded for the distribution of
surplus money and the retirement Of stock, by
Il system of drawing lots. Under color of the
resolution, certain shares owned by plaintiff,
of the It'll series, were retired at the rate Of
S121.5 each the same year thirteen shares of
the seventeenth series were retired at SLOT
each
The decision is complete and thorough,
and is adverse to the association, the defend
ants being restored to their full privileges in
the society.
The conclusions of f1e court are as follows:
F.rst-That said amendments to the by
laws of said association adopted respectively
in December, 1874, and March 2, 1875 and SAID
regulations adopted March Sd, 1877, and
under which the plaintiffs said stock was can
celled, in so far as they authorize the retire
ment and cancellation of the stock of said as
ISOLATION without the consent of the owner of
such stock, are in conflict with the articles of
incorporation of said association, ultra uires
beyond the power) and null and void
Second-That the action of said association
and its board of directors in retiring and can
ceiling the plaintiffs shares in the fifth and
sixth series of the stock of said association on
| the Sd of January, 1880, and the 9Th of March,
| 1880, and on the 10th of August, 1880,
was in violation of the rights
of the plaintiff as owner of said stock
under said articles of incorporation and said
! bylaws, as they existed when the plaintiff
became owner of said stock, and ultra uireS,
null and void.
Third-That the plaintiff is entitled to the
| judgment of this court in the action against
| the defendant, adjusting and decreeing as fol-
lows: First, That the said amendments to
| the bylaws of said association adopted De-
cember, 1874, and March, 1878, and SAID reso-
| luton adopted March 3, 1877, are as to the
plaintiff and his SAID shares of the stock of
said association ultra UireS, null and void
Second, That the action of said association
and its board of directors, in retiring and can
ceiling the plaintiffs shares in the fifth and
sixth series, as above set forth, is null and
void; that the same be set aside, cancelled and
| annulled, and that the plaintiff be reinstated
in all his rights and privileges as
owner of said stock, and as
member of said association, in re-
spect thereto, the same as if such retirement
and cancellation had not been made. Third,
| That said association, its board of directors
and all its officers and agents be enjoined from
| retiring or cancellng without the consent of
| the plaintiff of his remaining shares of the
stock of the said association, antil said shares
| shall have respectively matured and become
the full value of 5000, and that the plaintiff re-
cover his costs and disbursements herein.
Let judgment be entered in accordance here
with, and if the parties cannot agree as to
| the terms thereof, the same will be settled by
| the court.
In the case of plaintiff, Julia Bergman, the
| findings of the court with regard to the retire
ment of stock are identical. In addition, how
ever, there was another question involved be-
| ing as to the right or power of the society to
refuse to make loan on properly certified and
paid up stock. The court finds for the plain
tiff, and directs the society to complete an ap-
plicatiOn for loan IN the following Ian
guage
That upon demand Oh the plaintiff the de-
| PENDANT complete the said loan applied for by
her on the 18th o August, 1880, as stated, and
| pay to her the amount thereof, less the said
premium, upon compliance by the plaintiff
| with the bylaws, rules and re eulations of said
| association respecting loans, and that the
| plaintiff recover her costs and disbursements
| herein.