The Minneapolis journal., 1902-06-20
MUST OBEY BYLAWS
Chamber of Commerce May Sus-
pend Members Who Don't.
so SAYS THE SUPREME COURT


Decision In Case Brought by c. p.
Evans to Compel His Re-
instatement.
The supreme court affirms the right of
the Chamber of Commerce of Minneapolis
to suspend member for disregard of one
OF It's bylaws. In decision handed down
to-day 1t upholds the Judgment of the dis
trict court in the action brought by c.. p
Evans to compel his reinstatement. The
syllabus Of the decision Is as follows:
G. 2. Evans, appellant, vs. the Chamber OF
Commerce OF Minneapolis, respondent. +
First-G. S. 1894: section 2sSs, under which
defendant association was organized, con-
ferred upon It the right to make membership
therein conditional upon the submission of all
business disputes arising between Its members
to arbitration. y -. s
second-Under its articles of incorporation
the ASSOCIATION was authorized and empowered
to adopt. establish and enforce the bylaws
in controversy in this action, which provided
for arbitration between members.
.Third-Ths bylaw also provided for the
suspension of a member If he should refuse
to submit to arbitration business dispute
with another member after teing duly notified
and after hearing had before the board OF
directors, and, further. that If the gravity OF
the offense was deemed such as to merit 1t,
the member in fault might be expelled from
the association. Held. that this by law was
NOT invalid on the ground that it eontravened
the constit utlon or the laws OF the state or
was against public policy. 1t did not operate
to Dust the courts of the jurisdiction conferred
spon them, and of which they cannot be de-
prived, to determine all disputes and differ
1nces which may arise between individuals.
Fourth-When membership in such an asso-
citation and the rights pertaining thereto are
conferred upon person on his voluntary
application for such membership. they are
accompanied by and there is annexed to the
same the condition that these: rights can be
taken away by the association and that the
memter can be expelled IL he refuses to abide
by the condition. Membership is acquired
subject to the sef-mposed condition that the
members title and the rights which accrue
from such nembershio are regulated by and
dependent upon the bylaws and regulations
adopted by the association to make it effect
i've and expressly assented to by him when he
joins.
F'lfth-It is general rule Of law, applicable
to such voluntary associations. that a mem
ber must either submit to It's bylaws or sur
render his membership; IT is optional with
to them or to surrender it and cease to be a
member by refusing to comply Herewith.
When voluntarily agreed to, they are eonclu.
siye upon him in respect to the mode of
transactiLS business and OF mis- right to con-
tinue to be a member. ...
Sixth-Because such bylaws and rules give
to the board of directors power to discipline
only when member. refuses to arbitrate as
he has agreed to 60 in consideration of the
rights ana privileges of membership. and no
attempt IL made to deprive him of an oppor-
tunity to litigate his differences in the ordi-
nary way they are eznot.unreasonable, coercive,
violatiye Of constitutional, rights, or contrary
to public policy. ...4. ,.. -
Seventh-If it ar rpeared In this case that the
plaintiff was deprived. under another rule
than the one here considered, OF his right to
transfer this membership, that fact cannot
affect the validity of the rule in question. His
remedy, if he has one, is by a proceeding to
compel the board Of directors to permit the
transfer, and not by this proceeding to re-
fnstate him to membership.
Order affirmed Collins. J.
Telegraph Company Responsible.
An important point Is settled in Du-
luth case in which it is held that tele-
graph company Is liable when on a te.e-
graph order it delivers a check to the
wrong party and it falls into the hands Of
an innocent purchaser. Judge Start dis
sents from the opinion, holding that the
purchaser was guilty Of negligence in ac-
cepting. the check, not indorsed by the
real payee. The syllabus says: w.
-..- Other Cases. -.
In a per curiam the court holds for
Jonas NJ. Kistler in his suit against the
Backus- Brooks company for professional
services rendered.
Other decisions filed to-day were as fol-
lows
M. s. Burrows, appellant, We. Western Union
Telegraph company, respondent.
A telegraph company which upon order by
telegraph Issues and delivers its check BY
mistake to the wrong party, is liable in the
amount thereof to an innocent purchaser for
value, who takes the same upon his indorse-
ment., Prima facie such indorser is the payee
intended, and a purchaser who takes the
check from him In good faith, believing him
to be the payee, Is not called upon to inquire
any further than may be; necessary to estab-
Hsh the identity of the nderser and the party
to whom the check was delivered as payee.
Order reversed. :, ,....s.v - Lewis, ].
Itasca County.
Charles N. Anderson; respondent, vs. Itasca
Lumber company, appellant.
The plaintiff and his attorney, in a certain
action, entered into an agreement that the
attorney should receive one-third of tn:
amount recovered, and be reimbursed for al
expenses incurred by him in conducting the
litigation; and that no settlement should be
made by either party to the action without
consulting each other, or without the consent
of the attorney. In pursuance OF such con
tract action was begun, and the attorney, ex
pended about $500 disbursements. Two trials
were had, both resulting In disagreement o.
the jury. Thereafter the plaintiff. upon hi:
own motion. and without the knowledge o,
consent of his attorney. dismissed the ac
ton, but not on account. Of any settlement
with defendant, nor for the purpose of de-
frauding the attorney Of 3his fees or money
expended Held, that the attorney possessed
simply prospective iien which could becoms
vested only by the entry Of a verdict or ordeA
for judgment for plaintiff, and that plaintiff
had authority to dismiss the action withou
the attorneys consent. T."
Whether the contract was champertous. Of
whether the entire contract was rendered vote
on account Of the clause which prohibited
settlement without the consent Of the attor
ney Is not decided. The court erred In rein
stating the case. Order reversed. -.-.-
.'s' Lewis, ].
~. Ramsey County,
Henry Dieters, respondent, VS.. st. Paul Gas
Light company, appellant.
Flrst-In an action to recover damages fol