People Ex Rel. Kenny v. Christ's Church of the Golden Rule

[859]

DORAN, J.

This is an appeal from an ex parte order removing Arthur L. Bell, President and Trustee of Christ’s Church of the Golden Rule, and appointing one R. E. Allen as receiver of such church. The order in question, made on October 10, 1945, further commanded that the defendants show cause on October 19, 1945, “why an order should not be made confirming the ex-parte appointment” of the receiver. At the hearing of the order to show cause, appellants being then represented by counsel, Judge Henry M. Willis confirmed the previous ex parte order appointing a receiver, made by Judge Joseph W. Vickers. The original appeal was from both of the orders hereinbefore mentioned, but for some undisclosed reason a stipulation was later executed in which appellants abandoned the appeal from the final order made by Judge Willis, such stipulation expressly providing that “nothing herein contained, however, shall operate against or prejudice the appeal” from the ex parte order made by Judge Vickers.

The complaint in the present action, filed by the attorney general on behalf of the People, prayed for an accounting concerning the corporation’s assets, the removal of Arthur L. Bell as trustee, the appointment of a receiver pending the accounting, and an injunction against interference with the receiver. Summarizing the more important allegations, the complaint alleged that Christ’s Church of the Golden Rule was a nonprofit California corporation formed for public, religious and charitable purposes, owning assets in excess of $3,000,000, and having no valid franchise to hold property other than as a public, charitable trust. The complaint then alleged that the corporation was under the complete domination of Arthur L. Bell, and set forth a series of alleged misappropriations and misapplications of funds, unauthorized expenditures, and a failure to account to the corporation. It was alleged that Bell had caused the sale of certain corporate real estate and had received the

proceeds;

that certain other property had been set apart for Bell and his wife, for which the corporation received no consideration; that a false financial statement had been made. Other specific irregularities and misappropriations of church assets were alleged.

As presenting an immediate emergency necessitating the appointment of a receiver and the other relief sought, the complaint alleged that Arthur L. Bell had advertised for sale at public auction, certain real estate held by the church, said