Bakersfield Town Hall Ass'n v. Chester
Before: Myrick
Synopsis
Cobpobation.—In an action by a de facto corporation, claiming in good faitb to bo a corporation under the laws of this State, and doing business as such, held, that the question of the due incorporation oE the association could not be inquired into.
Statute of Limitations—Gift—Equitable Title—Adverse Possession.— A gift may be made of real estate, if possession is given and taken under the gift, and acts done by the donee to carry out the purpose of the gift. In such case the donee acquires the equitable title, and is entitled to a specific performance; or he may, by adverse possession, acquire the legal title.
Id.—Successive Possession—Privy.—Several parties signed an agreement to form a joint-stock company to build a public hall and Odd Fellows’ Lodge, in the town of Bakersfield, and, a parole gift of land having been made to . them for the purpose, they took possession thereof, and commenced building. Afterward, a corporation was formed, in pursuance of the agreement, to which the possession was transferred. In an action of ejectment, by a corporation, in which it appeared that there had been a continuous adverse possession by the parties signing the written agreement, and the corporation, for more than five years before the ouster, held, that the plaintiff was entitled to recover.
Myrick, J.: This is an action of ejectment to recover two town lots in the town of Bakersfield. Judgment was rendered for plaintiff, and defendant appealed.
Plaintiff relies upon parole gift from Thomas Baker, and occupation for more than five years. Defendant relies upon title acquired by a deed from Thomas Baker to Gr. B. Chester, dated October 23rd, 1869, recorded August, 1870, and from Gr. B. Chester to Julius Chester, (defendant) dated January 3d, 1873, recorded January, 1876.
The evidence given by plaintiff tended to prove that in the fall of 1871, several residents of Bakersfield, wishing to erect a hall for public purposes, signed an agreement as follows:
“The undersigned agree to form a joint-stock company to build á public hall, and Odd Fellows’ Lodge, in the town of Bakersfield, and will take the number of shares attached to our names in the capital stock, to consist of 300 shares of $10 each, payable when the entire amount is taken. The company to be formed on the express condition that no assessment shall ever bo made on the shares of stock.”
Among the signers. were Julius Chester 50 shares, Thomas Baker 20 shares, Gr. B. Chester 5 shares, who were also actual [100]promoters of the enterprise. A building committee was appointed, who employed a builder. The understanding was, that Thomas Baker was to donate two lots upon which the building was to be erected; and in that view he went upon and pointed out lots 7 and 8, and had them .staked off. The lots were then worth about $25 each. The building was commenced November 9th, 1879. Both the Chesters participated in the meetings held, in the collection of subscriptions, and in the sale of materials ; both knew that the building was being erected for the purpose and on the lots indicated, and neither made any claim of ownership of the lots. In the winter of 1872, one of the subscribers objecting to paying his subscription, unless the title had passed, Julius Chester said he would get a deed, or have a deed from Baker to the association, put on record when the second story was completed. During all this time it was generally understood that the title was still in Baker. The building was completed in April, 1872, occupying a portion of each lot, and the upper story was at once occupied by Masonic and Odd Fellows’ lodges, as tenants of the association, and such occupation continued to the time of trial. The lower story" was used as a public hall for public meetings, and was rented by the association for various purposes, such as dramatic troupes, skating-rink, shows, lectures, etc., rents being paid to and received by the association. On the 20th of May, 1872, articles of incorporation were signed by nine persons, including Julius Chester, the name of the corporation to he “ Bakersfield Town Hall Association the object to be, “ to own, hold, control and lease a certain hall situate in said town of Bakersfield.” Five trustees were named, one of whom was Julius Chester. The articles were acknowledged May 20th, 1872, and on the same day were recorded in the office of the County Recorder, but were not filed in the office of the County Clerk. The association thence continuously occupied the building as above stated, and claimed in good faith to be a corporation under the laws of this State, and did business as such. Defendant was at one time president of the association; both the Chesters knew of its affairs and business. In the latter part of 1877, defendant entered into and took possession of the lower story of the building, and excluded the association therefrom, and this suit was thereupon brought.
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