ility of the members to the public for the debts of the
association, though most important questions, are not as well settled
as they might be. In many states statutes exist defining their right
to sue and be sued, and their liability to creditors. Yet these
statutes do not cover all cases. Generally persons who associate for
charitable or benevolent purposes do not regard themselves in a legal
sense as partners. Nevertheless in fixing their liability to
creditors, dividing their property, and closing up their affairs, the
courts often, though not always, treat their association as a
partnership, and the members as partners. Thus the highest court in
New York declared that an unincorporated lodge, which had been
mis-managed, was not a partnership. The members sought to dissolve the
lodge, and distribute its property. The court said there was no power
to compel the payment of dues, and the rights of a member ceased after
his failure to meet his annual subscription. On the other hand, the
supreme court in the same state held that the members of a voluntary
association were liable to its creditors by common law principles.
"Where such a body of men join themselves together for social
intercourse and pleasure, and assume a name under which they commence
to incur liabilities by opening an account, they become jointly liable
for any indebtedness thus incurred, and if either of them wishes to
avoid his personal responsibility by withdrawal from the body, it is
his duty to notify the creditors of such withdrawal."
If one or more members order work to be done or purchase supplies, he
or they are personally liable unless credit was given to the
association.
What can the members do? They cannot change the purpose for which the
association was formed without the consent of all, still less can the
executive board convert the association into a corporation. No member
has a proprietary interest in the property, nor right to a
proportionate part while he is a member, or after his withdrawal.
Should an association dissolve, then the members may divide its
property among themselves.
Sometimes a quarrel springs up in one of these associations, the
members divide, who shall have the property? The members of more than
one church organization have fought this question, first among
themselves, afterwards in the courts. Suppose a quarrel breaks out in
a branch association and two parties are formed, which of them is
entitled to the prop
|