Appeal from the Court of Common Pleas of Butler County in case of In Re: Butler County Memorial Hospital, a Corporation, Not-For-Profit.
Thomas H. M. Hough, for appellants.
James H. McConomy, with him William T. Marsh, and Reed, Smith, Shaw & McClay, for appellee.
President Judge Bowman and Judges Crumlish, Jr., Kramer, Wilkinson, Jr., Mencer, Rogers and Blatt. Opinion by Judge Kramer.
[ 27 Pa. Commw. Page 563]
This opinion is limited to the disposition of the jurisdictional question raised by appellee's Motion to Quash. The appellants are alleged to be former members of the Board of Directors of Butler County Memorial Hospital, a nonprofit corporation. The appellee (Frank E. Rath) is alleged to be one of several newly elected directors of the same institution.
The appellee filed a petition pursuant to 15 Pa. C.S. § 7783, praying for an order directing that appellants cease certain actions which interfere with the operation and effectiveness of the new Board of Directors. Section 7783 reads as follows:
Review of contested corporate action
(a) General rule. -- Upon petition of any person whose status as, or whose rights or duties as, a member, director, member of an other body, officer or otherwise of a nonprofit corporation are or may be affected by any corporate action, the court may hear and determine the validity of such corporate action.
(b) Powers and procedures. -- The [commonpleas] court may make such orders in any such case as may be just and proper, with power to enforce the production of any books, papers and records of the corporation and other relevant evidence which may relate to the issue. . . .
Pursuant to Pa. R.J.A. 2156(1),*fn1 the appellee's petition
[ 27 Pa. Commw. Page 564]
under this section was heard by the Orphans' Court Division of the Court of Common Pleas of Butler County. That court found in favor of the appellee and appellants have appealed to this Court. The appellee has filed ...