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State v. University Club

December 31, 1913

STATE OF NEVADA, RESPONDENT, V. UNIVERSITY CLUB (A CORPORATION), APPELLANT.


Appeal from Ninth Judicial District Court, White Pine County; Mark R. Averill, Judge, presiding.

Chandler & Quayle, for Appellant.

Cleveland H. Baker, Attorney-General, C. J. McFadden, District Attorney, and Charles R. Reeves, for Respondent.

By the Court, Norcross, J.:

This is an action brought by the state to recover from the appellant the sum of $377.50, alleged to be owing by appellant on account of state and county retail liquor licenses. Appellant denied liability for any such licenses. The case was tried upon an agreed statement of facts, and judgment rendered in favor of the state. From the judgment, the defendant has appealed. The case presents the question of the liability of a bona fide social club disposing of liquors to members and guests to pay the state and county retail liquor licenses.

It is provided in the articles of incorporation of the defendant company that “the corporation shall not be conducted for profit to its members and shall not have any capital stock.” The management of the affairs of the club is in a board of trustees, consisting of seven members.

Article 3 of the articles of incorporation provides:

“The nature of the business and the objects and purposes proposed to be transacted, promoted and carried on by the said corporation are:

“1. To promote the social, intellectual and moral welfare of its members.

[35 Nev. 475, Page 480]

“2. To encourage, when practical, the establishment of scholarships in American institutions of learning.

“3. To assist in the growth and development of a liberal system of education.

“4. To advance the study of the sciences, arts and literature.

“5. To buy, own, acquire, sell, mortgage and lease real estate and personal property of all kinds and description necessary, incidental to or convenient for the objects and purposes of the said corporation as herein set forth and for the purpose of providing a meeting place for and the entertainment of the members of said corporation.”

The constitution and by-laws of defendant corporation places restrictions upon its membership and those who may be admitted to its clubhouse as guests. The corporation maintains a clubhouse in the town of Ely as a place of meeting and for the comfort and entertainment of its members and guests. Visitors to the club are confined to nonresidents of Ely district, with the exception that a member may introduce to the club residents of the district not oftener than once in sixty days, nor more than two at any one time. At the clubhouse liquors are disposed of to members and guests at a fixed charge as an incident to the general purposes of the club. Whatever profit is made upon sales of ...


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