Elsey v. Odd Fellows' Mut. Relief Ass'n
| Decision Date | 03 July 1886 |
| Parties | ELSEY v. ODD FELLOWS MUT. RELIEF ASS'N and others. |
| Court | United States State Supreme Judicial Court of Massachusetts Supreme Court |
A.M. Copeland, for plaintiff.
E.H Lathrop, for defendants.
The defendant is an association organized under St.1874, c. 375. This statute was amended by St.1877, c. 204, and the two statutes have been continued and re-enacted in chapter 115 Pub.St. The statute provides that such associations may "for the purpose of assisting the widows, orphans or other dependents of deceased members, provide in their by-laws for the payment, by each member, of a fixed sum, to be held by such association until the death of a member occurs, then to be forthwith paid to the person or persons entitled thereto, and such funds, so held, shall not be liable to attachment by trustee or other process." It authorizes an association of a peculiar character. Its object is to enable a man to lay aside a portion of his income or property in the nature of an insurance upon his life, to be applied at his death to the use of his widow, orphans, or other persons dependent upon him. But the provisions of the general laws relating to life insurance companies do not apply to this association. The fund held by it is not attachable by the creditors of the member, and, by clear implication of the statute, after he has set it aside, he loses the absolute control over it which he has over his other property. He cannot assign it, and divest it from the class of beneficiaries described in the statute, and direct its disposition to other persons outside of that class.
It was clearly the intention of the defendant corporation to conduct its business under the authority of these statutes, though the agreement of association and the by-laws do not follow the exact words of the statutes. The corporation is formed "for the purpose of defraying the expenses of the sickness and burial of its members, and rendering pecuniary aid to the families of deceased members, or to their heirs," and the by-laws provide the benefit a member is entitled to at his death shall be applied to the payment of the expenses of his last sickness and funeral, if not otherwise paid, and "the balance shall be paid to the person or persons designated by the member in his application for membership, or last legal assignment, provided such person or persons are heirs or members of the decedent's family."
But the by-laws should be construed with reference to the statute and, if practicable, such a meaning should be given to them as will make the two consistent, for it is not to be assumed that the by-laws are intended to go beyond the scope of the statute, and thus violate its provisions. The two descriptions of the class of beneficiaries in the statute and in the by-laws would ordinarily include the same persons if the word "heirs" in the by-laws is construed in its natural sense, as meaning those who, at the time of the...
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