Aberle v. Faribault Fire Dept. Relief Ass'n

• Decision Date: 10 March 1950
• Docket Number: No. 35053,35053
• Citation: 41 N.W.2d 813,230 Minn. 353
• Parties: ABERLE et al. v. FARIBAULT FIRE DEPARTMENT RELIEF ASSOCIATION et al.
• Court: Minnesota Supreme Court

Page 813

41 N.W.2d 813

230 Minn. 353

ABERLE et al. v. FARIBAULT FIRE DEPARTMENT RELIEF ASSOCIATION et al.

No. 35053.

Supreme Court of Minnesota.

March 10, 1950.

Syllabus by the Court.

L.1947, c. 43, providing for the organization and government of certain existing fire department relief associations, for the purposes for which they may disburse their funds, including pensions and benefits, and for continuance therein of members who were such as of the effective date of the statute and of payment to them of any pensions or other benefits which had been allowed or which were being paid by any such association under or in accordance with any prior act or acts when the statute became effective, continues in force the memberships of such members and the payment to them of any such pensions and benefits.

Smith & Smith, Faribault, for appellants.

Moonan, Moonan & Friedel, Waseca, for respondents.

PETERSON, Justice.

Action for a judgment declaratory of plaintiffs' status as members of defendant Faribault Fire Department Relief Association and their rights as such to pensions and benefits. Defendants appeal from the order overruling their demurrer to the amended complaint.

Many questions have been raised. Only one need be decided, and that is whether a statute, L.1947, c. 43, providing for the organization and government of certain existing fire department relief associations, for the purposes for which they may disburse their funds, including pensions and benefits, and for continuance therein of members who were such as of the effective date of the statute and of payment to them of any pensions or other benefits which had been allowed or which were being paid by any such association under or in accordance with any prior act or acts when the statute became effective, continues in force the memberships of such members and the payment to them of any such pensions and benefits.

There are 26 plaintiffs, all of whom were members of the association as of the effective date of the statute. Some had been members for as long as 54 years and others for only 5 years, but most of them had been members for 20, 30, 40, and even 50 years. During part of such time the fire department was a voluntary one. Its fire fighters were paid only a nominal amount for their services--$1 per fire. They paid dues in such ample amount as to accumulate $29,000 at the effective date of the statute, attended meetings, served on committees, and otherwise gave of their time and effort in the service of the association. The defendants are the association, its treasurer and certain individuals alleged to have an interest in the litigation.

The association is in all things governed by L.1947, c. 43, as amended by L.1949, c. 154. So far as here material, the statute, § 2, provides that the association shall be organized, operated, and maintained by firemen as therein defined; that, § 3, a 'fireman' is 'one who is regularly entered on the payroll of one of said fire departments serving on active duty, with a designated fire company therein, or having charge of one or more of said companies and engaged in the hazards of fire fighting,' and certain other enumerated fire department employes; that, § 3 'All persons who are members of such relief association at the time of the passage of this act but whose status is not embraced within the definition of a fireman herein contained, shall be entitled to have the right to continue as members of their respective associations and be entitled to any pensions or other benefits which have been allowed or which are being paid by such relief associations under or in accordance with any prior act or acts at the time this act becomes effective. Payment of such pensions and benefits shall be continued by the respective associations'; that, § 16, the funds of the association shall be disbursed for the following purposes: '(a) For the relief of sick, injured and disabled members of the relief association, their widows and orphans, (b) For the payment of disability and service pensions to members of such relief associations, and salaries for its officers and premiums on their official bonds'; that, § 17, the association 'shall in its by-laws define the sickness and disability entitling its members to relief, and specify the amount thereof, and also specify the amounts to be paid to its disability and service pensioners, and to widows and children of deceased members, subject to and in accordance with the provisions of this act'; that, § 20, a member of the association of certain age and after certain duration of service shall be entitled to a pension; and that, § 23, the widow and children of a pensioner or active member of the association shall be entitled to certain benefits upon his death.

Defendant relief association was incorporated in 1895 under G.S.1878, c. 34, title 3, and acts amendatory thereof. The purpose of the association is declared in the articles of incorporation to be 'to create, secure and establish a fund * * * for the relief of its members injured or disabled while in the discharge of their duty, whether by accident or sickness from exposure, and for the payment of a certain sum, to be established by the By-Laws of the Corporation, to the widows and orphans of any members whose death may occur from any of the said causes while a member of the Association.'

The association adopted by unanimous vote at least two constitutions and two sets of bylaws, one in 1928 and the other in 1941. So far as here material, the constitutions provide that the object of the association 'shall be to provide means for the relief of the distressed, injured, sick or disabled members thereof; and in case of the death of a member, to pay the legal representatives, or widow and children of such deceased member, whose death may occur while a member of said Association, such sum as may be prescribed by the By-Laws'; that only an active fireman under 50 years of age and a member in good and regular standing of, and actively serving as a fireman in the fire department of the city of Faribault may become a member of the association; that all members retired from active service in the department shall pay all dues and assessments the same as other members of the association; and that all members of the relief association shall be ready at all times to respond to the call of the chief of the fire department.

The bylaws, so far as here material, provide that any member who resigns or leaves the fire department, except in certain cases, may retain his membership in the association upon payment of dues and compliance with its rules and regulations; that a member of the association in good standing shall be entitled to certain benefits during sickness or disability; and that upon the death of any member of the association certain death benefits shall be paid.

The association, pursuant to its constitution and bylaws, has paid sickness, disability, and death benefits to retired members of the fire department who retained their membership in the association. For example, between 1937 and 1946 benefits were paid upon the deaths of 17 retired members. Authorization for all such benefits was claimed under statutes ¹ and the...