Bills v. Bills

• Decision Date: 20 December 1918
• Docket Number: (No. 2024.)
• Citation: 207 S.W. 614
• Parties: BILLS v. BILLS et al.
• Court: Texas Court of Appeals

207 S.W. 614

BILLS v. BILLS et al.

(No. 2024.)

Court of Civil Appeals of Texas. Texarkana.

December 20, 1918.

Rehearing Denied January 9, 1919.

Appeal from Lamar County Court; Tom L. Beauchamp, Judge.

Action by E. B. Bills against the Mosaic Templars of America, who filed an answer interpleading J. H. Bills. From a judgment for plaintiff the defendant interpleaded appeals. Affirmed.

W. L. Hutchison, of Paris, for appellant.

Chas. Roach, of Paris, for appellees.

HODGES, J.

This appeal is a continuation of a contest between E. B. Bills, the appellee, and J. H. Bills, the appellant, which involves the disposition of a benefit fund claimed from the Mosaic Templars of America upon the death of their deceased mother. The Mosaic Templars of America is a fraternal benefit society incorporated under the laws of the state of Arkansas. It has a constitution and by-laws for the government of its members. It also has a lodge system and a ritualistic form of work, issues policies of insurance on the lives of its members, and raises the benefit funds with which to pay such policies by levying assessments upon its members. In May, 1911, a policy of insurance was issued by this company to Martha Bills, the mother of E. B. and J. H. Bills, who was then a member in good standing of a local, or branch, lodge of the Mosaic Templars of America situated in Paris, Lamar county, Tex. At the time of the issuance of this policy Martha Bills designated upon the blank form provided for that purpose her two sons, E. B. Bills and J. H. Bills, as beneficiaries. Some time during the year 1915, and about a year before her death, Martha Bills, desiring to make a change in the policy, marked out the name of J. H. Bills, and caused it to be erased, leaving the name of E. B. Bills as her sole beneficiary. The secretary of the local lodge made this erasure at the request of Martha Bills, but without the knowledge of any of the officers of the grand lodge. In 1917 Martha Bills died, and E. B. Bills filed this suit against the Mosaic Templars of America in an effort to collect the sum of $300, the entire amount of the policy. J. H. Bills was made a party defendant, upon the ground that he was claiming an interest in that fund. The Mosaic Templars of America filed an answer, in which it admitted the execution and delivery of the policy to Martha Bills and its liability thereon to E. B. Bills or to E. B. Bills and J. H. Bills jointly, paid the sum of $300 into the registry of the court, and asked that the court determine who was the party to whom the fund belonged, and that it be discharged, with its costs. J. H. Bills filed an answer, in which he claimed that the effort of his deceased mother to eliminate him as a beneficiary under the policy was ineffectual for that purpose, because not made in conformity with the rules and regulations of the association.

There appears to be no dispute about the material facts of this case. The constitution and by-laws were referred to and made a part of the insurance contract. At the time the policy was issued the following by-law was in effect:

"How Beneficiaries may be Changed. — The National Grand Scribe is authorized to change the beneficiary named in a policy when requested in writing to do so by the insured, and no beneficiary shall have or obtain any vested interest in said policy until the same has become due and payable upon the death of said member, provided that at any time the order may by its by-laws limit the scope of beneficiaries within the classes named in law."

At the time the change was made the above had been amended, and the following was in effect:

"Sec. 1. The National Grand Scribe is authorized to change the beneficiary named in a policy whenever requested to do so by the assured under affidavit sworn to before a notary public, attested by the presiding officer and secretary; and no beneficiary shall have or obtain any vested interest in said policy until the same has become due and payable upon the death of said member; provided, that at any time the order may by its laws limit the scope of beneficiaries within the classes named in the laws of the states in which this order is operating."

The policy contained, among others, the following provision:

"Mosaic Templars of America, Martha Bills, of Evergreen No. 2186, located at Paris, state of Texas, was a financial member in good standing at issuing of this policy; if they should so continue until death, their widow, widower, mother, father, sister, brother, or relative by blood to the fourth degree, ascending or descending, to whom this policy may be willed or assigned shall be paid any sum not exceeding three hundred dollars," etc.

In addition to special findings made by the jury in answer to questions propounded, the court filed his conclusions, in which he says:

"Nowhere in the policy does it adopt the will or assignment as a part of the policy, or attempt to designate which relative named shall be the beneficiary. This matter is left wholly with the insured to will or assign."

After quoting section 1 of the by-laws, he continues:

"In the first place, no beneficiary is named in this policy. True, there is a blank for will or assignment attached to the policy, presumably for the convenience of the insured."

That beneficiaries in policies of this character have no vested interest in the contract of insurance which will prevent the insured from changing any of the terms of the contract is too well settled to require the citation of authorities. Theirs is but an expectancy which depends upon the policy remaining unchanged as to them till the death of the insured. In this instance Martha Bills had the right at any time, and for any...