Fee v. National Masonic Acc. Ass'n

• Citation: 81 N.W. 483,110 Iowa 271
• Parties: FRANK FEE, Appellant, v. NATIONAL MASONIC ACCIDENT ASSOCIATION
• Decision Date: 20 January 1900
• Court: Iowa Supreme Court

81 N.W. 483

110 Iowa 271

FRANK FEE, Appellant, v. NATIONAL MASONIC ACCIDENT ASSOCIATION

Supreme Court of Iowa, Des Moines

January 20, 1900

Appeal from Polk District Court.--HON. C. P. HOLMES, Judge.

ACTION on certificate of insurance. The plaintiff appeals from judgment dismissing his petition.

Affirmed.

Dale & Bissell for appellant.

Ayres Woodin & Ayres for appellee.

LADD J. GRANGER, C. J., not sitting.

OPINION

LADD, J.

The defendant is a mutual benefit association organized under chapter 65 of the Acts of the Twenty-first General Assembly. In Moore v. Association, 103 Iowa 424, we held that this chapter was complete in itself, save as to statutes applicable to all insurance alike. Section 6 assumes that such associations have the right "to establish by-laws and make rules and regulations expedient for the management of their affairs," as contemplated by section 1059 of the Code of 1873. Nothing is included in this chapter however, concerning the publication of such by-laws; and, as section 1076, requiring that "a copy of the by-laws of the corporation, with the names of all officers appended, must be posted in the principal places of business and subject to public inspection," is applicable to all insurance companies, this was incumbent on the defendant. It is conceded that its by-laws were not posted, and we have held that, under such circumstances, they would not be binding on a stranger without actual notice. Des Moines Nat. Bank v. Warren County Bank, 97 Iowa 204, 66 N.W. 154. But it does not follow that, because of a failure to publish as required, the by-laws were never adopted. As well say that, because of the omission to post the names of officers, there were none. They were controlling as to all informed of their existence, and posting was required for the sole purpose of imparting constructive notice. Whether this was necessary in order to bind members of the association, we shall not now determine. The existence of the by-laws was expressly recognized in the certificate, which was issued to the plaintiff "subject to all the conditions and provisions of the articles of incorporation and by-laws thereof." Having accepted these in express terms on his entry into membership, they constitute a part of his contract, and he cannot be heard to say he had no knowledge of their contents. In Fitzgerald v. Association, 106 Iowa 457, 76 N.W. 809, the insured claimed to have no knowledge or notice of the by-laws, and the court, after quoting a sentence from the certificate making the by-laws a part of it, through Given, J., said: "By this the assured was not only informed that there were by-laws, but also that they were made a part of the contract. He was not only bound by the law, as a member of this mutual association, to take notice of its by-laws, and be governed thereby, but he was also bound by his contract, and, being so bound, it cannot be said that the evidence fails to show any knowledge or notice to the assured of the plan of insurance or of the by-laws." The necessity of notice in the manner provided by statute was not involved in any of the authorities cited by the parties, and we refrain from expressing any opinion on that subject; simply holding that, as the certificate, by its terms, was issued subject to existing by-laws, the insured was bound thereby, whether posted or not.

I. It appears that on the third day of May, 1896 an assessment of three dollars was duly levied on all members of the association, and notice thereof mailed to the assured, in conformity with the requirements of the certificate and by-laws, May 28th, requiring payment some time during the month of June. This was paid to the defendant's local agent, Scoggins, July 4, 1896, and received by the secretary of the association two days later. The plaintiff was injured July 4th. The contention of the appellee is that, under section nineteen of the by-laws, the certificate was not then in force. That by-law reads: No benefits of any kind can accrue or be paid for or...