Field v. National Council of Knights and Ladies of Security
| Decision Date | 19 March 1902 |
| Docket Number | 11,267 |
| Citation | 89 N.W. 773,64 Neb. 226 |
| Parties | JAMES R. C. FIELD ET AL. v. NATIONAL COUNCIL OF KNIGHTS AND LADIES OF SECURITY |
| Court | Nebraska Supreme Court |
ERROR from the district court for Gage county. Tried below before LETTON, J. Affirmed.
AFFIRMED.
F. N Prout, Griggs, Rinaker & Bibb and S.D. Killen, for plaintiffs in error.
George A. Huron and George A. Murphy, contra.
DAY, C HASTINGS and KIRKPATRICK, CC. concur.
The plaintiffs bring this proceeding in error to review a judgment of the district court of Gage county, based upon a verdict for the defendant returned in obedience to the peremptory direction of the trial court. The defendant is a fraternal mutual benefit association organized under the laws of the state of Kansas, with its head office at Topeka, and licensed to transact business in Nebraska. The defendant organization is founded upon the lodge system, with subordinate councils in various cities, having a ritualistic form of work, and embracing in its scope fraternal and social features, as well as indemnity in case of disability or death. The insured died April 14, 1897. In her lifetime, Jennie E. Field became a beneficiary member of one of these subordinate councils, located in the city of Beatrice, Nebraska; and on January 14, 1895, there was issued to her a beneficiary certificate, whereby the defendant agreed in case of her death to pay to certain beneficiaries named therein the sum of $ 3,000, subject to certain conditions and stipulations, one of which was as follows: "This certificate is issued upon the express condition that the said insured shall, in every particular, while a member of the order, comply with all the laws, rules and requirements thereof, and shall at her death be a member in good standing of said order." The by-laws of the association provided for the payment by its beneficiary members of certain fixed assessments upon the death of any member entitled to participate in the beneficiary fund, which sum was to be paid to the local treasurer of the council within a given period, and in default of such payment the beneficiary certificate lapsed and became suspended. The by-laws also contained provisions for suspension of its beneficiary certificates for the non-payment of quarterly dues. The by-laws also contained liberal provisions for the reinstatement of any suspended member within a given period from the date of suspension. These need not be set out, as it is not contended that the insured was reinstated after her suspension. Section 11, article 14, of the by-laws provided as follows: "Any member suspended or expelled from the order for any cause whatever, forfeits all claims to the beneficiary fund during said suspension or expulsion." The record is clear that the insured did not pay the assessment made for the benefit of the beneficiary fund for the month of June, 1895, or for any of the following months during that year, although assessments were made in each month. Neither did she pay her quarterly dues during that period. For the failure to pay the dues and assessments she was suspended by the action of the local council, and her name was stricken from the rolls of the local council, as well as the national council, in July, 1895. No attempt was made to be reinstated, although her husband, who transacted the business for her, was repeatedly importuned by members of the local council to pay up the arrearages and have her reinstated. The plaintiffs do not deny the failure of the insured to pay the assessments and dues, or that she was suspended for such failure, but seeks to avoid the effect thereof upon three grounds, which will now be considered.
It is first insisted that the insured never had any notice of her suspension from the local council, and therefore she is not bound thereby. A careful examination of the rules respecting the suspension of members indicates that no notice of suspension to its members is required. In this respect the rules are self-executing. Section 3, article 14, of the by-laws refers especially to the subject of suspension for the non-payment of assessments, and, among other things, provides as follows: "The certificate of each member who has not paid such assessment on or before the 28th of said month shall, by the fact of such non-payment, stand suspended, and no action on the part of the council or any officer thereof shall be required as essential to such suspension." These provisions of the by-laws are clear and explicit that no notice of suspension is required.
The next contention of the plaintiffs is based upon the plea of a waiver of the prompt payment of the dues and assessments by an agreement with the financial secretary of the local council, whereby the time of payment of the beneficiary assessments on the certificate was extended to January, 1896. The testimony of the plaintiffs and defendan...
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