Fraternal Union of America v. Zeigler

• Decision Date: 21 December 1905
• Citation: 39 So. 751,145 Ala. 287
• Parties: FRATERNAL UNION OF AMERICA v. ZEIGLER.
• Court: Alabama Supreme Court

39 So. 751

145 Ala. 287

FRATERNAL UNION OF AMERICA v. ZEIGLER.

Supreme Court of Alabama

December 21, 1905

Appeal from Circuit Court, Butler County; J. C. Richardson, Judge.

"To be officially reported."

Action by Callie A. Zeigler against the Fraternal Union of America. From a judgment in favor of plaintiff, defendant appeal. Reversed.

This was an action brought by the beneficiary in a benefit certificate issued on the life of W. C. Zeigler. The complaint contained two counts, in the second of which was set out the benefit certificate, which was in words and figures as follows:

"No 5,916. Amount, $1,200.

"Benefit Certificate.

"Age 33. Assessment Rate, $.65.

"Expectancy, 34 yrs. Class O.

"Date of Expiration, Aug. 1903.

"Love Justice

"Truth

"The Fraternal Union of America.

"This certificate, issued by the Supreme President and Supreme Secretary of the Fraternal Union of America by its authority, witnesseth that Frater Washington C. Zeigler, a member of Georgiana Lodge No. 156, located at Georgiana, Ala., is while in good standing in this fraternity entitled to participate in its benefit fund to the amount of $1,200, which shall be paid at his death to Callie A. Zeigler (wife) by its Supreme Lodge, subject to all the conditions named in this certificate and the provisions contained in its constitution, and liable to forfeiture if said frater shall not comply with said provisions and conditions, laws and such by-laws and rules as are or may be adopted by the Supreme Lodge or the local lodge of which he is a member.

"This certificate shall not be in force and effect until the said frater herein named shall have complied fully with the provisions of §§ 86, 87 and 88 of the Constitution and shall have in writing hereon accepted the terms and condition thereof.

"In case of the death of said frater before the expiration of his expectancy of life, there shall be deducted from the amount named herein to be paid at his death the following sums: First, the difference between the total sum paid by said frater in benefit assessments during his lifetime and $100 for each $600 of said amount named in this certificate; and, second, the amount of any and all sums paid to said frater during his lifetime as accident or disability benefits. After making said deductions the Supreme Lodge shall pay to the beneficiary or beneficiaries named in this certificate the amount remaining due thereunder determined as above set forth, and said balance shall be accepted and received by said beneficiary or beneficiaries in full payment satisfaction and discharge of this certificate, which shall be cancelled and surrendered to the Supreme Lodge upon payment thereof.

"In witness whereof, we hereunto fix our official seal and signatures this the 21st day of August, 1897, signed by our Supreme President and Secretary."

There was an acceptance in writing as follows: "I hereby accept the terms of this certificate and the conditions thereof delivered to me this Sept. 1st, 1897, and the terms of the constitution of the Supreme Lodge of the Fraternal Union of America and the by-laws of the lodge of which I am a member. I also hereby acknowledge receipt of a copy of the constitution of the order. [Signed] Washington C. Zeigler."

There were six conditions attached to the article, but the only one necessary to the understanding of this case is the fifth: "(5) If the member holding this certificate shall * * * die by his own hand or in consequence of a duel or by the hands of the beneficiary herein named, * * * then in every such case this certificate shall be null and void and of no effect and all moneys which may have been paid and all rights and benefits which may have accrued on account of this certificate shall be absolutely forfeited."

The defendant filed pleas 2, 3, 4, 5, 6, and 7. Demurrer was confessed to plea 5.

Plea 2: "The defendant, for further answer to plaintiff's complaint, saith that it was and is a part of the contract of insurance sued on in this action that if the said W. C. Zeigler committed suicide the beneficiary in said insurance contract was to have and receive upon the death of said Zeigler only one-third of the amount that might be due under the terms and conditions of said policy of insurance, which defendant avers was the sum of $349.80; and defendant avers that the said Zeigler did die by his own hand by committing suicide, wherefore plaintiff should not recover in this action a greater sum than $349.80."

Plea 3: "Defendant, further answering plaintiff's complaint, saith that one of the provisions in the certificate of insurance sued on in this action is as follows: 'That Frater Washington C. Zeigler * * * is while in good standing in this fraternity entitled to participate in its benefit fund to the amount of $1,200, which shall be paid at his death to Callie A. Zeigler (wife) by its Supreme Lodge, subject to all the conditions named in this certificate and the provisions contained in its constitution, and liable to forfeiture if said frater shall not comply with said provisions and conditions, laws and such by-laws and rules as are or may be adopted by the Supreme Lodge or the local lodge of which he is a member.' And defendant avers that subsequent to the issuance of said certificate by the said Washington Zeigler, and before his death, this defendant adopted by its Supreme Lodge a law that if any of its members in good standing dies by his own hand--that is, by suicide, whether sane or insane--the benefits paid to the beneficiary shall be one-third only of the amount payable under such member's certificate, after deducting the amount due the maturity fund and all disability benefits previously paid, which said law defendant avers was in full force at the death of said Washington Zeigler, namely, on the 1st day of January, 1904; and said law of defendant order was expressly made applicable to all certificates theretofore or thereafter issued, and became a part of the contract of insurance sued on in this action. And defendant further avers that the said Washington Zeigler did on the 1st day of January, 1904, die by his own hands--that is, by committing suicide; and defendant avers that the plaintiff in this action is entitled to recover, if anything, only one-third of the sum due on said certificate of insurance, which it avers is the sum of $349.80, and no greater amount."

Plea 4 after averring substantially what is averred in third plea, has the following: "And defendant avers that it was provided in its constitution and laws at the time of the issuance of said certificate sued on and the acceptance of the same by said Washington Zeigler as follows: 'Sec. 115. This constitution may be amended by a two-thirds vote of the Supreme Lodge in session, or by a three-fifths vote of the advisory board when ratified by three-fifths of the lodges in good standing and voting thereon and reporting to the Supreme Lodge secretary the same within the time specified in section 116: Provided that all lodges not voting and reporting within the time specified in section 116 shall be counted as voting in favor of said amendment or amendments.' And defendant avers that the Supreme Lodge of defendant did at its second session,...