Grand Aerie, Fraternal Order of Eagles v. National Bank of Washington, Kent Branch

• Decision Date: 02 April 1942
• Docket Number: 28553.
• Citation: Grand Aerie, Fraternal Order of Eagles v. National Bank of Washington, Kent Branch, 124 P.2d 203, 13 Wn.2d 131 (Wash. 1942)
• Parties: GRAND AERIE, FRATERNAL ORDER OF EAGLES, v. NATIONAL BANK OF WASHINGTON, KENT BRANCH et al.
• Court: Washington Supreme Court

124 P.2d 203

13 Wn.2d 131

GRAND AERIE, FRATERNAL ORDER OF EAGLES, v. NATIONAL BANK OF WASHINGTON, KENT BRANCH et al.

No. 28553.

Supreme Court of Washington

April 2, 1942

Department 1.

Action by Grand Aerie, Fraternal Order of Eagles, a corporation against the National Bank of Washington, Kent Branch, and William Coulter and others, as officers of Kent Aerie No 362, Fraternal Order of Eagles, a corporation, to recover a deposit which the bank had and credited to the last named party, wherein such party was made an additional party defendant, and wherein first named defendant filed a cross-complaint in nature of an interpleader, and wherein individual defendants also filed a cross-complaint. From a judgment and decree all defendants except the bank appeal.

Affirmed.

Appeal from Superior Court, King County; Hugh C Todd, Judge.

C. A Schneider and Lloyd R. Savage, both of Seattle, for appellants.

Metzger, Blair & Gardner, of Tacoma, for respondent National Bank of Washington.

Bert C. Ross, of Seattle, for respondent Grand Aerie Fraternal Order of Eagles.

MAIN Justice.

This action was brought by the plaintiff, the Grand Lodge of the Fraternal Order of Eagles, against the Kent Branch of the National Bank of Washington, for the purpose of recovering a deposit which that bank had and credited to the Kent Aerie, Fraternal Order of Eagles. In addition to the bank, three officers of the Kent Aerie were made defendants, in their individual capacity. After the action was instituted, the Kent Aerie was made an additional party.

The bank appeared by answer and cross-complaint, which was in the nature of an interpleader, stating the capacity in which it held the funds and its willingness to pay them over to whoever was entitled to the same. The individual defendants answered by certain denials and a cross-complaint, and sought a judgment setting aside an order of the Grand Lodge which suspended the charter of the Kent Aerie, suspended five of its members for an indefinite period, and expelled five others. The Kent Aerie, the additional defendant, answered by certain denials and a cross-complaint, asserting its right to the funds in the bank.

The principal issue presented by the pleadings was whether the action of the Grand Lodge, in suspending the charter of the Kent Aerie, suspending five of its members, and expelling five, was a valid exercise of the power of the Grand Lodge.

The trial to the court without a jury resulted in comprehensive findings of fact from which it was concluded that the procedure leading up to the suspension of the charter, the suspension of five members of the Kent Aerie, and the expulsion of five was valid, and that the money in the bank should be paid over to the secretary of the Grand Lodge who should hold it in trust until such time as it would be determined whether the charter of the Kent Aerie would be reinstated. The bank thereupon paid the money as directed. Judgment and decree were entered in accordance with the findings of fact and the conclusions, from which all of the defendants appealed.

The facts are somewhat complicated, and to make a statement of them which would be reasonably clear is attended with some difficulty. The Grand Lodge of the Fraternal Order of Eagles was incorporated under the laws of this state on or about May 13, 1898. In the articles, it is provided that the principal place of business of the association should be 'at Seattle, King County, State of Washington.' After the incorporation, the Grand Lodge prepared, and adopted, a constitution and laws for its guidance, and also for the guidance of the subordinate lodges. When a charter was issued to a subordinate lodge, that lodge and the members thereof were obligated to obey the constitution, laws, and regulations of the Grand Lodge. Specific provisions were made for the disciplining of a subordinate lodge or the officers or members thereof when the laws of the Grand Lodge were not complied with. The procedure to be followed in any such case was comprehensive and explicit.

The constitution adopted by the Grand Lodge provided that the office of the Grand Worthy President should be 'in Kansas City, Missouri,' and that office has been continuously maintained in that city. The constitution of the Grand Lodge provides for the naming of a Deputy Grand Worthy President who shall act in the absence of the President.

The suspension of the charter and of the members of the lodge mentioned and the expulsion of the others was the result of a trial Before the Grand Lodge Trial Commission, from which order of suspension and expulsion an appeal was taken to the Grand Lodge, and the order of the Grand Worthy President in suspending the charter of the Kent Aerie and certain of its members, and expelling others, was sustained, except in a minor particular which is not here material.

The constitution and laws of the Grand Lodge provide that, when a subordinate lodge surrenders its charter or when such charter is revoked, all the property, both real and personal, belonging to such lodge, and all of its money, books, papers, and paraphernalia, and other possessions of value, shall be transferred to the secretary of the Grand Lodge who shall become the custodian of such surrendered property and effects.

It is further provided in the constitution and laws that, if any such local lodge shall be reorganized within six months after its charter has been suspended or revoked, the property and effects shall be restored to it, and if such lodge is not reorganized, such property and effects shall become the absolute property of the Grand Lodge.

During the trial of the case in the superior court, it was stipulated by the Grand Lodge that, in case the judgment of this court should be in favor of it, the six months' period should be considered to begin to run from the date of the entering 'of the judgment of the court herein.' The Grand Worthy President offered to reinstate the charter of the Kent Aerie if fifty of its members would sign a request stating that they would obey the constitution and laws of the Grand Lodge; but fifty members did not sign the application cards, and the result was that the case is here for determination upon the record as made.

The first thing to determine is the scope of the inquiry which the court will make in a case of this character. In the case of Kelly v. Grand Circle Women of Woodcraft, 40 Wash. 691, 82 P. 1007, 1008, it was held that the expulsion of a member from a mutual benefit association would not be inquired into by the courts, except to ascertain whether the proceedings were regular, in good faith, and not in violation of the laws of the order or the laws of the state. It was there said:

'In cases of this kind 'courts never interfere, except to ascertain whether or not the

...