Grand Lodge, A. O. U. W. of Missouri, v. O'Malley

• Decision Date: 30 September 1905
• Parties: GRAND LODGE, A. O. U. W. OF MISSOURI, v. O'MALLEY et al.
• Court: Missouri Court of Appeals

89 S.W. 68

114 Mo. App. 191

GRAND LODGE, A. O. U. W. OF MISSOURI, v. O'MALLEY et al.

St. Louis Court of Appeals. Missouri.

September 30, 1905.

1. INSURANCE — BENEFICIAL ASSOCIATIONS — CHANGE OF BENEFICIARIES.

The beneficiary in a benefit certificate may be changed, in the absence of a prohibition thereof in the statutes existing when the certificate was issued, or in the charter or by-laws of the association, or in the certificate itself, provided that any rules and regulations of the association providing a specific method of making the change must be substantially complied with.

2. SAME — ESTOPPEL TO MAKE CHANGE.

The mere payment of assessments by the beneficiary, in the absence of a contract that she is to receive the benefits, does not give her such an equity in the benefit certificate as to estop the member to make a change of beneficiaries.

3. SAME — COMPLIANCE WITH LAWS OF ASSOCIATION.

A law of a beneficial association provided that when a certificate shall not be under the control of the member, he may have a duplicate issued, on making affidavit of the fact, and executing a release of all rights and benefits under the original certificate. Another of its laws provided that a member holding a certificate, desiring to make a new direction as to its payment, may do so by authorizing such change in writing on the back of his certificate; the change of direction not to be effectual till it is reported to an officer of the association, the old certificate, if practicable, filed with him, and a new certificate issued thereon. Held, that where one complied with the provisions for obtaining a duplicate, and at the same time directed in writing a change of beneficiary, on which the association issued a new certificate payable to the new beneficiary, there was a substantial compliance with the association's laws, effectuating a change of beneficiary.

4. SAME — PAYMENT OF ASSESSMENTS BY BENEFICIARY — REIMBURSEMENT.

A beneficiary under a benefit certificate, who has paid the assessments and dues on it till the beneficiary is changed, is entitled to be reimbursed out of the benefits.

Appeal from St. Louis Circuit Court; Dan. D. Fisher, Judge.

Bill of interpleader by the Grand Lodge of Ancient Order of United Workmen of Missouri against Mary O'Malley and Bridget McFadden. Judgment for McFadden, and O'Malley appeals. Reversed, and certified to Supreme Court.

Walther & Muench, for appellant. Bass & Brock, for respondent.

BLAND, P. J.

Plaintiff, a fraternal beneficiary association, on September 12, 1886, issued to Michael McFadden, a member of Meta Lodge, No. 19, of said association, a benefit certificate for the sum of $2,000, payable at the death of said Michael McFadden to his wife Bridget. About 13 years prior to his death, which occurred April 7, 1903, Michael drove his wife and children from his home, and thereafter lived separate from his wife, making his home most of the time with a married daughter, until about the month of April, 1901. After this time he was taken care of by John O'Malley, father of appellant, Mary O'Malley. Early in the year 1901 McFadden sent the certificate by one of his daughters to his wife, with a message to her to the effect that he was having some trouble with some gentlemen who owed him money, and that if anything should happen to him she would have the certificate to protect herself and take care of her. The evidence shows that Bridget, out of her own funds, paid all the assessments levied against McFadden by the society until about January 1, 1901, and that she offered to pay assessments after January, 1901, but the lodge officers refused to accept her tenders. The amount paid by her in assessments was shown to be about $450. In March, or early in April, 1901, the evidence is that Michael McFadden approached John O'Malley, and represented to him that he had separated from his family and had no one to take care of him; that he was too old to work, and that if something was not done he would soon have to go to the poorhouse; and proposed to Mr. O'Malley to adopt Mary O'Malley, the minor daughter of John, as his daughter and heir, and designate her as the beneficiary in his certificate of insurance, if John O'Malley would take care of him the balance of his days. O'Malley assented to the proposition, and thereafter, to wit, April 5, 1901, with the intent of designating Mary O'Malley as his beneficiary, McFadden made the following affidavit: "The undersigned, Michael McFadden, being duly sworn, does depose and say that he is a Workman Degree member in good standing in Meta Lodge, No. 19, located at St. Louis, state of Missouri; that the number of his beneficiary certificate is 25,609; that said beneficiary certificate is payable to his wife, Bridget McFadden, and was issued at St. Louis, Mo., by the Grand Lodge of the Ancient Order of United Workmen of Missouri, on the 12th day of September, 1886. The undersigned further deposes and says that the said beneficiary certificate is not in his possession or under his control, but is withheld from him. In consequence of the said detention and of withholding beneficiary certificate, the undersigned does hereby make application for a duplicate certificate, which he asks may be issued to him in the place of the original beneficiary certificate, above described, and as a condition necessary to the issuance of said duplicate the undersigned Michael McFadden does hereby cancel and annul said original benefit certificate and relinquish all rights, benefits, and claims that may at any time arise either to him or his beneficiaries under the said original beneficiary certificate described at the outset, and directs that a new benefit certificate be issued to him in which payment shall be made to Mary O'Malley, bearing relation to me of adopted daughter, said new certificate to be, when issued, in lieu of the original, which therefore shall become and be void." And on the same date he executed and acknowledged the following deed of adoption: "Know all men by these presents, that I, Michael McFadden, of the city of St. Louis, in the state of Missouri, for good and valuable consideration to me moving, do hereby under the provisions of chapter 90, Revised Statutes of Missouri of 1899, adopt Mary O'Malley, daughter of John and Mary O'Malley, of the said city of St. Louis, as my own child, hereby granting unto her the said Mary O'Malley, all the rights and privileges which she might or could enjoy, were she my own child, and all the rights conferred upon adopted children by the laws of the state of Missouri." On September 16, 1901, Mary O'Malley executed the following promise and agreement: "I promise and agree with my father, Michael McFadden, that I will from this time forward pay the assessments and dues, etc., which shall be payable by him as a member of Meta Lodge of the Ancient Order of United Workmen, when and whenever such assessments, dues, etc., become payable according to the laws and rules of said United Workmen. I further agree to pay to said McFadden during his life four (4) dollars every week such payments to be made on every Saturday. In consideration of my promises as above, said McFadden shall cause the name of the beneficiary named in his certificate of membership in said United Workmen to be changed so that I shall be named as the beneficiary therein. And if I fail to pay said assessments, dues, etc., as aforesaid, and if I fail to pay said McFadden said sum of four (4) dollars every week as aforesaid, then I shall lose all my title as said beneficiary and said McFadden shall be at liberty to change the name of the beneficiary in said certificate and cause the name of some one else than me to be named as such beneficiary in said certificate." On the same date Michael McFadden made his will, by which he disinherited his wife and children, and willed the proceeds of his certificate of insurance (his only asset) to Mary O'Malley, his adopted daughter, and designated her as his sole beneficiary, and directed that the insurance be paid to her at his death. On the presentation of McFadden's affidavit of April 5, 1901, and the exhibition of the deed of adoption to the officers of the superior lodge of the association, a new certificate of insurance of the same number as the original (No. 25,609) was on August 21, 1901, signed by Wm. H. Miller, Grand Master Workman, and Henry W. Meyer, Grand Recorder, and was countersigned by the Master Workman and Recorder of Meta Lodge, sealed with the seal of the lodge, and in this condition was delivered to Mr. McFadden. In the new certificate Mary O'Malley was described as the adopted daughter of Michael McFadden and was named as his beneficiary. The evidence is that O'Malley paid all the assessments after January, 1901, as well as all dues claimed by the association from McFadden. He testified that these assessments and dues and hospital and medical expenses paid out by him for Mr. McFadden, together with clothing and money furnished him, aggregated about $950. The evidence is that Mary O'Malley, after her adoption, continued to reside with her mother and was supported and maintained by her parents, and that McFadden contributed nothing whatever toward her support.

The laws of the order provide that members' children by legal adoption may be designated as beneficiaries. Law No. 185 of the order, concerning the issuance of duplicate certificates, is as follows: "Duplicate Certificate. When a beneficiary certificate shall be lost or destroyed, or it shall not be under the control of the member to whom it was issued, he may have a duplicate certificate issued, if he so desire, upon making affidavit of the fact, upon a form furnished by the Grand Recorder and executing a release to the Grand Lodge of all rights and benefits under the original certificate. The same rule shall apply to the payment of beneficiaries who may not be able to produce the certificate, and as a further security the...