O'Hagan v. Fraternal Aid Union

• Decision Date: 02 March 1928
• Docket Number: 12389.
• Citation: 141 S.E. 893,144 S.C. 84
• Parties: O'HAGAN v. FRATERNAL AID UNION et al. SAME v. CATHOLIC KNIGHTS OF AMERICA et al.
• Court: South Carolina Supreme Court

141 S.E. 893

144 S.C. 84

O'HAGAN v. FRATERNAL AID UNION et al.

SAME v. CATHOLIC KNIGHTS OF AMERICA et al.

No. 12389.

Supreme Court of South Carolina

March 2, 1928

Appeal from Common Pleas Circuit Court of Charleston County; Wm. H Grimball, Judge.

Actions tried together, by Mary A. O'Hagan against the Fraternal Aid Union, and others and against the Catholic Knights of America and such others. From a part of the decree rendered requiring payment of the funeral expenses of W. A. D O'Hagan, deceased, from the proceeds of insurance policies, plaintiff appeals. Reversed.

The part of the decree of Circuit Judge Grimball, relating to payment of funeral expenses, directed to be reported, is as follows:

"There is another question in these cases that has given me grave concern. It is admitted that W. A. O'Hagan died hopelessly insolvent and did not leave enough assets to pay funeral expenses and expenses of last illness. Some one had to bury the deceased. The plaintiff has claimed the proceeds of these policies as the wife or widow of the said W. A. O'Hagan. Would it be fair and right to the undertaker, a citizen of this state, whose bill for funeral expenses of W. A. O'Hagan is admittedly not paid, that the widow be allowed to take the proceeds of these policies, remove them out of the state and leave him to "hold the bag"?

"In these days of equal rights it seems to me as much of a duty and obligation on the part of the widow to meet the necessary funeral expenses of the husband, as it is on the part of the husband to meet such expenses of his wife. There is a broad question of public policy involved. Some one must bury the dead. It should not be done at public expense where it can possibly be avoided.

"Surely the widow, who had left her husband, but who now claims benefits by virtue of her relationship to said husband, should be required to meet such obligation, especially where she has funds derived from her husband's resources to meet same. I so hold.

"I think $500 is a reasonable allowance to be made out of the proceeds of these policies, to be paid to the attorney for the administrator and by said attorney to be paid to the undertaker who performed the funeral services for said W. A. O'Hagan, less a reasonable counsel fee to said attorney for his services herein."

Lionel K. Legge, of Charleston, for appellant.

H. L. Erckmann, of Charleston, for respondents.

BLEASE J.

By consent of the parties, these two causes were heard together, both in the lower court and in this court.

Mr. W. A. D. O'Hagan was a member in good standing of the Fraternal Aid Union and the Catholic Knights of America, two fraternal and mutual benefit organizations. In the first mentioned organization, he carried insurance on his life in the sum of $1,200, the certificate of which named his mother as beneficiary. In the last-mentioned organization, he carried insurance on his life in the amount of $1,000, and the certificate therefor named his father as the beneficiary. Under the provisions of each of these certificates, in case the named beneficiary should die before the insured, and no new beneficiary was substituted by him, the proceeds of the certificate, or policy, were payable upon the death of the insured, to the wife of such insured, if she should be living at the time of his death. The named beneficiary in each of the policies died prior to the death of the insured, who departed this life on August 7, 1926. The insured did not leave sufficient estate to pay the expenses of his last illness and funeral. The appellant, Mary O'Hagan, was the wife of the insured, but she left him some two years prior to his death, and since then has lived in New York City, where she now resides.

The appellant brought suits against the respondents fraternal organizations and the administrator of the estate of the insured to recover the respective amounts of the two benefit certificates. The fraternal organizations admitted their liability for the amounts of the certificates, and promptly paid such amounts into the court, asking the court to determine to whom the money should be paid.

There were two questions in the Court below: First. If the widow of the insured, the appellant here, was the sole beneficiary under the policies. Second. Could any sum due on the same be held by the administrator of the estate of the insured for his funeral expenses? The circuit judge held that the appellant was the sole beneficiary, but that the undertaker, who officiated at the...