Haner v. Grand Lodge, Ancient Order of United Workmen

• Decision Date: 15 June 1918
• Docket Number: 20280
• Parties: GEORGE T. HANER, APPELLANT, v. GRAND LODGE, ANCIENT ORDER OF UNITED WORKMEN, APPELLEE
• Court: Nebraska Supreme Court

168 N.W. 189

102 Neb. 563

GEORGE T. HANER, APPELLANT, v. GRAND LODGE, ANCIENT ORDER OF UNITED WORKMEN, APPELLEE

No. 20280

Supreme Court of Nebraska

June 15, 1918

APPEAL from the district court for Saline county: RALPH D. BROWN JUDGE. Affirmed.

AFFIRMED.

Barth & Busse and R. M. Proudfit, for appellant.

Ralph R. Horth and Edward J. Lambe, contra.

OPINION

MORRISSEY, C. J.

This is an action to compel appellee, a fraternal beneficiary society organized under the laws of this state, and doing business exclusively herein, to make payment of a sum fixed under section 170 of its by-laws, giving members the right to a definite cash settlement upon reaching the age of 70 years. The defendant association falls within the class of fraternal beneficiary associations mentioned in section 3295, Rev. St. 1913. June 1, 1888 defendant issued to plaintiff its benefit certificate, in which it was provided:

"That Brother George T. Haner, a master workman degree member of Friend Lodge, No. 115, of said order, located at Friend, in the state of Nebraska, is entitled to all the rights and privileges of membership in the Ancient Order of United Workmen and do participate in the beneficiary fund of the order to the amount of $ 2,000, which sum shall at his death be paid to Lydia A. Haner, his wife."

May 1907, the following section was adopted by the proper governing body of the association and made a part of its by-laws, to wit:

"Section 170. Surrender Value. Any member in good standing, seventy years or more of age, may make application for a final card as provided in these laws, and, upon complying with the conditions necessary to the granting of the same, shall be entitled to be paid from the beneficiary fund, at the time of the issuance of the same, a sum equal to all beneficiary assessments paid by him to the Grand Lodge of Nebraska, and a sum equal to all emergency fund payments made by him since the adoption of article 29 of the Grand Lodge by-laws in 1905, together with four per cent. simple interest on each of said sums, said interest to be figured on the payments made each year from January 1st after the same were paid."

It is alleged in plaintiff's petition that the adoption of section 170 of the by-laws was an inducement to him to remain a member of the association; that he remained a member, and paid his dues and assessments from the date of issue of his certificate until the bringing of this action; that plaintiff "was at the commencement of this suit of the age of seventy years and upwards, and was under permanent physical disability by reason thereof; * * * that under the provisions of said section 170 of the by-laws of said defendant order there is due and payable to this plaintiff from said defendant the said sums of money he has heretofore paid, together with interest thereon from the date of payment at the rate of 4 per cent. simple interest, making a total due the plaintiff from said defendant order of $ 671.90." It is further alleged that plaintiff has complied with all the terms of the contract on his part; that he has made application in due form for a final card and settlement of the "amount due him on his said beneficiary certificate under section 170 of the by-laws of said defendant order."

Defendant interposed a general demurrer, which was sustained by the court, and the plaintiff appeals.

The ruling of the trial court is based upon the theory that section 170 of the by-laws was ultra vires and void under the statutes regulating the defendant association. The statutes cited read, in part, as follows:

"A fraternal beneficiary association is hereby declared to be a corporation, society or voluntary association, formed or organized and carried on for the sole benefit of its members and their beneficiaries, and not for profit. Each such beneficiary association shall have a lodge system, with ritualistic form of work, and a representative form of government." Rev. St. 1913, sec. 3295.

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