Isgrigg v. Schooley

• Decision Date: 18 September 1890
• Docket Number: 14,384
• Citation: 25 N.E. 151,125 Ind. 94
• Parties: Isgrigg, Executor, v. Schooley et al
• Court: Indiana Supreme Court

25 N.E. 151

125 Ind. 94

Isgrigg, Executor, v. Schooley et al

No. 14,384

Supreme Court of Indiana

September 18, 1890

From the Clark Circuit Court.

Judgment reversed, at costs of appellee, with instructions to proceed in accordance with this opinion.

J. H Stotsenburg and J. B. Merriwether, for appellant.

J. K Marsh, for appellees.

OPINION

Olds, J.

In May 1882, William H. Schooley became a member of Hoke Lodge, No. 177, Knights of Honor. A beneficiary certificate for $ 2,000 was issued to him by the supreme lodge payable to his wife, Ida M. Schooley, at his death. William H. Schooley died October 31st, 1886. Ida M. Schooley, the wife and beneficiary named in the certificate, brought suit in the Clark Circuit Court against the Supreme Lodge Knights of Honor to recover the fund, $ 2,000. The supreme lodge appeared by attorney and alleged that Edward G. Isgrigg, Ida M. Schooley and David Rodman were each claiming the fund, and asked an order that said lodge be permitted to pay said fund into court and that said parties be required to litigate between themselves and determine their rights to the fund, and that said lodge upon the payment of the fund into court be discharged. An order was accordingly made and the supreme lodge paid the money into court and was discharged. Rodman disclaimed any interest in the fund, and the said Edward G. Isgrigg filed a cross-complaint claiming the right to the funds as executor of the last will of said William H. Schooley, deceased. The cross-complaint of Isgrigg alleges the death of William H. Schooley, and that the said Isgrigg was duly appointed as executor of his last will and testament; the issuing of the certificate in which his wife, Ida M., was named as beneficiary; that by the by-laws of the order the beneficiary could be changed by the member and another substituted; that more than two years prior to the death of William H. Schooley, his wife, Ida M., abandoned him and failed and refused to live with him, or even visit him, though requested; that at the time of and during such abandonment he, the said William H., was an invalid, having consumption, unable to care for himself; that said William H., by his last will, had devised said fund to said Isgrigg to pay the persons who had taken care of him during his sickness after his said wife had abandoned him; that the by-laws of the order provided that when a member desired to change the beneficiary named in his certificate he should indicate his desire in writing to his subordinate lodge, surrender the old certificate and pay fifty cents for a new certificate, and that upon the member making such request and paying the fifty cents it was made the duty of such subordinate lodge to forward the same to the supreme lodge and the supreme lodge would issue a new certificate in the name of the new beneficiary and cancel the old one; that prior to the death of said William H. Schooley he made application to his subordinate lodge to which he belonged to change the beneficiary from his wife, Ida M., to said Edward G. Isgrigg, his uncle, who had cared and provided for him in his sickness, and who would continue to provide for him; that he made a written application and demand for such change to said lodge in open session, stating as his reasons therefor that his wife, Ida M., had abandoned him and refused to nurse or care for him in his sick and enfeebled condition for some three years, and that during that time he had been cared for by said Edward G. Isgrigg and other kind friends, and that he paid to said lodge fifty cents for the new certificate as required by the by-laws, and that he stated in said writing that he was unable to surrender said policy for the reason that his wife, Ida M., had taken possession thereof, without his consent, some three years prior to that date and refused to surrender the same, and claimed and stated to him that the same was lost; that said written statement presented to said subordinate lodge was made out in triplicates, one was delivered to said subordinate lodge, in open session as aforesaid, and one of the copies was mailed, postage prepaid, to the supreme lodge. The paragraphs further allege that the officers of said subordinate lodge and said Ida M. conspired together to prevent a change in the beneficiary named in said certificate, and the officers whose duty it was to do so neglected and refused to certify said application for the change and transmit the sum of fifty cents so paid for the making of the change to the supreme lodge as it was their duty to do.

It is the general rule that a member of a benefit society, holding a certificate of insurance, and desiring to change the beneficiary named therein, must make an application and procure the change in accordance with the by-laws of the society providing the manner in which such change may be made.

In the case of Holland v. Taylor, 111 Ind. 121, 12 N.E. 116, it is held that a person who becomes a member of a mutual benefit association is bound to take notice of the by-laws, and that the by-laws become a part of the contract the same as if written in the certificate, and that the beneficiary named in such certificate, providing for a change of the beneficiary, does not, during the life of the member, have an indefeasible right in the contract or fund, but such beneficiary has an interest which can only be defeated by a change effected in the manner provided by the by-laws, and such is the universal doctrine held by this court and courts in general. But there are exceptions to this general doctrine. Equity will aid imperfect changes of...