Appeal
from St. Louis City Circuit Court.--Hon. Walter B. Douglas
Judge.
REVERSED
AND REMANDED.
STATEMENT.
In
substance, the petition alleges that defendant is a
corporation and is engaged in the business of life insurance
that on September 12, 1902, it issued its policy of insurance
to Kern E. Walsh, in favor of the plaintiff, for the sum of
one thousand dollars, agreeing to pay said policy to
plaintiff on the death of the insured (Walsh); that Walsh
observed and performed all the conditions of the policy until
his death, which occurred on October 24, 1902, and thereafter
plaintiff, in due time, furnished the defendant with proofs
of loss, surrendered the policy to defendant and demanded the
payment of the amount of the insurance which the defendant
refused.
The
answer alleged, and it was admitted on the trial, that the
defendant is a fraternal benefit society incorporated under
the laws of Michigan and licensed to do business in the State
of Missouri; admitted the issuance of a benefit certificate
to Walsh for the sum of one thousand dollars, payable to
plaintiff as beneficiary on the death of Walsh; admitted
Walsh's death on or about October 24, 1902, and that
proofs of his death had been furnished and the benefit
certificate surrendered by plaintiff and admitted its refusal
to pay the amount of the certificate. As justification of its
refusal to pay defendant's answer alleged that under the
terms of the contract of insurance it was stipulated and
agreed that the contract of insurance should become null and
void if Kern E. Walsh should commit suicide, sane or insane
and then alleged that he did, on or about Oct. 24, 1902, take
his own life and commit suicide. For a further defense the
answer states:
"That
after the death of said Kern Edward Walsh, in accordance with
laws of said order and as required thereby, said plaintiff
presented her claim on said benefit certificate to the
committee on claims of defendant order, by which the said
claim was rejected, except for the said amount of $ 1.80
because the death of said Kern Edward Walsh was caused by
suicide, and thereupon said claim went before the board of
trustees of said defendant order, by which, after due notice
and hearing the said claim was, on the fifteenth day of
January, 1903, rejected, except for the said sum of $ 1.80
which said sum was afterwards duly tendered to plaintiff, and
plaintiff was immediately notified of said action in
accordance with the laws of said order.
Defendant
states that thereafter said plaintiff did not take any appeal
from said decision of said board of trustees to the court of
appeals of said order, as required by the said contract
whereby said judgment of said board of trustees became final.
Defendant states that by the laws of said order, as
aforesaid, said requirements of appeal are conditions
precedent to suit, and that this suit cannot be maintained
until plaintiff has exhausted all the remedies provided
within the said order, which she has not done."
On the
trial defendant, in support of its defense, showed that it is
a beneficial fraternal association organized and carried on
for the sole benefit of its members and not for profit; that
money to pay benefits is raised solely by assessments on its
members; that it has a lodge system with ritualistic form of
work, and that it is and has been for the past twelve years
licensed to do business in the State of Missouri as a
fraternal beneficial association.
Walsh's
application for insurance contains the following clause:
"I
also agree that should I commit suicide, in contravention of
the laws of said supreme tent, whether sane or insane at the
time, that this contract shall be null and void and of no
binding force upon said supreme tent."
The
evidence shows that Walsh was found dead near Casner, in the
State of Illinois, October 24, 1902, on the side of a public
road, under circumstances which showed that he took his own
life by shooting himself in the head with a pistol,
accidentally or purposely.
Defendant
proved and read in evidence the following laws of the order:
"BY
COMMITTEE ON CLAIM.
"Sec
480. The supreme commander, supreme record keeper and supreme
counselor shall constitute the committee on claims of the
supreme tent, to which shall be referred all claims against
the benefit funds of the association.
"Sec.
481. The supreme counselor shall be chairman of the committee
on claims and it shall be his duty to examine and approve all
claims which shall, in the judgment of the committee, or a
majority thereof, be found to be proper charges against the
benefit fund.
"Sec.
482. Claims not approved by the committee on claims, or a
majority thereof, shall be referred to the board of trustees.
"BY
BOARD OF TRUSTEES.
"Sec. 483. The board of trustees shall decide all
claims, referred to it by the committee on claims, arising
from the death or disability of a member holding a life
benefit certificate in the supreme tent.
"Sec.
484. If, in the judgment of the board of trustees, any such
claim is invalid and not a proper claim for compromise, it
shall reject it and immediately give notice to the claimant
of such rejection, and of the place and time fixed, when the
claimant may appear in person, or by attorney, before the
board and be heard on oral or written evidence; such hearing
shall be given not less than thirty nor more than sixty days
after date of notice.
"Sec.
485. If the board of trustees approve a claim, it shall be
paid at once by warrant on the proper fund; if the board
rejects that claim, it shall give immediate notice thereof to
the claimant, and unless the latter appeals to the court of
appeals, as provided in these laws, such decision shall be a
final disposition of the claim.
"Sec.
486. Notice of an appeal to the court of appeals must be
filed with the supreme record keeper within thirty days from
the date of notice of the rejection of the claim by the board
of trustees, and the appellant, in the notice of appeal,
shall specify the grounds upon which such appeal is based.
"BY
COURT OF APPEALS.
"Sec.
488. If the court of appeals approve the claim, it shall
notify the supreme commander of such action, and if in the
judgment of such officer the decision is erroneous, he shall
give immediate notice of appeal to the supreme tent in behalf
of the association. If no such appeal be taken the claim
shall be paid at once by warrant on the proper fund.
"Sec.
489. If the court of appeals rejects the claim, immediate
notice thereof shall be given to the claimant. Such rejection
shall be a final disposition of the claim unless the claimant
appeals to the supreme tent. In case of an appeal by the
supreme commander from the action of the court of appeals on
behalf of the supreme tent, notice thereof shall be given at
once to the claimant.
"Sec.
75. The court of appeals shall meet at 10 a. m. on the second
Tuesday of March, June, September and December of each year
at the office of the supreme record keeper in Port Huron,
Mich., or at such other times as may be fixed by at least a
majority of the members of the court.
"BY
SUPREME TENT.
"Sec.
490. An appeal from the decision of the court of appeals
shall be heard at the following review of the supreme tent.
Notice of appeal by the claimant shall be filed with the
supreme recorder within thirty days after notice of the
rejection of the claim by said court; provided that if less
than thirty days intervene, the claimant prosecute his or her
appeal before the second review following such rejection.
"Sec.
491. In the event of an appeal to the supreme tent under
these provisions, the supreme record keeper shall report the
same, with all evidence in his possession, to the supreme
tent, and the consideration of all appeals to the supreme
tent shall be the special order of business on the fourth day
of each regular review, at which time the claimant may appear
in person, or by attorney, and be heard. The supreme tent
shall during such review, decide the claim. If it be
approved, it shall be paid by warrant on the proper fund. If
it be rejected, notice thereof shall be given to the
claimant.
"Sec.
492. To give any notice herein provided, it shall be
sufficient to inclose a written copy thereof in a sealed
envelope addressed to the claimant, or his attorney, at his
last known post office address, properly stamped and mailed
at the post office at Port Huron, Michigan, and the date of
mailing the same shall be taken to be the date of giving such
notice.
"Sec.
493. No suit at law or in equity shall be commenced or
maintained against the supreme tent by a member or by any
beneficiary, or any person claiming under any certificate of
membership, until after such member, beneficiary or claimant
shall have exhausted every remedy provided by these laws, and
submitted his claim to the committee on claims, the board of
trustees, the court of appeals, and the supreme tent, in the
manner in these laws provided.
"Sec.
16. It shall be the supreme tribunal to which all final
appeals shall be made on matters arising under these laws.
"Sec.
19. It shall have power, when an appeal is made under the
laws of the association from the action of findings of the
court of appeals, to decide as to the validity of all death
claims or any other claim which a member or the beneficiary
or a member may have against it.
"WHEN
VOID.
"Sec
431. No benefits shall be paid on account of the death of a
member who may, after admission, be killed or die from the
result to injuries received, or who may become disabled while
engaged in any of the occupations...
