Lyon v. Rolfe

• Decision Date: 11 July 1889
• Citation: 42 N.W. 1094,76 Mich. 146
• Court: Michigan Supreme Court
• Parties: LYON v. ROLFE ET AL.

42 N.W. 1094

76 Mich. 146

LYON v. ROLFE ET AL.

Supreme Court of Michigan

July 11, 1889

Appeal from circuit court, Hillsdale county, in chancery; LANE Judge.

Bill of interpleader by the Michigan Mutual Benefit Association of Hillsdale against Ransom D. Lyon, Simeon N. Rolfe and others. The fund in controversy was awarded to Ransom D. Lyon.

CHAMPLIN J.

A bill of interpleader was filed by the Michigan Mutual Benefit Association of Hillsdale against Ransom D. Lyon, Simeon N Rolfe, Wesley M. Rolfe, Eliza M. Huntoon, Almira E. Overholt and Celestia Justice. Ransom D. Lyon is the father, and also is administrator of the estate of Francis M. Lyon, deceased. Alice Rolfe is the mother of Lorey E. Lyon, of Francis M and the other defendants named are the brothers and sisters of Lorey E. Lyon. A decree for interpleader was duly entered, whereupon the parties interested agreed upon the following statement of facts, viz.:

"(1) The complainant is a mutual benefit association, organized under chapter 94 of the Compiled Laws of 1871, as amended by act 192 of the Session Laws of 1883. The original articles of association, duly executed, were filed in the office of the commissioner of insurance, and in the county clerk's office of Hillsdale county, in 1881.

"(2) Article 3 of the articles of association, as executed and filed in 1881, so far as it has any application to the policy in question, reads as follows: 'Article 3. The objects of this corporation shall be, first, to secure to the family or heirs of any member, upon his or her death, the payment of a sum of money not exceeding $3,000.'

"(3) The articles of association were amended on September 26, 1887, to conform to act No. 187 of the Session Laws of 1887. Article 3 of the amended articles, so far as it has any application to the policy in question, reads as follows: 'Article 3. The object of this corporation shall be, first, to secure to the family, heirs, creditors, or other persons having an insurable interest in the life of any member, upon his or her death, the payment of a sum of money not exceeding three thousand dollars.'

"(4) The certificate of membership or policy in question was issued on the 25th day of September, 1885, upon a written application for the same made by Francis M. Lyon; is numbered number thirty-eight hundred and thirty-two. A true copy of said application is hereto annexed, marked 'A.' A true copy of said certificate and policy is hereto annexed, marked 'B.'

"(5) Lorey E. Lyon was, in her life-time, the wife of Francis M. Lyon. She died on the 10th day of September, 1887, leaving no children or issue of deceased children surviving her. Her husband died on the 21st day of November, 1887, leaving no children or issue of deceased children surviving him.

"(6) Francis M. Lyon, after the death of his wife, Lorey E. Lyon, and on or about the 4th day of October, 1887, sold and transferred the said certificate of insurance, and executed and signed a notice of such sale and transfer, and forwarded the same to John T. Page, secretary of said company, at Hillsdale, which notice was in the words and figures following: 'Mason, October 4, 1887. John T. Page, secretary of Hillsdale Mutual Benefit Association, of Michigan: In consequence of the death of my wife, Lorey E. Lyon, who was beneficiary of policy No. 3,832, issued on my life and dated _____, this is to certify that I now wish you to change the beneficiary, Lorey E. Lyon, and substitute the name of Simeon N. Rolfe, my brother-in-law, who you will hereafter send notice of assessment, and will pay the same. FRANCIS M. LYON.' That on the 12th day of October, 1887, said John T. Page wrote a letter to said Francis M. Lyon, acknowledging the receipt of said note, in the words and figures following: 'Hillsdale, October 12, 1887. F. M. Lyon, Mason, Mich.-Dear Sir: In reply to your favor of the 10th instant permit me to say you can assign to Mr. Rolfe, but could not have certificate made to Mr. Rolfe as beneficiary, from the fact he would not, under the law, have an insurable interest in your life. You can, as I state, assign the amount of said certificate to him, and, if you desire the same issued in your name, it can be done, and thus you can make the proper transfer. JOHN T. PAGE, Secretary.' That in pursuance of said letter of instructions from said John T. Page the said Francis executed and delivered to said Simeon T. Rolfe, a formal assignment of said certificate, a copy of which is hereto attached, marked 'C.' But the agreement of transfer had existed and had been made by parol at the time of said notice, bearing date October 4, 1887. That on the 1st day of October, 1887, an assessment became due from said Francis M. Lyon on said certificate. That a day or two prior to that time said Francis M. Lyon informed said Simeon N. Rolfe, who was the brother of Lorey E. Lyon, and the brother-in-law of said Francis M. Lyon, that he, said Lyon, should not pay the same, but that, if the said Simeon N. Rolfe should pay assessment, and all others as they became due, said Lyon would sell and convey to him all his right, title, and interest in said certificate, and the money thereby secured. That said Rolfe agreed to said offer, and paid said installment, due October, 1 1887, and thereupon said Lyon did sell and convey said certificate and all his rights therein, and the money secured thereby, as appears by the assignment, a copy of which is hereto annexed, marked 'C.' And said Lyon agreed to deliver said certificate to said Rolfe for that purpose. Both said Lyon and said Rolfe looked for the said certificate in the house where the said Lyon was residing, but could not find it. Said Lyon then agreed to find it, and deliver it to said Rolfe, but never did so. That said Simeon N. Rolfe has paid all the assessments on said certificate from October 1, 1887, to the death of said Francis M. Lyon, amounting to four dollars and seventy-two cents. There was no other consideration then, as herein stated, for such sale and assignment of said certificate, and said Simeon N. Rolfe was not then a creditor of said Francis M. Lyon.

"(7) It is the custom and practice of the complainant company, although there is no by-law on the subject, to furnish to such members as desire to assign or otherwise change their certificate of membership, blank forms for that purpose, which are as follows: "Know all men by these presents, that_____, the undersigned, being the legal owner of certificate No. _____, issued by the Michigan Mutual Benefit Association of Hillsdale to _____, of _____, county of _____, state of _____, for a sum not exceeding _____ dollars in amount, for a valuable consideration, do hereby consent and request that said certificate be changed in manner following, viz.: *** That a new certificate of the same number and date issue in accordance therewith, and the old certificate is herewith and herein surrendered to said association for cancallation from this date. Dated at _____, this _____ day of _____, 188___.' An office charge of one dollar for making the change was required to accompany the application.

"(8) A report was made the complainant company, and information given as aforesaid of the transfer of the said certificate to Simeon N. Rolfe: but the written assignment of October 24th, Exhibit C, was not submitted or sent to the complainant company until after the death of Francis M. Lyon, nor was any fee paid to such company. The original certificate was not delivered up for cancellation by said company; said Francis M. Lyon claiming that he was unable to find the same; and there never was in fact, any manual delivery of said certificate to said Rolfe, but the same was found among the papers of said Francis M. Lyon at his death, and is now in the possession of the defendant Ransom D. Lyon.

"(9) The defendant Ransom D. Lyon is the father and sole heir at law of Francis M. Lyon, deceased, and is likewise administrator of his estate.

"(10) The defendant Simeon N. Rolfe was the brother of the wife of Francis M. Lyon, but was not, and never has been, a member of the...