National Council, Junior Order of United American Mechanics v. Hill

• Decision Date: 13 April 1922
• Docket Number: 8 Div. 451.
• Citation: 208 Ala. 63,93 So. 812
• Parties: NATIONAL COUNCIL, JUNIOR ORDER OF UNITED AMERICAN MECHANICS v. HILL.
• Court: Alabama Supreme Court

93 So. 812

208 Ala. 63

NATIONAL COUNCIL, JUNIOR ORDER OF UNITED AMERICAN MECHANICS v. HILL.

8 Div. 451.

Supreme Court of Alabama

April 13, 1922

Rehearing Denied June 30, 1922.

Appeal from Circuit Court, Morgan County; O. Kyle, Judge.

Action for death benefit by Kate M. Hill against the National Council, Junior Order of United American Mechanics. From a judgment for plaintiff, defendant appeals. Transferred from Court of Appeals under section 6, Acts 1911, p. 449 Affirmed.

Thos W. Wert, of Decatur, for appellant.

E. C Nix and G. O. Chenault, both of Albany, for appellee.

ANDERSON C.J.

The defendant's plea to the jurisdiction No. 2 does not negative the fact that service could be legally had on the defendant in this state as provided by section 17 of the Acts 1911, p. 712. In other words, if the defendant, though a foreign corporation, was at the time of the suit doing business in this state and complied with section 17 of the Act of 1911, service was properly had upon the insurance commissioner, and, such being the case, this being a transitory action, it was suable in this state under the Act of 1907, Special Session, p. 67. Southern R. R. v. Jordan, 192 Ala. 528, 68 So. 418; Larue v. Kershaw Co., 177 Ala. 441, 59 So. 155. Therefore the rule as declared in Pullman Co. v. Harrison, 122 Ala. 149, 25 So. 697, 82 Am. St. Rep. 68, and the Carr Case (76 Ala. 388, 52 Am. Rep. 339), there cited, has been changed, and the trial court did not err in sustaining the demurrer to plea 2, or in declining to quash the service of process.

While there is some conflict in the authorities as to what are and are not reasonable provisions as to a condition precedent to bringing an action at law against a mutual benefit society, it seems generally accepted that members of such associations are bound by the Constitution and by-laws and such reasonable provisions contained therein looking to an adjustment and settlement of the claim of a beneficiary under the policy, before suit can be brought for the collection of same. Bacon on Insurance (4th Ed.) § 564; Bacon on Benefit Societies, §§ 123 and 451.

We find no authority, however, which holds that such a provision as the one set up in the defendant's plea 1, as amended is reasonable and we unhesitatingly hold that the same is unreasonable and contrary to public policy. It seeks to preclude the plaintiff of her right to sue by the default, or nonaction, of the...