National Council Junior Order United American Mechanics v. Tate

• Decision Date: 03 November 1937
• Docket Number: 321.
• Citation: 193 S.E. 397
• Parties: 212 N.C. 305, 113 A.L.R. 1514 v. TATE et al. NATIONAL COUNCIL JUNIOR ORDER UNITED AMERICAN MECHANICS et al.
• Court: North Carolina Supreme Court

193 S.E. 397

212 N.C. 305, 113 A.L.R. 1514

NATIONAL COUNCIL JUNIOR ORDER UNITED AMERICAN MECHANICS et al. v. TATE et al.

No. 321.

Supreme Court of North Carolina

November 3, 1937

Appeal from Superior Court, Burke County; W. F. Harding, Judge.

Action by the National Council Junior Order United American Mechanics and others against Mrs. Charles E. Tate and another, to determine the proper beneficiary of funeral benefits or insurance on the life of Charles E. Tate deceased, wherein plaintiff was permitted to pay the fund into court, leaving the two defendants to litigate their respective claims. Judgment for the other defendant, and named defendant appeals.

Reversed.

Action to determine the proper beneficiary of funeral benefits or insurance on the life of Charles E. Tate, deceased. The plaintiff, Junior Order United American Mechanics, a fraternal benefit society, acting through its Funeral Benefit Department, is ready to pay the proceeds of the benefits due on the death of decedent, to wit, $500, and check for same is in the custody of plaintiff, Ernest Bolick, recording secretary of the local council of said society, for payment to the legal beneficiary. Each of the defendants, Mrs Charles E. Tate, the widow, and Rosebud Tate, daughter of decedent, claims to be the legal beneficiary entitled to the fund. By order of court the plaintiff was permitted to pay the fund (less certain expenses) into court and to be discharged from all further liability leaving the two defendants to litigate their respective claims.

Jury trial was waived, and it was agreed that the trial judge should hear the evidence, find the facts, and render judgment upon his conclusions of law thereon.

The material and pertinent facts found by the judge may be summarized as follows:

The Junior Order of United American Mechanics is a fraternal benefit society. The plaintiff National Council or supreme governing body of the society is a corporation organized and existing under the laws of the state of Pennsylvania. The plaintiff State Council Junior Order United American Mechanics of North Carolina is a corporation organized under the laws of North Carolina and is the State Council of said society. The plaintiff Burkemont Council No. 44, is the subordinate council or lodge of said society, of which deceased was a member, and Ernest Bolick, a citizen of Burke county, is the recording secretary of the local council.

That prior to September 29, 1924, Charles E. Tate, the decedent, was duly elected, initiated, and admitted to membership in said Burkemont Council No. 44, and thereupon said society, acting through its Funeral Benefit Department, contracted and agreed with the decedent that in the event he was a member of said society, in good standing, at the time of his death the said society, acting through its Funeral Benefit Department, would pay funeral benefits amounting to $500 to the legal dependent of said decedent. Decedent continued to pay his dues as a member of said Order until his death in 1931.

That on September 29, 1924, decedent was living with and supporting his wife (defendant Mrs. Charles E. Tate) and his daughter, Rosebud Tate, at his home in Morganton, N. C.; that on said date said Rosebud Tate was over 18 years of age; that in 1925 defendant Rosebud Tate removed to Knoxville, Tenn., and thereafter lived separate and apart from the decedent until his death.

That on September 29, 1924, decedent dictated and signed a paper writing in the following words: "I, C. E. Tate, hereby request the Junior Order to pay my funeral benefit insurance to my youngest daughter, Miss Rosebud Tate, as I consider her my legal dependent, as my wife has other insurance. (Signed) C. E. Tate. Witness: T. L. Sigmon." This paper writing was placed by the then recording secretary, R. E. Cox, in the roll book of said local council where the name of decedent as a member was written, and where it remained until produced in court by the present recording secretary.

"That there was no written or established rule of the Council at the time as to how, by what method, or to whom paper writing affecting its contract of insurance should be presented or filed other than such as are incident to the duties of a Recording Secretary, and the customary procedure of the then Recording Secretary of placing such papers in the roll book where the names of members were recorded. That the bylaw of the society providing the method of designating a beneficiary, now in force, was not adopted until after the death of decedent."

It was admitted in the answer of defendant Rosebud Tate that at the time of filing the paper writing referred to with the recording secretary there was no rule or regulation of the society affecting the contract of the society, except article 7, section 1, of the by-laws, which reads as follows: "Upon the death of a member of this council in good standing in the funeral benefit association, his legal dependent shall receive $500.00."

Upon the facts found, the court below concluded that the decedent had the right to designate his legal dependent...