News Employees' Benevolent Soc. v. Agricola

• Decision Date: 20 February 1941
• Docket Number: 6 Div. 728.
• Parties: NEWS EMPLOYEES' BENEVOLENT SOC. v. AGRICOLA.
• Court: Alabama Supreme Court

200 So. 748

240 Ala. 668

NEWS EMPLOYEES' BENEVOLENT SOC. v. AGRICOLA.

6 Div. 728.

Supreme Court of Alabama

February 20, 1941

Rehearing Denied March 20, 1941.

Appeal from Circuit Court, Jefferson County; Richard V. Evans Judge.

Action for damages by C. P. Agricola against the News Employees' Benevolent Society, for wrongful explusion from the society. From a judgment for plaintiff, defendant appeals.

Affirmed.

The Supreme Court would not decide question which was unnecessary to a decision of the case.

Counts C, D and E, upon which the case was tried, are the same in substance except as to the facts alleged as ground for plaintiff's nonliability upon the note in question.

Count C is as follows: "Plaintiff claims of the defendant the sum of Three Thousand ($3,000.00) Dollars as damages for this, that on March 10th, 1939, while plaintiff was a member of the News Employes Benevolent Society, Incorporated, a corporation, a beneficial corporation, in good standing, with all dues paid to date, and having fully complied with its constitution and by-laws; which said constitution and by-laws are made a part of this complaint, being attached hereto as Exhibit 'A'; said plaintiff was wrongfully and maliciously expelled therefrom by the Board of Trustees, on recommendation by the committee appointed by the president of the News Employes Benevolent Society, Incorporated, a corporation which said action and authority of said Board of Trustees and said committee was duly authorized by the constitution and by-laws, Section 11, and said action of the defendant was based on the alleged ground that plaintiff failed or refused to pay a note endorsed by plaintiff for one Harvey C. Chandler, which said note was made payable to defendant Society, and plaintiff alleges that he was not liable on said note because of the following facts: Said note was dated March 1st, 1938, and due on March 8th, 1938, and defendant Society, for a valuable consideration, extended the maturity date of said note without the consent of the plaintiff, all of which aforesaid facts were called to the attention of the said committee and pleaded as a defense at said lodge trial and which said facts said committee intentionally ignored. And plaintiff avers that he was not guilty of the charges on which he was tried by the defendant but that the action of expulsion by the defendant was in bad faith and wrongfully and maliciously done, and that alleged ground of expulsion was a mere subterfuge, plaintiff averring that he was actually expelled because he had filed suit against defendant Society seeking to recover for the conversion of a dividend of fifty-two ($52.00) Dollars due plaintiff. And plaintiff avers that by said wrongful and malicious expulsion, the committee and the Board of Trustees acting for said defendant Society unwarrantedly interferred with his property rights in the News Employes Benevolent Society, Incorporated, a corporation, viz: caused plaintiff to lose his right to sick benefits of Twenty-five ($25.00) Dollars per week for a maximum of ten weeks in each year, and a death benefit of Two Hundred Fifty ($250.00) Dollars, and thereby caused plaintiff to lose the sum of sums paid in dues from December 1st. 1938, to March 10th, 1939, at fifty cents per week, all to the damage of the plaintiff as aforesaid and plaintiff avers that he was caused to suffer mental anguish, and caused to suffer humiliation before his fellow workers, and plaintiff claims punitive damages."

Count D alleges that plaintiff was not liable on said note because of the following facts: "At the time plaintiff endorsed said note, which was on March 1st, 1938, it was in the sum of Fifty ($50.00) Dollars, and said note was raised to Sixty-five ($65.00) Dollars after it was endorsed by plaintiff and without plaintiff's knowledge or consent and that the defendant is not a holder in due course of said note for at the time the defendant acquired said note it affirmatively appeared on the face of said note that the sum thereof had been altered; all of which aforesaid facts were called to the attention of said committee and pleaded as a defense at said lodge trial, and which, said committee intentionally ignored."

The pertinent averment in Count E is as follows: "Said note was endorsed by plaintiff as a part of the requirement necessary to obtain a loan, for one Harvey C. Chandler, another member of said defendant society, and under the requirements of said constitution and by-laws which provided how a loan might be obtained, two endorsers were required to obtain the loan to said Harvey C. Chandler, said note being in the sum of Fifty ($50.00) Dollars and representing a loan for such amount and being in excess of one week's salary or 'time' already earned by the said Harvey C. Chandler, and plaintiff endorsed said note with the understanding with the defendant and Harvey C. Chandler that two endorsers, as required by the constitution and by-laws should be had, and notwithstanding said contract defendant insisted in holding plaintiff to the payment of the said Chandler note in violation of the terms of said contract, and all of such facts were made known to said committee acting for the defendant in the lodge trial, and said committee and said Board of Trustees wilfully and intentionally violated such contract and in defiance thereof expelled plaintiff for failing to pay said Chandler note as aforesaid".

Lange, Simpson, Brantley & Robinson, of Birmingham, for appellant.

Ellis, Lindbergh & Ellis, of Birmingham, for appellee.

GARDNER Chief Justice.

The News Employees' Benevolent Society (hereinafter called the Society), is a corporation whose membership is confined, as the name indicates, to those who are employed by the Birmingham News Company for a period of thirty days prior to membership application. The purpose of the Society is the creation of a fund to be used for the relief of its members in event of sickness or disability and death. Initiation fees and dues are paid by members according to different classes, the payment of sick and disability benefits being in proportion to amount of such initiation fees and dues the member elects to pay.

As officers the Society has a president, three vice-presidents, a secretary treasurer and three members of the board of trustees, who have general supervision over the affairs of the Society. A finance committee is appointed by the president with general supervision over loans made by the Society to its members, such membership, at the time here material, numbering slightly in excess of four hundred.

The secretary treasurer is the only salaried official. The matter of expulsion of a member from the Society is dealt with in Section 11 of the constitution and by-laws as follows:

"Any member may be expelled from this society upon written charges preferred to the President by any member of the society, said charges to be referred to a committee of five to be appointed by the President, the accused having the right to appear before said committee. Said committee shall make its report in writing to any special or regular meeting of the Board of Trustees, which shall decide the guilt or innocence of the accused by a two-thirds vote of members of the board, and their decision shall be final.

"No member expelled for cause shall have any claim upon the society and he or she shall be debarred from readmission for one year, except on a two-thirds vote at a regular or special meeting of the members called in due form to consider same, and said applicant shall take the same course as required of a new member, and all prior rights and privileges are forfeited."

Upon the dissolution of the Society all funds in hand and in bank are to be divided among the contributing members upon the Society's roll at the time of dissolution in proportion as they have contributed therein. A large part of the revenue of the Society is from loans to members, and Section 19 touching that matter is as follows:

"The secretary-treasurer shall place in the loan fund all moneys of the society to be loaned to members in good standing.

"The office of the secretary-treasurer shall remain open for the transaction of business from 9 a. m. to 5 p. m. each week day.

"The secretary-treasurer may loan not exceeding one week's salary or the 'time' already earned by the borrower, on approval of the head of the borrower's department, or as much as two weeks' salary when note carries two acceptable endorsers. All other loans must be referred to the Finance Committee, who in their judgment may grant or refuse any application not in excess of five weeks' salary, provided that no loan shall be made except where the application bears the endorsement of at least three members in good standing in the society whose combined salaries for five weeks shall be double the amount of the loan. Provided also that no member of the Finance Committee shall be permitted to endorse any loan.

"The maximum personal loans and endorsements allowed any member shall not exceed $500.00, or in excess of 10 weeks' salary.

"Heads of departments shall not endorse notes of members of their departments.

"Women members are prohibited from endorsing notes of men members.

"Minors shall not be allowed to borrow more than time earned or be accepted as endorsers for others.

"The rate of interest on all loans shall be not less than two (2) per cent per week for each week or fraction thereof on loans up to $150.00, and one (1) per cent per week on the portion of all loans in excess of $150.00, and must be paid weekly on regular pay days; provided that no interest charge shall be made of less than five (5) cents.

"All applications for loans shall constitute orders on the cashier of The

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