Richmond v. Supreme Lodge Order of Mutual Protection

• Decision Date: 20 January 1903
• Parties: WILLIAM C. RICHMOND, Appellant, v. SUPREME LODGE ORDER OF MUTUAL PROTECTION et al., Respondents
• Court: Missouri Court of Appeals

71 S.W. 736

100 Mo.App. 8

WILLIAM C. RICHMOND, Appellant, v. SUPREME LODGE ORDER OF MUTUAL PROTECTION et al., Respondents

Court of Appeals of Missouri, St. Louis

January 20, 1903

Appeal from St. Louis Circuit Court.--Hon. S. P. Spencer, Judge.

AFFIRMED.

STATEMENT.

Respondent The Supreme Lodge Order of Mutual Protection, is a fraternal beneficial association incorporated under the laws of Missouri. It does business on the lodge plan.

Franciska Richmond was a member of Lodge No. 20, located in the city of St. Louis. She first became a member of the association August 18, 1888, and received a beneficial certificate insuring her life for a sum not to exceed $ 2,000. Subsequently she married the appellant, and on March 28 1892, surrendered her certificate and received a new one in which appellant was named as beneficiary. On July 11, 1901 she died. At the time of her death her certificate was in full force, and she was in good standing with the association and had paid all the dues and assessments against her. The suit is to recover the amount of the certificate.

The respondent filed an answer in which it pleaded certain by-laws that, if enforced, reduced the amount due on the certificate to $ 1,816.80. It also pleaded that Augusta W Delano, executrix of Rufus J. Delano, claimed the fund setting out at length the merits and nature of the claim and asked that she be made a party to the suit, offering to pay the amount found to be due on the certificate into court and asking the court to require the appellant and Augusta Delano, executrix of Rufus J. Delano, to interplead for the fund.

A demurrer to this portion of the answer was filed and by the court overruled; whereupon the plaintiff and respondent submitted the issue as to the amount due on the certificate to the court upon the following agreed statement of facts:

"It is stipulated and agreed between the plaintiff and defendant for all purposes of litigation arising out of a certificate issued at the request of Franciska Richmond to her for the benefit of her husband, William Richmond, dated March 28 1892, as to the following facts: That this certificate was a reissue of one formerly issued to her by the defendant on the 22nd day of August, 1888; that the application filed of the lastly-mentioned date was the one signed by her at the time the first certificate named was issued to her; that section 164, clauses 2 and 3, of the by-laws of the defendant, were adopted by it after the 28th day of March, 1892, and were the by-laws of the defendant at the time of the death of Franciska Richmond; that the number of the members of the defendant were so numerous that an assessment, according to the by-laws, would exceed $ 2,000 in the event that the order should be required to pay such sum at the time of her death; that the said deceased, Franciska Richmond, had paid into the order as assessments since August 22, 1888, to the date of her death the sum of $ 316.80; should defendant, as it claims, be entitled to retain the difference to make up the twenty-five per cent of the $ 2,000, according to the by-laws of the order, at the death of Franciska Richmond, then the court will find that the amount tendered into court by its amended answer is the sum of $ 1,816.80, and the correct sum owed on the benefit certificate recited in plaintiff's petition, otherwise the amount owed is $ 2,000. All by-laws of the order in existence at the date of the death of Franciska Richmond, her application, certificate and charter and by-laws are as follows: . . .

"The only part of the application referred to by the parties in this agreed statement of facts made by the deceased, dated on the 18th day of August, 1888, which the parties deem necessary in this suit, is as follows:

"'That the express conditions upon which my beneficiary or beneficiaries herein named shall be entitled to participate in the widows' and orphans' protection fund are that every statement made by me in regard to my qualifications for admission into the order are true and that I have heretofore and shall continue to comply in good faith with the charter, constitution and by-laws of the order as now in force or as may hereafter be enacted.' This was signed by deceased.

"The benefit certificate issued by the defendant made payable to the plaintiff referred to in this agreed statement of facts and referred to in plaintiff's petition, and filed as an exhibit thereto, is in words and figures as follows, to-wit:

"'Organized under the laws of the State of Missouri.

"'Supreme Lodge Order of Mutual Protection:

"'This certificate issued by the Supreme Lodge Order of Mutual Protection, witnesseth: that Franciska Richmond (formerly Kaysing) of St. Louis, Missouri, has been accepted as a member of the Order of Mutual Protection upon the faith of the representations contained in her application to the order and medical examination, and that the supreme lodge will, upon her death, provided she has, while a member, complied with the charter, constitution, laws, rules and regulations of the order, pay from the widows' and orphans' fund the amount of one assessment not to exceed, however, the sum of two thousand dollars to her husband, William Richmond, unless this certificate should be by her revoked.

"'The express condition upon which this certificate is issued is that the rights of the above-named beneficiary or beneficiaries shall be determined by the charter, constitution, laws, rules and regulations of the order in force at the time that the sum due hereunder is payable.

"'In witness whereof the Supreme Lodge Order of Mutual Protection has caused this certificate to be signed by the supreme president and its seal to be hereto affixed and attested by the supreme secretary.

"'Accepted as a beneficiary member on March 28, 1892.

"'Reissued. Original dated August 22, 1888.'

"The parts of the by-laws which the plaintiff and this defendant have agreed are necessary to a determination of this case are as follows:

"'Sec. 138. Members to have control of.--A contributing member to the widows' and orphans' protection fund shall have full control of his interest therein so long as he shall remain a member thereof, and he shall be entitled to draw upon the same in case of his total permanent disability, as hereinafter provided, notwithstanding the designation by him of some other person, or persons, to receive said benefit in case of his death.

"'Sec. 164. All beneficiary members of the order, regardless of the date of their benefit certificate or date of their enrollment as such members, shall pay into the widows' and orphans' protection fund in assessments, in the manner provided by law, at least twenty-five per cent of the amount named in their benefit certificates, before their beneficiaries or legal representatives shall be entitled to receive the death benefit; provided, that in the case of the death of a member before he had paid in assessments into the widows' and orphans' protection fund the full amount of the said twenty-five per cent, then there shall be deducted from the amount called for by his benefit certificate a sum equal to the unpaid portion of the said twenty-five per cent, and his beneficiary or beneficiaries shall receive the amount called for by the benefit certificate less the amount so deducted, and no more.

"'Whenever a claim is paid by the order on account of the death of a member, who had not paid in assessments the required twenty-five per cent of the amount of his certificate, the difference between the sum paid to the beneficiary and the amount of the benefit certificate cancelled shall at once be withdrawn from the widows' and orphans' protection fund and placed in the reserve fund.

"'Sec. 67. The rights of a member, as well as the rights of his beneficiary, or beneficiaries, shall be determined by the constitution and by-laws in force at the time a claim is made by him, or them, though the laws existing at the time such a claim is made may be in conflict with the laws in force at the time such member was enrolled as a beneficiary member.

"'Sec. 176. Authority to Draw from the Reserve Fund.--The reserve fund shall not be drawn upon unless it shall appear at any time that the amount contributed by the members to the W. O. P. fund is not sufficient to meet the liability of said fund on account of the death or total disability of the members, nor then, unless the supreme lodge in session, or its executive committee between meetings, shall have authorized the action. It shall not, however, be in the power of the supreme lodge, or of the executive committee, to authorize the withdrawal of a greater sum from the reserve fund than is necessary to meet the actual existing liability.

"'Sec. 190. Benefit certificates shall be issued by the supreme secretary and shall be executed by the supreme president and the supreme secretary, under the seal of the supreme lodge.

"'Sec. 191. Each certificate shall be made payable for the benefit of such member or members of the applicant's family, or such person or persons dependent upon him, as he may designate by name.

"'Sec. 192. Should a member die without designating a beneficiary, or should his designation prove to be an unlawful one, then the claimants for the benefit shall be recognized in the following order and no other: (1) wife or husband; (2) children; (3) mother; (4) father, and (5) brothers and sisters.

"'Sec. 193. Each application for a benefit certificate shall be accompanied by one dollar, and each application for a reissue by fifty cents.

"'Sec 194. The surrender of a benefit certificate shall be in writing bearing the signature of the member. Each member shall be entitled upon the surrender of his benefit certificate and upon payment...