Scheufler v. Grand Lodge of Ancient Order of United Workmen of Minnesota
| Decision Date | 16 January 1891 |
| Citation | 47 N.W. 799,45 Minn. 256 |
| Parties | Luella Scheufler v. Grand Lodge of Ancient Order of United Workmen of Minnesota |
| Court | Minnesota Supreme Court |
Action brought in the district court for Ramsey county on a certificate for $ 2,000, issued by defendant to August Scheufler, and payable, upon his death, to the plaintiff, who is his widow. A jury was waived, and the action tried by Kelly, J., who ordered judgment for plaintiff. The defendant appeals from the judgment and from an order refusing a new trial.
Order and judgment affirmed.
Walter H. Sanborn, Joseph A. Eckstein, and Kueffner & Fauntleroy for appellant.
F. F Wilde and James Schoonmaker, for respondent.
The plaintiff is the widow of August Scheufler, who died June 15 1889. A recovery is sought upon a "beneficiary certificate" executed to the deceased, in April, 1884 by the defendant, in accordance with its constitution. This certificate declared that Scheufler was entitled to all the rights and privileges of membership in the order, and to participate in the beneficiary fund of the same to the amount of $ 2,000, and that at his death such sum should be paid to his wife, this plaintiff, subject, however, to the "express condition that said August Scheufler shall in every particular, while a member of said order, comply with all the laws, rules, and requirements thereof." The defence rests chiefly upon the facts, specifically alleged in the answer, that Scheufler did not comply with this condition of the contract; that as early as the year 1885, and always after that, Scheufler failed to comply with this condition in that he did not pay the "dues" which, by the terms of the constitution and by-laws of the order, he was required to pay quarter-yearly, and in that he did not pay certain assessments made upon the occurrence of the death of other members; that for these causes he had been suspended from membership in the order, and that the beneficiary certificate had ceased to be obligatory upon the defendant. The cause was tried by the court without a jury, and decided in favor of the plaintiff.
As to the issue concerning the corporate character of the defendant, we refer to Jewell v. Grand Lodge, 41 Minn. 405, (43 N.W. 88,) and Foster v. Moulton, 35 Minn. 458, (29 N.W. 155.) It appears that the defendant held itself out as a corporation, and it seems to have acted as such in making the contract in question. It is therefore chargeable as a corporation in this action whether it has a legal corporate existence or not.
Although in the complaint it was alleged generally that Scheufler had performed all the conditions of the contract on his part, and had paid all dues and assessments, yet it was incumbent upon the defendant, which had in defence alleged specifically the default of Scheufler to pay particular assessments and the dues for a specified period of time, to show such default, whereby the obligation of the defendant, admitted to have once existed under the contract, is claimed to have terminated. Tobin v. Western Mut. Aid Society, 72 Iowa 261, (33 N.W. 663;) Hodsdon v. Guardian Life Ins. Co., 97 Mass. 144, 147; Supreme Lodge, etc., v. Johnson, 78 Ind. 110. After the death of the insured member such matters may be deemed to be peculiarly within the knowledge of the surviving corporation.
The court expressed itself as satisfied that dues had become payable and that assessments were made, as alleged in the defence, but it was considered to be also incumbent on the defendant to show that notice had been given to Scheufler of such dues and assessments, and that the defendant had failed to make proof of such notice. There can be no doubt that, as to assessments such as are here referred to, notice to each member assessed is necessary, and in the absence of notice he cannot be deemed to be in default. The constitution of the defendant (article 14) prescribes that notices shall be given. These assessments are made upon the death of master workmen "in good standing" in a subordinate lodge, and who were entitled to share in the benefits of the beneficiary fund. Before an assessment should be made on account of such a death the proper officers of the lodge are to be informed, not only of the fact of death, but that the deceased was entitled to such benefits; hence notice of assessment should be given as the constitution provides, for no other provision is made for informing a member subject to assessment that such a charge rests upon him. Notice having been given, the assessment is then made, payable on or before the 28th day of the month in which notice has been given, the notice being given not later than the 8th day of the month. By express provision of the constitution, one who neglects to make payment within the time above stated "shall forfeit all his rights under said certificate," and his certificate "shall, by the fact of such non-payment, stand suspended, and no action on the part of the lodge or any officer thereof shall be required as essential to such suspension." Other provision is made for reinstating a member thus in default. The terms of the contract being as above indicated, the fact of the non-payment of an assessment by a member who has been notified of the assessment suspends the right to recover upon the contract in the event of his death while thus in default. Nibl. Mut. Ben. Soc. 314-316; Yoe v. Howard Mut. Ben. Ass'n, 63 Md. 86.
To determine the conditions or circumstances under which the obligation of the defendant upon its beneficiary contracts may be suspended or terminated by reason of the non-payment of dues, we must refer to several other provisions of the constitution and by-laws, which enter into and are to be deemed parts of the contract. Mills v Rebstock, 29 Minn. 380, (13 N.W. 162.) The constitution for the government of subordinate lodges requires each member to pay quarterly in advance, to commence with the date of his first degree, such sum as shall be prescribed by the by-laws. Article 11, § 1. Section 2 declares that any member who neglects or refuses to pay his dues for the period of three months "shall not be entitled to vote, and shall be disqualified from holding office;" and upon such neglect or refusal for the period of six months, "he shall be reported to the lodge by the financier, and the master workman shall, unless otherwise directed by the lodge, thereupon declare such member suspended from the order." Article 10, relating to the duties of officers, requires (section 7) the financier, an officer of the subordinate lodge, to notify all members in arrears to the amount of three months' dues, and when a member is in arrears to the amount of six months' dues he is to notify the master workman of the fact. The by-laws prescribe that the dues shall be six dollars per annum, In the constitution of the grand lodge the "beneficiary article" above referred to provides (section 14) that "any member suspended or expelled from the order for any cause whatever forfeits claims to the beneficiary fund during such suspension or expulsion." From the above provisions of the constitution and by-laws of the order, we conclude that the mere...
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