Sovereign Camp, Woodmen of the World v. Newsom

• Decision Date: 09 February 1920
• Docket Number: (No. 168.)
• Citation: 219 S.W. 759
• Parties: SOVEREIGN CAMP, WOODMEN OF THE WORLD, v. NEWSOM.
• Court: Arkansas Supreme Court

219 S.W. 759

SOVEREIGN CAMP, WOODMEN OF THE WORLD, v. NEWSOM.

(No. 168.)

Supreme Court of Arkansas.

February 9, 1920.

On Rehearing March 23, 1920.

Appeal from Circuit Court, Chicot County; Turner Butler, Judge.

Action by Mrs. Nola Newsom against the Sovereign Camp, Woodmen of the World. From judgment for plaintiff, defendant appeals. Affirmed.

T. E. Helm and Gardner K. Oliphint, both of Little Rock, for appellant.

Harry E. Cook, of Lake Village, for appellee.

WOOD, J.

This action was instituted in Chicot circuit court by the appellee against the appellant to recover on a certificate of insurance issued by the appellant to the husband of the appellee, in which certificate the appellee was the beneficiary.

The appellant is a mutual benefit secret fraternal association. The appellee alleged in substance that the appellant was authorized to do a life insurance business among its members in the state of Arkansas; that in July, 1908, her husband, Asa J. Newsom, became a member of the appellant, and that it issued to him a certificate insuring his life in the sum of $1,000 to be paid to the appellee in case of his death; that on the 4th day of April, 1918, Newsom died, and that at the time of his death all dues and assessments due the appellee had been paid; that appellant had been duly notified of Newsom's death and refused upon demand to pay the appellee the amount of the sum due her under the certificate.

The appellant answered, admitting the issuance of the certificate and that the appellee was the beneficiary named therein and admitting the death of Newsom. But the appellant denied that Newsom had complied with the constitution and by-laws of the appellant, in that he failed to pay the dues of the Sovereign Camp for the month of March, 1918, and that on account of such failure under the by-laws Newsom became suspended and remained so at the time of his death, whereby his contract of insurance was rendered void.

The material facts upon which the issue thus joined was heard are undisputed, and they are as follows:

On the 29th of June, 1908, Asa J. Newsom made written application for membership and participation in the beneficiary fund of the appellant. He was received as a member and on July 10, 1908, the appellant issued to him a certificate in the sum of $1,000 in which the appellee was named as the beneficiary.

The certificate among other things recited that it was issued and accepted subject to all the laws, rules, and regulations of the fraternity then in force or that might thereafter be enacted; that the certificate should be null and void if the insured did not comply with all such laws, rules, and regulations of the Sovereign Camp of the Woodmen of the World, and with the by-laws of the camp of which he was a member.

There were these further recitals:

"This certificate is issued in consideration of the representations, agreements, and warranties made by the person named herein in his application to become a member, and in consideration of the payment made when introduced in prescribed form, also his agreement to pay all assessments and dues that may be levied during the time he shall remain a member of the order.

"If the admission fees, dues, and Sovereign Camp fund assessments levied against the person named in this certificate are not paid to the clerk of his camp as required by the constitution and laws of the order, this certificate shall be null and void and continue so until payment is made in accordance therewith."

The application contained, among other things, the following recitals:

"I hereby consent and agree that this application, consisting of two pages, to each of which I have attached my signature, and all the provisions of the constitution and laws of the order now in force or that may hereafter be adopted, shall constitute the basis for and form a part of any beneficiary certificate that may be issued to me by the Sovereign Camp of the Woodmen of the World, whether printed or referred to therein or not.

"I agree that, if I fail to comply with the laws, rules, and usages of the order now in force or hereafter adopted, my beneficiary certificate shall become void and all rights of any person or persons thereunder shall be forfeited.

"I agree to pay all assessments and dues for which I may become liable while a member of the order, as required by its constitution and laws."

The pertinent provisions of the constitution and laws of appellant are as follows:

Section 3: "The object of the society is to combine white male persons of sound bodily health, etc., into a secret fraternal beneficiary and benevolent society, to create a fund from which, on the death of members who have complied with all the requirements, the beneficiaries of said members may be paid according to the agreements; that a monument shall be erected at the grave of such member who dies in good standing and according to the contract and agreement with the society."

Section 56: "In order to pay death losses, disability benefits, monument obligations, emergency fund, and Sovereign Camp general fund dues, every applicant admitted to membership to the Sovereign Camp, Woodmen of the World, on or after September 1, 1901, and to whom a beneficiary certificate is issued, shall annually pay to the Sovereign Clerk, in advance, an assessment based on their ages at nearest birthday at a date of entry (except as otherwise provided in sections 42 and 43 of the constitution and laws), as specified in the following table of rates."

Then follows the table of rates showing that for the age of 40 the annual assessment on $1,000 is $15.84. Then follows the provision that members, should they so elect, may pay the same in 12 monthly installments to the clerk of their camp on or before the 1st day of each month, based on a table of payments. Then follows the table showing that at the age of 40 on a certificate of $1,000 the monthly payment is $1.32.

"In the event the insured has not paid his annual assessment in advance, but has paid installments of his assessment and dues up to and including the month of his death, the Sovereign Camp shall deduct from the amount of his certificate the balance due for the installments to cover the entire annual assessment."

Section 60: "The following conditions shall be made a part of every beneficiary certificate, and shall be binding on both member and this society:

"First. This certificate is issued in consideration of the representations, warranties, and agreements made by the person named herein in his application to become a member, and in consideration of the payment made when introduced in prescribed form; also his agreements to pay all assessments and dues that may be levied during the time he shall remain a member of this society.

"Second. If the admission fees, dues, and Sovereign Camp fund assessments levied against the person named in this certificate are not paid to the clerk of his camp as required by the constitution and laws of this society, this certificate shall be null and void and continue so until payment is made in accordance herewith."

Waivers. — Section 69: "(a) No officer, employé or agent of the Sovereign Camp, or of any camp, has the power, right, or authority to waive any of the conditions upon which beneficiary certificates are issued, or to change, vary, or waive any of the provisions of this constitution or these laws, nor shall any custom on the part of any camp or any number of camps — with or without the knowledge of any Sovereign officer — have the effect of so changing, modifying, waiving, or foregoing such laws or requirements. Each and every beneficiary certificate is issued only upon the conditions stated in and subject to the constitution and laws then in force or hereafter enacted.

"(b) The constitution and laws of the Sovereign Camp of the Woodmen of the World now in force or which may hereafter be enacted, by-laws of the camp now in force or which may be hereafter enacted, the application, and certificate shall constitute a part of the beneficiary contract between this society and the member."

Section 110: "Every member of this society shall pay to the clerk of his camp one annual assessment or one monthly installment of assessment as required in section 56. * * *

"(b) If he fails to make any such payments on or before the 1st day of the month following, he shall stand suspended, and during such suspension his beneficiary certificate shall be void."

Section 113: "On or before the 5th day of every month the clerk of each camp shall cause a warrant to be drawn on the banker of his camp, signed by himself and the Consul Commander, for all the Sovereign Camp dues in the hand of the banker then due the Sovereign Camp, and forward said funds and all other funds due the Sovereign Camp to the Sovereign Clerk. Such amounts shall be remitted in money order or bank draft with exchange payable to the order of the Sovereign Banker. Accompanying such remittances the clerk shall also forward such detailed statement of the standing of the members in the camp as shall be required for the information of the Sovereign Clerk, upon blanks furnished for that purpose."

Section 94: "He shall deliver or forward to the last-known post office address of the person paying the same a receipt for all moneys paid due the camp, pay the same to the banker, taking his receipt therefor, attest all warrants drawn on the banker, also beneficiary certificates and other official documents, and attach the camp seal. * * *

"(e) He shall remit all funds due and belonging to the Sovereign Camp to the Sovereign Clerk as by law provided. In case of failure of the clerk of the camp to comply herewith, the Sovereign Commander shall have the right to declare his office vacant and require the election and installation of his successor."

Section 119: "(b) Should any clerk knowingly violate this section, he shall on proof thereof be suspended from his office by the Sovereign...