St. Louis Police Relief Ass'n v. Tierney

• Citation: 116 Mo. App. 447,91 S.W. 968
• Parties: ST. LOUIS POLICE RELIEF ASS'N v. TIERNEY et al.
• Decision Date: 30 January 1906
• Court: Missouri Court of Appeals

91 S.W. 968

116 Mo. App. 447

ST. LOUIS POLICE RELIEF ASS'N v. TIERNEY et al.

St. Louis Court of Appeals. Missouri.

January 30, 1906.

INSURANCE—MUTUAL BENEFIT ASSOCIATIONS —DESIGNATION OF BENEFICIARY—SUFFICIENCY OF DESIGNATION.

The constitution of a mutual benefit association, composed of members of a municipal police force, provided that an applicant should call at the association's office on the third day after his admission and designate on the death benefit record the disposition of his benefit, and that in case of failure to designate, the benefit should be paid to the member's heirs at law, and that no record of the association should be taken from the office and left at any police station except when in the custody of the secretary. In most cases the regulation as to designation on the third day was not complied with, and the secretary made a practice of calling at the several police stations, where the policemen called at their convenience and made designations. A member who had designated his wife as his beneficiary ceased to be a member by resignation from the force, but subsequently he again became a member, but failed to make a designation on the third day. During his last illness, he sent word to the secretary that he desired to designate his wife, but the secretary replied that it was not necessary, as the former designation was sufficient. No membership certificates were issued by the association, and there were no by-laws, so that the entire contract was governed by the constitution. Held, that the constitutional provisions as to designation on the third day were merely directory, and, in equity, the wife, and not the heirs at law, had been designated.

Appeal from St. Louis Circuit Court; Horatio D. Wood, Judge.

Interpleader by the St. Louis Police Relief Association against William Tierney and others. From a decree for Garrard Strode, as administrator, and others, William Tierney appeals. Affirmed.

This suit is in equity by bill of interpleader. Plaintiff is a beneficiary society organized under the provisions of article 10 of chapter 21 of the Revised Statutes of Missouri of 1879 and an act of the General Assembly entitled "An act authorizing the formation of a police relief association in any city having over one hundred thousand inhabitants, approved March 12, 1881." Acts 1881, p. 87. The objects of the plaintiff association are stated in section 1 of its charter to be: "To create a fund for: First, the purposes of affording relief to such members of the association as may become (a) sick, (b) disabled, (c) incapacitated by long years of service. Second, to aid the families of police officers who may die while members of the association." Members of the police force of the city of St. Louis are eligible to membership in the association by complying with certain requirements, and upon the death of a member in good standing, the association thereupon becomes obligated to pay to the beneficiary properly designated by said member, the sum of $2,000, and if the member shall have failed to make the designation of a beneficiary, the said sum is to be paid to his heirs at law, in accordance with the law of descent and distribution, and if he has failed to designate and has no heirs at law, the fund then reverts to the association. Michael Tierney, a police officer, departed this life while holding a membership in plaintiff association entitling his proper beneficiary to $2,000. It is alleged on one hand by one set of interpleaders that he had properly designated his wife, Margaret Tierney, as his beneficiary, and that she was therefore entitled to the fund of $2,000, and she having since died, her estate is entitled thereto. On the other hand, it is alleged by another set of interpleaders that Michael Tierney made no designation of his said wife as beneficiary of said fund, and therefore the same rightfully belongs to them as heirs at law of the assured. In order to relieve itself from being harassed by these rival claimants, plaintiff association filed its bill of interpleader in the court of equity, setting up the facts, acknowledging liability to the extent of $2,000 to the proper parties, whoever they might be, and paid the amount into court, less a small allowance to it for attorneys' fees, and prayed the court for an order of interpleader on the said rival claimants whereby the right to said fund might be properly adjudicated, etc., and the plaintiff discharged from further responsibility concerning the same. The interpleas were duly filed presenting the several claims. The pleadings and a more extended statement of the facts may be found in the same case, 103 Mo. App. 694, 77 S. W. 1091, where this case is reported on a former appeal.

Upon the trial, the following facts were developed in evidence: Michael Tierney, several years ago, became a member of the police force of the city of St. Louis, and, on August 4, 1890, also became a member of the St. Louis Police Relief Association, which at that time and prior to its readjustment, provided a death benefit of $1,000 instead of $2,000, as at present. On August 19, 1892, he properly designated his wife, Margaret Tierney, on the books of the association as his beneficiary. On June 30, 1897, Michael Tierney resigned from the police force in order to embark in business, whereupon, by virtue of the constitution of the association, he having severed his connection with the police force, ipso facto severed his connection with the relief association. Having thus severed his relations with the plaintiff association, he followed another calling for two years and more, and on August 21, 1899, became a member of the St. Louis police force a second time, and on the 25th day of the same month, on his new application, etc., became a member of the plaintiff association a second time and by his act of thus becoming a member of the plaintiff association a second time, the association became obligated to pay upon his death while in good standing, to such other wise proper beneficiary as might be designated by him upon "the death benefit record" of the association, $2,000. It seems that although the relief association had not been reorganized, the plan of relief had been so readjusted during the interim between Tierney's first and second affiliation therewith that it paid a benefit of $2,000 under the new, instead of $1,000 under the old arrangement. It appears that this association issued no certificate of membership in the nature of a policy or otherwise to its members, and that therefore Tierney had no certificate evidencing the contract or any part thereof between himself and the association.

Section 5 of article 1 of the constitution of the association provided for the designation and change of beneficiary and is as follows: "Designation of Beneficiary. When an applicant is admitted to membership, he shall call at the office of the association between the hours of 9 and 11 a. m. on the third day after he has been admitted to membership, and designate on the death benefit record the disposition of his death benefit. Provided, that a member may change his beneficiary by notifying the secretary in writing of his desire to do so, and designating the change desired." Section 4 of article 7 of the constitution provided when and to whom the death benefit should be paid, and is as follows: "Death. Whenever any member of the police force, who is a member of this association shall die, the sum of $2,000 shall be paid within thirty days after his demise, to such person or persons as he may have designated on the books of the association. If he shall have failed to designate, it will be paid to his heirs at law in accordance with the law of descent and distribution. If he shall have failed to designate, and has no heirs at law, it shall then revert to the association." Section 1 of article 2 of the constitution provides as follows: "The rights, powers and responsibilities of this association shall be vested in, enjoyed, exercised and borne by an Executive Committee." Section 3 of article 5 of the constitution constitutes the secretary the active business officer of the association, and is as follows: "Secretary. The secretary shall (1) before performing an official act, enter into bond in the sum of five thousand dollars, for the faithful performance of his official duties, the expense of which bond shall be borne by the association; (2) attend all meetings of the executive committee and record the proceedings thereof as approved; (3) conduct the correspondence of the association; (4) preserve the seal of the association, and prevent the improper use thereof; (5) collect all moneys due the association, and pay the same over to the treasurer on or before the first Monday after each payday in the presence of at least two trustees; (6) keep a cash book showing (a) all moneys received, and from what source; (b) all moneys disbursed and on what account; (7) keep an individual ledger account with each member of the association, and such other books as may be required; (8) exhibit his books, papers and accounts to any member of the executive committee whenever requested to do so; (9) report quarterly to the executive committee a detailed statement of the transactions of his office for the current quarter; (10) perform such other duties as may be from time to time prescribed by the executive committee; (11) transmit to his successor in office, as soon as qualified, all property of the association appertaining to his office; and (12) it shall be the duty of the secretary to be at his office from 9:00 to 11:00 a. m. on the third day after an applicant has been admitted to membership, so as to allow him to designate the disposition of his death benefit; it shall be attested by the secretary under the seal of this association." Section 1 of article 9 of the constitution provides as follows: "No record of the association shall be taken from the office and left at any...