Supreme Lodge Knights of Pythias of the World v. La Malta

• Decision Date: 15 June 1895
• Parties: SUPREME LODGE KNIGHTS OF PYTHIAS OF THE WORLD v. LA MALTA et al.
• Court: Tennessee Supreme Court

31 S.W. 493

95 Tenn. 157

SUPREME LODGE KNIGHTS OF PYTHIAS OF THE WORLD v. LA MALTA et al.

Supreme Court of Tennessee.

June 15, 1895

Error to circuit court, Shelby county; L. H. Estes, Judge.

Action by Emestine La Malta and others against the Supreme Lodge Knights of Pythias on an insurance certificate. Judgment was rendered for plaintiffs, and defendant brings error. Affirmed.

Frank P. Poston, for plaintiff in error.

Smith & Trezevant, for defendants in error.

CALDWELL J.

On the 14th day of May, 1889, the Supreme Lodge Knights of Pythias of the World issued to Frederick Schuman, of Memphis, Tenn a "Certificate of Membership" in the endowment rank of that order, whereby it bound itself to pay to his children, Lotta S. and Frederick E. Schuman, the sum of $3,000 upon his death in good standing. The children so named as beneficiaries died on the 30th of January, 1893, and Schuman himself died the next day. By the terms of the certificate and the laws of the order, all interest of the children ceased and determined upon and in consequence of their death in the father's lifetime, and upon his death without having nominated some other beneficiary all rights under the certificate passed to his next of kin and legatees under his will. Upon refusal to pay, Frederick Schuman's executrix and next of kin brought this suit in the circuit court of Shelby county to recover from the Supreme Lodge Knights of Pythias the full sum named in the certificate. Verdict was returned and judgment pronounced in favor of the plaintiffs, and the defendant appealed in error. The only real defense made in the court below was that Schuman, the assured, took his own life, and thereby, under the laws of the order, forfeited and annulled his certificate of membership, and absolved the defendant from all obligations to pay the same; and the rulings of the trial judge, in his charge as given, and in his refusal to instruct the jury as requested, upon the question of suicide, are in this court assigned as error.

It was admitted on the trial in the court below "that on the morning of the 30th of January, 1893, the two children of Fred Schuman were found in bed with him, dead, and that he was then insensible, and died on the 31st of January, 1893 and that his death and that of his children was caused by opium, or morphine, given by him to the children and taken by himself." It was also admitted that "Fred Schuman was much attached to these children and treated them very tenderly," that he died in good standing, and that payment of his certificate was refused alone upon the ground that he committed suicide."

The order of Knights of Pythias is not a regular life insurance company; but it is a benevolent association, with life insurance as one feature, to be enjoyed or not by each particular member at his own election, and upon certain terms and conditions. The laws of this order, as of other benevolent associations, when applicable and not in conflict with federal and state laws, or contrary to public policy are to be taken as parts of its contracts with its members, and as such are of great moment in the determination and enforcement of their respective rights and obligations under those contracts. Bac. Ben. Soc. §§ 161, 185; Tennessee Lodge v. Ladd, 5 Lea, 720, 721; Catholic Knights v. Kuhn, 91 Tenn. 216, 18 S.W. 385. At the time Schuman applied for and obtained the certificate in suit, the order of Knights of Pythias had no law against suicide, but the defendant insists that such a law was enacted before his death, and that it became binding upon him at once, and upon those who should claim under him. His written application for membership in the endowment rank contains this statement: "I hereby agree to conform to and obey the laws, rules, and regulations of the order governing this rank, now in force or that may hereafter be enacted, or submit to the penalties therein contained," and the certificate of membership recites upon its face that the consideration upon which it is issued is, among other things, "the full compliance," by Schuman, "with all the laws governing this rank, now in force or that may hereafter be enacted." These stipulations in the application and certificate were binding upon Schuman while he lived, and they are equally binding upon the plaintiffs since his death, and in consequence thereof the anti-suicide law, relied upon as a defense to this action, though enacted subsequent to the filing of the application and issuance of the certificate, became operative against him and them from the time it was passed, provided, only, that its passage was accomplished in such a manner as to make it a valid law of the order. Supreme Commandery v. Ainsworth, 71 Ala. 436. The law in question was passed by the "Board of Control of the Endowment Rank, Knights of Pythias," in regular quarterly session, on the 12th and 13th of January, 1893, as an amendment to article 6, § 1 of the "General Laws" of said rank, and it is as follows: "If the death of any member of the endowment rank heretofore admitted into the first, second, third or fourth classes, or hereafter admitted, shall result from self-destruction, either voluntary or involuntary, whether such member shall be sane or insane at the time, or if such death shall be caused or superinduced by the use of intoxicating liquors, narcotics, or opiates, or in consequence of a duel, or at the hands of justice, or in violation or attempted violation of any criminal law, then in such case the certificate issued to such member, and all claims against said endowment rank on account of such membership shall be forfeited."

Had the board of control legal authority and power to pass such a law? His honor, the trial judge, instructed the jury in effect that it had not, and that, for that reason, the supposed law was invalid, and without force or virtue in this case; and, entertaining that opinion, he also refused to instruct the jury, upon the request of the defendant, that such law was operative against the plaintiffs, and, upon the admitted facts, a complete answer and bar to their action. Undoubtedly, such a provision against self-destruction is reasonable, and, being so, it is, as previously stated herein, binding upon Schuman and upon those claiming under him, if validly enacted. The fact that its enactment was subsequent to the date of his certificate is rendered unimportant by the stipulations in the application and in the certificate itself, whereby he bound himself irrevocably to full obedience and submission to all legislation, then in existence or thereafter enacted for the government of the endowment rank, of which he was becoming a member. Those stipulations, however, though in the broadest terms, must be construed as relating to and embracing only such laws as the order had the legal right to make, and as it should make in a legal and binding form.

The Supreme Lodge Knights of Pythias of the World was incorporated, under an act of the congress of the United States on the 5th day of August, 1870. As then existing, the fundamental and general laws of the order contemplated one supreme lodge for all its membership in the world, one grand lodge for each state and territory of the Union, etc., and subordinate lodges for different towns and cities in those states, etc. All the powers of grand and subordinate lodges emanated from the supreme lodge. The grades of membership or of advancement in the subordinate lodges are three in number called "Ranks"; and a member of the first rank is designated as a "Page," of the second rank as an "Esquire," and of the third rank as a "Knight." Representatives from all the subordinate lodges of any given...