Taylor v. Grand Lodge A.O.U.W. of Minnesota
| Decision Date | 15 December 1905 |
| Docket Number | 14,483 - (79) |
| Citation | 105 N.W. 408,96 Minn. 441 |
| Parties | ARAMINTA H. TAYLOR v. GRAND LODGE A.O.U.W. OF MINNESOTA |
| Court | Minnesota Supreme Court |
Action in the district court for Hennepin county to recover $2,000 upon a beneficiary certificate issued by defendant to Wilbur N. Taylor, payable in event of his death to plaintiff. The case was removed to the district court for Ramsey county and tried before Jaggard, J., who found in favor of defendant. From an order, Kelly, J., granting a motion for a new trial defendant appealed. Reversed.
Insurance -- Material Misstatement.
A. made a written application for membership in a lodge, and therein stated that he was forty-four years of age. The laws of the order restricted the membership to persons who are under forty-five years of age at the time of their admission. Accompanying the application and as part thereof was a certificate, signed by the applicant, which contained the following language: "I certify that the answers made by me to the questions propounded by the medical examiner of lodge, which are attached to this application and form a part thereof, are true, and if it should hereafter appear that I have made false statements in any particular, notwithstanding in the meantime I may pay all my regular assessments, it is herein agreed upon my part, the said false statements and actions shall render null and void forever my beneficiary certificate to be hereafter issued upon the basis of this agreement and medical examiner's report attached to this application." A beneficiary certificate was issued to A in 1893 and from that time until his death in 1903 all dues and assessments were regularly paid. After death the lodge learned for the first time from the proofs of death that when the application was made A. was more than forty-five years of age, and the trial court found that the statement that he was forty-four years of age was false and fraudulently made for the purpose of obtaining a membership in the lodge. After the lodge learned that there was a discrepancy between the statements contained in the application and the proofs of death, it suggested to the beneficiary that it would be well for her to select an attorney with whom negotiations could be carried on, and this was done. The assessments which had been paid were never returned, but the lodge was at all times willing to return same, and so notified the attorney for the beneficiary and administratrix. Upon these facts it is held:
1. That the understatement of his age by the applicant increased the risk and was material as a matter of law.
2. That the beneficiary certificate which was issued to the applicant was null and void ab initio.
3. That as the beneficiary certificate was obtained by actual fraud the lodge was under no legal obligation to return what had been paid as assessments before it could claim that the contract was not in force.
4. That the lodge was not estopped to claim that the beneficiary certificate was void, by its request that the beneficiary name some one with whom it could negotiate with reference to the claim.
5. That there is nothing in the facts and circumstances disclosed by this record to create an estoppel or show that the lodge waived its right to claim that the contract is void.
W. H. Adams and E. Southworth, for appellant.
C. J. Bartleson and C. H. Rossman, for respondent.
This is an appeal from an order vacating an order for judgment for the defendant and granting a new trial. The action was brought by the plaintiff to recover money claimed to be due from the defendant upon a beneficiary certificate issued by the defendant to Wilbur N. Taylor, the deceased, who at the time of his death was the husband of the plaintiff.
Prior to April 14, 1902, the defendant was a voluntary association of persons doing business under the name of the Grand Lodge of the Ancient Order of United Workmen of the State of Minnesota. On said April 14, 1902, the defendant was incorporated under that name, and ever since has been a corporation and liable upon any and all beneficiary certificates issued prior to the date of the incorporation by the Grand Lodge as a voluntary association. The defendant is a fraternal beneficial and benevolent society, organized for the promotion of the social and fraternal welfare of its members and for the protection of those who pursuant to its laws are its beneficiaries. The general supervision and jurisdiction over the whole order rests in the Supreme Lodge. The Grand Lodges receive their power and authority from this Supreme Lodge, and have supervision and control over the order within certain territorial limits, with power and authority, subject to the approval of the Supreme Lodge, to adopt a constitution and by-laws for its own government and for the government of all subordinate lodges of the order within such territorial limits. The defendant Grand Lodge has jurisdiction within the territorial limits of the state of Minnesota, and under its authority subordinate lodges are organized, which are composed of individual members of the order. This Grand Lodge has the power to create, manage, and disburse a beneficiary fund and to issue beneficiary certificates to members of the order within its jurisdiction, pledging said fund to the payment of $2,000 to such person or persons as shall from time to time be designated to receive the same. The constitution and by-laws of the Grand Lodge, duly approved by the Supreme Lodge, which have been in force since September 28, 1893, and for some time prior thereto, provide that any person, to become a member of the order or be entitled to its benefits or profits, must be under the age of forty-five years at the time of receiving the workman degree of said order.
On September 28, 1893, Wilbur N. Taylor, the husband of the plaintiff herein, made a written application for membership and a beneficial certificate in one of the subordinate lodges organized under the authority of the defendant Grand Lodge. To this application there was attached a certificate, which was signed by Taylor, in which he certified that the answers and statements contained in the application were true and correct. The certificate, which was a part of the application, contained the following language:
If it should hereafter appear that I have made false statements in any particular, notwithstanding in the meantime I may pay all my regular assessments, it is herein agreed upon my part, the said false statements and actions shall render null and void forever my beneficiary certificate, to be hereafter issued upon the basis of this agreement and medical examiner's report attached to this application.
In the application Mr. Taylor stated that he was born on December 2, 1849, and at the time of making the application was forty-four years of age. In due course Taylor was elected a member of the order and of the lodge, and passed through the various degrees which were necessary to qualify him for receiving the beneficiary certificate. Mr. Taylor received the beneficiary certificate, and from the date thereof until his death paid all the assessments required of any member of the order. Mr. Taylor died on November 20, 1903, and on December 5, 1903, the beneficiary named in the certificate furnished proofs of his death, from which it appeared that Taylor had been born on December 2, 1846, instead of 1849, as stated in the application. This was the first notice the defendant had that Taylor had misstated his age in the application. It appears that the matter was then referred to the proper officer of the order, and on January 22, 1904, this officer wrote Mrs. Taylor, calling her attention to the fact that there appeared to be a material discrepancy between the statements of the age of Mr. Taylor as given by him in his application for membership and as given by her in the proofs of loss. He also informed her that the report of the matter would be made to the committee of finance of the Grand Lodge, which must first pass upon death claims, and suggested that she place her interests in the hands of
Some person, attorney at law or otherwise, whom you have confidence in, that we may possibly reach some agreement upon the facts and the law governing the same. Our order desires at all times to do exact justice by its members and their beneficiaries, but I hesitate to put myself in the position of conducting negotiations directly with you, but prefer that the same be conducted for you by some one informed in the law of insurance.
Mrs. Taylor, apparently acting upon this suggestion, employed an attorney to look after her interests, and on April 12, 1904, one of the officers of the lodge notified this attorney in writing that
The finance committee of the Grand Lodge at its recent meeting decided in their judgment that there was no liability under the beneficiary certificate of Wilbur N. Taylor, but that, without admitting any liability, they would be willing to refund to the widow of the deceased all amounts paid by Mr. Taylor to the Grand Lodge as assessments. This amount will be approximately $200.
Plaintiff declined to accept this proposition, and brought suit to recover the full amount of the beneficiary certificate. The trial court found that the statement of Taylor, made in the application, as to his age, was knowingly false and untrue; that Taylor was at the time of the application in his forty-seventh year, and was therefore ineligible to membership in said lodge and not entitled to receive the beneficiary certificate; that the false statement was made for the purpose of procuring membership in the lodge and order, and for the purpose of procuring the beneficiary certificate; and ordered judgment for the...
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