Tisch v. Protected Home Circle

• Decision Date: 21 March 1905
• Docket Number: 8901
• Parties: Tisch v. The Protected Home Circle.
• Court: Ohio Supreme Court

74 N.E. 188

72 Ohio St. 233

Tisch v. The Protected Home Circle.

No. 8901

Supreme Court of Ohio

March 21, 1905

A by-law of a fraternal benefit association - Providing that certificate issued to a member shall be void in case of beneficiary's suicide - Is consistent with the purposes of the association - Such by-law adopted after issue of certificate - Violates no vested right of beneficiary - Laws of beneficiary associations - Law of contracts.

1. A by-law, adopted by a fraternal benefit association, which provides that a benefit certificate issued to a member shall be void and all benefits thereunder forfeited in case the insured shall die by suicide, felonious or otherwise, sane or insane, is consistent with the purposes of the association and with its corporate charter, and imposes a reasonable condition upon which the parties to the contract may agree.

2. Such a by-law, although adopted after the benefit certificate was issued to the insured and before the death of the insured by suicide, violates no vested right of the beneficiary.

3. Where a benefit certificate issued by a fraternal benefit association is silent in regard to suicide by the insured but the application therefor contains agreements, signed by the insured, to conform in all respects to the laws, rules and usages of the order then in force, or which might thereafter be adopted by the association, and that such compliance is the express condition upon which the insured shall be entitled to participate in the beneficiary fund which application is made a part of the contract, and such benefit association afterwards and before the death of the insured adopts a by-law which provides that "the benefit certificate issued to a member shall be void and all benefits thereunder forfeited in case the insured shall die by suicide, felonious or otherwise, sane or insane," such by-law thereby becomes a condition in the contract which, if broken by the insured, will defeat a recovery thereunder.

The plaintiff brought suit against The Protected Home Circle alleging that the defendant entered into a written contract with his wife, Nell A. Tisch, the material parts of which contract are as follows:

MONTHLY PAYMENT.

No 15334. $.78 $1,000.

THE PROTECTED HOME CIRCLE.

SHARON PENNA.

Incorporated under the General Laws of the State of Pennsylvania, August 7, 1886. Benefit Certificate.

This Certificate Witnesseth, That the Supreme Circle of the Protected Home Circle, in consideration of the representations and declarations made in the application of Nell A. Tisch, of Rock Creek, state of Ohio, for benefit membership therein, which application is filed in the office of the Supreme Secretary as part of this contract, and 78-100 dollars as the first monthly payment upon the same, on or before the delivery hereof, and a like amount to be paid by her to this Supreme Circle at the beginning of each month after the receipt of these presents, such payment to be made within thirty days after becoming due, and in case such payment is not made before the expiration of said thirty days this benefit certificate shall become null and void, and may not be thereafter revived except upon the filling out of and acceptance by the Supreme Accountant of a reinstatement blank furnished by the Supreme Circle, does promise and agree to pay to P. P. Tisch, husband, or the legal representatives of the member to whom this benefit certificate is issued the sum of one thousand dollars, pursuant to the provisions of the laws of the order governing the benefit fund and relating to the granting and payment of benefit certificates within ninety days after the receipt by the Supreme Circle of satisfactory evidence of the death of the member to whom this benefit certificate is issued, provided, always, that said member shall be in good standing in this order at the time of death. * * *

I accept this certificate on the conditions above named.

NELL A. TISCH,

Signature of Holder.

Signed and delivered in our presence,

C. E. FERRIS, President.

H. L. MILLER, Secretary.

Rock Creek Circle No. 154, P. H. C.

In witness whereof, the said Supreme Circle of the Protected Home Circle has caused its corporate seal to be hereunto affixed and these presents to be subscribed by its President and Secretary, at Sharon, Penna., this first day of August, A. D., one thousand eight hundred and ninety-four.

(Seal of the Protected Home Circle)

P. D. STRATTON,

Supreme President.

J. W. MASON,

(Local Circle Seal) Supreme Secretary.

The petition alleged that the said Nell A. Tisch paid all dues according to the agreement and performed all other conditions to be performed by her, and at her death was in good standing in the order; that the plaintiff had made satisfactory proof of her death, and that more than ninety days elapsed after the delivery of the proof before the beginning of the action, but that the defendant refuses to pay the sum due thereon; and asking judgment for the sum of one thousand dollars with interest from December 20, 1900.

The answer of defendant, after sundry admissions and denials, alleges that it issued the said benefit certificate to the said Nell A. Tisch in consideration of the representations, declarations and statements contained in a written application of Nell A. Tisch, signed by her, which application is made a part of said benefit certificate and is so made by the terms of said application and by the terms of said benefit certificate; that the said application, among other things, contained the following agreement, to-wit: "I agree to make punctual payment of all dues and monthly payments for which I may become liable and conform in all respects to the laws, rules, and usages of the order now in force or which may hereafter be adopted by the same." Attached to the report of the medical examiner and referred to and made part of said answer was an agreement signed by said Nell A. Tisch, which was in part as follows: "I do hereby agree that compliance on my part with all the laws, rules, regulations and requirements, now in force or that may hereafter be enacted by the association, is the express condition upon which I am to be entitled to participate in the beneficiary fund to the amount named in the constitution and laws of the association." The said answer also set out certain parts of the charter under which the defendant was incorporated, as follows:

"Article IV. The term for which said corporation shall exist shall be unlimited.

"Article V. Said corporation shall have power to institute a Supreme, and such State, District and Local Circles as may be deemed necessary in accordance with its constitution and laws; also to draft a constitution and laws for their government which shall determine the time, place and manner of the election of officers, their number, names and terms of service; the reception of members, their rights, privileges, obligations, duties, dues, fees and penalties; the right to control all funds raised for the prosecution of its work in accordance with its laws, to determine the qualifications of its own members, and also the right to have and use a common seal.

"Article VI. The business, property and affairs of the said corporation shall be under the general control and management of a board of directors and such other officers as may be provided for in the bylaws, as provided in the act of assembly and to be chosen as therein provided."

And also the constitution and laws of the defendant which were in force at the date of the application by Nell A. Tisch as aforesaid, which are as follows:

"CONSTITUTION AND LAWS OF THE PROTECTED HOME CIRCLE.

"ARTICLE I. COMPOSITION AND DIVISION.

"Section 1. Composition. The Protected Home Circle shall be composed of all of its members, duly received and in good and regular standing.

"Section 2. Division. This Order shall be divided into Supreme and Local Circles, whose powers, privileges, obligations and duties are set forth under their respective constitutions herein contained.

"CONSTITUTION OF THE SUPREME CIRCLE.

"ARTICLE II. NAME, JURISDICTION, POWERS, ETC.

"Section 1. Name. This body shall be called The Supreme Circle of the Protected Home Circle.

"Section 2. Jurisdiction. This Circle shall have jurisdiction over all such Local Circles as may be instituted through its influence, and governed by its laws, wherever located, and the term of its existence shall be perpetual.

"Section 3. Powers. This Circle shall have power to institute such Local Circles as may be deemed necessary in accordance with the constitution. Also to draft constitutions and laws for their government, which shall determine the time, place and manner of their meetings and the election of their officers their number, name and terms of service; the reception of members, their rights, privileges, obligations, duties, dues, fees and penalties. The right to control all funds raised for the prosecution of its work in accordance with its laws; to determine the qualifications of its own members, and also the right to have and use a common seal.

"Section 4. Membership. The membership of this Supreme Circle shall comprise the original incorporators, during their membership in the order, and such faithful Deputy Supreme Presidents and other members of the order as shall be chosen by a two-thirds vote of the members present at any annual meeting, together with such regular representatives as are provided for in section 5 of this article.

"Section 5. Representatives. Each Local Circle comprising one hundred (100) or more beneficial members shall be entitled to send one (1) male representative to the Supreme Circle, who, when he has received the degree of protection according to the ritual adopted by this body,...