United Artisans v. Cronise

• Decision Date: 16 April 1918
• Citation: 172 P. 109,88 Or. 602
• Parties: UNITED ARTISANS v. CRONISE ET AL. [*]
• Court: Oregon Supreme Court

172 P. 109

88 Or. 602

UNITED ARTISANS v. CRONISE ET AL. ^[*]

Supreme Court of Oregon

April 16, 1918

Department 2.

Appeal from Circuit Court, Linn County; William Galloway, Judge.

Suit of interpleader by the United Artisans, a corporation, against Elizabeth F. Cronise and others. From the decree, defendant named appeals. Reversed.

This is a suit of interpleader filed by the United Artisan Lodge, a fraternal and benevolent organization, for the purpose of determining the ownership of the $1,900 insurance due upon the life of Harry H. Cronise. A benefit certificate for $2,000 was first issued to him by plaintiff on May 4, 1896. The money was paid into court. The defendant Elizabeth F Cronise the surviving widow of the insured, made proof of loss and claimed the insurance money, and the defendants Harry Kratz Cronise and Mable Cronise Laughlin, children of the deceased assured by his first wife, also claimed the insurance money as beneficiaries named in the benefit certificate, and plaintiff asked that the court determine the ownership thereof. Defendant Elizabeth F. Cronise claims this money upon the grounds: (1) That soon after the marriage of Harry H. Cronise, a contract was entered into wherein he promised and agreed to make his wife, Elizabeth F. Cronise beneficiary of his policy if she would make him beneficiary in her policy of the same lodge; that this contract was carried out by both parties as agreed; that Harry H. Cronise therefore became bound by such contract, and Elizabeth F Cronise acquired a vested interest in his policy, and therefore the contract should be specifically enforced and the money paid to Elizabeth F. Cronise. (2) That where the by-laws require certain things to be done and performed by the assured in designating a change of beneficiary in his policy, and the assured before death has performed each and all of said conditions, but the clerical act of making the change has not yet been performed by the insuring lodge, then equity will consider that as done which ought to be done and declare the change as having been actually made.

Harry Kratz Cronise and Mable Cronise Laughlin, the defendant children by the first wife, claim that the change of the beneficiary was invalid and rely upon the by-laws which state that "the new benefit certificate shall go into effect at 12 o'clock noon on the date issued by the supreme secretary," and upon the proposition that the request of Harry H. Cronise to have his policy changed was not acted upon by the lodge until after his death. The respondents deny that the alleged contract set up by the appellant was ever made or consummated. They claim the fund as beneficiaries under the benefit certificate outstanding at the time of their father's death. They also allege and claim that fraud and undue influence were exercised.

The by-laws provide, in section 75:

"Any member may change the beneficiary or beneficiaries named in his certificate, by returning his certificate to the secretary of his assembly with a written request to have the certificate canceled and a new certificate issued naming some other person or persons designated in such request, and not excluded by the laws. Such member shall pay a fee of $1.00 for the new certificate. Such request must be signed in the presence of the local secretary or a supreme officer or a notary public or two persons who shall sign such request as witnesses. The secretary shall send the returned certificate and request to the supreme secretary, accompanied by the fee of $1.00. The supreme secretary shall thereupon issue a new certificate in compliance with such request and forward it to the secretary of the subordinate assembly, to be delivered to the member. The new benefit certificate shall go into effect at 12 o'clock, noon, on the date issued by the supreme secretary."

The trial court found for the children by the first wife and decreed that the money be paid to them by the clerk of the court. An appeal is taken therefrom.

J. K Weatherford, of Albany (Weatherford & Weatherford, of Albany, on the brief), for appellant. Wm. Maurice Hudson, of Portland, for respondent United Artisans. C. E. Sox, of Albany (Hewitt & Sox, of Albany, on the brief), for other respondents.

BEAN, J. (after stating the facts as above).

We will first consider the effect of the transfer of the benefit certificate or change of beneficiary. It appears without conflict that Harry H. Cronise did make the written request on Thursday, April 27, 1916, to have the certificate canceled and a new one issued, which he forwarded by mail upon the same date to his local secretary and paid the fee of one dollar; that the request was signed in the presence of two persons who signed as witnesses. The assured died on May 2, 1916. The request, as per form printed on the back of the certificate, was in conformity with the by-laws. With the certificate and fee it was mailed at Lyons, Or., addressed to the secretary of the local assembly at Corvallis. In due course of the mail it should have reached Corvallis on April 27th, the date of its mailing, and have been delivered not later than the morning of April 28th, on which day it should have been forwarded to the supreme assembly at Portland and acted upon by April 29th of that year. The local secretary states that he did not get this certificate until May 1st; that he forwarded it as requested on May 2d. It appears that he was busy with other matters at that time. The same was received by the supreme lodge in Portland and a new certificate issued on May 3d, naming Elizabeth F. Cronise as beneficiary therein.

It must be conceded that the assured, Harry H. Cronise, did all in his power and all that the by-laws of the order required him to do in order to change the beneficiary. This was done in ample time so that in the ordinary course of business the requested change could have been made, and his wife, Elizabeth F. Cronise, substituted as beneficiary in the benefit certificate before the time of his demise.

When the assured has pursued the course prescribed by the laws of the association and has done all that he can possibly do to change the beneficiary, and a sufficient time has elapsed for a new certificate to be issued in the ordinary course of business, but before the new certificate is actually issued he dies, a court of equity will consider that done which ought to have been done and act as though the new certificate had been issued before the death of the assured. Nothing done by the society after the death of the member can affect the right of a beneficiary. 14 R. C. L. § 556, p. 1392; 19 Cyc 133(b); 1 Bacon, Ben. Soc., etc., § 309; Independent Foresters v. Keliher, 36 Or. 501, 507, 59 P. 324, 1109, 60 P. 563, 78 Am. St. Rep. 785; Stringham v. Dillon, 42 Or. 63, 70, 69 P. 1020; Supreme Conclave, Royal Adelphia, v. Cappella (C. C.) 41 F. 1. This latter case is the leading one around which many opinions center. See, also, Jory v. Sup. Council, 105 Cal. 20, 38 P. 524, 26 L. R. A. 733, 45 Am. St. Rep. 17; Lahey v. Lahey, 174 N.Y. 146, 66 N.E. 670, 61 L. R. A. 791, 95 Am. St. Rep. 554; Voigt v. Kersten, 164 Ill. 314, 45 N.E. 543, 545; Marsh v. S. C. A. Legion of Honor, 149 Mass. 512, 21 N.E. 1070, 1072, 4 L. R. A. 382; Modern Brotherhood of America v. Matkovitch, 56 Ind.App. 8, 104 N.E. 797; Isgrigg v. Schooley, 125 Ind. 94, 25 N.E. 151, 153; Wintergerst v. Court of Honor, 185 Mo.App. 373, 170 S.W. 352. In Independent Foresters v. Keliher, supra, it is stated that the general rule that in order to...