Weiberg v. Minn. Scandinavian Relief Ass'n

• Decision Date: 13 July 1898
• Citation: 76 N.W. 37,73 Minn. 297
• Parties: WEIBERG v MINNESOTA SCANDINAVIAN RELIEF ASS'N.
• Court: Minnesota Supreme Court

73 Minn. 297

76 N.W. 37

WEIBERGvMINNESOTA SCANDINAVIAN RELIEF ASS'N.

Supreme Court of Minnesota.

July 13, 1898.

(Syllabus by the Court.)

The articles of association of a mutual benefit life insurance company provided that applicants for membership must be not more than 65 years old, but its by-laws limited membership to persons not more than 55 years old. An applicant for membership, who was in fact 57 years old, represented that he was only 53 years of age, and, relying on this representation, the association admitted him to membership. Conceding, without deciding, that the by-law was valid, held that, the admission of a member not over 65 years of age being authorized by the articles of association, it was competent for the company to waive the provision of the by-law limiting the age to 55 years. Also that the acceptance and retention of an assessment against the member with full knowledge of his misrepresentation as to his age amounted to such a waiver.

Appeal from district court, Ramsey county; Hascall R. Brill, Judge.

Action by Johanna Weiberg against the Minnesota Scandinavian Relief Association. The court found for plaintiff, and from an order denying a new trial defendant appeals. Affirmed.

O. M. Hall, for appellant.

J. H. Ives, for respondent.

MITCHELL, J.

The defendant is a mutual benefit life insurance association. Its articles of association provided that applicants for membership must be not less than 21 nor more than 65 years of age, while its by-laws limited membership to persons not less than 21 and not more than 55 years of age. In December, 1882, Peter Weiberg made written application for membership in the association, in which he stated that his age was 53 years, and that he was born in 1829, when in fact he was born in 1825, and was over 57 years old. In this application Weiberg consented and agreed that any untrue or fraudulent statement therein contained “may forfeit any right to membership in the association, and all benefits, rights, and equities arising therefrom.” In reliance upon the statements contained in the application, and believing them to be true, the association issued to him a certificate of membership, by which it became liable, upon his death, to pay his widow a sum equal to $1 for each member of the defendant at the time of such death, but not exceeding $2,000, provided that during his life he made punctual payments of all dues and assessments for which he might become liable, and conformed in all respects with the by-laws, rules, and regulations of the association. It is conceded that he paid all dues and assessments up to the time of his death, which occurred April 19, 1897. The plaintiff, his widow, made due proof of death; but the association refused to pay, on the ground that the deceased had stated his age to be under 55 years, when in fact he was over that age, and consequently ineligible to membership under the by-laws. The plaintiff then brought this action, and the trial court found in her favor, on the ground that the defendant had waived any right to assert that it was not liable because of the deceased's false statement regarding his age. It may be added that the court found that he made this false statement with intent to deceive the defendant, although we think this is immaterial.

The respective counsel join issue as to the validity of the by-law limiting membership to persons not over 55 years of age; counsel for the plaintiff contending that it is void because in conflict with the provision in the articles of association making the limit 65 years, while counsel for the defendant claims that it was competent for the association by its by-laws to still further limit eligibility to membership. In our view, the question is not material. Assuming that the by-law was valid, still the admission of members over 55, but not over 65, years of age, was intra vires, under the articles of association, and it was competent for the association to waive the conditions of a mere by-law. Morrison v. Insurance Co., 59 Wis. 162, 18 N. W. 13;Davidson v. Society, 39 Minn. 303, 39 N. W. 803; 1 Bac. Ben. Soc. § 265.

On the other hand, if the by-law was invalid, the false representation as to age was material, and, by the terms of the deceased's application for membership, was a ground for the forfeiture...