Wichita Council 120 of Security Ben. Ass'n v. Security Ben. Ass'n
| Decision Date | 27 January 1934 |
| Docket Number | 31456. |
| Citation | 28 P.2d 976,138 Kan. 841 |
| Parties | WICHITA COUNCIL NO. 120 OF SECURITY BEN. ASS'N et al. v. SECURITY BEN. ASS'N. |
| Court | Kansas Supreme Court |
Syllabus by the Court.
Conflict between provisions of laws of fraternal benefit society will be construed favorably to member or subordinate council and against supreme body (Rev. St. Supp. 1931, 40--701 et seq.).
Benefit society cannot enact by-law giving its national executive committee authority to suspend subordinate council or dissolve its charger without filing charges and giving notice and hearing thereon (Rev. St. Supp. 1931, 40--701 et seq.; Const. Kan. Bill of Rights, § 18; Const. U.S. Amends. 5, 14).
Benefit society member's agreement to by-law carries with it reservation that society has authority to enact by-law, and that it is reasonably necessary to carry out purposes of society (Rev. St. Supp. 1931, 40--701 et seq.).
Proceeding whereby member of benefit society seeks redress in court cannot be defeated on ground that member failed to exhaust right of appeal within society, where laws of society make no provision for appeal within society from ruling complained of (Rev. St. Supp. 1931, 40--701 et seq.).
1. A benefit society organized and operating under the laws of this state (R. S. Supp. 1931, 40--701 et seq.) is not authorized to enact a by-law giving its national executive committee authority to suspend a subordinate council and dissolve its charter without charges having been filed notice given thereon, and a hearing thereof.
2. The agreement of the member of a benefit society to provisions of the by-laws carries with it the reservation that the society has authority to enact the by-law and that it is reasonably necessary to carry out the purposes of the society.
3. When the laws of a benefit society make no provision for an aggrieved party to appeal within the society from a specific ruling, and the party seeks redress in the courts, it cannot be said that he failed first to exhaust his right of appeal within the society.
Appeal from District Court, Sedgwick County, Second Division; Robt. L. Ne Smith, Judge.
Mandamus action, by the Wichita Council No. 120 of the Security Benefit Association and others against the Security Benefit Association. From an adverse judgment, defendant appeals.
Geo. R Allen and Richard F. Allen, both of Topeka, A. W. Fulton, of Chicago, Ill., and C. A. Matson, I. H. Stearns, and E. P Villepigue, all of Wichita, for appellant.
Vincent F. Hiebsch, William J. Wertz, and Haskell Jacques, all of Wichita, for appellees.
This is an action in mandamus by a subordinate council, its trustees and stone of its members, acting for themselves and others of a fraternal benefit society, to restore the charter of the subordinate council which had been suspended and dissolved by defendant's national executive committee. The trial court, after issues were joined and a trial, granted a peremptory writ, and defendant has appealed.
Defendant is a fraternal benefit society organized and operating under our statutes (R. S. Supp. 1931, 40--701 et seq.). It has a constitution, by-laws, a national council, a national executive committee, and subordinate councils. Broadly speaking, its purposes are two (Bacon, Benefit Societies (4th Ed.) §§ 11, 12): First, to unite its members into subordinate councils for the promotion of benevolence, charity, social culture, education, care of the sick and needy, to establish and maintain hospitals and homes for its members, and aid its members in obtaining employment. Second, to provide for the payments of sick and accident benefits to members and of death benefits to their beneficiaries. The first of these general purposes is carried out largely by the subordinate councils under the advice and supervision of the national body and officers, and to obtain funds therefor subordinate councils are authorized to collect assessments from their members. The second general purpose is largely a matter of insurance for its members, for which assessments are collected, and is carried out by all units of the society.
By the constitution the national council is the governmental unit of the society and is composed of certain national officers and delegates. It is the law-making body of the society, having authority to amend its constitution and its by-laws. It shall hear and decide appeals, redress grievances, and has power to grant charters to subordinate councils, "also to suspend subordinate councils and to deprive them of their charters for a violation of the constitution or laws of the association, or for disobedience to its commands." The national council shall provide for the national executive committee composed of the national president, national secretary, and five other members to be elected by the national council. When the national council is not in session the national executive committee shall exercise all powers, rights, and privileges of that body except that of amending the constitution and by-laws. An application for membership in the society contains this provision, among others: "I further agree if accepted as a member of the order, to be bound by its constitution and laws now in force or as the same may be hereafter amended or enacted, without reservation or exception as to the character or nature of such after enacted or amended law."
A by-law (section 130) provides that an applicant for membership in a subordinate council shall sign a "preliminary application card" In a prescribed form, bearing the recommendation of two members of the society. This should be presented with an initiation fee, if one has been fixed. The secretary shall read the card to the council, whereupon the president shall appoint an investigating committee of three members. If that committee reports favorably, the council shall proceed to ballot on the same. "If not more than two blackballs appear the applicant shall be declared elected." With reference to suspending or dissolving subordinate councils, the by-laws read:
And section 133a of the by-laws reads:
The by-law relating to appeals (section 180) reads: "Any member of the association may appeal to the national executive committee from the decision of the subordinate council upon any trial had, and to the national council from the decision of the national executive committee or national trustees, where trial is had before such committee or trustees."
The society has more than 1,600 subordinate councils located in the various states of the Union, of which 304 are in Kansas, and 4 are in Sedgwick county. One of these was Wichita Council No. 120. It had functioned continuously for a number of years and had a membership of about 1,150, who paid monthly subordinate council dues of 25 cents each. It held meetings each week. It had an active membership. At several of the meetings in April, 1933, discord developed, largely between the president of the council and four or five of the active members on the one side and the remainder of the active members on the other. Some rulings of the president were appealed from, and he was not sustained by the council. In four of such rulings he appealed, as the by-laws provided, to the national president, who sustained him in two of the rulings and overruled him in two. At the council meetings his conduct was criticized by some of the members and there was disorder. We shall not state the details of these maters nor make any intimation as to who is to blame. It is sufficient to say that the president of the subordinate council wrote a letter, perhaps more than one, to the national president. The contents of these letters are not disclosed by the record. On April 25, 1933, the national executive committee adopted a resolution, which reads in part:
To continue reading
Request your trial
-
Gorham v. City of Kansas City, 49483
...cause," notice and hearing is required. Will v. City of Herington, 201 Kan. 627, 443 P.2d 667 (1968). In Wichita Council v. Security Benefit Ass'n, 138 Kan. 841, 28 P.2d 976 (1934), we discussed "cause." We "The word 'cause' . . . means what is sometimes spoken of as legal cause, or just ca......
-
Motor Equipment Co. v. Winters
... ... Blaes, and Roetzel ... Jochems, all of Wichita, for appellant ... C. A ... Matson, ... the second mortgage in so far as the security was ... concerned. Under such a doctrine, an ... without due process of law. In Wichita Council v ... Security Benefit Ass'n, 138 Kan. 841, 28 ... ...
-
Hermione Lodge 16, Knights of Pythias, of Decatur, v. Grand Lodge, Knights of Pythias of Ala.
...of the purposes for which it was created, and that it was in effect a voluntary dissolution. The author of the note as found in 94 A.L.R. page 646 has, we succinctly stated the principle here controlling, where it was observed: 'It seems clear, as it has been held, that benefit societies, u......
-
Kennedy v. Gray
...may be expelled if he was given notice of the charges and an opportunity to defend himself. See also Wichita Council v. Security Benefit Ass'n, 138 Kan. 841, 28 P.2d 976 (1934) (mutual benefit society). These cases give members rudimentary due process rights because a member has some equita......