Hayes v. German Beneficial Union

Citations

• 35 Pa. Super. 142
• 1908 Pa. Super. LEXIS 2

Syllabus

<p>Corporations — By-laws—Definition of by-law — Beneficial association.</p> <p>A by-law is a rule or law adopted by a corporation or association for the regulation of its own action and concerns, and of the rights and duties of its members among themselves. The term has a peculiar and limited signification, being used to designate the orders and regulations which a corporation, as one of its legal incidents, has power to make, and which is usually exercised to regulate its own action and concerns, and the rights and duties of its members amongst themselves..</p> <p>The by-laws, rules and regulations of a corporation or society are essentially legislative in their character. Like all other legislative acts they are affected by the presumption that they are never intended to be retroactive unless such intent be clearly expressed.</p> <p>Where an amendment of the by-laws of a beneficial association reducing the amount of benefits, contains no language necessarily indicative of an intent to make it retroactive, and there is no effort shown on the part of the association to take up and reform its outstanding contracts, or to notify holders that their certificates had been materially modified, the courts are warranted in concluding that the amendment was intended to be prospective only.</p> <p>Where an applicant for membership of a beneficial association has the option to purchase indemnity in any one of four classes, and he selects the one apparently securing to him the largest fund at the end of ten years and obligates himself to pay the highest assessment, it seems unreasonable to draw from the general terms of the application, the conclusion that the member at the same moment, and in the same act deliberately consented that the society might at any time before the actual maturity of his certificate, reduce the amount thereof to any extent it might deem advisable.</p> <p>An applicant for membership in a beneficial association selected one of four classes of indemnity