Kruger v. Life & Annuity Ass'n

Citations

• 106 Cal. 98
• 39 P. 213
• 1895 Cal. LEXIS 574

Syllabus

<p>Mutual Benefit Association—Endowment Certificate—Foreclosure of Lien—Demurrer of State Treasurer.—In an action to enforce the payment of an endowment certificate in a life and annuity association, and to enforce a lien upon its funds in the possession of the state treasurer, a complaint which alleges a full performance of all the conditions of the contract on the plaintiff’s part, and a breach of the contract on the part of the association, and that the association has on deposit with the state treasurer an amount fully sufficient to pay the demand and claim of the plaintiff, is not subject to a demurrer by the state treasurer as a party defendant, on the ground that it does not state facts sufficient to constitute a cause of action; nor on the ground that the court has no jurisdiction of the person of the state treasurer.</p> <p>Id.—Insufficiency of Funds to Pay All Matured Coupons—Matter of Defense.—The insufficiency of the funds of a mutual benefit society to pay all endowment coupons of the same class cannot be relied upon by way of demurrer to the complaint of a plaintiff suing upon a matured coupon to enforce payment out of a sufficient fund to pay the claim of plaintiff, and if there are any other claimants to the same fund whose rights to the assets defendants are authorized to assert, the facts must be set up by way of defense in the answer, and if not so set up, either by the association or by the state treasurer, the latter cannot avail himself of it on appeal from a judgment overruling his demurrer to the complaint, and enforcing a lien in favor of the plaintiff.</p> <p>Id.—Parties—Securities Deposited With State Treasurer—State not Interested.—The statute requiring that the bonds or securities of a mutual benefit association, of the value of five thousand dollars, he placed with the state treasurer and held by him. in trust for the holders of contracts with the corporation, and creating a lien upon all the property of the corporation for payment to t