McAlarney v. Supreme Council A. L. H.

Citations

• 131 F. 538
• 1904 U.S. App. LEXIS 4926

Syllabus

<p>1. Mutual Benefit Insurance — Contracts—Breacii—Rescission—By-Laws.</p> <p>Where an incorporated mutual benefit association, without legal right so to do, renounced liability on certain of its insurance contracts by the adoption of a by-law reducing the amount payable on such contracts below that which it had contracted to pay, and by making assessments on the new basis and notifying members of the reduction, a member who had performed the contract on his part, and who had not consented to such reduction, might, at his election, treat the contract as rescinded, and sue to recover the amount paid.</p> <p>2. Same — Laches—Chance of Position.</p> <p>Where defendant mutual benefit association renounced its liability to pay the amount specified in plaintiff’s contract of insurance, the fact that during three years which elapsed between such breach of contract and the date plaintiff elected to rescind the same, more than 3,000 members of the association had died or withdrawn, and that 325 new members had joined the association without knowledge of plaintiff’s claim to recover the amount paid on his contract so broken, did not constitute such a change of position by defendant as to preclude plaintiff from recovering because of laches.</p>