Supreme Council A. L. H. v. Daix

Citations

• 130 F. 101
• 64 C.C.A. 435
• 1904 U.S. App. LEXIS 4136

Syllabus

<p>1. Benefit Life Insurance — Renunciation of Contracts by Association-Right of Member to Rescind.</p> <p>Where an incorporated fraternal life insurance association renounced its contracts with members by the adoption of an invalid by-law assuming to arbitrarily reduce the amount payable on their certificates, the right of a member to elect to treat the contract as rescinded, and recover the payments made by him, is not lost by delay, so long as he has not recognized the illegal action by the payment of further assessments, nor done anything to mislead the association to its prejudice.</p> <p>2. Same — Action to Enforce Rescission — Limitation.</p> <p>A provision in the by-laws of a benefit life association limiting the time for bringing an action on any cause or claim arising out of any membership or benefit certificate to one year from the time the cause of action accrues, which from the context is shown to relate to actions after the death of a member to recover on his certificate, cannot be invoked by the association, after it has repudiated its contracts with members, to defeat an action by a member to enforce a rescission and recover payments made by him.</p>