Supreme Lodge Knights v. Wellenvoss

Citations

• 119 F. 671
• 56 C.C.A. 287
• 1903 U.S. App. LEXIS 4802

Syllabus

<p>1. Fraternal Insurance—Right of Forfeiture for Violation of Laws of Order—W ai ver.</p> <p>Conceding the right of a fraternal order, which has also an insurance department which issues benefit certificates on the lives of its members, to regulate its internal affairs according to its own laws, and to expel or suspend members for their violation, yet, where such action terminates or suspends the rights of the member with respect to his insurance, the society is bound by the rules which govern other insurance contracts, and must act with reasonable promptness. The acceptance of premiums or assessments from the member after a right of forfeiture is known is a waiver of such right.</p> <p>2. Same—Waiver of Forfeiture.</p> <p>A prominent member of the order of Knights of Pythias, who also held a benefit certificate in the endowment rank payable to his wife, participated in certain action taken by a number of lodges in 1893 which was deemed rebellious and a violation of his obligation to the order. Attention was called to the matter in a report of the supreme chancellor to the supreme lodge in 1894, and the expulsion of such member from the grand lodge was recommended. In 1896 suspension from the order was recommended; but no effective proceeding to that end was taken until 1898, when charges were filed and a trial in 1899 resulted in the member’s suspension for two years. Up to the time of such suspension he continued to pay the assessments on his certificates, which were received, and he made tender of all assessments thereafter until his death. At the time of his suspension he was sick with a mortal disease, and died soon after, never having been in a condition to obtain other insurance. Held that, conceding the right at that time to suspend him from the social and fraternal benefits of the order, such action, taken so many years after the cause of suspension was known, during which time his assessments had been accepted, could not deprive his beneficiary of the rig