The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-11-14

the suit was brought by the assignee of
the beneficiary named in the certificate,
who took the assignment for value. The
Court held chat the stipulation Just re-
ferred to served a similar purpose to
statutes of limitation and repose; that it
was not a stipulation absolute to waive
all defenceS and condone fraud, but pro-
vided ample time and opportunity within
which they may, and beyond which they
may not, be set up. On this construction
the Court decided that the defence of
fraud and fraudulent representations in
procuring the certificate could not be set
up.
I'm the New York case the stipulation
that no question as to the validity of the
policy could be raised after the death of
the member was in the certificate which
| was the evidence OF the companY's con-
tract, and was precise and explicit, and
expressed in plain and unambiguous
terms a contract to that effect binding
| upon the company. In this case the para
graph in question is found only in the ap-
plication, which was the act of the appli-
cant, and in its language imports only an
ag cement on his part. and no language
or terms are found in it of like import
with that under consideration in the New
York case. Nor did the defendant require
the aid of this stipulation to perfect its de-
fence to this suit. By section 4 of article
l of the relief fund laws, persons en-
gagged in the occupation in which the ap-
plicant was employed when his applica-
tion was made were expressly excluded
from beneficial membership. The false
and fraudulent representation by means
of which he obtained q membership from
which he was excluded by those avs are
contained in his Statement to the Medical
Examiner as well as in his application,
and having by these fraudulent means, as
was said by the Chief Justice in the Nc
No naca sVu jc1nd h CnaiafT 5r,t0 y, oti
this obligation, such obligation Is void by
force of ordinary legal principles
1.-THE relief fund is raised by assess
mentS on beneficiary m3mbers for the
benefit Of members of that class, to pro-
vide means to pay the just claims of those
members whose certificates are a charge
upon the fund. These certificates are not
for the payment of a specified sum Of
money. but are simply vouchers that the
holder Is entitled to a benefit not exceed
ing a certain sum-, to be paid in the man
ner and subject to the conditions set forth
il the laws governing the relief fund.
The mount realized upon such a ~certifi-
cate when matured depends upon the
condition of that fund. A claim traudu-
lently foisted upon the relief fund by one
member, In violation Of the fundamental
| articles in the constitution of the order,
is a fraud upon his associates.
THE CERTIFICATE OBTAINED BY FRAUD.
1u0 pEOOI III b1IS CdS6 WAS UI6n6EY
that this certificate was obtained by posi-
tive fraud of such character as ought, in
morals as we'll as in law. to defeat the
fraudulent purpose, n such must be the
result on well settled legal principles, I'M
less the fraud be sheltered behind some
barrier which the association itself has
provided.
'The stipulation upheld in Wood VS..
Dwarris. IL Exch.. 1913, and approved in
Wheelton VS.. Hardlsty, s E. & B., 232, WAS
that the policy should be ~indlsputable ex-
cept in cases of fraud. The stipulation in
Kline VS.. Nat. Ben. ASS, 9 West. Rep,
587, giving to the certificate the quality of
incontestibility. also excluded cases of
fraud. The agreement in Wright VS.. NJ.
b. ASS, has been set out above.
Courts incline strongly in favor of a
liberal construction of stipulations which
save contracts of insurance from forfeit
ure, but the judicial inclination is equally
strong against contracts procured by
fraudulent practices. Without consid-
ering the question whether an agreemen t
having the effect to constrain a party to
abide by a contract procured from him
by fraud and deception will receive any
legal countenance where such an aqre e.
menJ is part of the very contract which is
tainted with fraud, I think it is clear that
an agreement which shall be conceded
that effect must be expressed In term s