Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1894-05-18
Liability In Assessment Orders.

Liability In Assessment Orders.
1t is generally supposed that in
mutual-beneat organizations La
bilitv for assessments cease with
the forfeiture of membership,
but a recent decision of the Su-
preme Court of Missouri holds
to the contrary. This decision,
which was rendered by Special
Judge Alexander Martin, was
given in the insurance case of the
superintendent, receiver OF the
Masonic Mutual Benefit Society
of Missouri, versus Barney, a for
mer member of the association.
Shortly before the receiver took
charge the directors levied assess
ments against the defendant
amounting to $140.S0 to pay
accumulated death losses, and
these he refused to pay on the
plea that by the terms of his GER
tificate he had the option of for
feiting his rights under it by de
Clining to pay assessments, and
that such forfeiture left the asso-
citation without any right to col
lect them. Suit was brought be
fore a justice of the peace and
Judgment rendered against the
defendant. The case was then
appealed to the Circuit Court,
judgment given for the plaintiff,
and again appealed by the de-
PENDANT to the Supreme Court,
which confirmed the decision OF
the lower tribunal. The judges
ruling is interesting in the fact
that it traces i'll understandable
language the connection of the
modern fraternal beneficiary or
ganization with the friendly bcne-
fit societies of England and con-
vincingly shows that a member
of a mutual benefit society enters
into a contract with all the other
members which cannot be tcrmi-
mated at his own volition. But
the main point is covered in the
closing sentences of the opinion,
in which Judge Martin says
The declaration that the certi-
fcate, after forfeiture, shall be
null and void, relates to it's past
effect. Now it appeared from
admitted facts that the appellant
was in full possession of all the
rights of membership at the date
of these assessments, and that he
continued to hold them up to the
instant OF forfeiture by his failure
to pay such assessments. If he
died after the assessments against
him and before his failure to pay
them his children would have
been entitled to the promised
benefits of the certificate. Hav-
ing, during all that time, had the
benefits of the certificate upon
consideration that he could pay
his assessment, he is not in a
position to withhold the consid-
Grafton by refusing to keep his
obligation. | am not prepared
to prove the startling proposition
that the appellant should have
the privilege of paying or with
holding at his pleasure the con,
sideration promised for carrying
a risk after the risk had been car.
ried. | do not consider this con.
tract unilateral in the sense OF
relieving the assured from liza
bility for insurance carried and
considera zion earned. No uni.
lateral contract has ever beer
permitted to accomplish such ar
unjust result.
This decision is of preaching
Importance, inasmuch as it affect.
the standing of every member o
every fraternal beneficiary or
ganization in the country. In
stead of dropping out when tn,
assessments fall too frequently
as has been supposed to be ;
members right, it would appea
that when a man joins one O
these orders heenters upon a con
tract which can only be abroga
ted by him with the consent Q
< the order.