Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1899-09-13
Belknap vs.. Johnston.

Judge Platt has filed his decision in
the above entitled cause, recently tried
in the District Court of this county, and
has ordered decree in favor of Mrs.
Johnston for the full 5000 and costs.
AS considerable interest, owing to the
sensational charges made by the plain
tiff in her petition. and because of the
fact that many of our readers are mem,
beers of fraternal insurance associations,
and the court passes upon number of
legal questions applicable to such asso-
cations, we print the decision in full.
In the District Court of Iowa for Delaware
County.
BELKNAP, Executrix,
VS.. Opinion and
JOHNSTON, ct al. Findings.
On June Both, 1880, J. L. Belknsp, a
citizen of Iowa, became member of
the N. w. Masonic AID Association, q
mutual benefit company organized un-
der the laws of Illinois, under certif-
cate numbered 4515, for $25OO.OO. His
"devisees were therein named as ben
eficiary. Later the avails of this certiti-
cate we're bequeathed to j. f. Johnston
by Belknap. On June Goth, 1883, Bel
KNAPP applied for an additional certificate
and one numbered 1886 was issued, the
beneficiary being the heirs or devisees
of the assured. Soon after, and in the
same month, Belknap made will in
which he bequeathed the proceeds of
certificate 4515 for $25OO.00 and one-half
the amount of certiticate8585 for $50OO.-
90 to Johnston. The matter so stood at
the time of Mr.. JOhnston's death. The
defendant, Ellen G. Johnston, became
possessed of the entire estate of her hus-
band, John F Johnston, and thus be-
came the owner of sundry notes made
by Belknap and running to Johnston,
amounting to about 100000. The tes-
timony shows that Mrs. Johnston made
efforts to have an adjustment of the
matter, which eliminated in an agree
ment for the assignment of certificate
1886 for $s50OOO0 to Mrs. Johnston as
security for the debt. 1t was discovered
however that the articles and bylaws of
the association prevented an assign
ment, but would permit the cancelling
of the certificate in question and the is
suing of a new one naming Mrs. John
ston, as a creditor of the assured, as
beneficiary, and it was finally agreed
/ GuoS Gllo Pl0u bilOulu NO duOptCu bllu
that the whole Indebtedness should be
and the payment of the amount named
in the certificate to Mrs. Johnston. The
evidence tends to show that while the
negotiations were pending and before it
was definitely ascertained that the As
ISOLATION would not recognize an assign
ment of tie certificate, contract was
drafted by an attorney, relative to the
understanding of the parties. At this
time an absolute assignment was under
contemplation. The attorney was man
skilled in the law and would not have
referred to the transaction as an absO-
Lutte assignment in the draft of the con-
tract referred to had his services been
rendered on or about the date shown in
the contract subsequently, entered into.
The drafto the contract was given to
one I'll. G. Haeberle, who made copy of
the same, except as to the date, and the
paper was executed by the parties on
July 9th, 1892. This contract provided
that Mrs. Johnston should pay the as
sessments on policy numbered 60.5l4
for $5OOO.00, in consideration of the alb
sOlute assignment to her of such policy.
But as neither this policy or certificate,
nor any other, was ever assigned, it is
clear Chat the draft of contract prepared
by the attorney had reference to certili.
cate 1856 which was cancelled on July
18th, 1892, upon the application of Mr..
I6elknap, dated June 9th, 1892, policy
6O514 was issued in place of certificate
1886. 1t thus seems clear that although
exhibit Z tthecontract OF date July 9th,
1882 purports to be dated two days sub
sequent to the date of the new certit-
cate, the undisputed facts show that
many of the provisions of the contract
related to transaction which was
abandoned by mutual consent. Certifi.
cate 60,5l4 1.-THE one in controversy was
never assigned either absolutely or con
ditionally. The contract was drafted
| when certificate 1856 and 4515 were in