Bohlinger v. International Workers Order

11 Pa. D. & C.2d 129, 1956 Pa. Dist. & Cnty. Dec. LEXIS 24
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedNovember 13, 1956
Docketno. 1108
StatusPublished

This text of 11 Pa. D. & C.2d 129 (Bohlinger v. International Workers Order) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bohlinger v. International Workers Order, 11 Pa. D. & C.2d 129, 1956 Pa. Dist. & Cnty. Dec. LEXIS 24 (Pa. Super. Ct. 1956).

Opinion

Soffel, J.,

Alfred J. Bohlinger, Superintendent of Insurance of the State of New York, as liquidator of International Workers Order, Inc., plaintiff, brought suit in assumpsit against International Workers Order, Branch 3006, Fred Storoz, Andy Hrmiko and Matt Dockman and Peoples National Bank of Tarentum, defendants, to recover the sum of $1,462.35, with interest from January 19, 1954.

Defendants have filed preliminary objections to plaintiff’s complaint, alleging:

1. The complaint does not set forth a cause of action against any of defendants.

2. The individuals named as defendants therein are not shown to be liable to plaintiff under any theory of law.

3. There is no allegation in the complaint that there is any money on deposit with the said bank which belongs to the parent body of International Workers Order, Inc.

4. There is nothing to show that there is any liability whatsoever due and owing to the said parent body for any funds or property of any kind.

5. There is nothing to show what funds, if any, there were on deposit in said bank belonging to said parent body before or after its dissolution, the origin of said funds, to whom said funds actually belonged, the purpose of maintaining said funds on deposit or any other basis of liability.

6. There is nothing to show that section 66 of the bylaws is applicable to the situation.

7. There is no allegation of any unpaid debts due and owing by the lodge or any individual named as a defendant.

[131]*131For the purpose of this argument, these are the essential facts:

1. Alfred J. Bohlinger is the Superintendent of Insurance of the State of New York;

2. The International Workers Order, Inc., was a corporation organized and existing under the Insurance Law of the State of New York and subject to its provisions.

3. The International Workers Order, Inc., was dissolved by the Supreme Court of New York on August 21, 1951, which dissolution was subsequently affirmed by action of the Supreme Court of the United States in denying a writ of certiorari.

4. Alfred J. Bohlinger, Superintendent of Insurance of the State of New York, was appointed by the Supreme Court of New York statutory liquidator of International Workers Order, Inc., by order entered August 24, 1951, and, as such, is the successor of the dissolved corporation, entitled to its assets, wherever situated.

5. Defendant, International Workers Order, Branch 3006, was a subordinate lodge of the International Workers Order, Inc., maintaining offices in the City of Pittsburgh, County of Allegheny and State of Pennsylvania.

6. Defendants, Fred Storoz, Andy Hrmiko and Matt Dockman were the officers of International Workers Order, Branch 3006, serving respectively as president, secretary and treasurer.

7. Defendant, Peoples National Bank of Tarentum, is a national bank existing under the laws of the United States.

8. On January 19, 1954, said bank had on deposit a fund in the sum of $1,462.35 deposited by International Workers Order, Branch 3006.

9. On January 19, 1954, plaintiff made demand upon said bank to turn over to him the funds on de[132]*132posit with said bank standing in the name of International Workers Order, Branch 3006.

10. On August 31, 1954, the effective date of the liquidation of the parent corporation, certified copies of the order of liquidation (Exhibit C), and the order of August 24, 1951, dissolving said corporation (Exhibit A), were served upon said bank by plaintiff and demand was made that the aforesaid funds standing in the name of International Workers Order, Branch 3006, be turned over to plaintiff.

11. The constitution and bylaws of the International Workers Order, Inc., which are attached to and made part of the complaint (Exhibit D), provide, inter alia, as follows:

“Section 66. If a lodge votes to dissolve or if it is dissolved by order of the General Counsel, then all of its property, funds, documents, supplies, seals, records, etc., of whatsoever kind, nature or description, all of which are hereby declared to be the property of the General Office of the I. W. O., shall be immediately forwarded to the General Secretary-Treasurer.”

12. On March 1, 1955, Peoples National Bank of Tarentum presented its petition for interpleader and discharge from liability, which was granted by the court on payment of the sum of $1,462.35 to the prothonotary of Allegheny County.

The basic issue in the case is whether, under the laws of the State of New York, plaintiff, as statutory liquidator of International Workers Order, Inc., is entitled to the fund in question.

The preliminary objections raise these questions:

1. What law governs these proceedings, the law of New York or Pennsylvania?

2. Does this action constitute a forfeiture of property and violate public policy?

3. Is plaintiff a receiver and, if so, must an ancillary receiver be appointed in Pennsylvania?

[133]*1334. Has plaintiff properly plead the New York law?

We shall consider these questions as stated:

First. What law governs the rights and liabilities of the parties to this action?

We are of the opinion that these proceedings are governed by the law of the State of New York.

(a) The International Order was legally dissolved by the State of incorporation, New York.

It was a corporation organized and existing under the Insurance Law of the State of New York and subject to its provisions. The International Order was dissolved by order of the Supreme Court of the State of New York in 1951 on the grounds that further transaction of business by the International Order would be hazardous to its policyholders and its creditors within the meaning of section 511(c) of the Insurance Law of the State of New York, in view of the International Order’s course of political action, financial and otherwise, in support of the Communist Party and its policies: Application of Bohlinger, 109 Misc. 941, 106 N. Y. S. 2d 953 (1951). The International Order was represented in the dissolution proceedings by counsel, and certain individual members of the order, representing the International Workers Order Policyholder Protective Committee, intervened and were also represented throughout by the counsel.

The liquidation provisions of the court order were stayed to permit the International Order and the policyholders protective committee to appeal. The decision and order of the trial court were vigorously contested by the International Order and the policyholders protective committee all the way to the United States Supreme Court. The Appellate Division of the Supreme Court of New York unanimously affirmed the decision of Justice Greenberg (In re International Workers Order, Inc., 280 App. Div. 517, 113 N. Y. S. 2d 755 (1952)), and the order of the Appellate Divi[134]*134sion was unanimously affirmed by the New York Court of Appeals in a per curiam decision: Appeal of International Workers Order, Inc., 305 N. Y. 258, 112 N. E. 2d 281 (1953). Application for certiorari was made to the United States Supreme Court and was denied: International Workers Order, Inc., etc., v. New York, 346 U. S. 857, 98 L. Ed. 409 (1953), rehearing denied, 346 U. S. 913, 98 L. Ed.

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11 Pa. D. & C.2d 129, 1956 Pa. Dist. & Cnty. Dec. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bohlinger-v-international-workers-order-pactcomplallegh-1956.