Bowman v. Anderson

186 S.W. 1012, 268 Mo. 1, 1916 Mo. LEXIS 59
CourtSupreme Court of Missouri
DecidedMay 31, 1916
StatusPublished
Cited by2 cases

This text of 186 S.W. 1012 (Bowman v. Anderson) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowman v. Anderson, 186 S.W. 1012, 268 Mo. 1, 1916 Mo. LEXIS 59 (Mo. 1916).

Opinion

ROY, C.

— The plaintiff, Prank L. Bowman, receiver of the Fraternal Home, a fraternal beneficial association, incorpiorated, recovered judgment against William W. Anderson, Prank Clark, Margaret Tilley, administratrix of Hiram Tilley, deceased, and Elsie Sanderson, administratrix of Charles D. Sanderson, deceased, for $33,414.95. Defendants have appealed. [12]*12Since the appeal, defendant Frank Clark died, and the canse has been revived in the name of Netta L. Clark, his administratrix.

The Fraternal Home began business in 1899 with its principal office at Hamilton, Caldwell County. Anderson, Clark, Tilley and Sanderson constituted its first hoard of supreme directors. Anderson was president, Clark Vice-president, Tilley treasurer, and C. Norman Sears secretary. The by-laws provided:

“If the application is accepted by the Supreme Medical Director, a benefit certificate shall he issued, signed by the Supreme President and the Supreme Secretary, for such an amount as the Supreme Medical Director shall authorize, hut not to exceed $2000 from eighteen to and including forty-five years of age at nearest birthday; $1000 from forty-five to and including fifty years of age at nearest birthday, and $500 from fifty to and including fifty-five years of age at nearest birthday.
“Death Proofs.• — If a member is removed by death, the President and Secretary of his lodge shall investigate and promptly report to the Supreme Secretary the circumstances, date and cause of death. Upon receipt of such report the Supreme Secretary shall send to the Subordinate Lodge secretary the blank forms prescribed by the Board of Directors to be executed by the proper persons to make proofs of death and claimant’s legal right to benefit, satisfactory to the Board of Directors. All such proofs to be acted upon, by the Board of Directors must he executed in the form prescribed by said Board of Directors, and upon blanks furnished by the Supreme Secretary. After being properly executed, received, passed upon ■and allowed by the Board of Diregtors, the Supreme Secretary, as soon as the funds on hand will justify, shall draw an order on the Supreme Treasurer, attested by the Supreme President, payable to the order of the person or persons found legally entitled there[13]*13to, for the amount due upon benefit certificate of the deceased, and the Supreme Secretary shall see that the same is delivered to the person who is entitled thereto, and the same shall be paid by the Supreme Treasurer upon surrender to him of the benefit certificate of deceased member, properly receipted. ’ ’

On July 31, 1906, the membership of the Fraternal Home was 6610, and was greater than it had ever been previously, so far as the record shows. The cash receipts for June, 1906, were $6819.30 and for July $6693.08, each of those monthly receipts being greater than for any previous month. At that time it had on hand assets as follows:

Real estate mortgage loans ..........$10,250.00
■ Cash ............................... 7,824.78
$18,074.78

, So far as the evidence shows, the amount of the cash and bills receivable had never been greater than on July 31, 1906, except in April preceding when it was $19,468.77.

During the month of July, 1906, thirteen death losses, amounting to $12,750, were proved up in the regular way and filed in the Supreme office. No formal entry was made in the record of proceedings of the directors allowing the claims based on those proofs of loss. All of the proofs except three had the following indorsement ■ thereon:

“Submitted to the Board of Directors of the Fraternal Home............ 1906, and allowed in the sum of $. .........., C. N. Sears, Supreme Sec. ’ ’ Those blanks were properly filled.

The evidence shows that it was not the custom to make the record of proceedings of the directors show such allowance of the death losses, but that such allowances were ordinarily shown by such indorsement of the secretary on the proofs. So far as the evidence shows, the death losses for July, 1906, [14]*14were more than double those of any previous month.

On July 31, 1906, the board.of directors entered into a so-called contract of re-insurance with the Kansas City Life Insurance Company, an £<old-line” company. By that agreement all the assets of the Fraternal Home were transferred to the other company, which agreed to pay all liabilities of the Fraternal Home, specifically naming the thirteen death losses above mentioned.: It also agreed on certain terms, not necessary to be here stated, to insure those members of the Fraternal Home who should, in the manner there provided for, agree to accept such insurance on those terms. No provision of any kind was made for those members of the Fraternal Home who should fail to so accept. Both Anderson and Clark testified, in effect, that they were alarmed at the death losses in July and considered the Fraternal Home as insolvent. Anderson testified as follows:

"Q. Now, how long were you consulting over this proposed transfer, Mi\ Anderson, as president of the Fraternal Home? A. Well, sir, now, that is a question that is spread over most of the time of the Fraternal Home’s life. We come very near merging with two or three or four or five' or six other concerns, since we were in hard straits; we took over some little orders ourselves — merged with others — and we talked some with the Kansas City Life and some with other institutions, a year or two before we merged, and we were afraid we would get on the breakers, and some of the — not many — in fact, the only company was the Kansas City Life, that would take our old members that got too old to find insurance any other place, and those that were sick and in no condition to stand re-examination;, there wouldn’t nobody take them except the Kansas City Life, without re-examination.
"Q. You had had the matter up with the Kansas City Life for some -time prior to the 31st day [15]*15of July, 1906? A. Oh, we talked to them about it quite a while before, as we had with others.”

Clark testified as follows:

“Q. How long had this question of the merger of this company with the Kansas .City Life been contemplated or discussed before it was done? A. Oh, probably for a year, not with the Kansas City Life, in particular, but with other organizations.”

The evidence shows that no member of the Fraternal Home except such directors and Sears, their secretary, had any knowledge of the contemplated deal with the Kansas City Life Insurance Company until after it was closed. Lodge Number One, with two hundred and seventy-two beneficiary members, was located at Hamilton. All of the directors of the Supreme Lodge were residents of Hamilton and members of the local lodge at that place.

Immediately after July 31, 1906, all the assets of the Fraternal Home, including the office furniture, were turned over to the Kansas City Life1, and no further business of any kind was done by said board of directors of the Fraternal Home except as hereafter stated. The assessments called by the board.of directors in July and sent to the Fraternal Home by the subordinate lodges in August amounted to $6474.-70, which was by the directors turned over to the Kansas City Life Insurance Company under said agreement.

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Related

State v. Hicks
3 S.W.2d 220 (Supreme Court of Missouri, 1928)

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Bluebook (online)
186 S.W. 1012, 268 Mo. 1, 1916 Mo. LEXIS 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowman-v-anderson-mo-1916.