International Brotherhood of Boiler Makers v. Rodriguez

193 S.W.2d 835, 1945 Tex. App. LEXIS 900
CourtCourt of Appeals of Texas
DecidedNovember 15, 1945
DocketNo. 4437.
StatusPublished
Cited by10 cases

This text of 193 S.W.2d 835 (International Brotherhood of Boiler Makers v. Rodriguez) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Brotherhood of Boiler Makers v. Rodriguez, 193 S.W.2d 835, 1945 Tex. App. LEXIS 900 (Tex. Ct. App. 1945).

Opinions

' McGILL, Justice.

This is an appeal from a judgment of the El Paso County Court at Law. The suit was brought by appellee as plaintiff to recover insurance benefits for the loss of *837 the sight of his eye, from both appellants as defendants. He also sought to recover the twelve per cent statutory penalty and reasonable attorneys’ fees prescribed in Art. 4736, R.C.S., Vernon’s Ann.Civ.St. art. 4736, with interest on the total recovery at six per cent per annum from August 4, 1943, the alleged date of loss of sight. 'Trial to a jury resulted in answers to special issues on which judgment was rendered against both defendants for $500 for loss of the sight of plaintiff's left eye, $46.25 interest to date of judgment, $60 penalty and $200 attorneys’ fees.

Appellants assign error because the court overruled their motions for a directed verdict and for judgment notwithstanding verdict. They present points to effect that plaintiff failed to introduce any evidence of a contract or policy of insurance sufficient to support a judgment for him.

We shall hereafter refer to the International Brotherhood of Boiler Makers, Iron Ship Builders and Helpers of America as the “Brotherhood,” and to The Occidental Life Insurance Company of California as the “Insurance Co.”

The Brotherhood is an unincorporated labor organization with its home office in the state of Kansas, having local lodges in Texas. The Insurance Co. is incorporated under the laws of the state of California, and it was conceded by its counsel on oral argument that it is doing-business within this state. Plaintiff, who was an employee of the Southern Pacific Railroad, applied for membership in the Brotherhood on January 21, 1943. He paid his dues and was accepted as a member of Local Union No. 216 of the Brotherhood on January 22, 1943. He introduced in evidence Article XII of the Constitution and By-Laws of the Brotherhood in effect when he became a member and at all relevant times thereafter. This article deals with death and disability benefits for members. We reproduce the relevant portions:

“Section 1. The International Brotherhood will procure or provide benefits for all insured members who were in good standing in the International Brotherhood on the 26th day of September, 1925, or who subsequently shall become insured members of the International Brotherhood and who are in good standing on the date of their death or disability, as follows: * * * ”

“Section 2. All members who have attained the age of sixteen (16) years and who have not reached the age of sixty (60) years at the time of initiation, last reinstatement or depositing withdrawal card, are eligible and hereby insured as provided for in Sections 1, 3 and 4 of this Article.”

“Partial Disability.

“Sec. 4. Every insured member of the International Brotherhood, who is in good standing on the date of disability, shall be entitled to insurance for partial disability without the payment of any additional premium on the following basis, to-witP In the event that said member at or away from occupation shall lose the sight of an eye, or the complete loss of the use of a foot or leg, as a result of accident, or disease, the sum of Five Hundred ($500.-00) Dollars will be paid to said insured member. * * * ”

Plaintiff also introduced a certificate, No. 416,398, issued by the Brotherhood, which stated that the Brotherhood had procured insurance on his life in the Insurance Co. “in accordance with the terms and conditions of group policy No. 756100, the benefits of which are summarized as follows: * * *

“III. Partial disability payable to the diseased member

“(a) In the event of entire and irrevocable loss of the sight of an eye * * * as a result of accident or disease, $500.00.”

The certificate also stated that it was issued pursuant to Article XII of the Constitution and By-Laws of the Brotherhood. The group policy referred to was not introduced.

The defendants filed an answer and cross-action in which they alleged that the Insurance Co. issued its group policy No. 756100 to the Brotherhood, insuring its members, and plead certain of its provisions as to notice of claim for benefits, which they alleged had not been complied with. In their cross-action they sought to have the group policy cancelled as to plaintiff on the ground that he, well knowing that he had lost the sight of his left eye due to a traumatic cataract, applied for membership in the Brotherhood, and in his application knowingly misrepresented that he was in good health, and had no physical ailments that would tend to shorten. his life; that such misrepresentations were unknown to defend *838 ants and materially increased the risk under the group policy.

Plaintiff’s cause of action against the Insurance Co., as disclosed by the evidence, was based upon the issuance by it to the Brotherhood of its group policy No. 756100, although he erroneously alleged that the Insurance Co. issued him policy No. 416,398 (obviously referring to the certificate issued to him by the Brotherhood) and by his pleadings grounded his cause of action against the Insurance Co. on the certificate.

Obviously, as conceded by «Ap-pellee in his brief, no contractual relation between the plaintiff and the Insurance Co. was shown. He seeks to sustain the judgment against the Insurance Co. on the theory that the contract of Insurance between the Insurance Co. and the Brotherhood was made for his benefit, and as beneficiary he could recover on it under the familiar doctrine of Lawrence v. Fox, 20 N.Y. 268; but there is no competent evidence to establish the terms of such contract. The certificate issued by the Brotherhood which purports to state the terms of group policy No. 756100, admittedly issued by the Insurance Co. to the Brotherhood insuring its members, is clearly hearsay as to the Insurance Co., and although admitted without objection is incompetent to establish any fact necessary to form the basis of a judgment. Texas Co. v. Lee et al., 138 Tex. 167, 157 S.W.2d 628.

On this ground this case is distinguishable from Wann v. Metropolitan Life Insurance Co., Tex.Com.App., 41 S.W.2d 50, relied on by appellant. In the Wann case the certificate was issued by the insurance company, rather than by the Southern Pacific Company, to whom the group policy was issued. It was there held that the certificate, however complete its terms might appear to be, was insufficient to sustain a recovery, since the parties agreed it should be subject to the terms and conditions of the group policy, which was not introduced. The same may be said of the certificate here, apart from its objectionable hearsay character. Therefore, the judgment against the Insurance Co. must be reversed.

It does not follow that the evidence failed to show a contract of insurance between plaintiff and the Brotherhood. From the above quoted portions of Article XII of the Brotherhood’s Constitution and ByLaws it appears that the Brotherhood agreed to procure or provide “benefits” for all “insured” members who were in good standing on the date of their disability (sec. 1) ; all members who attained the age of sixteen years and who had not reached the age of sixty years at the time of initiation were “insured” as provided in Section 4 (Sec. 2).

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Bluebook (online)
193 S.W.2d 835, 1945 Tex. App. LEXIS 900, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-brotherhood-of-boiler-makers-v-rodriguez-texapp-1945.