Kenderdine v. Rouland

260 Ill. App. 194, 1931 Ill. App. LEXIS 1166
CourtAppellate Court of Illinois
DecidedJanuary 26, 1931
DocketGen. No, 8,460
StatusPublished
Cited by3 cases

This text of 260 Ill. App. 194 (Kenderdine v. Rouland) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kenderdine v. Rouland, 260 Ill. App. 194, 1931 Ill. App. LEXIS 1166 (Ill. Ct. App. 1931).

Opinion

Mr. Justice Eldredge

delivered the opinion of the court.

The original complainant in the bill of equity filed in this case was Glenn A. Kenderdine, a certificate holder in the Modern Woodmen of America. After a notice to all the defendants of an application for a temporary injunction, the Modern Woodmen of America, a fraternal beneficiary society, which had been made a party defendant, petitioned the court to be realigned as an additional complainant. The petition was allowed and the latter became a party complainant. Upon a hearing for a temporary injunction an order was entered restraining the defendants from using the name “National Modern Woodman Protective Association” or the name “Modern Woodmen” or the name “Modern Woodman” or the name “Modern Woodmen of America” as part of the title of any association, corporation, organization or pretended organization heretofore formed or which may hereafter be formed or pretended to be formed, and from advertising or holding themselves out as officers of any association, corporation, organization or pretended organization using the name “Modern Woodmen” or “Modern Woodman” as part of its title. After the chancellor had indicated that the injunction order would be limited as above set forth a motion of defendants was granted for leave to withdraw their answer to the bill, and after the answer had been withdrawn they entered their motion to dismiss such parts of the bill of complaint as were not covered by the order of the temporary writ of injunction, for want of equity. This motion was granted and an order entered dismissing that part of the bill not covered by the order for the temporary writ of injunction for want of equity. From this order dismissing the remaining part of the bill for want of equity this appeal is prosecuted.

The motion to dismiss that portion of the bill mentioned for want of equity operated as a demurrer ore terms, and all the material facts aptly pleaded in the bill must be taken as true in considering the error assigned.

The bill is very lengthy and sets out the history of the Modern Woodmen of America since its organization in the year 1883, and that it now has in this country and Canada more than 13,125 subordinate bodies known as local camps; nearly 1,000,000 beneficial members and about 10,600 social members; that -said society has had since its organization a lodge system, ritualistic form of work and representative form of government; that its supreme governing body is the Head Camp composed of the head officers of the society and delegates elected by the various State and provincial camps. The bill then sets out the various rates prevailing during different periods of its existence and alleges that at the end of the year 1928, the society had in force insurance in the sum of $1,128-919,000 on members who had joined prior to July 1, 1919; that assessments paid by these members during the year 1928 amounted to $16,060,011.60; that the death and disability benefits paid during 1928 on account of insurance of these members amounted to $23,243,500.00, an excess of $7,183,489.00 over the contributions of these members; that on December 31, 1928, the society was 51.95 per cent actuarily solvent; that the legislatures of the States of Michigan, Indiana and Pennsylvania had enacted laws which require that all fraternal benefit societies doing business in such State shall, within a given period of time, be placed upon an adequate premium basis, that is, that they shall be 100 per cent actuarily solvent; that the State of Maryland requires such a society to be at least 90 per cent actuarially solvent and that the commissioner of insurance of that State had refused to issue a license to the Modern Woodmen of America to continue to transact its business therein after July 1,1929, unless said society increased its rates so that it would be 90 per cent actuarially solvent; that because of the society’s low rate of actuarial solvency it had not been permitted to transact business in various provinces of Canada nor in the States of Massachusetts or South Carolina; that the commissioner of insurance of the State of South Carolina gave notice to the society that unless some new plan were adopted by the society to halt its constantly decreasing actuarial solvency, he. would refuse to relicense the society in that State at the end of the year; that during the month of April, 1929, and continuing until after the conclusion of the convention of the Head Camp held June 4 to June 7, 1929, an official examination of the affairs of said society was made by examiners representing the insurance departments of the States of Illinois, Missouri, Kansas, South Dakota, North Dakota, Wyoming, Indiana and New York, which examination developed fully the inadequate basis upon which the society was then operating and would undoubtedly have resulted in cancellation or discontinuance of the license of the society to continue to carry on its business therein unless appropriate action had been taken by said camp of June, 1929, to remedy the situation; that had the society continued to operate upon the table of rates adopted in 1919 it would have become unable within three or four years to meet in full the accrued death claims; that immediate and decisive action was necessary to avert bankruptcy and failure of the society and disastrous loss to its members and the beneficiaries named in its 1,000,000 insurance certificates; that at the regular quadrennial meeting of the camp on June 6, 1929, certain by-laws in regard to the rates to be paid by the certificate holders were adopted in order to insure the perpetuity of the society and to prevent its imminent insolvency and inability to pay its outstanding benefit certificates ; that shortly after the adoption of the 1929 plan of readjustment a bill of complaint was filed by certain members of the society against the Modern Woodmen of America and its chief executive officers and directors in the circuit court of Cook county to enjoin the defendants from enforcing said changes in the by-laws of the society adopted at the June convention in 1929; that the final termination of this case is shown by the opinion of the Supreme Court of this State in Jenkins v. Talbot, 338 Ill.

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Bluebook (online)
260 Ill. App. 194, 1931 Ill. App. LEXIS 1166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenderdine-v-rouland-illappct-1931.