Sovereign Camp Woodmen of the World v. Wilson

207 S.W. 45, 136 Ark. 546, 1918 Ark. LEXIS 370
CourtSupreme Court of Arkansas
DecidedNovember 18, 1918
StatusPublished
Cited by7 cases

This text of 207 S.W. 45 (Sovereign Camp Woodmen of the World v. Wilson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sovereign Camp Woodmen of the World v. Wilson, 207 S.W. 45, 136 Ark. 546, 1918 Ark. LEXIS 370 (Ark. 1918).

Opinion

McCulloch:/C. J.

Appellant is a fraternal society incorporated under the laws of another State, and Purd Tatham was a member of appellant’s local organization or society at Jonesboro at the time of his death, being the holder of a benefit certificate in the sum of $2,000, payable to his wife and child.

Appellant refused payment on the ground that the policy had been forfeited, and an action was commenced by the beneficiaries against appellant in the circuit court of Craighead County on July 9, 1917, and summons was served on the clerk of' the local organization at Jonesboro. Mr. Nichols, the clerk of the local organization, inadvertently failed to send in copy of the summons to the home office, or to notify that office of the pendency of the suit, and at the succeeding September term of the Craighead Circuit Court judgment by default was rendered against appellant. The officers of appellant’s organization, or sovereign camp, as it is termed, did not discover that the action had been commenced and the judgment had been rendered until a day in January, 1918, and at once filed its complaint against appellees in the said court to set aside the default judgment on the ground that there had been no valid service of process summoning appellant to answer in the.action. Appellant tendered with its complaint an answer to the original action, setting forth as a defense to the action the alleged forfeiture of the policy or benefit certificate. Appellees filed their answer to the complaint and the court heard the matter on the pleadings and the testimony introduced and rendered judgment refusing to set aside the former judgment of the court, from which an appeal has been prosecuted to this court.

The statute in force at the time of the commencement of the original action of appellees against appellant prescribing the method of service of process on fraternal insurance societies is section 17 of the act of March 28, 1917, which had the emergency clause and went into immediate- effect. Acts 1917, p. 2087. The section referred to reads as follows:

“Every society, whether domestic or foreign, now transacting business in this State shall, within thirty days after the passage of this act, and any such society hereafter applying for admission shall, before being licensed, appoint in writing the Commissioner of Insurance and his successors in office to be its true and lawful attorney on whom all legal process in any action or proceeding against it shall be served, and in such writing shall agree that any lawful process against it which is served upon such attorney shall be of the same legal force and validity as if served upon the society and that the authority shall continue in force so long as any liability remains outstanding in this State. Copies of such appointment, certified by said insurance department, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted. Service shall only be made upon such attorney, must be made in duplicate upon the Commissioner of Insurance, or, in his absence upon the person in charge of his office, and shall be deemed sufficient service upon such society; provided, however, that no such service shall be valid or binding against any such society when it is .required thereunder to file its answer, pleading or defense in less than thirty days from the date of mailing the copy of such service to such society. When legal process against any such society is served upon said Commissioner of Insurance, he shall forthwith forward by registered mail one of the duplicate copies prepaid and directed to its secretary or corresponding officer. Legal process shall not be served upon any such society except in the manner provided herein.”

Appellant on May 25, 1917, filed with the Cornmis.sioner of Insurance of this State a written instrument appointing that officer and his successors to be the attorney of appellant on whom legal process might be served as specified in the statute quoted above. The statute in force prior to the enactment of the new statute just referred to provided that in actions against fraternal societies the service should be on “the chief officer, or, in case of his absence, the secretary of the subordinate lodge or society through which the policy was issued or obtained, or on the chief officer, or in case of his absence on the secretary of any subordinate lodge in this State of such fraternal society.” Kirby’s Digest, § 4378.

The Act of 1917, supra, prescribes the exclusive method of service of process on fraternal societies, but it is contended on behalf of appellees that it. had no application to their action against appellant for the reason that the latter did not comply with the statute within the period of thirty days prescribed therein, and that the old method of service of process continued to be the legal method of obtaining service on these societies until the next period under the statute for compliance which would have been in April, 1918. We do not agree with the argument of counsel for appellees that the old method of service continued in force after compliance with the terms of the new statute by appellant, notwithstanding such compliance was not within the thirty-day period specified in the statute. Appellant had no right to continue to do business in the State after the expiration of the thirty days from the passage of the statute, except upon compliance with its terms,' and it was subject to penalty during the period of omission. But the terms of the statute were later complied with, and thereafter serw ice on the Commissioner of Insurance was the only legal method of serving process.

Whether or not the continuance by appellant of its business in the State during the period of omission bound appellant by any service of process on the Commissioner of Insurance, notwithstanding, its failure to file the required certificate of appointment, we need not now decide. At the time the action of appellees against appellant was commenced the certificate of appointment had been filed and service on the Commissioner of Insurance was the only way to get service on the society.

The contention of appellant is that the judgment was absolutely void because the service of process was not in accordance with the method prescribed by the statute. Our statute (Kirby’s Digest, § 4424) provides that all judgments rendered without notice shall be absolutely void, but there is a presumption of regularity attending a judgment of superior courts of general jurisdiction (Boyd v. Roane, 49 Ark. 397) which can not be controverted except by showing that there was in fact no notice, and that there existed a meritorious defense to the action which could have been asserted if notice had been given. State v. Hill, 50 Ark. 458; Quigley v. Hammond, 104 Ark. 449.

This brings us to a consideration of the question whether or not appellant brought itself within the principle just announced by introducing proof sufficient to make out a prima facie case of a meritorious defense to the original action which might have been asserted if notice had been given. Knights of Maccabees of the World v. Gordon, 83 Ark. 17; Quigley v. Hammond, supra. After careful consideration of the testimony, our conclusion is that appellant failed to show the defense that there was á forfeiture of the policy and that the court was correct in refusing to set aside the judgment in the original action.

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Bluebook (online)
207 S.W. 45, 136 Ark. 546, 1918 Ark. LEXIS 370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sovereign-camp-woodmen-of-the-world-v-wilson-ark-1918.