156 Iowa 201 | Iowa | 1912
The plaintiff is the widow and beneficiary of Hay Clark, who died on the 6th day of September, 1908, the holder of a benefit certificate issued by the defendant association on the 2d day of February, 1895. The defense is that Clark was not a member at the time of his death, because of the fact that he had not paid assessment No. 75, ordered by the board of directors on the 6th day of June, 1908, and which was payable, in any event, before the 1st day of August, 1908. It is conceded that this assessment of $2 was not paid; but appellee contends that Clark was nevertheless a member in good standing at the time of his death, because of the several reasons which we shall later discuss.
The defendant is a purely mutual association under the statute and its charter and by-laws. Its articles of incorporation provide that its business “shall be the collection of funds from its members by fixed membership fees, dues and equal assessments upon each member, to be used for the mutual benefit and protection of its members, their families, heirs' and beneficiaries.” And further: “The directors shall have full charge of all funds of the association and shall have authority to make such assessments as may be necessary to carry out the aims and objects of this association.” Article 5, section 4, of the by-laws, provides as follows: “The board of directors may order an assessment of not to exceed the sum of two dollars at' any one time upon each member for the purpose of raising funds when necessary in the course of the business of the association and for the purpose of carrying out its aims and objects. The amount in the treasury of the association shall not be reduced below the sum of five thousand five hundred dollars, unless it is to pay benefits or indemnities prior to making and collecting the- assessments therefor, and
At the annual meeting of the association in December, 1897, the following resolution was duly adopted: “Resolved, that it is the sense of this annual meeting that the present is a very favorable time to commence the accumulation of an emergency fund of $100,000 to be made up (as fast as convenient) out of the annual dues, as they may be paid from year to year. This fund should be put out upon interest, but at all times subject to the acts of the president and board of directors,. when, in their judgment, an emergency has arisen or when disturbing it will avoid the necessity of making more than four assessments in any year.” And following its adoption the annual dues of the members were diverted to the emergency fund so provided for, and at the time of Clark’s death there was $169,000 in said fund. The association had long followed the rule of making but four assessments of $2 each per year, and had on several occasions drawn from the emergency fund to meet its liabilities; and at one time it transferred from the general fund to the emergency fund $15,000. At the time Clark became a member, there were liabilities on benefit certificates, aggregating over $34,000, which were afterwards paid from funds to which Clark contributed by paying assessments leveied therefor. Appellee contends that Clark was not in default for failure to pay the last assessment, because he had before that time overpaid all valid demands, and was entitled to credit on the last assessment for such
The provision in section 4 of article 5 of the by-laws does not, in our judgment, necessarily indicate that the board may assess new. members for past losses. The declared mutual purpose of the association would negative such intent; and, if there is ambiguity in the by-law in question, it must be construed strictly against the association, to prevent a forfeiture.
Complaint is made of two instructions given and of the refusal to submit some of the appellant’s requests. We think there is no just cause for complaint. The sixth instruction was in line with the Meyer case; and the instruction relative to intoxication was not prejudicial to the appellant. So far as the requests were pertinent, they were embodied in the instructions given. The judgment should be, and it is, Affirmed.