156 Mass. 431 | Mass. | 1892
This is a bill brought by certain certificate 'holders of the defendant corporation, seeking for an injunction and a receiver.
The defendant is a Massachusetts corporation, incorporated “ for the purpose of doing an insurance business, as provided in chapter four hundred and twenty-nine of the acts of the year eighteen hundred and eighty-eight.” By § 8 of that statute, as amended by the St. of 1890, c. 341, “ Any corporation duly organized as aforesaid, and which does not employ paid agents in soliciting or procuring business, other than in the preliminary organization of local branches, and which conducts its business as a fraternal society on the lodge system,” etc., may provide for weekly payments to a member during disability, “ or pay a benefit to the member or his family at the end of such period of time as shall be fixed by said by-laws, and written in the benefit certificate issued to said member.” The words last quoted authorize the issue of the species of certificate held b'y the plaintiff, and the language quoted from the charter of the defendant corporation does not limit its power more narrowly. We read the words, “an insurance business, as provided,” etc., as intended to express in a summary way the whole business provided for in the act referred to, or at least so much of it as
The certificates issued to the plaintiffs purport to bind the defendant “ to pay out of its Benefit and Reserved Funds a sum not exceeding One Hundred Dollars,” upon condition that the said member (i. e. of Boston Lodge No. 1, United Order of the Golden Lion) “complies with all ’ the laws, rules, and regulations now governing said subordinate lodge and its funds.” The promise we read as a promise to pay as near to one hundred dollars as the corporation is able to pay from its reserved fund, or by assessment. The condition in an obscure way subjects the certificate holder to assessments of two dollars each, not limited in number, or frequency within a given time, except as the act limits them in § 8.
It is evident to any one of reasonable understanding and experience, that such a contract can be performed only by assessing the certificate holder for the full amount to be paid to him, and something more for the expenses of the business, unless the membership increases considerably between the time of making the contract and the time of paj'ment, which of course can happen only for a short time, or unless the available reserve funds are increased by other holders forfeiting their certificates and the sums already paid in by them. In view of the narrow limitation set by § 8 of the statute, as amended by the St. of 1890, c. 341, upon assessments up to within three months of the maturity of certificates, it is plain that, when certificates are within three months of maturing, assessments must begin to fall thick and fast, and that the poor people to whom this business particularly is addressed in many cases will find themselves compelled to forfeit all that they have paid in by their inability to make .further payments. It is not in our power to declare the business contrary to public policy, and a fraud on an unprotected part of the community, since the Legislature have authorized it, but it is well to understand with what kind of business we are dealing. No one who does understand it, we think, would hesitate to agree that all legislative conditions must be complied with strictly.
In the case at bar, it appears that assessments of at least ninety or ninety-five per cent of the sum to be received, and
It is desirable, in the present position of things, that this branch of the defendant corporation’s business should be wound up, at least so far as to distribute the fund on hand among the present certificate holders, without carrying out to its extremity the helium omnium, contra omnes by further assessments and
The decree appointing a receiver, and ordering a distribution of the funds now held by the defendant corporation in the endowment benefit business, is affirmed. Decree affirmed.