253 Pa. 611 | Pa. | 1916
Opinion by
The Brotherhood of America is a secret beneficial society having members in Pennsylvania, New Jersey and other states. The head of the organization is the Supreme Circle composed of certain officers and representatives of subordinate bodies located in the various states. Under the state divisions are Grand Circles and Grand Homes and Subordinate Circles and Homes.
The society was organized in 1847 and has been in continuous existence since that time. The National Supreme Circle was instituted in 1850, and the Grand Circle of Pennsylvania in 1866. The Supreme Circle was originally unincorporated and remained so until 1896, when it became a chartered body under the laws of the State of New Jersey. Owing to unfavorable provisions contained in the laws of that state relating to corporations of this class with respect to the construction of contracts between the societies and their members, in 1914, on advice of counsel, the New Jersey charter was surrendered, and a new one applied for and obtained under the laws of the State of Pennsylvania.
The cause leading up to the dissolution and surrender of the New Jersey charter was a general dissension which arose among the members owing to an increased assessment on members in the death beneficial fund. Although the rates were of a sufficient amount originally to create a large reserve fund at a time when membership was young and deaths few, they proved to be’inadequáte at a later period when the death claims began to exceed the receipts, and as a result of this situation the early depletion of the reserve fund became apparent. To meet this condition the Supreme Circle, at its meeting in October, 1909, increased the death fund rates, thereby incurring the opposition of many members. At the time the new rates were scheduled to take effect certain of the dissatisfied members filed a bill in the New Jersey courts to restrain the order from proceeding to collect the increased assessments, alleging the dues fixed by the by-laws, at the time they became members of the order, constituted a contract between themselves and the order
Plaintiffs, constituting the minority, remained loyal to the original order, preserved their organization, elected officers and were recognized as Quaker City Circle, No. 97, by the Supreme Circle, which had previous to this time -procured a charter from the State of Pennsylvania. The dissenting majority, however, on January 27,1915, took with them all paraphernalia and assets of the order, the latter of the value of $1,619.52. The present bill was filed by the minority members to compel the surrender of this property. The lower court granted the prayers of the bill, and, upon exceptions filed thereto being dismissed, the present appeal was taken.
Appellants’ contention is that at the time of the surrender of the charter of the Supreme Circle of New Jersey there was a total dissolution of the order, and that the order was not revived by the subsequent receipt
The cases of State Council Junior Order of United American Mechanics of Penna. v Emery, 219 Pa. 461, and Wolfe v. Limestone Council No. 373, 233 Pa. 357, relied upon by appellants, are not binding authorities under the facts of this case. These cases merely decide that a state council, after revoking the charter of a subordinate council, is not entitled to funds contributed by members of the subordinate council for sick and funeral benefits, or property belonging to it and contributed by its members previous to the revocation of its charter. These cases were not intended to overrule the principles of law announced in the earlier decisions of this State to the effect that members of a subordinate division of an association cannot, against the will of the minority, transfer its property and assets to another association, and thus divert it from the purpose originally intended. In the cases above cited the subordinate organization, upon revocation of its charter, by the superior body,
The right of the majority, or any part of the members of the organization, to leave and form an independent association, cannot be disputed so long as they make no attempt by virtue of their new organization to interfere with the property rights of the members of the old order, and any fund created by the new organization must therefore remain its property, free from claims of the members of the former organization to which they belonged. The plaintiffs, therefore, are entitled to only such funds or property as belonged to the Quaker City Circle, No. 97, at the date of the withdrawal of the majority members from the organization.
The assignments of error are unduly multiplied in this case, there being seventy-two, a large number of them embracing exceptions of appellants to the adjudications of the lower court; while it is asserted these exceptions were dismissed the action of the court in dismissing them is not quoted. The assignments to the decree, however, raise the main questions involved, and are disposed of in this opinion.
The decree of the lower court is affirmed but modified and limited to the property and cash on hand as of January 27,1915, amounting to $1,619.52.