Conway v. Supreme Council Catholic Knights of America

HENSHAW, J.

In 1889 the defendant, the Supreme Council of the Catholic Knights of America, a beneficial order incorporated under the laws of Kentucky, issued its benefit certificate to one John M. Conway, by which, upon the death of John M. Conway at a time when he was in good standing in the order, there should be paid to his nephew, Thomas J. Conway, the sum of two thousand dollars. The defendants Koonan, Shay, and Menihan became sureties for John M. Conway in the sum of sixteen hundred dollars, and to protect and secure them an assignment and transfer was made to them of the policy. The assignment declared that the transfer was made as securit)', and it was executed by both the assured and his nephew, Thomas J. Conway. In June, 1893, the defendant sureties were compelled to pay sixteen hundred dollars, the amount for which they were holden upon their under- ' taking. In August, 1896, John M. Conway died in the state of California, of which he had been a resident for some years. This action was begun by the nephew, Thomas, against the benevolent order to recover the amount of the policy. The sureties were called in and made parties defendant. They asserted a right to the moneys due on account of the policy by virtue of the foregoing facts, or at least to sufficient to reimburse them for their outlay. After trial judgment passed for the defendant sureties, and the plaintiff and the Supreme Council of the Catholic Knights appeal from this judgment and from the order denying them a new trial.

The by-laws of the Catholic Knights provide a specific mode in compliance with which the beneficiary named in the certifi

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cate may be changed. It has uniformly been held in organizations such as this that the by-laws form a part of the contract, and that the association may require a compliance with them, or refuse to pay.

(McLaughlin v. McLaughlin,

104 Cal. 171

1

;

Levy v. Magnolia Lodge,

110 Cal. 297;

Hass v. Mutual Relief Assn., 118