Hoeft v. Supreme Lodge Knights of Honor
Before: Henshaw
Synopsis
Demurrer — Power to Pass Judgment—Appeal — Presumption.—Although the court has no power to pass final judgment in a cause until a demurrer is disposed of, yet, where the record upon appeal from the judgment does not show' that a demurrer interposed was not disposed of, it will be presumed against error that it was disposed of.
Id.— Demurrer Without Merit—Harmless Error.—Where the demurrer was without merit, any error in failing to pass upon it is without prejudice.
Benefit Association—Action Upon Certifícate to Widow—Contest of Children—Interpleader—Regularity of Certificate—Admission by Association.'—In an action against a benefit association upon a certificate issued to the widow of a deceased member, where the association paid the money into court and asked that the children of the deceased member be allowed to appear and contest, snch action is an admission on the part of the association that the certificate sued upon was issued in accordance with its regulations, and that any failure of the insured member strictly to comply with all of its requirements and regulations in procuring the issuance of such certificate was waived by it; and denials by the children that the certificate was issued to plaintiff in accordance with such regulations, or that the insured complied with all of such requirements and regulations, raises no material issue,
Id.—Rights of Beneficiaries—Vested Interest—Expectancy—Revocation-Power of Insured to Change—Fraud of New Beneficiary. Beneficiaries named in a policy taken out by a member of a benefit association, who has the power, by the rules of the association, to name or change the name of his beneficiaries, have no vested right or interest in the certificate, unless secured by contract, but have only a mere expectancy of an incompleted gift, which is revocable at the will of the insured, and which cannot become vested as a right until fixed by his death, and cannot be defrauded of that in which there is no vesteil right; and no law confers upon beneficiaries, having no vested interest by contract, any right to assail a change of beneficiaries by the insured on the alleged ground of fraud of the new beneficiary in procuring the certificate.
Id.—Acts of Insup.ed Member — Equity.—As between beneficiaries making conflicting claims, equity will give complete effect to the acts of the insured member of a benefit association, and will not heed a demand to have those acts nullified.
Henshaw, J. Appeal from the judgment given in favor of plaintiff upon the pleadings.
Plaintiff, the widow of Henry Hoeft, sued defendant, a benefit association, to recover two thousand dollars upon a certificate issued in her name, at request of the insured member, Henry Hoeft. The defendant supreme lodge for answer paid the monej'- into court, and asked that the children of Henry Hoeft be allowed to appear and contest. This was permitted, and the children— defendants and appellants herein—interposed a general demurrer to plaintiff’s complaint, and thereafter filed an answer and cross-complaint. The court, upon motion, gave plaintiff judgment upon the pleadings, and this appeal followed.
1. The objection that the court had no power to pass judgment until it disposed of the demurrer is sound as a proposition of law, but untenable under this record. It does not appear that the demurrer was not disposed of, and, as error will not be presumed, it will be assumed that it was. Moreover, the demurrer was without merit. (Loftus v. Fischer, 106 Cal. 616.)
2. It is contended that the answer, by its denials, joined issue with plaintiff upon certain of her allegations, and that the issues were material, and required evidence for their determination. The denial that the certificate was issued to plaintiff in accordance with the regulations of the order is disposed of by the admission of the order that the certificate was actually issued, and by its payment into court of the money due thereunder. The regulations of the order are for its own protection, not for the protection of the beneficiaries, and the order has power to waive a strict compliance with them. It is not denied that the certificate to plaintiff was in fact issued. (McLaughlin v. McLaughlin, 104 Cal. 171; 43 Am. [95]St. Rep. 83; Adams v. Grand Lodge, 105 Cal. 321; 45 Am. St. Rep. 45; Martin v. Slubbings, 126 Ill. 387; 9 Am. St. Rep. 620; Thomas v. Thomas, 131 N. Y. 205; 27 Am. St. Rep. 582.) The principle enunciated disposes of all of the denials of the defendants which are similar, e. g., that the insured did not sign in the blank space left for his signature, and did not comply with all the requirements and regulations of the order in procuring the issuance of the certificate of plaintiff.
3. The principal question presented is raised by the new matter pleaded by defendants in their cross-complaint. They set forth that plaintiff is their stepmother. Originally their father—the insured—procured a certificate to be issued in the name of their mother, his then wife. Upon her death a certificate was issued in their favor. In the course of time he married plaintiff, and thereafter surrendered the certificate in favor of them, and caused the certificate, under which plaintiff claims, to be issued to her. The last change, it is averred, was accomplished through the fraudulent representations, undue influence, coercion, and duress practiced and exercised upon their father by his wife, this plaintiff. The specific averments to support this charge are'to the last degree meager and inconclusive, but passing that, under an assumption of their sufficiency we come to consider whether a cause of action is stated. If so, the judgment must be reversed; if not, it was properly given.
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