Dale v. Brumbly

Briscoe, J., delivered the opinion of the Court. This is an.interpleader proceeding instituted on the 5th day of August, 1901, in the Circuit Court for Wicomico County to establish the^ownership of a certain fund due and owing ⁶⁷⁶ by the Supreme Conclave Improved Order of Heptasophs, a fraternal insurance company, and a body corporate of the State, on account of a benefit certificate in the nature of a life insurance policy, amounting to $3,000, and issued to William Brumbly, now deceased, of Wicomico County. The order disclaims any interest or claim .to the fund, and has paid the same into Court to be’ distributed to the parties who are entitled to receive it. The- material facts, of the case as disclosed by the pleadings appear to. be these : The Improved Order of Heptasophs, issued to William Brumbly, on the 22nd of September, 1881, an endowment certificate for $1,000, payable-at his death to his children Louisa, Ida, Clara, and William.

This certificate was surrendered and another was issued on the 17th of March, 1882, for $3,000, payable to the four children above named .“and all his surviving children.” Subsequently, the last named certificate was released and cancelled and on the 17th of January, 1889, a new certificate was issued by the order for $3,000, and the benefits were made payable “to his estate.” It further appears from an endorsement on the back of the last named certificate that it was assigned in writing under seal by William Brumbly on the 18th of July, 1890, to Peter Dale, “as collateral security.” On the 9th day of September, 1895, Peter Dale having died, assignment in writing was entered upon the certificate as follows : “I hereby assign, transfer and set over to Harry P. Dale, and Jane D. Dale, administrators of the estate of Peter 'W. Dale, all my right, title and interest in and to the within certificate absolutely, and the said order or its duly authorized officer is hereby authorized and empowered to pay the same to the said administrators at any time and their receipt shall be a sufficient discharge and acquittance for all liability to me or to my estate on account' of the same, witness my hand and seal this 9th day of September, 1895. Witnesses. James E. Ellegood. William Brumbly, (Seal.) E. H. Walton.

The fund now in Court* is claimed, first by-the administra ⁶⁷⁷ tors of Dale un'der the two assignments ; secondly, by the administrators of "Brumbly as representatives of his personal estate, under the designation “estate” contained in the certificate of insurance, and lastly by the wife and children of the intestate, in their individual capacity, as beneficiaries under the certificate. The object and purpose of this Order and Society is to do a fraternal insurance business by providing for the sick and distressed members in their lifetime and to create a benefit fund, to be paid on the death of the member, upon certain conditions, to his beneficiary: Its constitution and laws prescribe who can be designated as beneficiaries, and no certificate shall be made payable “to a creditor nor be assigned, nor be held in whole or in part to secure any debt.” • ‘ ■ Section 3 of law 3, provides who can be named as such beneficiaries, and they are the family and dependents of the member. A member may surrender his