Maryland Mutual Benevolent Society of the Improved Order of Red Men v. Clendinen

Bowie, J., delivered the opinion of the Court. The appellants are an incorporated Benevolent Society, organized “with a view to aid the families of deceased members,” and “to secure to the'widow, child, or children of deceased members, the sum of one dollar from each member of the association.” Charter, Article 1. The appellee, is the administrator, with the will annexed, of Ferdinand Stansbury, a deceased member of the Society, who sued the appellants in Baltimore City Court, at May term, 1875, and claimed that his testator was a member in good standing, of the appellants’ Society, and died about February, 1875, that upon his death, the sum of $280 became payable to such persons to whom he may have disposed of the same, by will or assignment, under Article 7 of its by-laws ; that said, Stansbury left a will devising his entire-estate to four persons named, his three sisters and his friend Lowenbach, and that plaintiff was ⁴³¹ duly appointed administrator c. t. a-., and thereby became entitled to receive every thing which belonged to F. Stansbury’ s estate, or could pass by his will, including the sum of $280, so as above devised; that the plaintiff had demanded payment of the appellants, and complied with all its regulations upon the subject, but the appellants had refused. The defendants pleaded non assumpsit, the case was submitted to the Court upon an agreed statement of facts.

The plaintiff contended upon these facts, that by a proper legal construction of the charter of the appellants, (a copy of which was in evidence,) the verdict should be for the plaintiff; whilst the defendants maintained that the money did not pass by the will. The Court decided that the fund or money did pass by the will, to which the defendants excepted, and the judgment being for the plaintiff, the defendants appealed. At the trial of the cause, it was admitted “that the plaintiff had the right to bring the suit as it was brought (meaning, as was conceded in argument, he was administrator of said Stansbury ;) that the defendants were duly incorporated; that Stansbury died leaving neither widow nor children, and was at the time of his death a member of the corporation in good standing, and that there were then 276 other members of the corporation. It was further admitted that the following is a true extract from the will of Ferdinand Stansbury, dated the 8th February, 1875, viz., “After the payment of all just debts and funeral expenses by my executor, out of my estate, I devise as follows : I give and bequeath the entire residue of my estate to my three sisters, Emma C. Arnold, Mary Florence Skinner and Grace Rose, and my esteemed friend Mary E. V. Lowenbach, each of them to have and receive a fourth part thereof absolutely ;” and that the annexed constitution and by-laws, are the rules and articles by which the defendants are governed. ⁴³² The plaintiff read the first and second sections of Art., 7, as follows: Sec. 1.

Upon the death of a member of the association, the President shall draw his order upon the treasurer, (countersigned by the secretary,) within sixty days after receiving proper notice of the same, for the sum of one dollar for every member of the association, whose name may be on the books at the time of the death of the member, and the treasurer shall forthwith pay the sum so called for, to the widow, child, children, or such person or persons to whom the deceased may have disposed of the same by will or assignment. Sec. 2. If there be no widow, child, or children, or the deceased shall have made no disposition by will or assignment of the sum accruing xipon his death, then the Board shall appropriate such sum as may be necessary for funei'al expenses, and all excess of money accruing from the death of such member shall go to the permanent fund of the association. Articles 10 and 11 define what constitutes the permanent fund, and its final disposition.

By the former, the permanent fund shall consist of entrance fees, reinstatements, amount left over according to 2nd section, Article 7, and interest. By the latter, if the association should be reduced to 250 members, two-thirds of the Board of Managers may settle up its affairs, pay its debts, (if any,) and the balance of the principal and interest of the permanent fund be divided amongst the members whose names are recorded on the books of the association. The question is, whether the fund assigned by this charter to the widow and children of the deceased, or to his legatee or assignee, becomes upon his death, assets, which will pass to his administrator or executor, under a general residuary clause of a will, not referring to the power, or the fund. This charter is a contract or covenant between its several members with each other, and the , corporation ⁴³³ created by it, to reciprocally perform its several stipulations and obligations.

Each member binds himself to pay a stipulated entrance fee, and a certain sum upon the death of any of his associates, within a given time, upon notice ; and on the other hand, upon the death of any member, the corporation, by its president, is required to pay a sum of one dollar for each surviving member, to