United Brothers of Friendship v. Huffman Auditing Co.
United Brothers of Friendship v. Huffman Auditing Co.
Addendum
On Rehearing.
Conceding that the Grand Master of the defendant society could have created an obligation on its part to pay to the plaintiff company the value of its services in this behalf, by requesting of plaintiff the performance of such services, yet the situation here is radically different.
“The law of fees and costs must be held to be penal, and no fee must be demanded or received except in cases expressly authorized by law.”
A violation of this inhibition is simply official extortion. We are satisfied that the notes given by the Grand Master in the name of defendant were not founded upon a legal consideration, and that they are therefore unenforceable.
Application overruled.
Opinion of the Court
The action is on several promissory notes executed by one J. S. Jackson, and by the United Brothers of Friendship, etc., a corporation, by said Jackson, as Grand Master of the state branch of said society, which was engaged in the business of insuring its members. The payee brings the action against Jackson and the society as makers of the notes.
“The expense of such examination shall be paid by the society examined, upon statement furnished hw the commissioner (italics supplied).”
No such statement has ever been made or furnished by the commissioner, but in June, 1915, the plaintiff made claim upon said Jackson, who had become Grand Master of the society, for $700 as compensation for said examination, and obtained from him the notes sued on, which were founded solely upon that consideration. One of the special defenses pleaded is that the notes sued on were without consideration.
It is clear that neither of the defendants were under any sort of obligation to pay the private demand of the plaintiff. The society was liable for the payment of such an amount as might be fixed and certified to it by the insurance commissiqner, and its authorized notes for that obligation would have been founded upon a legal consideration. But un *511 til that certificate was furnished there was no obligation to pay for an examination not requested by the society itself.
Reversed and remanded.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.