Farias v. Farias
Farias v. Farias
Opinion of the Court
OPINION OP THE JUSTICES BY
The plaintiff is the widow of- Antonio Medeiros Farias, deceased, who at the time of his death was a member of the Sociedade Lusitana Beneficiente de Hawaii, an incorporated mutual benefit society. The defendants, other than the corporation, are the children of the said Antonio M. Farias by a former marriage, and such of them as are minor are represented by their guardian, E. G. Da Silva. The agreed facts out of which the main controversy has arisen are substantially as follows: The deceased became a member of the society on December 8, 1890, and remained a-member in good standing until his death; his first wife died on or about the 22d day of September, 1907; on September 30, 1907, the deceased filed with the society a written declaration disposing of the death benefit which, under the bylaws of the society would become payable upon his demise, one-half to his daughter Angelina and the other half to be equally divided among his other children, subject to certain conditions not material here; in the by-laws which were then in force (adopted in 1903) it was provided that upon the death of any member in good standing a death benefit consisting of the sum of one dollar to be paid in by each member would be collected by the society and “paid as a death benefit in the following order: 1st. To the widow. 2nd. To the children” of the decedent, with the proviso that “The provisions of this article with relation to the persons who shall receive the death benefit are not absolute, the member having the power to dispose of not more than half of the death benefit to his children. If he shall leave a widow only, he shall have the right to dispose
On behalf of the plaintiff it is contended that under the by-laws which were in force at the date of the declaration made and filed by the decedent he was without power to designate his children as beneficiaries to the extent of more than one-half of the death benefit or, as between them, as beneficiaries in other than equal shares, and that as the declaration named the children as sole beneficiaries and in unequal shares it was invalid and void; also that the new by-laws could have no “retroactive” effect and, therefore, have no application in the premises, but that the by-laws which were in force at the date of the declaration apply, and that as under those by-laws no member leaving a widow could deprive her of more than one-half of the death benefit, the declaration of the decedent was inoperative at least as to one-half which is the amount now claimed by the plaintiff. And while counsel in their brief, referring to the by-laws of 1914 and the question whether article 25 applies to this case, say that “this question can be material only in the event that the declaration or designation filed by the member in 1907 should be held by this court as having been rendered valid and operative by said Article 26,” and say also that they “are forced to concede that after a careful consideration” of the question whether article 25 or article 26 is applicable “they have come to the conclusion that article 26 takes precedence over Article 25,” yet they claim that the plaintiff is entitled to one-half of the benefit “whether Section 25 applies or not.”
On behalf of the defendants, other than the society, it is
It must be conceded that if the decedent had died prior to January 1, 1914, when the new by-laws took effect, his widow, though no provision was made for her in the declaration, would have been entitled to one-half of the death benefit. But that event did not occur. At the time the decedent filed the declaration he had no wife living, and we think that under the by-laws then in force he had the right to designate his children as the sole beneficiaries of the benefit in the manner in which he did. Under article 23 of the by-laws then in force a death benefit was not to be divided between the widow and children, but was payable “in the following order: 1st. To the widow. 2nd. To the children.” That is to say, if the member had filed no declaration and left surviving a widow and children the widow would have taken the whole benefit. But article 29 provided that the provisions of article 23 “can be carried into effect in accordance with the wish of the member by his declaring to what ones of the persons named and in what shares the part of the death benefit shall be paid,” and under the authority of that article a member leaving children but no widow at his death could have designated his children as sole beneficiaries in unequal portions. The declaration of the decedent, therefore, was valid when it was made, and it is not necessary that the by-laws of 1914 be given a retrospective effect in order to render it valid. It
The second part of this controversy involves the right of the society to make certain deductions from the death benefit payable to the beneficiaries. By the agreed facts it is admitted that the society is authorized to deduct the sum of $184.50 for funeral expenses paid and attorney’s
The contention advanced against the claim of the society is to the effect that the abolition of the former system of death benefits from special assessments and the substitution of benefits in fixed amounts payable out of a special fund maintained for the purpose by the society so altered the situation that any benefit paid to a member under the old system is not to be taken into consideration, especially where, as in this case, the benefit paid to the decedent in 1907, upon the death of his former wife, had practically been “paid for” by him through the payment of special assessments upon the death of wives of other married members; that as the decedent had not been paid the $400 benefit under the later by-laws his beneficiaries should now be paid the sum of $1500 less only the sum of $184.50 which is admittedly deductible; and that this makes for reasonableness and equality, and is a fair construction of the provisions in force at the date of the death of the decedent. On behalf of the society it is pointed out that under article 22 of the by-laws of 1914 the death benefit of $1500 is payable
Reference
- Full Case Name
- MARIA JESUS FARIAS v. ELESERIO M. FARIAS, ANTONIO FARIAS, DANIEL FARIAS, ROSA FA-RIAS, AND ADELAIDE FARIAS, ALL MINORS, BY THE GUARDIAN OF THEIR PERSONS AND ESTATE, E. G. DA SILVA E. G. DA SILVA, GUARDIAN OF THE PERSONS AND ESTATE OF SAID ELESERIO M. FARIAS, ANTONIO FARIAS, DANIEL FARIAS, ROSA FARIAS AND ADELAIDE FARIAS, MINORS AS AFORESAID MARY FARIAS, SARAH FARIAS NUNES, LYDIA FARIAS AH CHIN, ANGELINA FARIAS AND JOHN M. FARIAS AND THE SOCIEDADE LUSITANA BENEFICIENTE DE HAWAII, AN HAWAIIAN CORPORATION
- Status
- Published
- Syllabus
- Beneficial Associations — validity of declaration■ — change in by-laws. A declaration designating the beneficiaries of a death benefit which was valid under the by-laws in force at the time it was made and valid also under those in force when the declarant died, will take effect according to its terms, unaffected by changes which occurred in the interim. Same — death benefits — by-laws construed. The by-laws of a mutual benefit society provided that upon the death of the wife of a member he should be paid a benefit through an assessment of twenty-five cents levied upon each married member of the society. Upon the death of the wife of a member he was paid such a benefit amounting to $262.25. Subsequently, by amendments to the by-laws the system was changed, and it was then provided that upon the death of the wife of a member he would be paid a benefit in the fixed sum of $400; it was provided also that upon the death of a member his beneficiaries would be paid a benefit in the sum of $1500 if he “shall not have at any time received a death benefit by reason of the death of his wife,” and that if he “shall have at some time received a benefit upon the death of his wife” the sum payable to his beneficiaries would be $1100. Held, that upon the death of the member who had received the benefit of $262.25, upon the death of his wife, his beneficiaries were entitled to demand from the society only the sum of $1100.