Boyd v. Operating Engineers Welfare Fund
Boyd v. Operating Engineers Welfare Fund
Opinion of the Court
Opinion by
This appeal is from the judgment of the Municipal Court of Philadelphia County, awarding the sum of $2,500.00 with interest on a claim for double indemnity benefits against appellants.
All moneys constituting the. trust funds were contributed by the employers of the respective members of. the union and an operating engineer became a beneficiary'of the trust fund, prior to merger,'to which, his employer contributed. The employer of Hugh Boyd contributed to the so-called Fidelity Fund and, after the death of her husband, Mrs: Boyd made application for the payment of benefits from the Fidelity Fund. The sum of $2,500.00 was in fact paid without question and this payment is not involved in the present litigation.
.’ After the creation of the 1953 Fund and after the receipt of the regular death benefits of $2,500.00, appellee made application for an additionál $2,500.00 as extra benefit paid in cases of accidental death. In considering this claim, the trustees of the 1953 Fund ruled that this claim should not be recognized as an accidental death claim. There was testimony to the effect that this ruling was predicated on a discussion that Mr. Bóyd was not a good union man and that in his case the claim should not be recognized. On May 11, 1953, therefore, the trustees of the 1953 Fund resolved not to include self-destruction within their definition of accidental death and also resolved that “further payment on the Hugh Boyd claim be contested, that attorney Charles A. Wolfe be requested to proceed with denial of further liability.”
The 1953 trust agreement makes no specific provision for the payment of any specified benefits in case of death and the determination of the amount was left completely to the judgment and determination of the
Appellants contend on this appeal that the declaration of trust dated January 8, 1953, vests in the trustees the right to define “accidental death” and that the trustees having concluded that suicide is not an accidental death, in the absence of abuse of discretion, the court below should not have interfered with the exercise of such discretion. Further, they urge that the court below erred in concluding that the resolution of the Broad Street Trust and the payment by the trustees of Fidelity Trust to Mills obligated the trustees of the 1953 Trust Fund to pay accidental death benefits to the appellee. The basic question as we see it,
We start with the proposition that, normally, death by suicide cannot be considered as accidental death. This proposition in the insurance field is so basic that no citation of authorities are required to support it. Here, however, we are dealing with the internal management of a union welfare fund and, in view of the unique resolutions passed by it, the general rules of insurance have no application. Whatever rights to benefits appellee may have had under the trust fund in question had to be determined at the time of her husband’s death in December, 1952, and not at a time subsequent to that date.
When Hugh Boyd died, it was the established policy to treat suicides as accidental deaths by both trust funds. Since any claim for accidental death benefits would have been required to be paid out of the Fidelity Trust Fund if still operating as a separate fund, the merging of this fund into a third fund would not change the liabilities involved. The 1953 Trust Fund could not take over the assets of the Fidelity Trust Fund without its liabilities. Having taken over the assets of this fund, the 1953 Trust Fund became obligated to meet the obligations of that fund. We do not mean to imply that the trustees of the new fund could not pass proper resolutions to limit, prospectively, the payment of benefits under certain specified conditions, but any such resolutions could have no retroactive effect. The members of a union or other similar organizations are bound by its laws and regulations and subject to its discipline. However, such rules and regulations work both ways and they must be adhered to by the officers as well who represent the association. Neither may such an organization oper
When the 1953 Trust Fund was created, the trustees did pass regulations relating to accidental death benefits. So long as such resolutions and regulations apply to liabilities arising after the adoption of the rules and regulations, no one may challenge them. However, when the trustees of the 1953 Trust Fund attempted to apply such rules and regulations to a claim already matured, such regulations may be set aside. It is in this respect that the action of the trustees was deemed by the court below to be an abuse of discretion and with which we agree. While a court cannot control the discretion conferred upon a trustee, it may compel him to exercise it in good, faith and within the bounds of reasonable judgment and it may also interpose where he fails to use judgment at all because of a mistaken view, either of fact or law, as to the extent of his powers or duties. In re Brown’s Appeal, 345 Pa. 373, 29 A. 2d 52; Damiani v. Lobasco, 367 Pa. 1, 79 A. 2d 268. When trustees attempt to make rulings which are retroactive and divest property rights which have been already vested, such acts cannot be sanctioned as valid acts of authority or discretion. Thomas v. Kennedy, 387 Pa. 636, 130 A. 2d 97; Steel v. Driver Salesmen’s Union Local No. 468, 147 Pa. Superior Ct. 172, 24 A. 2d 20.
Judgment affirmed.
Reference
- Full Case Name
- Boyd v. Operating Engineers Welfare Fund of Eastern Pennsylvania and Delaware
- Cited By
- 2 cases
- Status
- Published