Golden v. Brotherhood of R. Trainmen

Submitted June 23, 1939. Fraternal Insurance Right of Member of Association to Pension Failure of Performance of Conditions Precedent Non-liability of Association Contracts What Constitutes Insurance Contract Function of Courts in Construing Contracts. Fraternal Insurance Recovery of Pension for Disabled Members What Constitutes Contract. 1. In an action to recover on a certificate of a fraternal association with relation to payment of a pension to superannuated or permanently disabled members, where the certificate in express terms makes the Constitution of the association and its general rules a part of the contract, the certificate, Constitution and rules constitute the contract between the association and its members. Same Right of Association to Require Members to Observe Reasonable Rules and Regulations Relating to Pension Department. 2. A fraternal association which provides for a pension to its members under certain conditions has the right to require such members to be governed by any and all reasonable regulations necessary for the proper functioning of its pension department, such as requiring a member to submit his claim for investigation and allowance before he is entitled to be placed on its pension rolls. Same Contracts Construction by Supreme Court Court may not Make New Contract for Parties. 3. The supreme court is required by law to interpret and enforce contracts as they are written, and the mere fact that a contract between a fraternal association and one of its members under which the latter would be entitled to a pension under certain conditions was more limited in its coverage than claimant might fairly have expected, does not justify the court in making a new contract for the parties or construing their contract more liberally in favor of the claimant than the clear meaning of its terms warrant. Same Pension Department of Association Applicant for Pension must be Among Disabled Living. 4. Under the rule of the pension department of the Brotherhood of Railroad Trainmen that no member thereof should be entitled to a pension unless he had been disabled for the period of one year, it would seem that the applicant must be among the disabled living. Same Application for Pension Conditions Precedent to Right to Pension When Right Vested. 5. While under a life insurance policy the contract of the insurer is to pay on the death of the insured, under a certificate of a fraternal association providing for a pension of members upon their becoming permanently disabled provided they make application therefor and with subsequent approval thereof and placing of their names upon the pension roll, compliance with such requirements constitutes a condition precedent to their right to receive a pension or before their right thereto may be said to have become vested. Same Pension to Disabled Member Non-compliance of Member With Rules and Regulation Failure of Performance of Conditions Precedent Non-liability of Association. 6. The constitution and rules of the pension department of the Brotherhood of Railroad Trainmen, a fraternal association, provided that a member totally and permanently disabled should receive a pension, the pension in case of his death, to be extended to his widow, provided he had applied therefor, but that no member should receive a pension unless his application had been approved and his name placed upon the pension rolls. A member was injured in an accident and died within an hour. No application for pension had ever been made. Held, in an action by the widow of the deceased to recover on the certificate issued to her deceased husband, that application for the pension, approval thereof and placing the name of decedent upon the pension rolls were conditions precedent to fastening liability upon the association, and that in the absence of performance thereof there was no liability.