Tilbert v. Eagle Lock Co.

165 A.205 (1933)

Facts

P's husband, Kasimierz Tilbert, entered the employ of D prior to January 1st, 1922, and continued therein until his death on August 28th, 1931. On or about June 29th, 1923, D canceled the group insurance which covered P's intestate and issued a so-called 'Certificate of Benefit' to him. P's intestate remained in the employ of D more than five years and at the time of his death was employed and was not notified of any attempted cancellation of said certificate. Under the certificate, P, as beneficiary is entitled to $1000, with interest. P notified D of the death of her husband and demanded payment. D refused. On or before August 22, 1931, the officers of D decided to withdraw the certificates of benefit and on August 24th the treasurer caused notices to be printed, dated August 28th, 1931, stating, 'Effective immediately, all Certificates of Benefit are hereby canceled and the Benefit Plan discontinued.' Notice of a reduction in wages was also included. The treasurer inserted in each printed notice the number of a particular employee, and these were put in the pay envelopes given by the paymaster to the employees on August 28th, 1931, which was the regular payday at D's factory. P's intestate had been ill for about four weeks and died about two o'clock in the morning of August 28th. P sued D and D demurred on numerous grounds including no consideration for the benefit.