Atlantic Insurance Company v. Fulfs

417 S.W.2d 302, 30 A.L.R. 3d 1038, 1967 Tex. App. LEXIS 2760
CourtCourt of Appeals of Texas
DecidedJune 23, 1967
Docket16844, 16845
StatusPublished
Cited by14 cases

This text of 417 S.W.2d 302 (Atlantic Insurance Company v. Fulfs) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Insurance Company v. Fulfs, 417 S.W.2d 302, 30 A.L.R. 3d 1038, 1967 Tex. App. LEXIS 2760 (Tex. Ct. App. 1967).

Opinion

OPINION

LANGDON, Justice.

This suit was filed by H. L. Fulfs and wife against Milwaukee Insurance Company of Milwaukee, Wisconsin, a corporation, one of the appellees, and Atlantic Insurance Company, a corporation, appellant, for collision damage to an automobile and for medical payments.

Prior to the occasion in question, Milwaukee had issued its family automobile policy to the Fulfs on an automobile owned by them and Atlantic had issued two of its Texas Family Automobile Policies of insurance to R. D. Wright. In one it agreed to pay for loss to a 1965 Plymouth Barracuda automobile in excess of the deductible amount of $50.00. In the other it agreed to pay all reasonable medical expenses incurred within one year from the date of accident up to $2,000.00 for each person. Each of these policies named R. D. Wright as the insured and each contained the following provision: “15. Assignment * * * if, however, the insured named in Item 1 of the declarations * * * shall die, this policy shall cover * * * (3) any person having proper temporary custody of an owned automobile, as an insured, until the appointment and qualification of such legal representative, and (4) under division 1 of Part II any person who was a relative at the time of such death.” This provision will hereinafter be referred to as paragraph 15.

Wright died, leaving a will bequeathing his Plymouth Barracuda automobile, covered by the Atlantic policies, to Mrs. Fulfs, his aunt. She acquired custody of the Plymouth after the death of Wright but prior to the time Wright’s will was admitted to probate. The sequence of events is summarized as follows:

September 10, 1965 — R. D. Wright died.

September 13, 1965 — Car delivered to Leva Fulfs. She and her husband went to Denton for the nephew’s funeral. While there she met with Ted Davis, named as executor, and Gerald Stock-ard, who had been her nephew’s lawyer and was the lawyer for the estate. The will was read and the car was turned over to Mrs. Fulfs.

September 19, 1965 — Car demolished and Leva Fulfs injured.

September 27, 1965 — 1. Will probated and Ted Davis qualified as independent executor. 2. Atlantic’s policies as *304 signed to Ted Davis, executor, and transferred by agent of Atlantic.

October 25, 1965 — Atlantic policies assigned to Leva Fulfs, and transferred to her by an agent of Atlantic.

October 27, 1965 — Title to Plymouth was transferred to Leva Fulfs by the independent executor.

March 7, 1966 — Atlantic’s policies cancelled because Leva Fulfs was over 65.

Trial was to the court without a jury. Judgment was rendered for plaintiffs against Atlantic Insurance Company in the total amount of $5,320.30 plus interest and court costs. Recovery against Milwaukee Insurance Company was denied. Atlantic has appealed the judgment against it and plaintiffs have appealed limiting the scope of such appeal to the part of the judgment denying them any relief against Milwaukee, an appellee.

By three points of error Atlantic contends that under this record (1) Mrs. Fulfs did not have “proper temporary custody” pending the appointment and qualification of the executor, within the meaning of the policy provisions; (2) it was error to place the full loss against Atlantic assuming coverage on its part because the loss should be prorated with Milwaukee Insurance Company; and (3) the court erred in awarding an unsupported and excessive amount of attorney’s fees.

We affirm.

Coverage by Atlantic is claimed under the provisions of paragraph “15. Assignment,” the pertinent language of which is above set forth. Thus, the primary question to be resolved is whether or not Mrs. Fulfs, at the time of the accident, had ■“proper temporary custody” of the Plymouth “until the appointment and qualification” of the legal representative of the deceased.

Atlantic contends that Mrs. Fulfs had “permanent” rather than “temporary” custody of the car as the owner to whom it had been bequeathed. In support of this contention Atlantic argues that at the time the car was turned over to Mrs. Fulfs it was everyone’s (apparently a reference to the Fulfs, Davis, named executor, and Stockard, attorney for the estate) intention that it was being delivered to her as the owner, to be kept permanently by her. This. was because it had been determined that there were no debts of the deceased which would require resort to the car and thus it was not contemplated that Mrs. Fulfs would ever return it to Ted Davis, the executor. Stated another way, it is argued that Mrs. Fulfs was not given custody of the car to await appointment and qualification of the executor and then to turn the car over to him, but rather the personal representative named in the will already had possession and had turned the car over to her to keep permanently because it was willed to her and would not be needed for payment of any debts.

Appellant, Atlantic, contends that under Texas law Mrs. Fulfs became the owner of the Plymouth immediately upon the death of Wright, her nephew, and thus was the owner at the time of the accident, and cites Section 37 of the Probate Code, V.A.T.S., which provides: “When a person dies, leaving a lawful will, all of his estate devised or bequeathed by such will shall vest immediately in the devisees or legatees * * * it

It should be noted that Section 37 of the Probate Code further provides that upon issuance of letters testamentary or of administration upon any such estate, the executor shall have the right to possession of the estate as it existed at the death of the testator and that he shall recover possession of and hold such estate in trust for disposition in accordance with law. (Emphasis added.)

In Morris v. Ratliff, 291 S.W.2d 418, 421 (Dallas Civ.App., 1956, ref. n. r. e.), it was stated: “It is true, as appellant says, that when a person dies leaving a lawful will, *305 all of his estate vests immediately in the devisees or legatees. Art. 3314, V.A.C.S. But the devisees take subject to the lawful administration of the estate and an executrix in her representative capacity, as part of her full administration of the estate, must secure and collect the assets for the estate in order to comply with the terms of the will and distribute the assets to the parties, including creditors entitled to receive them.”

Pursuant to Section 37 of the Probate Code, supra, and Sections 232 and 233 thereof, the personal representative of an estate, immediately upon receiving letters, shall take into possession the personal property, records, books, title papers and other business papers of the estate to later be delivered to the person or persons legally entitled thereto when the administration has been closed. He is required to use ordinary diligence to collect all claims and debts due the estate and to recover possession of the estate to which its owners have any claim or title. (Emphasis added.) See also 18 Tex.Jur.2d 309, 311 and § 353 and § 356, respectively.

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Bluebook (online)
417 S.W.2d 302, 30 A.L.R. 3d 1038, 1967 Tex. App. LEXIS 2760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-insurance-company-v-fulfs-texapp-1967.