Bradshaw v. Littlefield

11 P.2d 288, 139 Or. 672, 1932 Ore. LEXIS 176
Oregon Supreme Court·Decided April 20, 1932·Published·Cited by 2 cases

Opinion

KELLY, J.

The decedent, Harry A. Littlefield, served as a soldier during the World war, and procured war risk insurance in the sum of $10,000. He named *673 Lucy Littlefield as the beneficiary. When the certificate of insurance was issued, she was his wife. Later, they were divorced.

In the course of his service in the army, he incurred a disability by reason of which certain payments on said insurance policy were made to him.

On April 15,1921, he died. Thereafter, Lucy Little-field received monthly payments of said insurance until her death, which occurred on March 13, 1930, at which time $5,806 was due and unpaid on said insurance policy.

Under the terms of the last will and testament of Harry A. Littlefield, E. Y. Littlefield was the sole residuary legatee of the estate of said Harry A. Little-field.

On February 18,1929, E. Y. Littlefield died testate constituting his wife, Althea Littlefield, the sole residuary legatee of his estate.

On March 3, 1930, Althea Littlefield died testate, constituting the defendant, Forrest E. Littlefield, the sole residuary legatee of her estate.

The estate of Harry A. Littlefield was administered by the county court of Yamhill county, Oregon, and on the 21st day of January, 1925, an order of final settlement was duly made and entered.

On June 3, 1930, on petition of the defendant, Forrest E. Littlefield, said county court of Yamhill county, Oregon, vacated said order of January 21, 1925, and appointed the said Forrest E. Littlefield, administrator de bonis non of said estate of Harry A. Littlefield, deceased, with the will annexed.

On October 8, 1930, said administrator, Forrest E. Littlefield, received said sum of $5,806, from the United States Veteran’s Bureau in full of balance due *674 on said policy of insurance issued to Harry A. Little-field ; and ever since said date has had said fund in his possession.

At the time of his death, said insured, Harry A. Littlefield, left surviving him, as his next of kin, plaintiff, R. C. Bradshaw, the sole surviving son of Elizabeth Littlefield Bradshaw, a deceased sister of said insured; plaintiffs Lelia Littlefield Eldriedge, Hazel Littlefield Davidson and Hobart Littlefield, sole surviving children of Horace Littlefield, a deceased brother of insured ; and E. V. Littlefield, now deceased, a brother of insured and the father of defendant Forrest E. Little-field.

Plaintiffs urge that this fund should not accrue to the estate of Harry A. Littlefield but should be paid to those of his relatives who might have been named as beneficiaries, and are also entitled to inherit his personal property under the statutes of Oregon. Plaintiffs also claim that the administrator is a mere depositary, without any discretion, whose only right and duty is to distribute said fund as just stated.

The defendant, Forrest E. Littlefield, contends that the fund in question has become part of the assets of the estate of said Harry A. Littlefield, and that, by virtue of the terms of the last will and testament of said Harry A. Littlefield and those of E. Y. Littlefield and Althea Littlefield, as above stated, he, the said Forrest E. Littlefield, as legatee, is entitled to said fund. More plainly stated, the question here presented is whether or not this balance of decedent’s war risk insurance is part of the assets of his estate.

A determination of this question requires a construction of the following provisions of the federal statutes:

*675 40 Stat. at Large, part 1, p. 409, § 402, adopted October 6, 1917, provides as to beneficiaries:

“* * * It [the insurance] shall be payable only to a spouse, child, grandchild, parent, brother or sister. * * * If no beneficiary within the permitted class be designated by the insured, either in his lifetime or by his last will and testament, or if the designated beneficiary does not survive the insured, the insurance shall be payable to such person or persons, within the permitted class of beneficiaries as would under the laws of the State of the residence of the insured, be entitled to this personal property in case of intestacy. If no such person survive the insured, then there shall be paid to the estate of the insured an amount equal to the reserve value, if any, of the insurance at the time of his death.”

On December 24, 1919, 41 Stat. at Large, part 1, p. 375, of the statute was amended as follows:

“Sec. 13. That the permitted class of beneficiaries for insurance as specified in section 402 of the War Risk Insurance Act is hereby enlarged so as to include, in addition to the persons therein enumerated, uncles, aunts, nephews, nieces, brothers-in-law and sisters-in-law of the insured. This section shall be deemed to be in effect as of October 6. 1917. * * *

“Sec. 14. That if no person within the permitted class of beneficiaries survive the insured, then there shall be paid to the estate of the insured the monthly installments payable and applicable under the provisions of Article IV of the War Risk Insurance Act.

“Sec. 15. That if any person to whom such yearly renewable term insurance has been awarded dies, or his rights are otherwise terminated after the death of the insured, but before all of the two hundred and forty monthly installments have been paid, then the monthly installments payable and applicable shall be payable to such person or persons within the permitted class of beneficiaries as would, under the laws of the State of residence of the insured, be entitled to his personal *676 property in case of intestacy; and if the permitted class of beneficiaries be exhausted before all of the two hundred and forty monthly installments have been paid, then there shall be paid to the estate of the last surviving person within the permitted class the remaining unpaid monthly installments.”

On August 9,1921, 42 Stat. at Large, part 1, p. 156, § 26, Congress again provided:

* Sec. 407. If no person within the permitted class of beneficiaries survive the insured, then there shall be paid to the estate of the insured the monthly installments payable and applicable under the provisions of Article IV of the War Risk Insurance Act.”

And again on June 7, 1924, 43 Stat. at Large, p. 625, Congress provided section 303 (38 U. S. C. A., § 514 note):

“If no person within the permitted class of beneficiaries survive the insured, or if before the completion of payments the beneficiary or beneficiaries shall die and there be no surviving person within said permitted class, then there shall be paid to the estate of the insured the present value of the monthly installments thereafter payable under the provisions of this title. * *

Thereafter, and on March 4, 1925, 43 Stat. at Large, p. 1310, section 14, (38 U. S. C. A., § 514), section 303 of said act of 1924 was amended as follows:

“Sec. 303.

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Bradshaw v. Littlefield, 11 P.2d 288, 139 Or. 672, 1932 Ore. LEXIS 176 (Or. 1932).

11 P.2d 288 (Bradshaw v. Littlefield) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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