Copeland v. Alsobrook

3 S.W.3d 598, 1999 WL 1020527
CourtCourt of Appeals of Texas
DecidedJuly 21, 1999
Docket04-98-00155-CV
StatusPublished
Cited by177 cases

This text of 3 S.W.3d 598 (Copeland v. Alsobrook) 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
Copeland v. Alsobrook, 3 S.W.3d 598, 1999 WL 1020527 (Tex. Ct. App. 1999).

Opinion

OPINION

Opinion by: ALMA L. LÓPEZ, Justice.

This an appeal from a bench trial awarding the appellee, Tammy Alsobrook, $39,-699.35. In addition, Alsobrook was awarded $16,000.00 in attorney’s fees. The judgment was awarded from life insurance proceeds paid out to the appellant, Billy Copeland, as a secondary beneficiary under his son’s life insurance policy. The proceeds were originally paid into the registry of the court.- Because we find the parties entered into a contract by which Copeland agreed to pay his son’s debt owed to Alsobrook’s parents, we affirm the judgment of the trial court.

Statement of Facts and Procedural Background

Forrest Copeland married Tammy Also-brook in 1985. The two had been married for approximately six years when they divorced in 1991. During the marriage, Copeland had borrowed money from various relatives and friends, including his in-laws. The borrowed funds were used for the purpose of establishing and maintaining his business as a diamond wholesaler. While married to Alsobrook, Copeland had also purchased a life insurance policy from Connecticut Mutual Life Insurance Company (“Connecticut Mutual”). Under the policy, Alsobrook was named the primary beneficiary followed by Copeland’s father as the secondary beneficiary.

Pursuant to the divorce decree, Copeland maintained his interest in the policy. Under the decree, the debts owed by Forrest Copeland were outlined. Included as a debt, was the amount of $12,000 owed to Jerry Alsobrook, his former father-in-law. Copeland had also borrowed the additional sum of $24,874.66 from the Alsobrooks for his business, Victory Diamonds & Gem Imports. Jerry Alsobrook died in 1996, leaving as survivors his wife, Patricia and their daughter.

After the divorce, Forrest became increasingly ill as a result of a brain tumor. On December 9, 1994, he died of complications resulting from medications he had taken to alleviate his pain. Prior to his death, no steps had been undertaken by Forrest to re-designate his ex-wife as the primary beneficiary. 2 In addition, Forrest had allowed the insurance policy to lapse when he failed to make timely premium payments. After Forrest’s death, attempts were made by both Alsobrook and Copeland to gain access to the insurance *601 policy proceeds in January 1995. At that time, the parties believed Alsobrook was the rightful primary beneficiary. Also-brook’s purpose for obtaining the proceeds was to pay the debts owed by her former husband, including any debts owed to her parents.

The insurance policy purchased by Forrest contained a disability premium waiver. According to the waiver, recovery under the insurance policy could be had where non-payment of premiums resulted from the policy holder’s disability. However, the disability needed to precede the lapse in payment. Alsobrook undertook various steps to prove Forrest’s disability to Connecticut Mutual. In May 1995, Billy Copeland sent a letter to Alsobrook regarding the proceeds. In addition, he acknowledged receiving paperwork from Patricia Alsobrook (Tammy’s mother). In that letter, he stated to Alsobrook, Let me assure you Tammy that contingent on receipt of the insurance money, your mom and dad will be paid!!! You wanted this in writing so — this is in writing, your parents will be paid what they are owed if I get the insurance money.” By this time, both parties were aware that Alsobrook no longer was the primary beneficiary of the policy. After May 1995, the parties ceased working together to obtain the proceeds.

The Copeland family sued Connecticut Mutual, the insuror, in federal district court. The case, however, never went to trial. Connecticut Mutual eventually settled with the Copeland family. Under the terms of the settlement agreement, Connecticut Mutual agreed to pay the full amount of the policy ($250,000) and attorney’s fees ($70,000). However, it conditioned its agreement to pay the insurance proceeds and attorney’s fees on receipt of a signed release from Alsobrook in which she disclaimed any right to the policy proceeds, and released Connecticut Mutual from any liability. 3 Alternatively, Connecticut Mutual would agree to accept a court order disallowing Alsobrook’s right to the proceeds. An order wa.s not necessary as Alsobrook signed the release on the condition that the money would be escrowed by Copelands’ attorneys pending an agreement as to the amount owed. According to one of Copelands’ attorneys, the money was to be held until the parties could agree on an amount. “If they [couldn’t] agree to a number, they would come over in [state] court.” Connecticut Mutual paid the settlement on July 10, 1996.

The parties failed to agree on an amount that would adequately compensate Patricia Alsobrook for the money which she and her husband had loaned their former son-in-law. In January 1997, the Copelands’ attorneys, who had obtained the settlement, inter-pleaded the funds into the registry of the court under cause number 96-CI-16640. That suit was later consolidated with the present case. It was ordered that the Copelands’ attorneys be paid, and their claims were subsequently severed. The remaining sum of $201,854.13 was deposited into the registry of the court pursuant to cause number 96-CI-16640. Out of this deposit, it was ordered that Billy Copeland be paid the amount of $82,666.37, leaving a remaining balance of approximately $119,000. From this sum, it was ordered that additional payments be made to Billy Copeland and Neal Willard, a former creditor of the deceased. In the present cause of action, cause number 96-CI-11733, Billy Copeland sought a declaratory judgment from the trial court denying Tammy Alsobrook access to the remaining amounts of money left in the court’s registry ($65,675.30). Alsobrook counterclaimed for breach of contract.

In its final judgment, the trial court ordered that Billy Copeland take nothing *602 on his declaratory judgment, and that the sums deposited in the registry of the court were recoverable by Tammy Alsobrook, and her mother, Patricia Alsobrook. It ordered that Alsobrook could recover a total amount of $39,699.35 for debts owed, and $16,000.00 for reasonable attorney’s fees. All remaining sums were to be paid to Billy Copeland. Pursuant to plaintiffs request for findings of facts and conclusions of law, the trial court concluded that Copeland had entered into a binding agreement with Tammy Alsobrook, the purpose of which was to ensure the repayment of funds owed to Alsobrook’s mother by his late son. These findings and conclusions were subsequently amended and supplemented by the trial court and included the following:

4. On January 1995, Tammy Alsobrook and Billy Copeland, operating under a mistaken belief of law that Tammy remained the legal beneficiary, entered into an oral agreement by which they would work together to obtain the proceeds of the Policy, if possible, for the purpose of paying Forrest Copeland’s creditors. It was Forrest Copeland’s intention that the Policy be used principally to pay his creditors, who had loaned money to him individually and for his business known as Victory Diamonds & Gem Imports, Ltd.
5.

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Bluebook (online)
3 S.W.3d 598, 1999 WL 1020527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/copeland-v-alsobrook-texapp-1999.