Evans v. First National Bank of Bellville

946 S.W.2d 367, 1997 WL 59318
CourtCourt of Appeals of Texas
DecidedJune 5, 1997
Docket14-94-00325-CV
StatusPublished
Cited by38 cases

This text of 946 S.W.2d 367 (Evans v. First National Bank of Bellville) 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
Evans v. First National Bank of Bellville, 946 S.W.2d 367, 1997 WL 59318 (Tex. Ct. App. 1997).

Opinion

OPINION

ANDERSON, Justice.

In this appeal, we address whether a bank’s signature card established that certificates of deposit (“CDs”) held in a joint account belong to the survivor of the account parties. Appellants are relatives of Hilda Huber, Deceased (“Hilda”), and beneficiaries under her will who sued to recover funds on deposit at Hilda’s death in certain accounts at First National Bank of Bellville (“the Bank”). James Helwig (“James”), Hilda’s nephew, was the independent executor of her estate and also a will beneficiary. Appellants claimed James, with the aid of the Bank, wrongfully withdrew and converted these CDs for his own use, thereby breaching his fiduciary duty. The trial court granted partial summary judgments holding that the accounts at issue were owned by James and Hilda as joint tenants with rights of survivor-ship (“JTWROS”). The remaining issues were tried to a jury, resulting in a take-nothing judgment against appellants and awarding $28,500 in attorney’s fees against *370 Hilda’s estate. In this appeal, appellants raise ten points of error. We affirm in part and reverse and remand in part.

BACKGROUND

On January 17, 1984, Hilda opened a checking account (“the checking account”) at the Bank, and executed a signature card in connection with the account. The agreement on the card specified that the account was a joint account with James, and that any money on deposit at the death of either passed to the survivor. Appellants do not challenge the partial summary judgments which were based on the legal conclusion that the checking account was owned as JTWROS.

On May 2, 1986, Hilda opened a time deposit account with an $18,000 deposit, and the Bank issued a certificate of deposit for that amount in Hilda’s name. 1 That same day, James and Hilda executed a signature card, entitled “Time Deposit Agreement and Signature Card” (“the time deposit signature card”). The time deposit signature card designated that the account was a joint account styled “Mrs. Hilda Huber,” that it covered the original deposit as well as future deposits, that only one signature was required for withdrawal, and provided for joint tenancy with rights of survivorship with James. 2 The signature card did not, however, refer to any CD by number or amount, or specifically provide that it covered all CDs issued in Hilda’s name. From 1986 until Hilda’s death, the Bank issued several CDs in Hilda’s name. These CDs were renewed periodically, and James endorsed them as they became due.

Hilda died testate, at the age of 90, on December 27, 1989. At the time of her death, Hilda was named as payee on three CDs, as follows:

CD #26332 $17,000 (dated 9/1/89);
CD #26347 $32,900 (dated 9/15/89);
CD #26435 $24,500 (dated 10/27/89).

Each CD was payable only to Hilda and did not indicate on its face that it was a joint certificate. 3

The main issue in this appeal is whether these CDs are covered by the time deposit signature card thus vesting James with ownership of the funds as a JTWROS. If these CDs were held as JTWROS, then the funds represented thereby are not part of Hilda’s estate because they pass to the survivor as a non-testamentary transfer pursuant to the survivorship terms of the joint account agreement. See Tex. PROB.Code Ann. § § 439(a), 441 (Vernon 1980 & Supp.1997); Sheffield v. Estate of Dozier, 643 S.W.2d 197, 198 (Tex.App.—El Paso 1982, writ refd n.r.e.).

James was appointed independent executor of Hilda’s estate and the court issued letters testamentary on January 22, 1990. These letters were furnished to the Bank the same day. On February 22, 1990, James filed a sworn inventory of the estate and *371 listed the three CDs at issue as estate assets. Indeed, CD # 26347, in the amount of $32,-900, matured on March 16, 1990 and was renewed into a new CD in the name of the Estate of Hilda Huber. 4

On April 30, 1990, James withdrew the funds represented by all three CDs without endorsing them. The Bank issued three new CDs payable to James, his wife, Dottie Hel-wig (“Dottie”), his daughter, Darly Helwig Mertins (“Darly”), or his son, Bardy Helwig (“Bardy”). James cashed these CDs on October 30,1990, and deposited the funds in his checking account.

Appellants first questioned James’s handling of Hilda’s estate in April 1991, and in June they served James with a demand for an accounting of the estate. After a second request, James furnished an accounting dated October 16, 1991, to which appellants objected because it did not include the CDs. On November 8, 1991, appellants sued James, seeking an accounting, a money judgment for sums they claimed were converted, James’s removal as independent executor of Hilda’s estate, and the denial of any attorney’s fees or commissions incurred by James. 5 Appellants added the Bank and James’s daughter, Darly, a bank employee since 1971 and a cashier during the events at issue, as defendants, alleging the Bank and Darly aided James in unlawfully acquiring the funds on deposit. Shortly before trial, appellants added claims against James’s wife, Dottie, and son, Bardy, alleging they also aided James in converting the funds. James died shortly before trial, and his daughter, Darly, was named executrix of his estate. George Rein-icke was named successor independent executor of Hilda’s estate. Darly, as independent executrix of James’s estate, filed a third party claim against George Reinicke as successor executor, for reimbursement from Hilda’s estate for expenses associated with James’s defense of appellants’ action to remove him as executor.

After the trial court entered partial summary judgments absolving the Bank, Dottie, Bardy and Darly, in her individual capacity, of liability and ruling that James and Hilda owned the CDs as JTWROS, the remaining issues proceeded to trial against Darly as independent executrix of her father’s estate. At the conclusion of the evidence, the court directed a verdict in favor of Darly as independent executrix on all issues except whether James failed to properly identify estate assets. Thus, the jury considered only the issues of whether James properly identified estate assets and whether he acted in good faith in defending the plaintiffs’ action to remove him as executor. The jury found that James acted in good faith, fully disclosed the nature of the estate assets, awarded no damages to plaintiffs, and awarded $57,000 in attorney’s fees for James’s expenses related to defending the removal action. Darly as executrix consented to a remittitur, and the trial court entered judgment for $28,500, to be paid from Hilda’s estate. In addition, the court awarded $1,000 in attorney’s fees to Conrad Day, attorney for involuntary plaintiff, Otto Knippel, independent executor of the estate of Irene Helwig Knippel.

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Bluebook (online)
946 S.W.2d 367, 1997 WL 59318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evans-v-first-national-bank-of-bellville-texapp-1997.