Ferguson v. Deuble

27 Ohio Law. Abs. 533
CourtOhio Court of Appeals
DecidedJuly 1, 1938
DocketNo 2449
StatusPublished
Cited by7 cases

This text of 27 Ohio Law. Abs. 533 (Ferguson v. Deuble) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferguson v. Deuble, 27 Ohio Law. Abs. 533 (Ohio Ct. App. 1938).

Opinion

OPINION

By BENNETT, J.

Margaret C. Ferguson, the plaintiff-appellee, sued the defendant-appellant in the Court of Common Pleas, alleging in her fifth amended petition that she was the owner of a one-half interest in a “joint and survivorship” account in The Home Savings & Loan Company, of Youngstown, of the approximate amount of $15,280 which stood in the names of herself and of Cecelia Deuble; that the defendant-appellant Ralph Deuble, had secured the addition of his name to the account, although not the owner of any part of it; that on March 10th, 1934, said defendant withdrew the entire balance in the account and deposited it in an account in his own name only; that Cecelia Deuble died on April 8th, 1934; that the defendant, Ralph Deuble, had [535]*535withdrawn $10,000 from the personal account in his own name but that some $5,000 still remains in the account; and asks that the defendant, Ralph E. Deuble, be compelled to account to her for all of her said funds withdrawn by him and to hold the balance remaining in the account as trustee of the same for the plaintiff’s benefit.

In his answer to the fifth amended petition, defendant, Ralph E. Deuble, says as a first defense that the petition fails to state a cause of action against him and then, upon the merits of the claim, denies that the plaintiff ever contributed any funds whatever to the bank account in question, denies that she ever had any beneficial interest in any part of- the account, says that he was the exclusive owner of the funds in the account accumulated over the years in numerous business enterprises ol his, that he had never intended to convey to his wife or to the plaintiff any interest during his life in said account or to give either of them any control over the funds and that on March 10th, 1934, he determined to revoke and terminate the joint and survivorship account and in withdrawing the money he simply exercised the complete and lawful authority which he had over the account.

After a trial of several days resulting in a record of some 650 pages of testimony in addition to a large number of documentary exhibits, the trial court found that the piaintiff was the owner of one-half of said total fund of $15,280, that Deuble at no time had had any interest in the plaintiff’s half, and that from the date when he drew it out and put it entirely in his own name, he had been a constructive trustee of $7,640 of it for the plaintiff, that he was obligated to account to her for that sum, that the amount remaining in the account was impressed with a constructive trust in .the plaintiff’s favor, and he was ordered to pay it over to her for application upon the larger amount found due hc-r.

Both at the close of the plaintiff’s case and at the close of all the evidence, the defendant had moved for judgment on the ground “that the plaintiff had failed to sustain the allegations of the petition”, and after the judgment and decree mentioned above, filed a motion for a new trial and also for “judgment in his favor upon the statements contained in the pleadings and upon the evidence received upon the trial.” No demurrer was made to the opening statement nor was any preliminary and general objection offered to the admission of any testimony on the ground that the petition failed to state a cause of action.

We have made the foregoing general statement of the pleadings because we conceive that there are three principal questions to be decided in the case, one as to the fundamental principle of law involved, the second as to the proof 'in the record, and a third -question of pleading.

Tse plaintiff’s story was that she was some seventy-two years of age, that she had brought up her niece, Cecelia; that the latter had lived with her from the time she was ten years of age; that in 1914 Cecelia married the defendant, Ralph E. Double, and thereafter the three lived together until April 1934, when Cecelia Deuble died; that she and Cecelia were like mother and daughter and trusted each other completely; that during all of these years the plaintiff and Mrs. Deuble had more or less kept their money in a single account, sometimes In both names, sometimes in only one; that on April 6, 1927, following many different family financial transactions a joint and survivorship account was opened in the names of herself and her niece in The Home Savings & Loan Company, Youngstown, and that she and her niece each had substantially a one-half interest in the funds that went into the account; that her interest in this account represented practically the only property of any sort which she had in the world; that during the depression years withdrawals from The Home Savings & Loan Company were put on a very narrowly restricted basis, but that they were able occasionally to make withdrawals of small amounts like $25.00 every few weeks; that they needed this money for living expenses; that she does not remember signing the card in October 1932, which added the name of Ralph Deuble to the account, but concedes that her signature on the card is authentic and says that she never did at any time intend him to have any authority to do more than make withdrawals for herself and niece of the small amounts permitted at that time; that she never intended to make a gift or transfer to him of the account or ' of her interest in the account; that while her niece was on her death bed, and about four weeks before her death, the defendant, Ralph E. Deuble, went to the bank and had the account transferred into a new account hi his own name only; that because of the restrictions upon withdrawals he had been unable to withdraw this cash or any part of it, but had simply gotten a. new book [536]*536without her name or that of Cecelia Deuble upon it, and that, after she discovered the condition of affairs,' he had refused to give to her any of her own money or to account to her for it.

Counsel for the defendant argue that, as a matter of law, even if this was all true, this plaintiff would not have a cause ol action, and that under the recent decisions of the Supreme Court of Ohio upon joint and survivorship accounts, once having admitted the authenticity of her signature on the card putting Deuble’s name on the account, it was “just too bad”, but nothing can be done about it.

Oleff, Admr. v Hodapp, Gdn., 129 Oh St 432.

Cleveland Trust Company v Scovie, 114 Oh St 241.

Sage v Flueck, 132 Oh St 377.

We do not believe this to be true. Not one of the cited cases in the Supreme Court is a case between the parties to the account while still alive, but each was a case of a dispute as to the rights of the survivor after the death of the other party to the account.

Counsel quote language from these opinions to the effect that the parties to such an account have invested each other with a present interest in the account from the date of its creation, which can only be divested by a process of the same dignity and solemnity as those of the investiture (Oleff v Hodapp, 129 Oh St 432) and that any attempt to vary the terms by parol will be ineffective.

We believe that these quotations and cases are entirely beside the point for two reasons. In the first place, whatever may be the rights of a survivor against the estate of a deceased party to such an account, wo do not believe that this tells the story of the rights between the two while both are alive. The terms of the written contract affirmatively provide for the survivorship. .

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Related

In re Estate of Moore
188 N.E.2d 221 (Portage County Probate Court, 1962)
In Re Estate of Voegeli
161 N.E.2d 778 (Ohio Court of Appeals, 1959)
In re Estate of Ray
156 N.E.2d 210 (Morgan County Probate Court, 1958)
Steiner, Admr. v. Fecycz
50 N.E.2d 617 (Ohio Court of Appeals, 1942)
In re Estate of Fox
36 Ohio Law. Abs. 349 (Jackson County Probate Court, 1942)

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Bluebook (online)
27 Ohio Law. Abs. 533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferguson-v-deuble-ohioctapp-1938.