Fidelity Union Ins. Co. v. Hutchins

133 S.W.2d 105
CourtTexas Supreme Court
DecidedNovember 22, 1939
DocketNo. 7376
StatusPublished
Cited by16 cases

This text of 133 S.W.2d 105 (Fidelity Union Ins. Co. v. Hutchins) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fidelity Union Ins. Co. v. Hutchins, 133 S.W.2d 105 (Tex. 1939).

Opinion

CRITZ, Justice.

It appears from the record before us that, prior to February 23, 1926, G. B. Hutchins and Eula E. Hutchins were husband and wife, living together in Dawson County, Texas. They had two children, Tate and G. B. Hutchins, Jr., both boys, aged 11 and 9 "years, respectively. On the date above mentioned Eula E. Hutchins died intestate, leaving as her only heirs at law the two boys above named, and her surviving husband, G. B. Hutchins.

On August 4, 1928, G. B. Hutchins filed in the probate court of Dawson County, Texas, his application to qualify as community survivor of the community estate of himself and his deceased wife, as provided. for by Article 3663 et seq., R.C.S. [107]*1071925. After the filing of the above application, the probate court of Dawson County entered an order appointing three appraisers to appraise the community estate of Eula E. Hutchins, deceased, and her surviving husband, G. B. Hutchins, as authorized by Article 3665, R.C.S.1925.

In due time there was returned into the probate court of Dawson County the inventory and appraisement of the estate here involved, together with a list of community debts due such estate, and a list of all debts due by such estate to other parties, as required by Article 3666, R.C.S. 1925.

As shown by the inventory and ap-praisement and list of claims and list of debts above mentioned, the community estate here involved consisted of properties and values as follows:

Assets

320 acres of land, Dawson County, Texas, valued at. $ 8,000.00

3 lots in Lamesa, Dawson County, Texas, valued at 3,000.00

Í A. H. Merrick note. 870.00

5 A. H. Merrick notes for total sum of. 8,700.00

1 Herring note .. 900.00

1 Herring note. 300.00

5 M. L. Standifer notes for total sum of. 1,000.00

Total assets. $22,770.00

Liabilities

Due State on 320 acres of land $ 468.00

Due on 3 lots in Lamesa, supra 1,000.00

Total liabilities. $ 1,468.00

Taking the $1,468 liabilities from the $22,770 of assets, we have $21,302 net value of the community estate, as shown by the inventory and appraisement and list of claims and list of debts, supra.

It appears that in due time G. B. Hut-chins filed in the probate court his community bond in the sum of $23,000, conditioned as required by law. This bond was signed by G. B. Hutchins as principal and Fidelity Union Casualty Company as surety. This bond in all things complies with Article 3667, R.C.S.1925.

It also appears that on August 6, 1928, the above inventory, appraisement, list of claims, and list of debts, and said above bond were all examined by the court and duly approved by him, by an order to that effect entered on the minutes of the court. Simply stated, it appears that G. B. Hut-chins duly qualified as community survivor in the manner and form provided by the statutes of this State on August 6, 1928.

It appears that the estate owned a note for $2,500 executed by one Hamilton, not listed in the list of claims. Also, it appears that the estate had on deposit in bank $833, which was not listed.

As we gather from the record, G. B. Hutchins realized from the money and notes of the estate as follows :

Herring notes . $1,200.00

Standifer notes. 1,000.00

Merrick notes for $8,700.00 and $870.00 . 125.00

Hamilton note for $2,500 (not listed) . 1,056.00

Cash in bank (not listed). 833.00

Total . $4,214.00

We shall not attempt a full detailed statement of all the transactions G. B. Hutchins had with regard to the several properties of this estate, or of the properties acquired by him from some of its proceeds, as, under the view we take of the law, that would serve no purpose. We do, however, make the following statement of what became of the properties of this estate:

(a) The 320 acres of land listed in the inventory was mortgaged by Hutchins for $5,500. This mortgage was never paid. The lien was foreclosed, and the land thereby lost to the community estate.

(b) Hutchins borrowed $3,000 from a bank, and gave as security therefor the community notes above set out.

(c) Hutchins traded the estate’s equity in the three lots set out in the inventory, supra, as part of the purchase price for a tract of 158 acres of land purchased by him. These lots were thus lost to the community estate.

(d) Hutchins bought the 158 acres of land mentioned in (c), supra. He paid thereon the three lots in Lamesa and most of the $5,500 borrowed on the 320 acres of community land and the $3,000 borrowed on the community notes, and some additional cash.

(e) Hutchins paid the community debts amounting to $1,468. We understand that the $468 due on the 320 acres of land was [108]*108paid by G. B. Hutchins. The $1,000 due on the 3 Lamesa lots was assumed by the purchaser thereof.

(f) The 158-acre tract of land was conveyed to Hutchins for a recited consideration of $15,800, of which $10,200 was recited in the deed as paid in cash, and the balance, $5,600, was represented as liens against the land assumed by Hutch-ins. Hutchins seems to have paid some part of this assumed indebtedness, but in the end the lien held by the holder of the assumed indebtedness was foreclosed, and the land sold, and thus was entirely lost by Hutchins.

(g) All the money in bank and that derived from the community notes, supra, was appropriated by Hutchins to his own use, except as shown above.

(h) As a final result of Hutchins’ management and dealings with the community estate, the whole thereof was entirely dissipated and lost. The heirs of the deceased spouse have never received one penny therefrom.

After the entire community estate here involved had been lost to these minor plaintiffs, and even to the qualified community survivor, in the manner above detailed, these plaintiffs, who are the minor sons of G. B. Hutchins and his deceased wife, Eula E. Hutchins, by next friend, sued G. B. Hutchins, the survivor, and the surety on his official bond, Fidelity Union Casualty Company, a corporation, to recover a money judgment for the value of their one-half interest in the community estate here involved. Commercial Casualty Company, a corporation, is also sued. As shown by the opinion of the Court of Civil Appeals, the two corporations just named were consolidated after this bond was executed and approved. The corporation last named took over all the assets of the corporation first named, and assumed all its liabilities, except no liability was assumed for any loss accruing prior to January 1, 1931. We will deal with this matter later in this opinion.

We will not attempt a detailed statement of the pleadings of the several parties to this action. It is enough to say that we regard the pleadings of the plaintiffs as sufficient to entitle them to recover under the law, as we will announce it in this opinion. Also, we regard the pleadings of the defendants, the two insurance companies, as sufficient to raise the issues of law and fact involved in their defense to this action. We here pause to remark that the defendant, G. B. Hutchins, waived service and made his appearance in this cause in writing.

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Bluebook (online)
133 S.W.2d 105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-union-ins-co-v-hutchins-tex-1939.