First Security National Bank & Trust Co. of Lexington v. Merriman

440 S.W.2d 256, 1969 Ky. LEXIS 334
CourtCourt of Appeals of Kentucky
DecidedMarch 28, 1969
StatusPublished
Cited by2 cases

This text of 440 S.W.2d 256 (First Security National Bank & Trust Co. of Lexington v. Merriman) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Security National Bank & Trust Co. of Lexington v. Merriman, 440 S.W.2d 256, 1969 Ky. LEXIS 334 (Ky. Ct. App. 1969).

Opinion

PALMORE, Judge.

The executors of the will of George L. Bagby appeal from a judgment entered pursuant to a jury verdict awarding the appellee, Rosa Merriman, $20,000 for services rendered by her to the decedent over a period of 10 years preceding his death in 1962. It is our conclusion that the evidence in support of the claim was insufficient to justify a recovery and that the trial court therefore erred in overruling the defensive motions for a directed verdict and for a judgment n. o. v. or a new trial.

Evidently Mr. Bagby was a man of considerable wealth and was a bachelor. He owned an estate in Woodford County on which his 18-room mansion, Faywood, was located. This was his principal place of residence in Kentucky for a number of years prior to his death in November of 1962, but he spent most of his time elsewhere. It was his custom to spend a few weeks at Faywood in the spring and in the fall, during which brief interludes he entertained and often had house guests. For most of the year, when he was not at home, the house was closed.

Mrs. Merriman came to Faywood with her husband, who was an employe of Mr. Bagby. When Mr. Merriman died in 1952 Mr. Bagby employed Mrs. Merriman as a housekeeper, and she rendered good and faithful service in that capacity until his death. She was paid a regular salary and from time to time received gratuities from Mr. Bagby. In 1961 and 1962, aside from her salary, he gave her about $3,000 in personal checks or traveler’s checks. She received an additional $1,000 under his will.

The salary paid Mrs. Merriman during the last five or six years of Mr. Bagby’s life was $150 per month. She was also furnished a separate residence on the premises. The amount of Mrs. Merriman’s salary for at least some of the 10-year period in question was influenced by the restrictions applicable under the federal social security laws. In his opening and closing statements counsel for Mrs. Merriman ad[257]*257vised the jury that the salary was $50 per month until 1957, when her youngest child became 18 years of age and her social security terminated, at which time the salary was increased to $150 per month. This information does not, however, appear in the testimony heard by the jury, nor does the fact that Mr. Bagby was 82 years of age at his death. We cannot tell from the evidence how old Mrs. Merriman is (her deposition, which was not in evidence, indicates that she was 57 in 1964), nor do we know when Mr. Bagby’s will was executed.

The complaint did not make it clear whether the theory of recovery was on an express or an implied contract, but it was later stipulated to be on an express contract. The instructions defined an express contract as including “an agreement implied from all the circumstances, with the intention on the part of the plantiff, Mrs. Rosa Merriman, to charge, and an intention on the part of the said George L. Bagby to pay at the time of death for such services, an amount over and above such sums as were in fact paid.” This comports with the rationale of Victor’s Executor v. Monson, Ky., 283 S.W.2d 175, 178 (1955), to the effect that despite the overt contradiction in terms a contract implied in fact is really a form of express contract. Cf. Williston on Contracts § 3 (3d ed., 1957), and Corbin on Contracts § 18, wherein it is pointed out that confusion may be avoided by limiting the term “implied contracts” to the so-called contracts (or “quasi-contracts”) that are implied by law in order to do justice when there has been no meeting of the minds and thus no actual contract, or when there has been an actual contract which for some reason, such as the statute of frauds, is not enforceable. The latter instance is exemplified by Pryor v. York’s Executor, Ky., 305 S.W.2d 775 (1957), in which the plaintiff sought recovery on an express promise to devise a specific piece of real estate of the value of $6,500. It was held that the plaintiff could have recovered the value of her services on a contract implied by law but that she could not sue on one theory and recover on the other. We have some misgivings about that result, but in any event the case is distinguishable from this one, in which Mrs. Merriman sought recovery on the basis of an actual and enforceable understanding that in his will Mr. Bagby would make up for the value of her services. She did not, as in Pryor, attempt to shift from one obligation to another without an appropriate amendment of the complaint.

After “services have been furnished and accepted the fact that the compensation contemplated is too indefinite does not prevent recovery of reasonable compensation. * * * In fact situations similar to those found herein, we have refused to invoke the technical rule that where only an express contract is pleaded recovery cannot be had on proof of an implied contract.” Simmons v. Atteberry, Ky., 310 S.W.2d 543, 545 (1958).

The deficiency in Mrs. Merriman’s proof is not that it is pitched on a theory inconsistent with her complaint, but that it simply does not justify a finding that there was in fact an implicit understanding between her and Mr. Bagby that he would will her a sufficiency of money or property to make up the difference between what she had been paid and the actual value of her services. There was plenty of evidence to establish the difference, but not enough from which to infer the understanding.

Mrs. Merriman’s own testimony was, of course, severely limited by the dead man’s statute, KRS 421.210(2). As a result, there is no direct evidence of what she actually understood or expected from Mr. Bagby. With respect to what Mr. Bagby understood and intended, the strongest evidence was presented by a practical nurse who attended him for about five months from June to November of 1961 and by a physician who saw him from time to time during his last years. According to the nurse, Mr. Bagby expressed concern that Mrs. Merriman was building herself a home, was afraid she might be intending to leave his service, [258]*258and “said he didn’t know why she built the house because she was going; to be well taken care of and wouldn’t ever have to work any more after he was gone.” The nurse testified also that he talked about a will and said he was going to make a codicil “for her to be taken care of.”

The doctor testified to Mr. Bagby’s great regard for Mrs. Merriman and said he (the witness) got the distinct impression “she would be provided a home after his demise.” The substantive content of his testimony is represented by these excerpts:

“He indicated to me he was very appreciative of her work and he intended that she should never be wanting in her old age. I cannot say that he ever indicated he would give her any sum of money or any house or anything of that sort * * * he expressed a great deal of appreciation for Mrs. Merriman’s services to him and remarked to me that he hoped Mrs. Merriman would be able to continue in his employ and take care of him as long as he was alive and he intended to take care of her after his death. There was, however, nothing more definite than that. There was no definite sum of money mentioned.”

With respect to the existence of an implicit understanding there is no other direct evidence worth mentioning.

Mrs.

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Bluebook (online)
440 S.W.2d 256, 1969 Ky. LEXIS 334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-security-national-bank-trust-co-of-lexington-v-merriman-kyctapp-1969.