Ruis v. Bank of Albany

Supreme Court of Georgia

Ruis v. Bank of Albany

96 S.E.2d 580, 213 Ga. 41, 1957 Ga. LEXIS 291

CourtSupreme Court of Georgia

DecidedFebruary 12, 1957

Docket19563

StatusPublished

Cited by2 cases

This text of 96 S.E.2d 580 (Ruis v. Bank of Albany) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ruis v. Bank of Albany, 96 S.E.2d 580, 213 Ga. 41, 1957 Ga. LEXIS 291 (Ga. 1957).

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Opinion

Duckworth, Chief Justice.

Where, as here, the petition alleges that the plaintiff is the beneficiary of a life-insurance policy which had been assigned by the deceased insured to the defendant Bank of Albany as security for a debt which was also secured by a security deed, that the court should restrain the defendant bank from paying off said debt with the proceeds of the policy until all means of satisfying the note by proceeding to collect under the security deed have been employed, and prays that the court should do equity and justice by molding such a decree, the petition fails to allege a cause of action for the relief sought. Under the facts alleged, the bank has the right under the assignment to elect to pay off the note from *42 the proceeds of the policy without first exhausting the other security. The beneficiary, having only a divestible interest which is not a vested right, has been, in effect, divested of this interest by the assignment subject to the payment of the debt. See Code § 56-903; Code (Ann.) § 85-1803 (Ga. L. 1952, pp. 225, 229); Grenville v. Crawford, 13 Ga. 355; Rattray v. Banks, 31 Ga. App. 589 (121 S. E. 516); Merchants Bank v. Garrard, 158 Ga. 867 (124 S. E. 715, 38 A. L. R. 102). Hence the court did not err in sustaining the general demurrers and dismissing the petition.

Argued January 14, 1957 Decided February 12, 1957. Robert W. Reynolds, for plaintiff in error. J. W. Smith, Robert D. Hedrick, Smith, Gardner & Kelley, Peter Zack Geer, contra.

Judgment affirmed.

All the Justices concur.

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Duckworth, Chief Justice.

Where, as here, the petition alleges that the plaintiff is the beneficiary of a life-insurance policy which had been assigned by the deceased insured to the defendant Bank of Albany as security for a debt which was also secured by a security deed, that the court should restrain the defendant bank from paying off said debt with the proceeds of the policy until all means of satisfying the note by proceeding to collect under the security deed have been employed, and prays that the court should do equity and justice by molding such a decree, the petition fails to allege a cause of action for the relief sought. Under the facts alleged, the bank has the right under the assignment to elect to pay off the note from *42 the proceeds of the policy without first exhausting the other security. The beneficiary, having only a divestible interest which is not a vested right, has been, in effect, divested of this interest by the assignment subject to the payment of the debt. See Code § 56-903; Code (Ann.) § 85-1803 (Ga. L. 1952, pp. 225, 229); Grenville v. Crawford, 13 Ga. 355; Rattray v. Banks, 31 Ga. App. 589 (121 S. E. 516); Merchants Bank v. Garrard, 158 Ga. 867 (124 S. E. 715, 38 A. L. R. 102). Hence the court did not err in sustaining the general demurrers and dismissing the petition.

Argued January 14, 1957 Decided February 12, 1957. Robert W. Reynolds, for plaintiff in error. J. W. Smith, Robert D. Hedrick, Smith, Gardner & Kelley, Peter Zack Geer, contra.

Judgment affirmed.

All the Justices concur.

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Bluebook (online)

96 S.E.2d 580, 213 Ga. 41, 1957 Ga. LEXIS 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruis-v-bank-of-albany-ga-1957.

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