Shrader v. Equitable Life Assurance Society of United States

485 N.E.2d 1031, 20 Ohio St. 3d 41, 20 Ohio B. 343, 1985 Ohio LEXIS 545
CourtOhio Supreme Court
DecidedNovember 27, 1985
DocketNo. 85-184
StatusPublished
Cited by26 cases

This text of 485 N.E.2d 1031 (Shrader v. Equitable Life Assurance Society of United States) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shrader v. Equitable Life Assurance Society of United States, 485 N.E.2d 1031, 20 Ohio St. 3d 41, 20 Ohio B. 343, 1985 Ohio LEXIS 545 (Ohio 1985).

Opinions

Douglas, J.

I

The first issue in this case is whether R.C. 2105.19, dealing with persons prohibited from benefiting from the death of another, is applicable in this case. That provision states:

“(A) No person who is convicted of or pleads guilty to a violation of or complicity in the violation of section 2903.01 [aggravated murder], 2903.02 [murder], or 2903.03 [voluntary manslaughter] of the Revised Code * * * [44]*44shall in any way benefit by the death. All property of the decedent, and all money, insurance proceeds, or other property or benefits payable or distributable in respect of the decedent’s death, shall pass or be paid or distributed as if the guilty person had predeceased the decedent * * *.” (Emphasis added.)

It is undisputed that John Shrader has never been convicted of, or pled guilty to, any of the homicides enumerated in the above provision. Indeed, he has never been charged with any criminal homicide offense. Since Shrader is presumed innocent of any criminal violation until his guilt is established by proof beyond any reasonable doubt, see Taylor v. Kentucky (1978), 436 U.S. 478, 483, he cannot be said to be a “guilty person.” Since R.C. 2105.19 only operates to prevent certain criminals from reaping the fruits of their crimes, and since John Shrader does not fall into that category of persons, the statute is not applicable in this case.

Shrader argues that R.C. 2105.19 provides the exclusive method for disqualifying a beneficiary from receiving life insurance proceeds. A familiar principle of statutory construction, however, is that a statute should not be construed to impair pre-existing law in the absence of an explicit legislative statement to the contrary. Isbrandtsen Co. v. Johnson (1952), 343 U.S. 779, 783; Frantz v. Maher (1957), 106 Ohio App. 465, 471-472 [7 O.O.2d 209]. All that R.C. 2105.19(A) does or purports to do is to eliminate the necessity to prove that the beneficiary of a policy of life insurance committed such an act, when the beneficiary has been convicted of or has pled guilty to one of the specifically enumerated homicide offenses. There is no indication that the General Assembly or any case law intended or requires that the statute be construed to be the exclusive method to determine whether a person should be barred from recovering as a beneficiary under a policy of insurance on the life of a decedent alleged to have been killed by the beneficiary. Thus we find Shrader’s argument regarding the statute unpersuasive.

II

The second issue in this case is whether the common law will bar a beneficiary of a life insurance policy from receiving the proceeds of that policy when the beneficiary intentionally and feloniously caused the death of the insured.

The well-established policy of the common law is that no one should be allowed to profit from his own wrongful conduct. The maxim nullus commodum capere potest de injuria sua propria has long been applied by courts of law and equity. Wade, Acquisition of Property by Willfully Killing Another — A Statutory Solution (1936), 49 Harv. L. Rev. 715. Schmidt v. Northern Life Assn. (1900), 112 Iowa 41, 83 N.W. 800, is one of the earliest cases to endorse this policy as a basis for denying insurance proceeds to a beneficiary who had taken the insured’s life. The Schmidt court reasoned at 44 that “* * * [i]t would be a reproach to our system of [45]*45jurisprudence if one could recover insurance money payable on the death of the insured, whose life he had feloniously taken. * * *”

Ten years after the Iowa Supreme Court decided Schmidt, this court announced its decision in Filmore v. Metropolitan Life Ins. Co. (1910), 82 Ohio St. 208. That case held in paragraph one of the syllabus that a beneficiary of a life insurance policy cannot recover thereon where the death of the insured is caused by the intentional and felonious act of the beneficiary. The Filmore decision was followed in a unanimous decision of the Court of Appeals for Cuyahoga County in Huff v. Union Fidelity Life Ins. Co. (1984), 14 Ohio App. 3d 135. In addition, we find that the same rule applies in most jurisdictions. Annotation (1969), 27 A.L.R. 3d 794. Clearly then the common law bars a beneficiary of a life insurance policy from receiving the proceeds of that policy when the beneficiary intentionally and feloniously caused the death of the insured.

Ill

The third issue in this case is whether the identity of one who intentionally and feloniously causes the death of another can be established in a civil proceeding thereby preventing the wrongdoer from receiving the proceeds of the deceased’s life insurance policy.

In Smith v. Todd (1930), 155 S.C. 323, 152 S.E. 506, a husband shot and killed his wife and then killed himself. The wife’s life insurance policy named the husband as the beneficiary. The germane South Carolina statute provided that “no person who shall be convicted in any Court of competent jurisdiction of unlawfully killing another person shall receive any benefit from the death of the person unlawfully killed * * * by way of * * * insurance * * (Emphasis added.) The South Carolina Supreme Court ruled that even though the husband had not been convicted of any crime, his estate was not automatically entitled to the insurance proceeds.

In pertinent part, the court at 337-338 stated, “[t]hat, prior to the enactment of this statute, the conviction of a person in the criminal Courts of unlawfully killing another did not establish and fix his status in that regard with respect to the vesting, enforcement, and transmission of civil rights derived from and based upon the death of the person killed by him

“* * * His civil status with respect to property rights predicated upon the death of the person unlawfully killed by him remained unaffected by the judgment of his conviction in the criminal Courts, and for the purpose of asserting and enforcing such rights he, or any one claiming under him, was at liberty to have the issue, as to whether he had wrongfully or feloniously caused the death of the other person, tried and adjudicated in a civil action in a different tribunal governed by different rules of evidence, practice and procedure. * * *” (Emphasis added.)

Huff v. Union Fidelity Life Ins. Co., supra, is a similar case. The litigants there were decedent’s widow and decedent’s son (who was not [46]*46the son of the widow). The widow alleged that the son was barred from recovering his father’s life insurance benefits because he intentionally and feloniously caused his father’s death. The son was never convicted of a homicide, nor did he plead guilty to any homicide offense. In a deposition in the civil suit, the son admitted he stabbed his father and thereby caused his death. However, the court described his conduct as that which could be justifiable. Even though the identity of the wrongdoer was known, the appellate court, nevertheless, found in essence that the identity of the father’s killer could be established in a civil suit, and held that the question of whether the killing was intentional and felonious was one for the civil trier of fact.

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Bluebook (online)
485 N.E.2d 1031, 20 Ohio St. 3d 41, 20 Ohio B. 343, 1985 Ohio LEXIS 545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shrader-v-equitable-life-assurance-society-of-united-states-ohio-1985.