Slater v. Culpepper

64 So. 2d 234, 222 La. 962, 37 A.L.R. 2d 1216, 1953 La. LEXIS 1233
CourtSupreme Court of Louisiana
DecidedMarch 23, 1953
Docket40779
StatusPublished
Cited by20 cases

This text of 64 So. 2d 234 (Slater v. Culpepper) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Slater v. Culpepper, 64 So. 2d 234, 222 La. 962, 37 A.L.R. 2d 1216, 1953 La. LEXIS 1233 (La. 1953).

Opinion

HAMITER, Justice.

The dispute in this cause, which was tried on a stipulation of counsel and documentary evidence, concerns certain United States Series G Savings Bonds of an aggregate face amount of $167,500 acquired by Charles E. Bynum and his wife, Mrs. Bella Conner Bynum, both of whom are now deceased.

The bonds were purchased during the existence of the community of acquets and gains between Mr. and Mrs. Bynum (some in February, 1943 and the remainder in March, 1946) and were paid for with community funds. Mrs. Bynum handled the purchases from the United States Government, Mr. Bynum having been physically disabled from and after the year 1942, she “acting for herself, her husband, Charles E. Bynum, and the community of acquets and gains existing between them.”

*965 Registered and issued in co-ownership form, the bonds were made payable to “Charles E. Bynum or Mrs. Bella Conner Bynum”. According to the governing regulations of the United States Treasury Department (Department ■ Circular No. 530, as revised) a bond so registered and issued will be paid or re-issued (insofar as pertinent here) as follows:

“(a) Payment during the lives of both coowners. — During the lives of both coowners the bond will be paid to either coowner upon his separate request without requiring the signature of the other coowner; and upon payment to either coowner the other person shall cease to have any interest in the bond. The bond will also be paid to both coowners upon their joint request, in which case payment will be made by check drawn to- the order of both coowners in the form ‘John A. Jones and Mrs. Mary C. Jones’, and the check must be endorsed by both payees.
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“(c) Payment or reissue after the death of one coowner.. — If either co-owner dies without the bond having ■been presented and surrendered for payment or authorized reissue, the surviving coowner will be recognized as the sole and absolute owner of the bond •and payment or reissue, as though the bond were registered in his name alone, will be made only to such survivor.
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“(e) Payment .or reissue after the death of the surviving coowner. — If a surviving coowner who becomes solely entitled to the bond under the provisions of subsection (c) of this section, dies without having presented and surrendered the bond for payment or authorized reissue, the bond will be considered as belonging to his estate and will be paid or reissued accordingly * *

After the bonds were acquired by Mr. and Mrs. Bynum they were placed in a safety deposit box in the Central Savings Bank & Trust Company of Monroe, to which both persons had access, and therein they have since remained.

Mrs. Bynum died on July 24, 1948. Surviving were her husband and several nieces and nephews, but no- ascendants or descendants. She left a last will and testament, olographic in form and which has been admitted to probate,- bequeathing all of her property to the nieces and nephews.

Mr'. Bynum’s death occurred March 7, 1950. Only collateral heirs survived him. In an olographic will he had designated his mentioned wife and a daughter, issue of a former marriage, as-legatees; but since they predeceased him the testamentary dispositions are ineffective.

A one-half interest in the bonds was inventoried in each of the two successions •which, at that time, were being handled by the same attorneys. Later, these attor *967 neys voluntarily withdrew as representatives of the Charles E. Bynum succession.

Following his appointment as administrator of the Succession of Charles E. Bynum, and in that capacity, Lewis C. Slater made demands on the executrix of the Succession of Mrs. Bella Conner Bynum and on Mrs. Bynum’s legatees for the relinquishment of all interests in the bonds. When they refused he and the collateral heirs of Charles E. Bynum instituted this action against them to recover the entirety of the bonds, praying that plaintiffs be recognized as the sole owners thereof.

Defendants, in their answer, asked that they be recognized as the owners of an undivided one-half interest in the bonds or, in the alternative, that they have judgment in reconvention “in an amount equal to one-half of the value of said bonds at date of death of Charles E. Bynum, with legal interest from said date to date of settlement.”

Trial of the cause resulted in a judgment which favored plaintiffs to the extent of recognizing and decreeing that Charles E. Bynum was, at his death, the owner of the bonds. However, the judgment also decreed, on the reconventional demand, that defendants have recovery from the plaintiffs of one-half of the value of the bonds at the date of death of Mrs. Bella Conner Bynum, or as of July 24, 1948. The court further ordered the costs divided equally between plaintiffs and defendants, but it made no award as to legal interest.

Plaintiffs appealed from the judgment. In an. answer to the appeal defendants have asked, to quote from the brief of their counsel, “that the judgment of the lower Court be amended so as to award appellees Interest from date of dissolution of community or from date of judgment by the lower Court and to tax all Court costs against plaintiffs.”

As before shown the bonds in question were registered and issued in the names of the two decedents as co-owners and made payable to “Charles E. Bynum or Mrs. Bella Conner Bynum”. However, they are subject to the provisions of the United States Treasury Department regulations (above quoted) which state that on the death of a co-owner the survivor will be recognized as the sole and absolute owner of the bonds and payment or re-issue will be made only to such survivor or, following his death, to his estate. And it was because of these provisions, together with the fact that Mr. Bynum survived Mrs. Bynum, that the trial court recognized and decreed such survivor to be the owner at the time of his death. To this portion of the judgment no objection is urged by any of the litigants.

Appellants complain of the granting of judgment on defendants’ reconventional demand for one-half of the value of the bonds at, the death of Mrs. Bynum and contend that they are entitled to complete ownership thereof free of any claims. Recognizing that the bonds were purchased with community funds they take the position that *969 Mrs. Bynum, in making the purchase, acted for herself with respect to her vested one-half of the community and consummated with the United States a contract which, under the Federal laws and the Treasury Department regulations, effected a disposition mortis causa in favor of her husband with the result that on her death in 1948 the ’bonds became his property in their entirety.

The stipulation of counsel does recite that Mrs. Bynum acted for herself in handling the ■ purchase; but it states also-that she acted for her husband and the community of acquets and gains.

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Bluebook (online)
64 So. 2d 234, 222 La. 962, 37 A.L.R. 2d 1216, 1953 La. LEXIS 1233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slater-v-culpepper-la-1953.