Stewart v. Friona State Bank

278 S.W.2d 425, 1955 Tex. App. LEXIS 2642
CourtCourt of Appeals of Texas
DecidedApril 4, 1955
Docket6487
StatusPublished
Cited by6 cases

This text of 278 S.W.2d 425 (Stewart v. Friona State Bank) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stewart v. Friona State Bank, 278 S.W.2d 425, 1955 Tex. App. LEXIS 2642 (Tex. Ct. App. 1955).

Opinions

MARTIN, Justice.

This opinion, originally conceived as a dissenting -opinion, has been adopted by Associate Justice, E. O. Northcutt, and is rendered as the majority opinion of this Court. Appellant, Ralph L. Stewart, sought to recover funds of his deceased wife on deposit in the Friona State, Bank. She had died intestate leaving appellant as her .sole surviving .heir. Appellees, Aubrey Carlton, Robert Carlton and Wilburn Carlton, are the brothers of appellant’s deceased wife and sought to recover such funds from their deceased sister’s estate solely by reason of the written contract here in issue and copied in full in this opinion. The sole issue in this cause of action is whether the contract is supported by any consideration. The cause was submitted to the court, and this issue was immediately recognized by the trial court upon his hearing a brief recitation of the facts by the -attorneys- as evidenced by the court’s statement as follows:

"The question, then, in my mind, is what would be the consideration for the contract ?”

The issue as to whether the contract is supported ’by any consideration is wholly -dependent upon whether there existed a bona fide dispute between appellant and ap-pellees . as to the facts governing descent and distribution as to the estate of appellant’s deceased wife. Since there is a wide divergence of opinion in the Court as to both the law and the facts in the cause, the controlling issue will be discussed in detail as to both the facts and law. The amount of money involved is not large as the trial court awarded each of the appellees the sum of only $461.56. The case is rather a test of 'the rights of the parties and of the soundness of judicial procedure than of the value of the recovery.

Appellant, Ralph L. Stewart,, was married to Johnnie Opal Carlton Stewart for approximately nine years. During this time she had suffered from spells of mental illness1 and appellant had placed her in a hospital for .treatment — about T2 or 15 weeks on one occasion. Appellant was a railroad telegrapher and he and his wife had accumulated a small estate consisting principally of money in the bank. Appel-lee, Aubrey Carlton, is a brother of Johnnie Opal Carlton Stewart and testified that his sister had written to - another brother asking such brother to come for her at Jayton. Appellee, Aubrey Carlton,- testified he moved his sister to Friona and that he did not advise appellant of the impending trip prior to arriving in Jayton where his sister and appellant resided. Appellant testified that Aubrey Carlton requested a division of the community property owned by appellant and his wife at the time of this separation. Appellant, in a settlement with his wife of their community property interests, delivered to her the sum of approximately $3,000. Aubrey Carlton then accompanied his sister to Friona where the money was deposited in the Friona State Bank. Appellant’s deceased wife lived with her brother, Aubrey Carlton, approximately 27 days following this separation from her husband and before taking her life. She and her husband were never divorced and neither party had filed suit for divorce.

Following the death of appellant’s wife, appellant and his deceased wife’s three brothers, appellees herein, under the cir[427]*427cumstances hereinafter detailed, executed the following written contract:

The State of Texas)

County of Parmer)

Whereas Johnnie Opal Carlton Stewart, of Friona, Texas, departed this life April 30, 1953, intestate, and left surviving her no child either adopted or otherwise, and left' no mother and father surviving, but-left an estranged husband, Ralph L. Stewart, of Channing, Texas, and Aubrey Carlton, a brother, and Wilburn Carlton, a brother, both of Parmer County, Texas, and Robert Carlton, a brother, of Hedley, Texas, and her entire estate consisted of cash in Friona State Bank, Friona, Texas, of not more than $3,000.00; consequently, no inheritance tax could be owed to the State of Texas and no estate tax could be owed to the United States Government.

Whereas, a bona fide dispute exists as to the facts governing the descent and distribution of this property and the parties being desirous of settling such estate amicably, and as inexpensively as possible, agree that the only debts owed by the said Johnnie Opal Carlton Stewart are as follows:

Wolf-Roberts Funeral Home, Clovis, New Mexico $ 942.00

Parmer County Community Hospital, Friona, Texas $ 7.00

Dr. Paul L. Spring, Friona, Texas $ 3.00

and each party signing this contract guarantees and warrants to said bank that such indebtedness is all the indebtedness owed by the estate of the deceased.

Therefore, the Parties hereto bind and obligate themselves to said bank that they are the sole and only heirs-at-law o'f the deceased and agree to hold said bank harmless for any distribution made of said fund in keeping with this agreement and, as stated above in compromise, satisfaction and accord, and for the purpose of settling a dispute which is agreed to be bona fide the undersigned parties instruct Friona State Bank to pay the indebtedness above described out of the bank account of the deceased including a fee to the attorney for drafting this instrument and counseling them in regard to the settlement and the remainder to be paid as follows:

¼ to Ralph L. Stewart, surviving, husband ;

¼ to Aubrey Carlton, surviving brother;

¼ to Wilburn Carlton, surviving brother;

¼ to Robert Carlton, surviving brother.

Witness Our Hands this 4th day of May, A. D., 1953.

(signed and acknowledged by appellant and appellees)

A short time after the execution of this contract, appellant contacted an attorney and directed the Friona State Bank not to pay out any funds thereunder. Appellant, as the sole surviving heir of his deceased wife, then filed suit. ■ for the funds in the bank. As the sole surviving heir of his deceased wife, his claim to such fund was a liquidated demand. Appellees' answered claiming ¾ of the fund by reason of the above-written contract. The Friona State Bank filed an answer stating that the bank held the funds and would pay the same over to the party .entitled thereto.

As indicated at the inception of this opinion, the written contract detailed in the. above paragraph must he supported by a valid consideration. The only consideration upon which the contract can rest was recognized by the appellees’ ' attorney in preparing the contract, “Whereas, a; bona fide dispute exists as to the facts governing the descent and distribution of this property, * * * There is no need to go beyond the written contract' itsel'f to ascertain that the same is wholly without any consideration. The opening paragraph of the contract in reciting the undisputed facts of heirship reveals beyond controversy that there was, and could be, no bona fide dispute as to the facts governing descent and distribution. Further, the contract in the first paragraph' thereof does- not allege that the facts as to descent and distribution as recited therein were agreed upon as a result of a bona fide dispute as to the facts surrounding the same. The contract merely recites the existing facts governing the issue of heirship under the statutes of descent and distribution. • When the' statutes [428]

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Bluebook (online)
278 S.W.2d 425, 1955 Tex. App. LEXIS 2642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-friona-state-bank-texapp-1955.