Tucker v. Tucker

143 S.E.2d 639, 221 Ga. 128, 1965 Ga. LEXIS 398
Supreme Court of Georgia·Decided June 14, 1965·No. 22943, 22944·Published·Cited by 2 cases

Opinion

Mobley, Justice.

Mrs. Shirley Tucker, by next friend, alleging that she was mentally incompetent brought her petition as amended, in three counts against her husband, Charles E. Tucker, Sr., her guardian, and Hartford Accident & Indemnity Company, and John P. Strother. General demurrers were filed to each of the counts by each defendant. The exceptions are to the sustaining of the general demurrer filed by Hartford and Strother. So far as the record shows the demurrer filed by the husband has never been passed upon. By cross bill of exceptions, defendant in error, Strother, excepts to the judgment of the trial court overruling his general demurrer to count 2.

This proceeding arose out of an auto collision involving a car driven by Strother and one in which the plaintiff and her two children were passengers. Plaintiff was seriously injured and rendered mentally incompetent and permanently and totally disabled. Her six year old child was killed and another child injured. Hartford was liability insurer of Strother’s car. Hart- *130 ford and plaintiff’s husband, hereafter referred to as Tucker, negotiated a settlement of all claims for $90,000, $51,000 of which was in settlement of Tucker’s claim, $25,000 for the plaintiff’s injuries, $10,000 for the death of the child, and $4,000 for injuries of the other child.

The first count alleges fraud on the part of Tucker and Hartford, as a basis for the relief sought, which was an injunction to restrain Tucker from interfering with her mother’s custody of plaintiff, to enjoin him from disposing of funds held by him as guardian, for appointment of a receiver to take charge of her funds held by him, and to set aside the settlement agreement entered into between Strother and her husband, as guardian, settling her claims for her injuries and for the death of her child.

First, we consider whether the allegations set out a cause of action based upon fraud such as would authorize the setting aside of the settlement agreement entered into between Tucker, as guardian, and Strother. The acts of Hartford in the matter were those of Strother, as it is alleged that Hartford was acting as agent of Strother. The basis of the demurrer is that the allegations as to fraud constitute conclusions of the pleader unsupported by allegations of fact. It is well settled that on general demurrer the petition will be construed most strongly against the petitioner (Seay v. Seay, 213 Ga. 570, 572 (100 SE2d 423)); that “the demurrer admits only the facts well pleaded,” (Dumas v. Burleigh, 209 Ga. 241 (71 SE2d 545)); and, “Pleadings must state facts, and not legal conclusions; and fraud is never sufficiently pleaded except by the statements of the facts upon which the charge is based.” Great Eastern Cas. Co. v. Haynie, 147 Ga. 119, 120 (92 SE 939) citing Tolbert v. Caledonian Ins. Co., 101 Ga. 741, 746 (28 SE 991).

Measured by these principles, does the petition allege facts showing fraud upon the part of Tucker and Hartford perpetrated upon the plaintiff? These allegations allege a fraudulent scheme entered into by Hartford and Tucker to defraud the plaintiff. The material facts alleged are that it was undisputed that Strother’s negligence was the cause of the injuries suffered by plaintiff and her child and the death of another child; that Hartford investigated the circumstances of the collision and determined that Strother was liable and that they would be required *131 to pay the damages; that Hartford learned that plaintiff’s husband was anxious to settle the claims of his wife and his own for $90,000, provided he received $51,000 of that amount; that Hartford and Tucker knew that her claim was of much greater value than his, yet for pecuniary gain to each of them, they formulated and executed a plan to have Tucker appointed guardian of his wife and that as guardian he would settle the claim of his wife for $25,000 for her injuries, and $10,000 for her child’s death, $4,000 for the other child’s injuries, leaving $51,000 for payment to him personally in settlement of his claim; that pursuant to and in performance of that fraudulent scheme, Hartford prepared the application of Tucker to be appointed guardian of his wife, that by false representations made to the nearest of kin that this settlement was in her best interest, they waived the 10 days notice of hearing; that Hartford prepared the application of Tucker for guardian; that Tucker was appointed guardian, and Hartford prepared for Tucker an application to the ordinary for his approval of the settlement upon which they had agreed; that Hartford paid all the expenses of the proceedings in the court of ordinary; that they fraudulently concealed from the ordinary that Tucker had a conflict of claims and an adverse interest, in that the sum of $90,000 Hartford agreed to pay was in settlement of all claims, and the more the ordinary approved for his wife the less he would receive, and that the ordinary not being apprised of the guardian’s adverse interest to that of his wife did not appoint a guardian ad litem to represent the ward, as is required by statute, and that the ordinary as a mere formality signed the order approving the settlement relying solely upon statements of Hartford and Tucker and their counsel.

This case is distinguishable from New York Life Ins. Co. v. Gilmore, 171 Ga. 894 (157 SE 188) relied upon by Hartford and Tucker for support of their contention that Hartford, acting for Strother, having paid the $90,000 in reliance upon a judgment of the court of ordinary will be protected, and this court will not look behind that judgment to determine whether all the formalities required of the ordinary in the appointment of the guardian and in approving the settlement agreed upon by the parties were performed. There the insurance company relying upon the judgment of the court of ordinary, naming a guardian, *132 paid to the guardian the amount it admittedly owed the guardian’s ward. It dealt at arm’s length with the guardian, had nothing to do with procuring the judgment of the court, and no fraud was charged against the insurance company in the matter. On the other hand, in this case Hartford and Tucker are charged with a fraudulent scheme to settle all claims made against Hartford for $90,000, which was to the pecuniary gain of Hartford, as the claims were of much greater value, provided $51,000' was paid Tucker, which was to his pecuniary gain, since the value of his claim was much less than those of the plaintiff. In other words, Hartford knowing that it could settle the claims for $90,000 which was to its pecuniary gain, only by paying Tucker $51,000, leaving only $25,000 for plaintiff’s injuries, $4,000 for the injured child, and $10,000 for the deceased child, when it knew that plaintiff’s claims were of much greater value than Tucker’s, fraudulently acting for itself and at the same time as agent of Tucker, prepared the application for his appointment as guardian, prepared and submitted to the ordinary for his approval the settlement agreement between Hartford and Tucker and failed to apprise the ordinary of the conflicting claims and adverse interest of Tucker which required the appointment of a guardian ad litem to represent the ward (plaintiff).

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Tucker v. Tucker, 143 S.E.2d 639, 221 Ga. 128, 1965 Ga. LEXIS 398 (Ga. 1965).

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