Willcox v. Penn Mutual Life Insurance

55 A.2d 521, 357 Pa. 581, 174 A.L.R. 220, 1947 Pa. LEXIS 464, 38 A.F.T.R. (P-H) 704
CourtSupreme Court of Pennsylvania
DecidedNovember 10, 1947
Docket1490, Miscellaneous Docket, 1947
StatusPublished
Cited by100 cases

This text of 55 A.2d 521 (Willcox v. Penn Mutual Life Insurance) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Willcox v. Penn Mutual Life Insurance, 55 A.2d 521, 357 Pa. 581, 174 A.L.R. 220, 1947 Pa. LEXIS 464, 38 A.F.T.R. (P-H) 704 (Pa. 1947).

Opinion

Opinion by

Me. Justice Hoeace Steen,

This litigation, of which we took original jurisdiction, involves questions of the interpretation and validity of the Community Property Law of 1947 (Act No. 550). We approach the solution of the problems presented with a realization of the fact that this law vitally affects the respective property rights, and through them the conjugal relationship, of all married persons within the Commonwealth of Pennsylvania. Nor are we unmindful of the principle ingrained in American jurisprudence that a proper respect for the legislative and executive departments of the government requires that every reasonable presumption be made in favor of the validity of a statute, and that, before an act may be declared unconstitutional or otherwise invalid, it must clearly appear that it cannot be supported by any reasonable intendment.

*584 The Community Property Law provides that all property of the husband owned by him before marriage, or before the effective date of the act (September 1, 1947), whichever is later, and that acquired afterwards by gift, devise or descent, or received as compensation for personal injuries, shall be his separate property. A similar provision is made in respect to the separate property of the wife. All property acquired by either the husband or wife during marriage and after the effective date of the act, except that which is the separate property of either, is to be “deemed the community or common property of the husband and wife, and each shall be vested with an undivided one-half interest therein”. The wife is to have the management and control and may dispose of her separate property “and that portion of the common or community property, consisting of her earnings, all rents, interest, dividends and other income from her separate property and all other common or community property, the title to which stands in her name. The husband shall have the management and control and may dispose of his separate property and all community property, the management, control, disposition of which is not conferred upon the wife hereby.” (All real estate, however, whether separate or community property, shall not be disposed of or encumbered “except in the manner provided by law prior to the effective date” of the act). In the event of a divorce the husband and wife “shall each be vested with an undivided one-half interest in the community property, as tenants in common, but nothing herein shall prevent the court from having the same powers with respect to said property as to other property of either the husband or wife.” Upon the death of the husband or the wife “the surviving spouse shall administer all community property in the same manner and with the same duties, privileges and authority as are vested in a surviving partner to administer and settle the affairs of a partnership upon the death of the other partner.” After *585 paying out of the community property all debts of the community the survivor is to “transfer and convey to the administrator or executor of the deceased one-half of the community property remaining to be administered and distributed as other property of the estate.”

Such being the essential features of the act, the case now presented is this: Plaintiff, Mark Willcox, Jr., brings a bill in equity against The Penn Mutual Life Insurance Company, in which he alleges that Shippen Lewis held a life insurance policy of the Company, issued to him in 1934, the proceeds payable on his death to his children and their issue, with the right on his part to change the beneficiaries, to borrow on the policy, and to assign it to another. At the time this policy was issued he was married to Mary F. W. Lewis and this marriage is still in effect. On October 1, 1947 he paid in advance an annual premium in the amount of $96.11 which was made up of money derived from three sources, of which fact he notified the Company at the time of the payment. $24 thereof had been obtained by him on September 30, 1947 as life tenant of a trust created many years previously under the will of his grandfather. $42 of the premium was paid by endorsing to the Company a check which he had received on September 30, 1947 as a dividend on stock of the American Brake Shoe Company owned by him since 1943. The balance, $30.11, was paid in cash which he had owned prior to September 1,1947. After paying this premium, Mr. Lewis, on October 1, 1947, assigned all his rights under the policy to plaintiff, without receiving any consideration therefor. .Plaintiff then applied to the Company for the issuance of a paid-up policy based on the cash surrender value of the assigned policy, and for a loan of $500. Admittedly, if the assignment was valid, he was entitled to have these requests granted, but the Company refused to comply unless Mrs. Lewis agreed, its position being that, since it had been notified that parts of the premium payment apparently consisted of *586 community property of Mr. Lewis and Ms wife, the latter had a legal interest in the value of the policy which limited his right to assign it without her consent. Plaintiff seeks a mandatory injunction directing the Company to issué to him the paid-up policy and to grant him the loan. The Company filed an answer admitting the facts, and, in effect, submitting itself to the order of the court. Mrs. Lewis has intervened by counsel, as has also the Commonwealth of Pennsylvania by the Attorney General; eminent counsel have filed briefs as amici curiae. It may be proper to add that the suit is obviously a friendly one among all the parties and that the transactions involved were entered into only for the purpose of obtaining a judicial interpretation of the statute and a decision as to its validity.

It may be stated at the outset that the manifold intricacies of the problems here involved arise largely by reason of the fact that the Community Property Law emanates, in its fundamental concepts, from Spanish sources, and the present attempt to engraft it upon our own system necessarily results in fundamental conflicts with principles of the common law centuries old. The community or “ganancial” system was introduced by the Yisigothic invaders of the Eoman Empire in the early part of the fifth century into what is now Spain and portions of France; it was never, however, permanently adopted in Normandy and for that reason did not become fastened upon English law by the Norman conquest. It was brought into the parts of America settled by the French and Spanish colonists and thus came to be enshrined in the law of Louisiana and of the states carved out of the territory obtained as a result of the Mexican war; as to Louisiana it was imbedded to some extent in the Code Napoleon.

From what has been said it is obvious that the Community Property Law is exotic with respect to both our substantive and procedural law. It represents “a concept of property that is entirely alien and foreign *587 to that of the common law as to the conjugal relationship and the marital rights in property”: deFuniak, Principles of Community Property, vol. 1, p. 4, §2. It is “radically at variance with the principles of the common law, and . . . utterly devoid of analogies with that system of jurisprudence”: Ballinger on the Property Bights of Husband and Wife under the Community or Ganancial System, p. 3, §1.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Grove, J. v. Lutz, P.&L.
2021 Pa. Super. 1 (Superior Court of Pennsylvania, 2021)
Bartkowski, T. v. Ramondo, K., Aplt.
Supreme Court of Pennsylvania, 2019
Cnty. of Butler v. Centurylink Commc'ns, LLC
207 A.3d 838 (Supreme Court of Pennsylvania, 2019)
Capinski v. Upper Pottsgrove Township
164 A.3d 601 (Commonwealth Court of Pennsylvania, 2017)
Glover v. Udren Law Offices, P.C.
92 A.3d 24 (Superior Court of Pennsylvania, 2014)
Commonwealth v. Noel
53 A.3d 848 (Superior Court of Pennsylvania, 2012)
Northern Tier Solid Waste Authority v. Commonwealth, Department of Revenue
825 A.2d 793 (Commonwealth Court of Pennsylvania, 2003)
W.R. Grace & Co. v. Department of Revenue
973 P.2d 1011 (Washington Supreme Court, 1999)
Commonwealth v. Cotto
37 Pa. D. & C.4th 396 (Lancaster County Court of Common Pleas, 1997)
Coover v. Saucon Valley School District
955 F. Supp. 392 (E.D. Pennsylvania, 1997)
Commonwealth v. Allen
36 Pa. D. & C.4th 222 (Philadelphia County Court of Common Pleas, 1996)
R. v. Com., Dept. of Public Welfare
636 A.2d 142 (Supreme Court of Pennsylvania, 1994)
Goodheart v. Casey
565 A.2d 757 (Supreme Court of Pennsylvania, 1989)
Pennsylvania Builders Ass'n v. Commonwealth
552 A.2d 730 (Commonwealth Court of Pennsylvania, 1989)
Fratangelo v. Fratangelo
520 A.2d 1195 (Supreme Court of Pennsylvania, 1987)
Commonwealth v. Burkett
507 A.2d 1266 (Supreme Court of Pennsylvania, 1986)
Rampp v. Luzerne Co. Assessment & Valuation Board
41 Pa. D. & C.3d 166 (Luzerne County Court of Common Pleas, 1986)
Miller v. Miller
34 Pa. D. & C.3d 82 (Somerset County Court of Common Pleas, 1984)
Krenzelak v. Krenzelak
469 A.2d 987 (Supreme Court of Pennsylvania, 1983)
Condemnation of Water Distribution Mains & Appurtenances
466 A.2d 239 (Commonwealth Court of Pennsylvania, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
55 A.2d 521, 357 Pa. 581, 174 A.L.R. 220, 1947 Pa. LEXIS 464, 38 A.F.T.R. (P-H) 704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/willcox-v-penn-mutual-life-insurance-pa-1947.