Metropolitan Life Ins. Co. v. Haack

• Decision Date: 07 May 1943
• Docket Number: Civil Action No. 642.
• Citation: 50 F. Supp. 55
• Parties: METROPOLITAN LIFE INS. CO. v. HAACK et al.
• Court: U.S. District Court — Western District of Louisiana

50 F. Supp. 55

METROPOLITAN LIFE INS. CO. v. HAACK et al.

Civil Action No. 642.

District Court, W. D. Louisiana, Shreveport Division.

May 7, 1943.

Jackson & Mayer, of Shreveport, La., for plaintiff (interpleader).

Cook, Lee, Clark & Egan, of Shreveport, La., for Mrs. Vonnie B. Haack, defendant.

Eugene J. Coen, of Shreveport, La., for Mrs. Clara C. Haack, defendant.

PORTERIE, District Judge.

Arthur H. Haack married Clara Renaud at St. Louis on September 12, 1912. On January 2, 1913, while a resident of the state of Missouri, he secured an ordinary policy on his life from the Metropolitan Life Insurance Company in the sum of $2,000. The application contained the following questions and answers with reference to the beneficiary:

"Q. 22 — Whom do you designate to receive the proceeds of the policy applied for in case of your death? A. Wife, Clara C. Haack. Age — 22. Occupation — Housewife. Post Office address — 2129.

"Q. 23 — Do you reserve the right to change the beneficiary at any time without the consent of beneficiary herein designated? A. Yes."

The two lived together until June 29, 1923, when they began to reside apart, both remaining in the city of St. Louis. And such was their status until the month of April in the year 1931, when Mr. Haack moved to Shreveport, Louisiana.

On December 7, 1926 (during the period when they were in St. Louis, living apart), Clara approached her mother, Mrs. Mary Renaud, upon the suggestion of, and, to judge from the circumstances, under the influence of, her husband, and induced her mother to find money for Mr. Haack — who, during the period of thirty years covered by the evidence of this case, seemed always to be in need of money in varying sums. The mother gave Clara First National Bank Participation bonds in the principal sum of $2,000, and Clara and Arthur went together to the First National Bank of St. Louis, Missouri, and made an initial loan of several hundred dollars with the collateral, but which loan it was understood would be raised from time to time to reach the full extent of the amount that the First National Bank of St. Louis would lend on the security. The money was handed to Arthur at the bank window.

The policy of insurance, when first delivered, had been immediately given by Mr. Haack to his wife Clara, and though she had already possession of the policy at the time of the loan, it was at that time again stated by Mr. Haack that she would retain the policy, that she was the named beneficiary therein, and there was particular reference made to the clause in the policy contract referring to change of beneficiary, to-wit: "Change of Beneficiary. — When the right of revocation has been reserved, the Insured, if there be no existing assignment of the Policy, made as herein provided, may, while the Policy is in force, designate a new beneficiary with or without reserving right of revocation by filing written notice thereof at the Home Office of the Company, accompanied by the Policy for suitable endorsement thereon. Such change shall take effect upon the endorsement of the same on the Policy by the Company. * * *" (Italics supplied.)

Was there a clear and definite meeting of the minds such as to support an enforceable contract, between Clara, the wife, and Arthur, the husband, at the time of the advance of this money? The mother of Clara, in answer to Interrogatory No. 13, says: "I gave these bonds to my daughter, Mrs. Clara Haack, in December, 1926, for the purpose of borrowing money from the First National Bank. She wanted to make a loan at that time so as to get money with which to pay off a lot of Arthur Haack's debts. She hoped thereby to become reconciled, and I didn't want to put anything in her way, and therefore gave her these bonds." (Italics supplied) Also, in answer to Interrogatory No. 6, the mother said: "After their separation, they never went back together again, but both lived here in St. Louis. My daughter always thought that she and Arthur Haack might some day become reconciled, but they never did." (Italics supplied)

There was no promissory note made either to Clara or to her mother, no paper of any kind passed between the parties. This doubt as to whether or not there was any thought or expectation of any repayment makes this case difficult of decision. After reconciliation proved impossible, Clara pressed the divorce, and then active thought of repayment entered her mind.

It is a fact in this record that Clara paid the annual premiums of $30.38 on this Metropolitan policy, beginning in January, 1925, and continuously thereafter until July, 1934; for a like period of time she also paid the premiums on another $2,000 policy that Mr. Haack had with the Baltimore & Ohio Railroad Relief Association, the annual premium on this latter policy being $24; and she also paid the annual premium for a life and accident policy for the same period of time with the Monarch Life Insurance Company, the annual premium of the latter being $12. Clara at the trial of the instant case states that she paid these premiums because she had originally promised to pay them at the time that the other money loans, finally reaching the aggregate of $2,000, had been made by her with the help of her mother to her husband Arthur. The record discloses from the bank books the eventual payment by Clara of the $2,000 loan at the bank.

During this period of years, 1925 to 1934, Clara also borrowed from two personal friends the sums of $200 and $100, which also were used to pay debts or premiums for Haack.

It was not long after Arthur had moved to Shreveport in April, 1931, before Clara, who had remained at St. Louis, instituted divorce proceedings which finally culminated in a full and final decree, in October of the year 1932. On March 23, 1933, Arthur was married, in Shreveport, to Vonnie B. Matthews — whom we shall call Vonnie, for the sake of brevity.

There are several letters exchanged at about this time which, because of their necessary effect in this case, we have to quote in full. The first one in point of time is dated February 26, 1932, at Shreveport, Louisiana, and is from Arthur to Clara, as follows: "Clara: Your letter received. Of course I want you to get the money, only sorry I can't let you have it in cash, but things are in an awful mess, its Hell — I want you to get the insurance if I die but if you should die before I do I would want the policy back so I could pay it for, maybe my Mother or the Kids — See, I don't want it to go to some one else if you die first and under the agreement the Insurance Company wants me to sign it would belong to you and your heirs. Do you understand, Clara I'm not trying to be mean, and I know you understand don't you Clara. Well may you be happier than I am. From Arthur"

The next letter, also from Arthur to Clara, dated April 23, 1933, showing that it was written in the worst of a judicially-recognized depression, would indicate that Clara, now without employment, having already exhausted her mother's available funds and her own separate funds earned through her own labor, had become greatly in need of money, so she had made Arthur agree to make a loan on the Metropolitan policy, the proceeds of the loan to go to her: "Clara: Your special dely recd and check for loan on my policy 891394 for $120.28 how much is outstanding against the policy now. Was the old loan paid if not what is the total amount due would like to get it all straight some day soon the more thats paid the more the policy will be worth I just borrowed $2.00 last night till pay day & owe $15.00 of my salary already & just about am getting by sure is hell trying to make both ends meet if only things begin to pick up. Clara I'm sending you a cashiers check for $110.00 I have taken $10.28 & Ill send that to you right after the first of the month, I know the bank note is due in May and surely I can use $10.00 till the first hope you dont think Im mean about this but I do need a few dollars so so bad & Im sure if you get the $110 now it will help you wonderfully. So sorry I must have a small amount now Wish I could send the whole check to you. Just had a judgment against me of $65.00 in the St. Louis courts & must pay that some how. It was the loan shark that the Better Business Bureau was handling. When I left they fell down on the job & I have to pay Lord only knows how it is to be done, Im frantic, maybe you saw the judgment in the papers they garnisheed my salary for 6 months so you see Im up against it bad Oh well we can only hope for better days Just live in hope I guess. I know you dont mind the deduction when Im going to send it to you, Gee I could use that check but I know you need it worse than I do Glad to hear my mother has her teeth & do hope they fit. Your mother I hope is well tell her & Larry Hello also tell Alma & Russell Hello. Why dont Russell write just a word to me I think of him a lot. Well be brave & hope for the best & maybe someday the brightest sun will shine for us both for you especially is my earnest wish. Arthur."

A letter dated January 15, 1934, by Clara to the Metropolitan Life Insurance Company, shows her fear of Arthur doing something which would rob her of security through her possession of the policy, and also that she had come to know of his second marriage and realized that any collection on the debt was improbable, since he had never paid anything but the small sum of $110 and that had been by using the policy itself as security for the loan. She proposes in this letter what appears to us to be in the nature of a compromise:

"Gentlemen: In reference to Policy #891394 A Arthur H. Haack. We separated June 29 — 1923 but I did not get my divorce till Oct. 13 — 1932. All these years I was compelled to work and paid his insurance premiums from Jan. 1924 to Jan. 1933 inclusive at Tower Grove District. Being unemployed for over a year it was impossible to pay the premium due Jan. 1934 so I mailed Mr. Haack the bill. ...