Burnam v. White

• Decision Date: 20 May 1893
• Citation: 22 S.W. 555
• Parties: BURNAM et al. v. WHITE.
• Court: Kentucky Court of Appeals

22 S.W. 555

BURNAM et al. v. WHITE.

Court of Appeals of Kentucky.

May 20, 1893

Appeal from Louisville chancery court.

Proceedings by the Mutual Life Insurance Company against W. C. White and Rebecca S. Burnam and others to determine adverse claims to the proceeds of a life insurance policy. From a decree that White was entitled to a portion of such proceeds, and directing the balance to be paid to Burnam, both appeal. Reversed.

Fairleigh & Straus and A. M. Wallace, for appellant, Burnam.

Walter Evans and R. A. Burnett, for cross appellant, White.

PRYOR J.

This action below is in the nature of a bill of interpleader filed by the Mutual Life Insurance Company against W. C White and the widow and children of Benjamin F. Burnam deceased. Burnam had insured his life with this company for $5,000, and, dying, the proceeds of the policy were claimed by W. C. White, as against the claims of the widow and children. The insurance was for the benefit of his wife Rebecca, and her children, and, unless the appellee, White, has in some legal or equitable mode obtained the right to the amount due on the policy, the widow and children of the insured are entitled to it. The amount due on the policy at the death of the insured was near $4,200, and the amount due, amount which there is no contention, was brought into court by the company, with the prayer in its petition that the amount be paid over to the party entitled. The court below adjudged that the appellee, White, was entitled to $3,010 of the insurance money and some costs, and the balance, deducting certain costs, was directed to be paid over to the widow and children of the decedent.

It appears that this policy had been obtained that Burnam, the husband, was unable to pay the premiums, and that one Thomas H. Grinter had advanced in the way of premimus, to keep this policy alive, the sum of $1,447.50, and, to secure him, the policy had been delivered to him, with an assignment purporting to be absolute on its face, but intended really as a security for the money advanced. This assignment was made to Grinter on the 27th of September, 1878, and on that same day Burnam, the husband, mortgaged certain tracts of land in Trigg county to Grinter to secure him in a note of $2,800 as of that date; and that this $2,800 note embraced all the indebtedness of Burnam to Grinter on account of the premiums paid up to that date is, we think, manifest; and the policy with its assignment, was retained as collateral security for the payment of that note; but whether so or not, the question, when decided, does not affect the merits of this controversy. Grinter died, and his executors are now proceeding to subject the mortgaged lands to the payment of the $2,800 note, with testimony showing that the lands, when sold, will not be sufficient to satisfy the claim. Grinter also held another small claim against the decedent, Burnam, or his executors held it, that was a lien on a small tract of land which was the homestead of the insured. Grinter's executors enforced this lien, and purchased the homestead for $300, and it was not worth exceeding $500. D. L. Grinter, E. R. Street, and W. C. White were the executors of Grinter, and Burnam, being then alive, but old, and penniless, made an arrangement with these executors that if he would raise $450, and pay $122 in addition, the amount of premiums they had paid since the death of Grinter, they would release or deed to anybody he might direct this homestead, worth not exceeding $500, and surrender the policy. The executors...