Cannon v. Hamilton

• Decision Date: 13 March 1963
• Docket Number: Nos. 37400 and 37454,s. 37400 and 37454
• Citation: 174 Ohio St. 268,189 N.E.2d 152
• Parties: , 22 O.O.2d 331 CANNON, Adm'x., Appellee, v. HAMILTON, Appellee; Flanagan et al., Appellants, et al. CANNON, Adm'x., Appellant, v. HAMILTON et al., Appellees, et al.
• Court: Ohio Supreme Court

Page 268

174 Ohio St. 268

189 N.E.2d 152, 22 O.O.2d 331

CANNON, Adm'x., Appellee, v. HAMILTON, Appellee;

Flanagan et al., Appellants, et al.

CANNON, Adm'x., Appellant, v. HAMILTON et al., Appellees, et al.

Nos. 37400 and 37454.

Supreme Court of Ohio.

March 13, 1963.

Syllabus by the Court

1. A married woman who is named as a beneficiary in a policy of life insurance is entitled to the proceeds upon the death of her insured husband, notwithstanding a divorce obtained by her from the insured before his death. The designation of the beneficiary in the policy as the wife of the insured is merely descriptive. (Overhiser, Admx v. Overhiser, 63 Ohio St. 77, 57 N.E. 965, 50 L.R.A. 552, approved and followed.)

2. Ordinarily, a change of beneficiary in a policy of life insurance by the insured is accomplished by following the procedure directed in the policy. 3. A separation agreement entered into between the insured and his wife before divorce and made a part of the divorce decree may operate to remove the wife as beneficiary in the policy of life insurance, but to have that effect such agreement must plainly indicate the elimination of the wife as such beneficiary.

The present action arose in the Court of Common Pleas of Cuyahoga County, when Katherine Cannon, administratrix of the estate of Edward Cannon, deceased, also known as Eddie Cannon, and his widow sought to secure for the estate the sum of $5,600, which amount is represented by $600 in death benefits payable under a certificate issued by the Employes Benefit Association of Swift & Company, of which decedent was a member, and the amount of $5,000 under a group life insurance policy of Swift & Company employees issued to decedent by the Aetna Life Insurance Company.

Joint answers and cross-petitions were filed by Bertha Cannon Fears and Mabel Cannon Flanagan, daughters of the decedent, and by the guardian ad litem of three minor grandchildren of the decedent, children of his deceased daughter, Dorothy Cannon Burks, claiming the $5,600. Addie Cannon Hamilton, divorced wife of the decedent, also filed an answer and cross-petition, claiming to be entitled to the $5,600 as the primary surviving beneficiary named in the certificate of the Employes Benefit Association and in the insurance policy.

The last beneficiaries as designated in the certificate and in the policy were: 'Addie Cannon, my wife, if she survives me, otherwise to Bertha Fears, Mable Cannon, and Dorothy Cannon, my children, equally, or the survivor.' There were no restrictions on the insured as to a change of beneficiaries.

Both the Employes Benefit Association and the Aetna Life Insurance Company interpleaded, paid the amount due from each into court and disappeared from the contest.

As shown by the record, the decedent-insured, Edward Cannon, who died in October 1958, was a long-time employee of Swift & Company. He became a dues-paying member of the Employes Benefit Association of that company in 1924, and his then wife, Izola Cannon, was named in the certificate as the beneficiary first entitled to the death benefits payable thereunder. In March of 1946, he changed the beneficiaries in writing to those designated in the language above quoted.

In May 1946, the Aetna Life Insurance Company issued to Edward Cannon a group life insurance policy in the face amount of $4,000, increased to $5,000 the following year, designating the same beneficiaries in the same manner. Neither in the certificate nor in the insurance policy were those beneficiaries changed nor was any application made to accomplish that result.

In June 1947, Addie Cannon, later Addie Cannon Hamilton, secured a divorce from Edward (Eddie) Cannon in the Court of Common Pleas of Cuyahoga County. Incorporated in the decree as a part thereof was a separation agreement dated April 1947, signed by 'Addie Cannon' and 'Eddie Cannon' and attested by two witnesses. Such agreement, omitting the formal parts, awarded to Addie Cannon certain household furnishings and personal effects, and a like clause was inserted awarding Eddie Cannon similar articles. That part of the agreement which might in any way affect the present litigation was as follows:

'4. * * * Policy of insurance on the life of Eddie Cannon, now in the possession of Addie Cannon, is to be delivered to Eddie Cannon.

'5. In full settlement of all claims of Addie Cannon, Eddie Cannon agrees to pay one hundred dollars ($100) to Addie Cannon for legal expenses incurred by her in Common Pleas case No. 574448, and said Addie Cannon agrees that she will not ask for any further sums whatsoever upon obtaining a divorce in said case.'

At the trial, Addie Cannon Hamilton testified that at the time of her separation from Edward Cannon she did not take with her any policies of insurance.

Upon the pleadings, evidence and exhibits, the trial court rendered judgment for Mabel Cannon Flanagan and Bertha Cannon Fears under the wording of the beneficiary clauses of the certificate and of the life insurance policy and determined that, by the divorce decree and the provisions of the separation agreement incorporated therein, Addie Cannon Hamilton had been eliminated and removed as a beneficiary.

On an appeal on questions of law and fact to the Court of Appeals, that court reduced the appeal to an appeal on questions of law alone, reversed the judgment below and rendered final judgment for Addie Cannon Hamilton on authority of the cases of Hergenrather v. State Mutual Life Assur. Co. of Worcester, 79 Ohio App. 116, 68 N.E.2d 833; Stone v. Stephens, 92 Ohio App. 53, 110 N.E.2d 18; and Overhiser's, Admx. v. Overhiser, 63 Ohio St. 77, 57 N.E. 965, 50 L.R.A. 552, 81 Am.St.Rep. 612.

The cause is now in this court by reason of the allowance of separate motions to require the Court of Appeals to certify the record, by plaintiff, Katherine Cannon, executrix of the estate of Edward Cannon (case No. 37400), and by defendants Mabel Cannon Flanagan and Bertha Fears (case No. 37454).

Krause, Klein & Fromson, Cleveland, for appellants in case No....