Capitol Sav. Bank, FSB v. Snelson
| Decision Date | 24 August 1999 |
| Docket Number | No. WD,WD |
| Citation | 998 S.W.2d 862 |
| Parties | CAPITOL SAVINGS BANK, FSB, Respondent, Mercantile Bank of Central Missouri, Respondent, v. Dorothy SNELSON, the duly appointed personal representative of Vacil Allen, Deceased, Appellant, Kenneth W. Allen and Carleen S. Wood, the duly appointed personal representatives of Vacil Allen, Deceased, Respondent. 55606. |
| Court | Missouri Court of Appeals |
Dennis J.C. Owens, Kansas City, for Appellant.
P. Pierre Dominique, Jefferson City, for Respondent Capital Savings Bank.
McDorman, Versailles, for Respondent Mercantile Bank of Central Missouri.
Ronald K. Carpenter, Camdenton, for Respondent Kenneth W. Allen.
Before LAURA DENVIR STITH, P.J., LOWENSTEIN and RIEDERER, JJ.
Dorothy Snelson appeals from the trial court's judgment granting her a one-half interest and her niece and nephew, Carleen Wood and Kenneth Allen, a one-half interest in each of two certificates of deposit. Finding that Snelson owned both certificates of deposit in joint tenancy with right of survivorship with her late brother at the time of his death, we hold that Snelson is the owner of the full amount of the proceeds of both certificates of deposit.
Logan and Maude Allen were the parents of Dorothy Avonelle Snelson and Vacil Allen. On March 28, 1991, Mercantile Bank of Central Missouri issued certificate of deposit ("CD") number 40980 in the amount of $31,000.00. On its face, the CD listed as "DEPOSITOR(S)" the following persons: "Logan Allen or Maude Allen as Co-Trustees for: Vacil Allen and Dorothy Snelson...." Also printed below the "DEPOSITOR(S)" section was this statement: On August 5, 1994, another CD, number 61336, was issued by Mercantile in the amount of $41,000.00. The face of CD # 61336 were the words, "THIS CERTIFICATE EVIDENCES A DEPOSIT IN THE NAME(S) OF: Logan Allen or Vacil Allen and Avonelle Snelson...." A box was checked on CD # 61336 signifying it as a "Joint Account - With Right of Survivorship," and another box denoting "Non-Spousal" was checked as well.
By September 5, 1995, Maude Allen had died. On that date, Mercantile Bank, at the written direction of Logan Allen, removed Logan Allen's name from both CD's. On CD # 40980, the bank drew a line through the words "Logan Allen or Maude Allen as Co-Trustees for: Vacil Allen and Dorothy Snelson," and it typed in the words "Dorothy Avonelle Snelson or Vacil L. Allen." CD # 40980, as altered, still contained the provision: On CD # 61336, the bank drew a line through the words "Logan Allen or" and replaced the "and" with "or" so that the certificate thereafter read, "Vacil Allen or Avonelle Snelson." Also added to both certificates were the words "TWO SIGNATURES REQUIRED FOR WITHDRAWAL." The re-titling occurred in the presence of both Dorothy Snelson and Vacil Allen.
One year later, on September 5, 1996, Vacil Allen, while hospitalized, executed a durable power of attorney designating his son and daughter, Kenneth Allen and Carleen Wood, respectively, as his attorneys-in-fact. That same day, Wood, with both CD's in her possession, went to Mercantile Bank "on her father's behalf" to request that ownership of the CD's be changed from joint tenancy to tenancy in common. Wood spoke to Larry Laduke, a senior vice president of the bank, but Laduke would not make the change because he could not contact the bank's attorney. Vacil Allen died the following day. No change was made to either CD before his death.
On November 12, 1996, the Circuit Court of Miller County, Probate Division appointed Kenneth Allen and Carleen Wood personal representatives of the Vacil Allen estate. A dispute between the personal representatives and Dorothy Snelson arose concerning ownership of the two CD's. Uncertain as to the ownership, on December 5, 1996, Mercantile Bank filed a petition for interpleader in the Circuit Court of Miller County. The petition requested that the circuit court award the sum of the proceeds of the CD's ($72,000.00) as it saw fit.
On December 24, 1996, defendants Kenneth Allen and Carleen Wood ("Respondents") filed their answer to Mercantile's petition for interpleader. Therein, they:
den[ied] that Logan Allen directed [the CD's] to be retitled in the names of Vacil Allen and Dororthy Snelson as joint tenants with right of survivorship as said written directive makes no mention as to the form of ownership desired and, therefore, the form of ownership should have been tenancy in common and not joint tenancy with right of survivorship....
They also answered that Carleen Wood "had the lawful authority to change the form of ownership of the certificate of deposit in question and to change that ownership from joint tenancy to tenancy in common and that [Mercantile] should have allowed this change of ownership at the request of the co-owner, Vacil Allen." Thus, they claimed that one-half of the proceeds of the two CD's should be paid to Vacil Allen's estate.
On January 10, 1997, defendant Dorothy Snelson ("Appellant") filed her answer. Therein, she claimed the entire amount of the proceeds should be paid to her as a surviving joint tenant. Following a trial, on February 6, 1998, the circuit court entered a judgment declaring Dorothy Snelson as owner of one-half of the proceeds of each CD and Kenneth Allen and Carleen Wood as owners of the other one-half. Dorothy Snelson appealed.
In court-tried cases, such as the case at bar, we review according to Rule 73.01 as interpreted in Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). We will sustain the judgment of the trial court unless there is no substantial evidence to support it, it is against the weight of the evidence or it erroneously declares or applies the law. Id. Under this standard, we accept all evidence and inferences favorable to the judgment and disregard all contrary inferences. Superior Outdoor Advertising Co. v. Snadon, 965 S.W.2d 421, 422 (Mo.App.1998).
Appellant argues that the trial court erred in awarding one-half of the proceeds of the CD's to Respondents because the evidence proved: (1) a joint tenancy with right of survivorship was created (in which Appellant was a joint tenant); and (2) no event operated to extinguish the joint tenancy prior to Appellant becoming the sole surviving joint tenant and, thus, full owner of both CD's. Respondents contend, on the other hand, that the trial court's award was correct because, with respect to CD # 40980, no joint tenancy was created and, with respect to CD # 61336, the joint tenancy created at its issuance was destroyed when the CD was physically altered on September 5, 1995. Respondents argue, alternatively, that if either CD was owned by Appellant in joint tenancy, the joint tenancy was terminated by Carleen Wood's attempt, as Vacil Allen's attorney-in-fact, to change the form of ownership to tenancy in common on September 5, 1996.
We are, therefore, presented with two issues regarding both CD's. First, we determine whether a joint tenancy was created. If so, we determine whether the joint tenancy was terminated before Vacil Allen's death. We conclude that, with respect to both CD's, such a joint tenancy was created, and the joint tenancy did not terminate prior to Vacil Allen's death. Accordingly, we conclude that, upon Vacil Allen's death, Appellant became the sole owner of both CD's in question.
Neither party disputes that when CD # 61336 was issued listing as its depositors "Logan Allen or Vacil Allen and Avonelle Snelson," there was created a joint tenancy with right of survivorship between Logan Allen, Vacil Allen and Appellant. The dispute concerns what form of ownership existed after September 5, 1995, the date on which Mercantile Bank, at the written direction of Logan Allen, physically altered the face of the CD such that it thereafter read, "Vacil Allen or Avonelle Snelson." Appellant argues that this act by Mercantile created a valid statutory joint tenancy with right of survivorship in her and Vacil Allen. Respondents argue, instead, "the action of Logan Allen and Mercantile Bank in altering [61336] and removing Logan Allen's name from it effectively terminated the statutory joint tenancy and left [Appellant] and Vacil Allen owning the certificate as tenants in common." Respondents cite Bowers v. Jones, 841 S.W.2d 744 (Mo.App.1992) and McGee v. St. Francois County Savings and Loan Association, 559 S.W.2d 184 (Mo.1977) in support of the proposition that the sole contributor can terminate a joint tenancy by having the bank make physical changes on the CD. Respondents, however, misconstrue these cases.
In McGee, the late Walter McGee had owned two savings certificates issued by the Savings and Loan (S & L). One certificate was originally issued in the names of Walter and his wife, but after her death, the S & L drew a line through her name. The other certificate originally listed Walter as its sole owner. On February 11, 1974, the S & L at Walter McGee's instruction, added the name of Walter's nephew, Vernell McGee, and stamped the words "as joint tenants with right of survivorship and not as tenants in common" on both certificates. Then, on March 7, 1974, Walter McGee had the S & L draw lines through his nephew's name on the certificates so that they listed his name only. After Walter McGee's death, ...
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