Chrysler Corp. v. Hardwick

• Decision Date: 02 December 1941
• Docket Number: No. 51.,51.
• Citation: 299 Mich. 696,1 N.W.2d 43
• Parties: CHRYSLER CORPORATION v. HARDWICK et al.
• Court: Michigan Supreme Court

299 Mich. 696

1 N.W.2d 43

CHRYSLER CORPORATION

v.HARDWICK et al.

No. 51.

Supreme Court of Michigan.

Dec. 2, 1941.

Bill of interpleader by the Chrysler Corporation against Daisy E. Hardwick, also known as Daisy Hannah, and Daisy L. Hannah, to determine which of the defendants was the beneficiary under a group insurance policy on the life of one Sterling W. Hannah, wherein an issue was joined between the parties. From the decree entered, Daisy L. Hannah appeals.

Decree affirmed.

Appeal from Circuit Court, Wayne County, in Chancery; Joseph A. Moynihan, Judge.

Argued before the Entire Bench.

Anderson, Wilcox, Lacy & Lawson, of Detroit, for appellant.

Casper C. Cutler and Arthur Rubin, both of Detroit, for appellee.

BOYLES, Justice.

This is a bill of interpleader filed by Chrysler Corporation to determine whether Daisy L. Hannah, appellant, or Daisy E. Hardwick, appellee, is the beneficiary under a group insurance policy on the life of one Sterling W. Hannah. The insured was an employee of the Chrysler Corporation and after his death the above-named parties each claimed to be the beneficiary. The Chrysler Corporation filed a bill of interpleader and paid the money into court. Issue was joined between the above parties, the cause was referred to a circuit court commissioner to take testimony, and the circuit judge on exceptions to the commissioner's report filed an opinion in favor of Daisy E. Hardwick. Decree was entered thereon and Daisy L. appeals.

Sterling W. Hannah was married to Daisy L. (Pennell) of Missouri in 1909. They lived together there until 1921 or 1922 when Sterling W. came to Detroit. Daisy L. claims he left her and went to Detroit to find work. Daisy E. claims he came to Detroit to escape the nagging of Daisy L. From then on until his death in 1939 he lived in Detroit. In 1926 he obtained a decree of divorce from Daisy L. in the circuit court for Wayne county. Neither he nor Daisy L. ever remarried. Daisy L. continued to live in Missouri and to use the name of Daisy L. (or Lee) Hannah. During his 19 years in Detroit Sterling W. lived in various places. In 1931 he went to live in the rooming house of Daisy E. Hardwick, the appellee herein. From that time until his death he roomed most of the time with Daisy E. Hardwick and was living there at the time of his death. She was a respectable rooming house keeper who took an interest in and frequently befriended her roomers. A strong friendship grew up between Daisy E. and Sterling W.; when he was out of work she provided him with funds or gave him credit for room and board. During the intervals he lived elsewhere he still kept some of his trunks at her place, received a considerable portion of his mail there, and visited her regularly. He had many girl friends; his affections apparently were readily transferable and his earnings were important to him only as a means of providing recreation. He made a few trips back to Missouri, claimed by Daisy E. to be for the purpose of visiting his brothers and other relatives. There is testimony to the effect that on the one occasion when he called upon his former wife, Daisy L., in Missouri, she slammed the door in his face. On the other hand, Daisy L. introduced testimony to show she retained his affection as expressed by him on many occasions and that he kept her picture in his room. As to that, the record shows he had a trunkful of pictures and souvenirs of others. The record is replete with testimony pro and con tending to show Sterling W. Might have had either Daisy L. or Daisy E. in mind in naming his beneficiary.

On July 16, 1931, he signed an application for $3000 group life insurance as a Chrysler employee in which the following designation of beneficiary appears ‘Name of Beneficiary Daisy-Relationship of Beneficiary Wife’. At that time he had no wife. Did he refer to Daisy E. in Detroit or Daisy L. in Missouri? This application is marked cancelled September 30, 1931, presumably on termination of his employment. On November 6, 1931, he signed a similar application with the same designation ‘Name of Beneficiary Daisy-Relationship of Beneficiary Wife’; this application is marked cancelled July 31, 1932. On October 31, 1932, he signed another application using the same designation of beneficiary and relationship, which is marked cancelled March 10, 1933. On November 27, 1934, he signed another application this time reading as follows: ‘Name of Beneficiary Hazel-Relationship of Beneficiary Wife’. He had no wife at that time but the record shows he was then devoting his affections to a girl by the name of Hazel. He was not then living at the rooming house of Daisy E. Hardwick. This application is marked cancelled July 14, 1938, at about which time he returned to room with Daisy E. Hardwick and roomed there until his death about a year later. His next application for group insurance with Chrysler was made August 1, 1938. In it again appears the following ‘Name of Beneficiary Daisy-Relationship of Beneficiary Wife’. This application bears no cancellation mark. The record also shows another application made by him on August 10, 1939, with the same designation and relationship of beneficiary as before which is likewise not marked cancelled. However, it bears a notation ‘Completed on rehire-Old policy in effect’. The numerous applications were occasioned by layoffs and resumption of employment. The importance of these applications rests in the fact that the application of the employee is a part of the group insurance contract (3 Comp.Laws 1929, § 12435 [Mich.Stat.Ann. § 24.271]); and therefore is of value in determining the beneficiary.

Daisy L. (of Missouri) relies much on the certificate which was issued by the Chrysler Corporation to Sterling W. Hannah August 1, 1938, when the last uncancelled application was made. The material part of this certificate reads: ‘Chrysler Industrial Association-Employees' Mutual Benefit Division issues this certificate as evidence of Life Insurance and Sickness and Accident Insurance on the life of Sterling W. Hannah-84-673-a member of this Association, for the sum of Three Thousand Dollars payable in event of death ot Daisy Hannah-Wife-Beneficiary’.

There was only one ‘Daisy Hannah’ at that time, Daisy L. in Missouri having continued to use the name Daisy L. Hannah or Daisy Lee Hannah after divorce. Daisy E. Hardwick claims the certificate merely indicates an assumption on the part of the Chrysler Corporation that ‘Daisy-Wife’ of Sterling W. Hannah would mean ‘Daisy Hannah’. The certificate is no part of the insurance contract. The application by the employer, the group policy issued, and the application of the individual employees constitute the entire contract between the parties. 3 Comp.Laws 1929, § 12435 [Mich.Stat.Ann. § 24.271], supra. Insurance contracts are subject to statutory regulations and provisions of the statutes must be read into the contract. Galkin v. Lincoln Mutual Cas. Co., 279 Mich. 327, 272 N.W. 694. The certificate issued by the employer to the employee is not a part of a group insurance contract and cannot be relied upon as establishing any contractual rights. Germain v. AEtna Life Ins. Co., 285 Mich. 318, 280 N.W. 773. It may be said that the designation of ‘Daisy Hannah’ as beneficiary in the certificate...