Cook v. Bevill

Decision Date05 May 1969
Docket NumberNo. 5--4865,5--4865
Citation440 S.W.2d 570,246 Ark. 805
PartiesWoodrow COOK, Special Admr., Appellant, v. Andy BEVILL, Appellee.
CourtArkansas Supreme Court

Oscar Fendler, Blytheville, for appellant.

Graham Partlow, Jr., Blytheville, for appellee.

BROWN, Justice.

Appellant Woodrow Cook, administrator of the estate of Elijah J. Bryeans, deceased, and appellee Andy Bevill, each claim ownership of the proceeds of a certificate of deposit issued in the names of E. J. Bryeans or Andy Bevill. Since the certificate was dated April 18, 1967, resolving the issue requires an interpretation of Acts 78 and 444 of 1965. This is a case of first impression under those acts. The chancellor, in awarding the proceeds to Bevill, applied Act 444.

Elijah Bryeans held a deposit box at Farmers Bank of Blytheville when he died intestate in September 1967. He had placed in the lockbox two certificates of deposit. One was in the principal sum of $10,000 and in Mr. Bryeans' name only. The other certificate was in the sum of $8360 and was issued in the form 'E. J. Bryeans or Andy Bevill.' The depositor signed nothing. Mr. Bryeans purchased the certificates with his individual funds and he alone was given a key to the lockbox. His heirs apparently consisted of two sisters, one of whom was the mother of Andy Bevill. There was a close relationship between the uncle and his nephew. Mr. Bryeans was in ill health during the last eight years of his life and Andy was very attentive to him. It was the banker's recollection that Mr. Bryeans expressed an intention that Andy Bevill have the proceeds of the deposit made in the two names in the event of Mr. Bryeans' prior death.

There are three legislative enactments to be considered. They are Act 260 of 1937, appearing in Ark.Stat.Ann. § 67--521 (1947); Act 444 of 1965, digested in Ark.Stat.Ann. § 67--521 (Repl. 1966); and Act 78 of 1965, Ark.Stat.Ann. § 67--552 (Repl. 1966). Although Act 260 was amended by Act 444 we think Act 260 is significant in shedding light on the intent of the Legislature when it enacted Act 444. After a careful analysis of the enumerated acts we conclude that Act 444 is not a survivorship statute, as was its predecessor, Act 260. In that respect we disagree with the chancellor.

Prior to 1965 we had one short statute dealing with the rights of parties in bank deposits standing in two names. That was Act 260 of 1937. Here are the pertinent parts, including the title:

AN ACT Defining Rights of Parties in Bank Deposits in Two Names and Providing for the Payment of the Same.

When a deposit shall have been made by any person in the name of such depositor and another person and in form to be paid to either, or the survivor of them, such deposit thereupon and any additions thereto made by either of such persons, upon the making thereof, shall become the property of such persons as joint tenants, and the same, together with all interest thereon, shall be held for the exclusive use of the persons so named, and may be paid to either during the lifetime of both, or to the survivor after the death of one of them; and such payment and the receipt or acquittance of the one to whom such payment is made shall be a valid and sufficient release and discharge to said bank for all payments made on account of such deposit prior to the receipt by said bank of notice in writing signed by any one of such joint tenants not to pay such deposit in accordance with the terms thereof.

Act 260 had a twofold purpose. It protected the bank in making payments from deposits in the names of any two persons; and it declared 'a definite and conclusive relation of the parties to such deposit on the death of either * * *' Pye v. Higgason, 210 Ark. 347, 195 S.W.2d 632 (1946). The modification of Act 260 by Act 444 was preceded by the passage of Act 78. The provisions of Act 78 have an important bearing on our interpretation of Act 444 and for that reason Act 78 should first be discussed.

Act 78 was approved February 12, 1965. It was our first comprehensive enactment governing joint bank accounts. Two years previously a very similar act was passed affecting joint deposits in savings and loan associations. See Ark.Stat.Ann. § 67--1838 (Repl. 1966). The principal virtue of Act 78 is the requirement of designation in writing; that is, when an account is opened or a certificate of deposit is issued in the name of two or more persons, a written designation is made as to the investiture of title. The act enumerates joint tenancy, joint tenancy with right of survivorship, and tenancy in common. It also authorizes a depositor to designate that on his death the funds represented by the account or certificate shall be paid the person or persons listed by the depositor. An exception to the requirement of making written designation is made as to an account or certificate in the name of husband and wife; in that situation the deposit becomes by operation of the statute a tenancy by the entirety.

All paragraphs in Act 78, excepting the ond designated (d), deal directly or indirectly with survivorship. Paragraph (d) reads as follows:

If an account is opened or a certificate of deposit is purchased in the name of two (2) or more persons, whether as joint tenants, tenants by the entirety tenants in common, or otherwise, a banking institution shall pay withdrawal requests, accept pledges of the same, and otherwise deal in any manner with the account or certificate of deposit upon the direction of any one (1) of the persons named therein, whether the other persons named in said account or certificate of deposit be living or not; unless one (1) of such persons named therein shall by written instructions delivered to the banking institution designate that the signature of more than one (1) person shall be required to deal with such account or certificate of deposit.

We have italicized the phrase in paragraph (d) 'or otherwise.' That phrase could not afford protection to the bank in every conceivable situation. It must be interpreted in light of the context of Act 78 of which it is a part. Designated in writing is the theme of the entire act. Paragraph (d) refers to those accounts and certificates of deposit wherein the named persons are designated as joint tenants, tenants by the entirety, tenants in common, or other designation is made affecting survivorship. The italicized phrase is the meaning attributable to the term 'or otherwise.' Therefore, in a matter of weeks after the passage and approval by the Governor of Act 78, the General Assembly amended Act 260 of 1937 to delete survivorship therefrom and to afford further protection to the banks in paying out funds held in the names of two or more persons. In its effort to eliminate the treatment of survivorship by Act 260, the Legislature made these significant changes in a bill which became Act 444:

1. The phrase in the title of Act 260, 'Defining Rights of Parties in Bank Deposits in Two Names,' was deleted from the title of Act 444. The single purpose stated in the new title was simply to authorize a bank to pay to any one of the multiple parties named in a deposit the proceeds of the account.

2. Act 444 deleted from Act 260 the phrases 'or (to) the survivor of them' and 'or to the survivor after the death of one of them.' Consequently the word 'survivor' nowhere appears in Act 444.

Act 78 did not provide protection for a bank in the event it paid out funds in instances where no written designation of survivorship was made and the named parties were still alive. Act 444 established that protection when such an account is processed in the manner therein provided.

The chancellor took the position that the phrase in Act 444--'shall become the property of such persons as joint tenants'--created a survivorship. We have not lightly considered that theory; however, we think that position is outweighed when we consider the entire picture of the legislation and find what reasonably convinces us was the legislative intent. We could cite a multitude of cases which hold the primary rule in statutory construction to be the determination of the intent of the lawmakers. If that cannot be precisely ascertained from the language of the act, we look to other sources. The legislative history, the title, the object sought to be accomplished, and the expediency of the act are among the many appropriate sources which shed light on legislative intent.

It is a mild statement to say that Act 260 of 1937 created a maze of problems in the handling of joint bank deposits and certificates. Much litigation over those deposits has reached this Court. Many decisions had to be made by ascertaining the intent of the depositor from parol evidence and 'after death has sealed the lips of the person principally concerned.' Ratliff v. Ratliff, Adm'x, 237 Ark. 191, 372 S.W.2d 216 (1963). Act 260 had minimal written requirements which fell far short of being sufficient. In that situation the Legislature and the banking interests turned to the comprehensive act under which the building and loan associations had been operating for two years. It was incorporated, in most essentials, in Act 78. That act was supplemented by Act 444.

In harmonizing the two acts of 1965 we have not thus far mentioned some other factors which are significant. The same legislative body authored both acts; the same legislative committees on banks and banking evaluated the proposed legislation; and we perceive that leaders in the banking business attended the public hearings. It is inconceivable that they would intentionally approve a comprehensive act in one breath and then forthwith pass a second act substantially out of harmony with the first. Had it been their intention to modify any part of Act 78 they would surely have so stated in Act 444 and in terms of specifics. Our Court follows a maxim of the common law, namely, that acts passed on the same subject should be construed together...

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32 cases
  • Snow v. Martensen
    • United States
    • Arkansas Supreme Court
    • April 7, 1975
    ...of such persons as joint tenants with right to survivorship." As to the bank certificates in Willey, supra, we relied on Cook v. Bevill, 246 Ark. 805, 440 S.W.2d 570, where we said that there must be a substantial compliance with the 'designation in writing' requirement of the Act in order ......
  • City of Fort Smith v. Brewer
    • United States
    • Arkansas Supreme Court
    • December 24, 1973
    ...nevertheless, all doubt may be resolved by the title and emergency clause of the act, to which we resort in such cases. Cook v. Bevill, 246 Ark. 805, 440 S.W.2d 570; Rouse v. Weston, 243 Ark. 396, 420 S.W.2d 83; Roscoe v. Water & Sewer Improvement District No. 1, 216 Ark. 109, 224 S.W.2d 35......
  • Gibson v. Boling, 81-50
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    • October 12, 1981
    ...writing, other than as payee, if the transaction is to be treated as one of joint tenancy with right of survivorship. Cook v. Bevill, 246 Ark. 805, 440 S.W.2d 570 (1969); Willey, Adm'r. v. Murphy, 247 Ark. 839, 448 S.W.2d 341 (1969). There must be at least substantial compliance with the de......
  • Boling v. Gibson, 78-146
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    • July 9, 1979
    ...certificates were payable by the issuing bank to any one of the three named payees. Ark.Stat.Ann. § 67-521 (Repl.1976). Cook v. Bevill, 246 Ark. 805, 440 S.W.2d 570. Ark.Stat.Ann. § 67-552(a) has little, if any, significance, because appellees are not claiming by right of survivorship. The ......
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