Desnoyers v. Metropolitan Life Ins. Co.

• Decision Date: 18 January 1971
• Docket Number: No. 976-A,976-A
• Citation: 272 A.2d 683,108 R.I. 100
• Parties: Norma E. DESNOYERS et al. v. METROPOLITAN LIFE INSURANCE CO. et al. ppeal.
• Court: Rhode Island Supreme Court

Page 683

272 A.2d 683

108 R.I. 100

Norma E. DESNOYERS et al. v. METROPOLITAN LIFE INSURANCE CO. et al.

No. 976-Appeal.

Supreme Court of Rhode Island.

Jan. 18, 1971.

Joseph E. Marran, Jr., Pawtucket, for plaintiffs.

James Cardono, Moses Kando, Pawtucket, for defendant, Joseph A. Desnoyers.

OPINION

PAOLINO, Justice.

This action was brought by Norma E. Desnoyers, individually, as administratrix of the estate of her late husband, Paul L. Desnoyers, and as mother and next friend of Kimberly Anne Desnoyers and Scott Joseph Desnoyers, the minor children of Norma E. and her deceased husband. The case involves the proceeds of a policy of life insurance purchased by the deceased from the defendant Metropolitan Life Insurance Company, wherein defendant, Joseph A. Desnoyers, father of the deceased, is the named beneficiary. The case began as a jury trial but, before the close of the testimony, an incident occurred which resulted in the trial justice taking the case from the jury and, with consent of counsel, proceeding without the jury. The cause is before us on the appeal of defendant, Joseph A. Desnoyers, from a judgment entered in the Superior Court, based on the decision of the trial justice, declaring that the defendant held the proceeds of the policy as trustee by express trust for the benefit of the children.

The following are the pertinent facts. The plaintiff, Norma E. Desnoyers, was married to Paul Desnoyers on May 13, 1963. She was then about 16 years of age and he was 18. Two children, Kimberly Anne and Scott Joseph, were born of this marriage. In September 1962, prior to the marriage, Paul Purchased an insurance policy on his life from defendant insurance company and named his father as primary beneficiary and his mother, Edith M. Desnoyers, as contingent beneficiary. On or about July 17, 1966, Paul went to Metropolitan's office for the purpose of surrendering this policy for its cash value. He discussed the matter with the agency manager, and instead of surrendering the policy, Paul obtained a loan on it and paid the premiums to date.

In July 1966, the parties separated and, on the twenty-sixth of that month, Norma filed a petition for divorce. On August 19, 1966, a day before the divorce petition was to be heard, Paul was killed in a motorcycle accident.

On the date of her husband's death, Norma called the Metropolitan's office and asked the agency manager whether her husband had changed the beneficiary on the policy in question. As a result of this call, the agency manager and another agent went to her home, examined the policy and determined that the beneficiary had not been changed. They obtained the policy from her and gave her a receipt for it. At this time there was some discussion between Norma and the agents about taking care of the children. The agents then went to the home of defendant Joseph A. Desnoyers, the named beneficiary, had him sign a proof of loss, and, subsequently, Metropolitan paid him the proceeds of the policy which amounted to $13,400.

Paul also had a policy of life insurance at his place of employment. His wife was the beneficiary of this policy and she received the proceeds thereof, in the amount of $10,500.

The determination of the issues requires a rather detailed examination of the testimony concerning the pertinent factual background which occasioned this action. Norma's testimony is in substance as follows. She first met Paul in October or November 1961 and started to go steady with him in April 1962. In the summer of 1962 they told his parents they were going to marry in June 1963. She was present when he purchased the policy in question in 1962. He told her in a conversation on August 21, 1962, that it was to become a family plan policy to cover his wife and children. He further told her that the only reason the father was named beneficiary was because they were not married and it was to be changed automatically when they were married. The policy was initially kept at his father's home, and when they were married it was brought to the home of Norma and Paul.

Their marriage was not completely harmonious. They separated on at least two occasions and it was during the second separation in July of 1966 that Norma brought a petition for divorce against Paul. Norma was scheduled to go to the Family Court regarding her divorce on the day after the fatal accident. On August 18, the day before he died, she talked with him on the telephone and he asked to come home, saying: 'I will pay my policy and I will pay all your medical expenses, and I will leave the policy the way it is, in your name.'

The plaintiffs called Robert H. MacDougall, Jr., an employee of Metropolitan, as an adverse witness under G.L.1956 (1969 Reenactment) § 9-17-14. The substance of his testimony follows. In June or July of 1966, he had gone to Paul's home for the purpose of collecting premiums on the policy in question. During his visit he had a conversation with Paul, at which time Norma and the children were present. Paul told him he could not afford the policy and did not want to keep it; he wanted to terminate the policy, since payments of the premium were in arrears.

Mr. MacDougall also testified that Paul was startled when he learned that his father was the beneficiary of the policy. Paul said he wanted to make his wife the beneficiary and Mr. MacDougall told him that he would have to go to the company's office in Pawtucket and obtain a loan and make the change in beneficiary.

The plaintiffs also called Paul's father, the defendant, Joseph A. Desnoyers, as an adverse witness under the statute. He testified that his son Paul went to work at the age of 16 at the father's place of employment ployment and he worked there a couple of years. The policy involved in this case was taken out right after Paul started to work, and Joseph's wife, Edith, paid the premiums until Paul got married. Paul's payment of board included the insurance premiums. The defendant also testified that he had no understanding with Paul about his being the beneficiary of the policy. After his son died, Mr MacDougall, a representative of Metropolitan, came to see him and inquired about a trust fund for the children. He denied making any statement to Mr. MacDougall that he was going to set up a trust fund for the children. He told Mr. MacDougall he would take care of the children 'in my own way.'

Paul's mother, Mrs. Edith M. Desnoyers, was also called by the plaintiffs as an adverse witness under the statute. She testified that she was present in September 1962 when the insurance agent came to the house to talk to her son about the policy in question and that Norma was also present. Her son had been working for about one year and five months when he took out the policy, and he said he would take out a policy as his brother and sister did, to protect himself. Mrs. Desnoyers also testified that her son Paul told her he was not going to change the beneficiary because of the way his wife was acting. She did not remember saying that she and her husband were going to set up a trust fund for the children. She denied talking to Norma about a trust fund and did not remember discussing with Norma the matter of the proceeds of the policy.

Mr. Charles A. Dobbins, district manager of Metropolitan's office in Pawtucket, was called as a witness by the defendant insurance company. He testified that he saw Paul in the Pawtucket office on or about July 17, 1966, and that Paul wanted to cash in the policy. Mr. Dobbins suggested to Paul that he take out a loan and reinstate the policy by bringing the premiums up to date. Nothing was said about changing the beneficiary. Even though the company had a form for changing the beneficiary, no change of beneficiary came through his office from September 1963 to August 1966. Any changes originating through the home office would be attached to the policy, and there was no record of a change of beneficiary in this case. Further, Mr. Dobbins testified that Metropolitan has a rule that it can and has issued policies with 'intended spouse' as the designated beneficiary.

Mr. Dobbins was asked in direct examination if, when he obtained the policy from Norma, she had mentioned anything about what Joseph would do with the proceeds. His reply was, 'Apparently there has been some discussion that it would be-he was going to take care of the grandchildren.' When Mr. Dobbins and his assistant manager left Norma's house, they went to the house of Paul's father. They explained the provisions of the policy under which a trust could be set up where the proceeds are left in trust with the company for the benefit of the children. Mr. Desnoyers rejected the suggestions of Mr. Dobbins and said that he would 'take care of it in his own way.'

The last witness to testify was Mr. Bruce J. Dubois, who was called as a witness by defendant Joseph A. Desnoyers. As we have previously stated, toward the close of his testimony, after the trial was adjourned for the day, an incident took place which caused the trial justice to consider taking the case from the jury. The trial justice then gave counsel an opportunity to decide whether they were willing to proceed before the court on the question of whether a constructive trust arose on the facts of this case. Both counsel waived jury hearing in connection with the issue of a constructive trust and then rested without presenting any further testimony. Counsel for Metropolitan indicated to the court that he was not involved in this question and interposed no objection.

After listening to argument of counsel for plaintiffs and for defendant, Joseph A. Desnoyers, the trial justice took the case under advisement and, subsequently, filed a written decision ordering that judgment be entered in accordance therewith. The only appeal before us is that of defendant Joseph A. Desnoyers; the Metropolitan Life Insurance Company took no appeal and filed no briefs in this proceeding.

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