Estate of Cantonia v. Sindel

• Decision Date: 08 January 1985
• Docket Number: No. 47892,47892
• Citation: 684 S.W.2d 592
• Parties: In re the ESTATE OF Norine V. CANTONIA, Deceased, Harry O. Pirkey, Administrator, Plaintiff/Appellant, v. Charles D. SINDEL, Guardian of the Estate of George Edward Heitmeier, Defendant/Respondent.
• Court: Missouri Court of Appeals

Page 592

684 S.W.2d 592

In re the ESTATE OF Norine V. CANTONIA, Deceased, Harry O Pirkey, Administrator, Plaintiff/Appellant, v. Charles D. SINDEL, Guardian of the Estate of George Edward Heitmeier, Defendant/Respondent.

No. 47892.

Missouri Court of Appeals,

Eastern District,

Division Two.

Jan. 8, 1985.

Bernard J. Cuddihee, St. Louis, for plaintiff/appellant.

Charles D. Sindel, Clayton, for defendant/respondent.

SIMON, Presiding Judge.

This is an appeal from a judgment of the Circuit Court of the City of St. Louis, Probate Division on a petition to discover assets. The probate court awarded proceeds from redeemed U.S. Savings Bonds, which had been registered in co-ownership form, to the surviving co-owners equal to their ownership in the bonds prior to redemption.

On appeal, Harry O. Pirkey (Pirkey), administrator of Norine V. Cantonia's (Norine) estate, raises the following points: (1) the trial court improperly applied the doctrine of equitable conversion; and (2) the trial court erred in failing to award all of the proceeds from the bonds to Norine's estate.

A cross appeal was filed by Charles D. Sindel (Sindel) as guardian of George Heitmeier's (George) estate in the event this court finds the Probate Court erred as contended by Pirkey on appeal. Sindel's sole point in the cross appeal is that the trial court erred in finding that Norine was sole owner of the U.S. Savings Bond or the proceeds therefrom because there was no evidence to support the finding and to do so is a misapplication of federal law. We affirm.

Since the record of this case is lengthy, we shall relate only the decisive facts. Norine and George lived together for a number of years. They handled their financial affairs together and it is undisputed that between July 1971 and June 1977 they became co-owners of numerous U.S. Savings Bonds, Series E, with a face value of fifty-two thousand one hundred dollars ($52,100). There is no evidence of the source of the funds used to purchase these bonds which were registered in the names of Norine or George.

Norine and her sister, Hazel Swanson (Hazel), also became co-owners on four (4) one thousand dollars ($1,000.00) bonds in July of 1971, and one (1) one thousand dollars ($1,000.00) bond in August of 1974. Similarly, these bonds were registered in the names of Norine or Hazel. Since Hazel testified to having no knowledge of the bonds, she was not the source of the funds used to purchase these bonds.

Norine and George suffered from health problems and began having difficulty managing their affairs in March of 1981. George's son, Edward Heitmeier (Edward), came to help them in April of 1981. Norine was hospitalized when Edward arrived but was released April 17, 1981.

George suffered a stroke early in May and was hospitalized. Sometime between May 1st and 15th, Edward was granted power of attorney over Norine's affairs. On May 15, 1981, while George was in the hospital, Edward accompanied Norine to Roosevelt Federal Savings and Loan so she could redeem the aforementioned bonds. A check payable to Norine V. Catonia and Roosevelt Federal for Sixty Two Thousand Six Hundred Ten Dollars and Thirty Two Cents ($62,610.32), representing the proceeds from the bonds, was issued.

That same day, Norine placed the bonds proceeds in a Forty-Five Thousand Dollars ($45,000) certificate of deposit (C.D.) and opened a NOW account with the balance of Seventeen Thousand Six Hundred Ten Dollars and Thirty-Two Cents ($17,610.32). Both the C.D. and the NOW account were registered in the names of Norine and Edward as joint tenants with the right of survivorship. Shortly thereafter, Edward expended approximately $10,000.00 from the NOW account for his personal use leaving a balance of $7,082.10.

On June 25, 1981, Norine was declared incompetent and Pirkey was appointed her guardian. Upon Norine's death on August 8, 1981, Pirkey, as administrator, commenced a proceeding in the Probate Court for an inventory of Norine assets and discovered the balance of $7,082.10 in the NOW account. He transferred this amount to a separate estate account at Manufacturers Bank on August 10, 1981, but he was unaware of the existence of the C.D. at this time.

In October of 1981, Edward attempted to have both the C.D. and the NOW account transferred to Sindel, who had been appointed George's guardian in August of that year. Sindel was informed by an employee of Roosevelt Federal that only the C.D. existed because the NOW account had been closed upon the transfer of the balance to Pirkey. A new C.D. was issued in Sindel's name as guardian. On January 26, 1982, Edward assigned his interest to the proceeds which had been in the NOW account to Sindel as George's guardian.

Pirkey filed a petition for discovery of assets in the circuit court to obtain title to the C.D. Sindel counterclaimed and sought to recover the $7,082.10 withdrawn by Pirkey from the joint NOW account after Norine's death. Sindel's counterclaim sought title to the NOW account as assignee of Edward's interest in the proceeds. Roosevelt Federal interpleaded the certificate of deposit.

Following a hearing on July 6, 1982, the probate court made findings of facts based on the evidence presented. The pertinent findings of fact are provided:

(1) Norine was mentally incompetent on May 15, 1981.

(2) It was not the desire and intent of Norine that all of her United States Savings bonds be converted to cash and the proceeds transferred to joint accounts with right of survivorship in the form of a C.D. and NOW account with Edward.

(3) Norine acted under the undue influence of Edward in redeeming her bonds.

(4) Norine was sole owner of the $62,610 proceeds from the bonds redeemed on May 15, 1981.

(5) Norine was competent at the time of the issuance of the bonds (between July, 71-June, 77).

(6) The court invoked the doctrine of equitable conversion, considering the bonds as remaining in registered condition of May 15, 1981, to effectuate the intention of Norine. Further, awarded to George and Hazel the following proportions of the C.D. and NOW account funds, which is identical to their percentage of ownership in the surrendered bonds:

George Heitmeier .8966% (approx. 90%)

Hazel L. Swanson .1034% (10%)

It was stipulated that the bond redemption proceeds were the source of the C.D. and the NOW account balance.

On November 22, 1982, George died and Edward was substituted as his personal representative in place of Sindel on August 25, 1983. Hazel was living at the time of the hearings.

Judgment was entered September 6, 1983 and was amended September 30, 1983.

On review, we must affirm the trial court's judgment if it is supported by substantial evidence, not against the weight of the evidence and the court correctly declared and applied the law. Murphy v. Carron, 536 S.W.2d 30 (Mo. banc 1976).

Pirkey contends the probate court erred in invoking equitable principles because: (1) the relief granted was not supported by the evidence; ...