Fleck v. Baldwin

• Decision Date: 07 July 1943
• Docket Number: No. 8100.,8100.
• Parties: FLECK et al. v. BALDWIN et al.
• Court: Texas Supreme Court

172 S.W.2d 975

FLECK et al. v. BALDWIN et al.

No. 8100.

Supreme Court of Texas.

July 7, 1943.

Error to Court of Civil Appeals of First Supreme Judicial District.

Consolidated suits by Mrs. Minnie Lee Fleck and others against Robert B. Baldwin and others to recover savings accounts and building and loan company stocks and certificates under alleged gifts and trusts. To review a judgment of the Court of Civil Appeals, 168 S.W.2d 904, which reversed a judgment for plaintiffs and rendered a judgment for defendants, plaintiffs bring error.

Affirmed.

M. G. Fakes, H. E. Bell, Jesse J. Lee, and Williams, Lee, Kennerly & Cameron, all of Houston, and Chas. L. Black and Black, Graves & Stayton, all of Austin, for appellants.

Leon M. Payne, Harry R. Jones, and Andrews, Kelley, Kurth & Campbell, all of Houston, and Dan Moody, of Austin, for appellees.

HICKMAN, Commissioner.

By this litigation petitioners seek to establish title to, and right of possession of certain savings accounts and stock certificates in building and loan associations, which accounts were opened and which certificates were purchased by Mrs. J. C. Baldwin during her lifetime. Mrs. Baldwin died intestate on June 15, 1941. The petitioners are her sisters, brothers and other collateral kin and the respondents are her grandsons, who are administrators of her estate and sole heirs thereto. Other respondents are the banks in which the accounts were carried and the building and loan associations in which certificates were purchased by Mrs. Baldwin. Three separate suits were filed by the different petitioners, but all were consolidated and tried as one suit before the court without the aid of a jury. Findings of fact and conclusions of law were filed by the trial judge, upon which findings and conclusions judgment was rendered in favor of petitioners severally in accordance with their respective prayers. In a well considered opinion the trial court's judgment was reversed by the Court of Civil Appeals at Galveston and judgment rendered that the petitioners take nothing by their suit. 168 S.W.2d 904.

On December 8, 1928, Mrs. Baldwin opened two savings accounts in the South Texas Commercial National Bank in Houston and two days later one such account in the Union National Bank of Houston. These accounts were in the following names, respectively: "Mrs. J. C. Baldwin, in trust for Mrs. Annie T. Lomax," "Mrs. J. C. Baldwin, in trust for Mrs. Cora Winn," and "Mrs. J. C. Baldwin, in trust for Mrs. L. J. Fleck." Mrs. L. J. Fleck and Mrs. Minnie Lee Fleck are one and the same person. When these accounts were opened she deposited $5,000 of her own funds in each. The following July she withdrew from the first account approximately $2,400, and from the second account $2,500, and on the following January withdrew from each approximately $250. She made no withdrawals from the third account. No additional deposits were made on any of these accounts until August, 1936, at which time she deposited $400 to the account in the name of Mrs. Winn. Thereafter, beginning in March, 1938, she made deposits at various times and in varying amounts to the first two accounts, so that at the time of her death the amounts in these accounts were $5,146.79 and $5,148.18, respectively. The account in the name of Mrs. Fleck, from which no withdrawals were made, amounted at that time to $6,506.74. On April 16, 1928, about eight months before she opened these savings accounts, Mrs. Baldwin wrote in her own handwriting the following instrument:

"To Whom it May Concern:

"I, Mrs. J. C. Baldwin wills & decrees all her property known as Baker Addition & Rummell's Addition in the 4th Ward in the City of Houston with all improvements and appurtainces to my daughter-in-law Myrta Lynch Baldwin, to have & to hold & dispose of as she sees best. I also leave her in charge of a trust fund for my five Bros. & Sisters, to wit Cora Winn, Annie Lomax, Minnie Fleck, William A. Thomson and June C. Thomson, also Annie May Burkhart; $5000.00 each making $30,000.00 Thirty Thousand Dollars. This money is to be placed in Banks & only the interest drawn for each one, annually shall be paid, Each one to receive the interest only from $5000.00 each which will be $200.00 per year to spend as they see fit. The $30,000.00 so placed is to revert back to my estate at the death of any of the beneficiaries so named in this will & only the interest of $5000.00 is to go to each one so long as they live; signed & witnessed, Hattie O. Baldwin by my grandson, J. C. Baldwin—J. C. Baldwin—Age 13."

The above instrument was revoked by will written by Mrs. Baldwin in the fall of 1929, unless same had been revoked in some manner prior thereto. The will written in the fall of 1929 was not found after the death of Mrs. Baldwin and its contents were not established upon the trial. Neither Mrs. Lomax, Mrs. Winn, nor Mrs. Fleck, who were sisters of Mrs. Baldwin, had any knowledge of the existence of these accounts until after Mrs. Baldwin's death. During her lifetime Mrs. Baldwin retained exclusive possession of the pass books issued by the banks on each of these accounts and from time to time presented same for entry and posting of interest, withdrawals and deposits.

Beginning in 1936, and extending to January, 1941, Mrs. Baldwin purchased many shares of stock in different building and loan associations. In general she followed the same procedure in purchasing and handling some of the stock that she employed in opening and handling the bank accounts. The certificates would be made to her as trustee for various named persons. These persons included her sisters, her brothers and a brother's wife. In purchasing these stock certificates she executed cards in the nature of applications to purchase. In a few instances the applications were made on forms provided by one of the building and loan associations to be used in the purchase of stock in trust for other persons. By the terms of such applications no present trusts were created, but only contingent gifts from her to the named beneficiaries conditioned upon the fact that they survived her. Most of the certificates of stock were purchased upon the forms generally employed by purchasers of stock. Mrs. Baldwin retained exclusive possession of all the building and loan certificates involved in this litigation throughout her lifetime and, as in the case of the savings accounts, not one of the petitioners had any knowledge of the existence of these certificates until after the death of Mrs. Baldwin. The associations paid dividend checks semi-annually. Mrs. Baldwin received these checks, endorsed them in the name of the person to whom the certificates were issued, and in all instances deposited them in her own personal checking account and used the proceeds in such manner as she wished.

It was stipulated that at the time of her death Mrs. Baldwin had a savings account in every bank in the City of Houston, with the single exception of one bank, and that she owned stocks and certificates in three separate building and loan associations in Houston. The stipulation lists eleven separate savings accounts not involved herein standing in her individual name. Another stipulation was that no representative of the banks recalled having had any conversation with Mrs. Baldwin as to the savings accounts, the title thereto, or as to her reasons for opening said accounts in such manner. Other stipulations were to the effect that Mrs. Baldwin's sisters and brothers ranged in ages from 62 to 79; that one of her brothers had been adjudged non compos mentis and was confined in the State Hospital for the insane at Austin; that none of the petitioners owned properties exceeding in value the sum of $2,000; that Mrs. Fleck and Mrs. Lomax for a period of at least two years prior to the making of the stipulation had been receiving state old age pensions averaging approximately $15 per month, and that there had been no material change in the financial status or condition of any of the petitioners during the past five years.

The trial court found, in substance, that all deposits and purchases of stock made by Mrs. Baldwin and involved in this suit were made for the persons named as beneficiaries, respectively, and were completed gifts in equity at the time of such deposits and purchases. That court further found that all amounts withdrawn from the savings accounts by Mrs. Baldwin were withdrawn in her capacity as trustee "and without authority," and that her additional deposits were made with the same intent and the same...