Gayle v. Lockhart

• Decision Date: 10 December 1942
• Docket Number: No. 2461.,2461.
• Citation: 167 S.W.2d 230
• Parties: GAYLE v. LOCKHART et al.
• Court: Texas Court of Appeals

167 S.W.2d 230

GAYLE v. LOCKHART et al.

No. 2461.

Court of Civil Appeals of Texas. Waco.

December 10, 1942.

Rehearing Denied December 31, 1942.

Appeal from Nineteenth District Court, McLennan County; R. B. Stanford, Judge.

Garnishment suit by Mrs. Elsie Gayle against Charley Lockhart, State Treasurer of Texas, to subject certain funds deposited with State Treasurer by the Home Benefit Association, to the satisfaction of a judgment recovered by plaintiff against the association, wherein the association intervened. From a judgment in favor of the intervener and discharging the garnishee, plaintiff appeals.

Judgment affirmed.

Conway & Scharff, of Waco, for appellant.

Cecil R. Glass, of Marlin, and John F. Sheehy, of Waco, for appellees.

HALE, Justice.

This is an appeal from a garnishment suit instituted by Mrs. Elsie Gayle against the Treasurer of the State of Texas. Mrs. Gayle's husband died on September 3, 1935, at which time he held three certificates of membership in Home Benefit Association, a local mutual aid operating under the provisions of the Acts of 1929, 41st Leg., c. 274, as embraced in Article 4875a — 1 et seq. of Vernon's Civ.Stats. On June 14, 1939, Mrs. Gayle recovered a general judgment against the Association for the sum of $4,007.47 as the balance due her under such certificates. Thereafter on December 5, 1939, all of the classes of the Association in which the deceased held membership, and upon which Mrs. Gayle's judgment was based, were regularly dissolved by direction of the Board of Insurance Commissioners of the State of Texas because such classes were insolvent and unable to qualify under the provisions of Senate Bill 135, Acts of 1939, 46th Leg., c. 6, p. 401, as embraced in Article 5068 — 1 of Vernon's Civ.Stats. However, what was known as the family group of said Association, which was organized in 1937 and was a separate class or group from the classes in which the deceased husband of Mrs. Gayle held membership, was not insolvent. After the dissolution aforesaid the Association, with the approval of the Board of Insurance Commissioners, organized another group known as its Class S, changed its name to Family Life Insurance Association and on December 14, 1939, qualified both classes as such under the provisions of said Article 5068 — 1 by making deposit of $1,000 with the State Treasurer.

The garnishment suit was instituted on May 23, 1941. The Treasurer answered that he held the sum of $1,000 which was deposited with him by Family Life Insurance Association under the provisions of said Article 5068 — 1. The Association intervened in the proceedings and contested the right of Mrs. Gayle to subject the fund on deposit with the Treasurer to the satisfaction of her judgment. The issues thus joined were tried by the court below without a jury and resulted in judgment that the garnishee be discharged. Mrs. Gayle has appealed upon the contention the trial court erred in...