May v. Summers

• Decision Date: 09 March 1976
• Docket Number: No. 48504,48504
• Citation: 328 So.2d 345
• Parties: Ruth MAY, Complainant-Appellant, v. W. J. SUMMERS, Defendant-Appellee.
• Court: Mississippi Supreme Court

Page 345

328 So.2d 345

Ruth MAY, Complainant-Appellant, v. W. J. SUMMERS, Defendant-Appellee.

No. 48504.

Supreme Court of Mississippi.

March 9, 1976.

John H. Downey, Jackson, for complainant-appellant.

Agnew, Agnew & Crawford, Jackson, for defendant-appellee.

Before PATTERSON, P.J., and ROBERTSON and SUGG, JJ.

PATTERSON, Presiding Justice:

Ruth May, administratrix of the estate of Arus Felts, filed a bill of complaint in the Chancery Court of the First Judicial District of Hinds County against W. J. Summers. She alleged the proceeds from In January 1971 Arus Felts, an eighty-year-old veteran, lived in the home of Mrs. Eliza Buchanan who saw to his needs. In May 1972, while still living in the Buchanan home, Felts changed his individual checking and savings accounts into joint accounts with W. J. Summers, the appellee. The assets of these accounts came from the individual deposits of Felts and were unquestionably his property prior to opening the joint accounts. The accounts were established by the indorsement of Felts and Summers upon signature cards though there is a contradiction as to whether these cards were signed in an automobile or in Summers' office. It is uncontradicted, however, that they were not signed in the bank. Neither is there any evidence to indicate that an official of the depository or other person discussed with or advised Felts the import of a joint account with survivorship.

two joint bank accounts in the possession of Summers belonged to the estate of Felts. The chancellor found that the joint accounts were created while Felts was mentally capable of making decisions and 'did in fact sign joint survivorship, joint control accounts, both savings account and checking account, that Mr. Summers has not been shown to have violated that intent of those accounts;' whereupon he dismissed the complaint. The administratrix appeals from this decree. We affirm.

One of the signature cards, typical of the other, appears below:

Savings Account Number 118-550-4

Name Arus A. Felts or W. J. Summers

Address 619 W. Pearl Street Jackson, Miss. 39203

TO-DEPOSIT GUARANTY NATIONAL BANK, JACKSON, MISS.

The undersigned acknowledge receipt of a copy of rules and regulations of Deposit Guaranty National Bank pertaining to SAVINGS ACCOUNTS and hereby agree to such rules and regulations and all amendments thereto. Below find authorized signatures which you will recognize in all transactions with respect to the above numbered account.

/s/ Arus A. Felts

/s/ W. J. Summers

Open by L. Phelps Date 5-15-72

RIGHT OF SURVIVORSHIP

The undersigned agree and declare that all funds now, or hereafter, deposited in this account are, and shall be, our joint property and owned by us as joint tenants with the right of survivorship, and not as tenants in common, and upon the death of either of us any balance in said account shall become the absolute property of the survivor. The entire account, or any part may be withdrawn by either of us or the survivor. It is especially agreed that withdrawals of funds by the survivor shall be binding upon our heirs, next of kin, legatees, assigns, and personal representatives.

/s/ W. J. Summers 5-15-72

/s/ Arus A. Felts In July 1972 Felts moved into a hotel owned by Summers where he resided rent free until December 1972. At that time he entered the Veterans Administration Hospital suffering varied and serious health problems. After treatment, he was released to a nursing home where he died on January 10, 1973.

Summers was called an adverse witness by the complainant and testified that he knew Felts intimately for more than fifty years during which time they were close friends. He stated that Felts was the brother of his first wife and they were brothers-in-law for thirty-eight years, but at the time of Flets' death they were not related by blood or marriage.

The two accounts contained approximately $10,000 and were created at Felts' request, according to Summers, to 'help him in the handling of his accounts' because 'he was sick and wasn't able to take care of his business.' Several checks were written on the joint accounts by Summers for Felts' needs, including the purchase of a wheel chair and several small donations to Felts' church. However, five days prior to Felts' death Summers withdrew all the funds from the accounts and placed them in his personal account. When questioned regarding this transaction, Summers responded that Felts told him to do so. None of the questioned funds were expended for anything other than Felts' needs during his lifetime and his burial expenses thereafter.

The appellant contends the trial court erred in not declaring Summers to be a trustee for appellant's decedent and in permitting Summers to retain the proceeds from the bank accounts.

The first argument is that Summers was a fiduciary and received the funds in trust for Felts' benefit...