McCullough v. Wasserback

• Decision Date: 22 January 1974
• Docket Number: No. 13231,13231
• Citation: 518 P.2d 691,30 Utah 2d 398
• Parties: d 398 Leland S. McCULLOUGH, Executor of the Estate of Anna Sofia Olofson, Plaintiff and Respondent, v. Joyce WASSERBACK, Defendant and Appellant.
• Court: Utah Supreme Court

Page 691

518 P.2d 691

30 Utah 2d 398

Leland S. McCULLOUGH, Executor of the Estate of Anna Sofia Olofson, Plaintiff and Respondent, v. Joyce WASSERBACK, Defendant and Appellant.

No. 13231.

Supreme Court of Utah.

Jan. 22, 1974.

Robert Rees Dansie, of Dansie, Ellett & Hammill, Murray, for defendant and appellant.

Leland S. McCullough, Jr., of McCullough & McCullough, Salt Lake City, for plaintiff and respondent.

CROCKETT, Justice:

Plaintiff as executor for Anna Sofia Olofson sues the latter's sister (half sister) Joyce Wasserback for the proceeds of a joint savings account and a certificate of deposit. The district court adopted the view that the joint ownership status had been used as a convenience only; and that the defendant owned no interest in the funds. Defendant appeals.

Anna Olofson was 81 years old when she died on November 26, 1971. It is apparent that there had been a sisterly relationship between Anna and defendant Joyce. On July 14, 1967, four years prior to her death, the $9,000 certificate of deposit had been purchased in the joint names of Anna Olofson and Joyce Wasserback, payable to either. A year later, on July 15, 1968, a joint savings account in the amount of $7,116.59 was opened in Walker Bank with the usual provisions as to joint-tenancy ownership with rights of withdrawal by either, and of survivorship. On November 15, 1971, Anna was ill and taken to the hospital. Before going she had turned over possession of the passbook and the certificate of deposit to Joyce. With Anna's knowledge and approval Joyce withdrew the savings account and placed it in a checking account in her own name; and proceeded to write checks thereon to pay Anna's bills and take care of her needs. By the terms of Anna's will she left her property, including an apartment house, to her son, Roy Erick Olofson, or in the event of his prior death, which has occurred, to his four children (her grandchildren); and as residuary legatees they would take the funds in controversy here, if they are part of the estate.

There seem to be ever recurring controversies over the rights of survivors in jointly held bank accounts. ¹ It undoubtedly would be too naive to expect to discover a formula which would put at rest all such controversies, present and future. Nevertheless, this does not discourage courts from trying to devise rules for the application of principles of equity and justice in such disputes with such definiteness as can be achieved. The principal difficulty in writing any simple and definitive rule which will fit all cases is that the complexities of human life and personalities are such that no two fact situations are exactly alike. But they usually can be found as tending to fall into one of two general but contrasting patterns.

An elderly person, call him A, is increasinly in need of attention and care. Someone, call him X, (usually a family member) is sensitive of his needs and assumes some responsibility of filling them. As part of the total circumstances, and perhaps for a syndrome of reasons, including gratitude, love and convenience, A creates a joint bank account with the actual desire and intent of endowing X with co-ownership and right of survivorship in the funds. After the demise of A, and the problem of care and attention no longer exists, others come forward to make their claims. In situations tending to fit into this general pattern it is obvious that a trial court's sense of fairness and human decency does and should impel him to tend to favor the caring person X, and to reject attacks upon his surviving ownership in the joint account.

It must be realized that there are other contrasting situations where one's sense of justice is affected differently. Elderly person B is also in need of attention and care. Yet there may be no genuinely caring person to whom B actually desires to give joint ownership of his bank account. In any event, for his own reasons, and perhaps for a combination of them, his true desire is to retain ownership himself. But solely because of necessity and/or convenience in handling his money and affairs, and with that definite understanding, he creates a joint account with someone else (usually a family member) Y; and it also quite often appears in such a situation that there is some indication of avarice of varying hues in the survivor Y. ² In cases which tend to fit into this latter pattern it is but natural and proper that the same sense of justice and human decency both does and should impel the court to be more inclined to grant equitable relief from enforcement of the contract.

Notwithstanding what has been said above, there are some basic propositions that apply in disputes as to the ownership of such joint account funds. The joint deposit card which the parties have signed is a contract between themselves, and also with the bank. It has the same status and is entitled to the same binding effect as any other contract, nothing more and nothing less. As the contract states, the bank is exonerated if it pays out funds on the signature of either; and between the joint account holders, the contract is binding and effective in creating an ownership in joint tenancy, with right of survivorship; and in the event of the death of one, the survivor becomes the sole owner of the funds. However, inasmuch as such a contract is no more and no less sacrosanct than any other, it is subject to attack by showing that because of fraud, duress, undue influence, mistake, incapacity, or other infirmity that in equity and in good conscience it should not be enforced. ³ But as in the case with any written document which has been duly executed, it is entitled to the presumptions of validity, and its effect can be overcome only by clear and convincing evidence. ⁴

In considering whether that standard of proof has been met we keep in mind that this is a case in equity in which this court may review the facts, ⁵ yet do not lose sight of the prerogatives indulged the trial court; that even in equity cases his findings and judgment will not be disturbed unless the evidence clearly preponderates against them and a manifest injustice or inequity is wrought. ⁶ But if these are seen to exist, this court may make its own findings and judgment to supersede those of the trial court. ⁷

In support of the argument that the funds are part of Anna's estate the plaintiff stresses these facts: That the money originally all belonged to Anna; that the passbook and certificate of deposit remained in Anna's possession until just before she went to the hospital; that Joyce never asserted ownership of the funds until after Anna's death; and that she acknowledged that it was her intent to use the funds to provide for Anna's needs. It is not to be questioned that if there appears to be some basis for an equitable attack upon the contract, as discussed above, these are circumstances which may be considered in determining the true status of the funds. But we do not see any one of them, nor all of them together, as necessarily inconsistent with Anna's intention...