National Home Life Assur. Co. v. Patterson

• Decision Date: 08 September 1987
• Docket Number: 64362,Nos. 64361,No. 3,s. 64361,3
• Parties: 1987 OK CIV APP 65 NATIONAL HOME LIFE ASSURANCE COMPANY, Appellee, v. LaRuth PATTERSON, Executrix of the Estate of Patsy Jatonii Adair; Patsy Shannon Phelps; Monty Loday Phelps; Judson Wayne Adair, Appellants, and Joann Adair, Appellee. LIFE GENERAL SECURITY INSURANCE COMPANY, Appellee, v. LaRuth PATTERSON, Executrix of the Estate of Patsy Jatonii Adair; Patsy Shannon Phelps; Monty Loday Phelps; Judson Wayne Adair, Appellants, and Joann Adair, Appellee. Court of Appeals of Oklahoma, Division
• Court: United States State Court of Criminal Appeals of Oklahoma. Court of Civil Appeals of Oklahoma

Page 696

746 P.2d 696

1987 OK CIV APP 65

NATIONAL HOME LIFE ASSURANCE COMPANY, Appellee, v. LaRuth PATTERSON, Executrix of the Estate of Patsy Jatonii

Adair; Patsy Shannon Phelps; Monty Loday Phelps;

Judson Wayne Adair, Appellants,

and

Joann Adair, Appellee.

LIFE GENERAL SECURITY INSURANCE COMPANY, Appellee, v. LaRuth PATTERSON, Executrix of the Estate of Patsy Jatonii

Adair; Patsy Shannon Phelps; Monty Loday Phelps;

Judson Wayne Adair, Appellants,

and

Joann Adair, Appellee.

Nos. 64361, 64362.

Release for Publication by Order of the Court of Appeals of Oklahoma, Division No. 3.

Court of Appeals of Oklahoma Division No. 3.

Sept. 8, 1987.

Rehearing Denied Oct. 6, 1987.

Certiorari Denied Dec. 8, 1987.

Richard J. Goralewicz, Oklahoma City, for appellants.

W. Samuel Dykeman, Oklahoma City, for appellee Joann Adair.

BAILEY, Judge:

This case comes on for review of the trial court's orders denying Appellants' motions for summary judgment filed in two interpleader actions, and granting judgment for Appellee. Decedent Patsy Jatonii Adair (Decedent) was married to Delbert Wayne Adair. Into the marriage Decedent brought two children of a previous marriage, Monty Loday Phelps and Patsy Shannon Phelps, Appellants. Into the marriage, Husband Delbert brought one child, Appellee Joann Adair. Of the marriage, one child was born, Judson Wayne Adair, Appellant. Decedent never adopted Joann, but left a Will, nominating her husband as primary beneficiary of her estate, and designating Decedent's three children and Husband's child, Joann, as residual beneficiaries, to take in equal shares.

On Christmas day, 1982, Decedent was murdered by her husband, who was later convicted of the crime, and is serving a life sentence. At her death, Decedent was covered by two insurance policies, one from National Home Life Insurance Company, and one from Life General Security Insurance Company. The National Home Life policy provided that if the primary beneficiary under the policy fails, then the proceeds should be divided equally among the insured's children, and if none survive, then to be paid to the executor or administrator of the insured's estate. The Life General policy had a similar provision, but directed that if the primary beneficiary could not take, then the proceeds would be paid to the owner of the policy, if living, otherwise to the executor of the estate of the owner.

Oklahoma has enacted a "slayer statute" found at 84 O.S.1981 § 231, which disqualifies a primary beneficiary of an insurance policy, where the beneficiary is convicted of murder of the insured. Recognizing the potential and conflicting terms of Decedent's Will, the insurance policies, and the statute, Life General and National Home Life interpleaded the proceeds of their respective policies into the Oklahoma County District Court in separate actions. The insurers were later dismissed from the actions, and the trial courts, on motions for summary judgment, directed that the insurance proceeds be deposited into estate of Decedent and distributed according to Decedent's Last Will and Testament. The Decedent's Will directed distribution among the three natural children and Joann Adair, Decedent's step-child who was never adopted by Decedent. These appeals ensued, and were consolidated for purposes of this decision.

All parties to these appeals agree that under 84 O.S.1981 § 231, husband, as convicted slayer of Decedent, is disqualified from taking the proceeds of either insurance policy. The parties also agree that the insurance policies and the proceeds flowing therefrom are not ordinarily matters of probate, but rather are matters of contract, and the insurance policies are to be construed in accordance with the law of contract. 15 O.S.1981 § 151 et seq.; Lester v. Sparks, 583 P.2d 1097 (Okl.1978). All provisions of a contract should be given effect. 15 O.S.1981 § 157. The determinative issue in this appeal then devolves to resolution of the question, whether the trial courts erred as a matter of law in directing the proceeds of the two insurance policies to be deposited into the estate for distribution according to the Last Will and Testament of Decedent.

We thus turn our attention to the...