Thomas v. Farley

• Decision Date: 04 December 1972
• Docket Number: No. 25933,25933
• Citation: 488 S.W.2d 285
• Parties: Anna B. THOMAS, Appellant, v. Florence J. FARLEY, Individually and as administratrix of the Estate of Joseph E. Farley, and The Prudential Insurance Company of America, Respondents.
• Court: Missouri Court of Appeals

Page 285

488 S.W.2d 285

Anna B. THOMAS, Appellant, v. Florence J. FARLEY, Individually and as administratrix of the Estate of Joseph E. Farley, and The Prudential Insurance Company of America, Respondents.

No. 25933.

Missouri Court of Appeals, Kansas City District.

Dec. 4, 1972.

Donald F. Price, Kansas City, for appellant.

William C. Partin, Kusnetzky & Partin, Kansas City, of counsel, for respondent, Florence J. Farley.

John C. Thurlo and Michael H. Maher, Swanson, Midgley, Eager, Gangwere & Thurlo, Kansas City, of counsel, for respondent, Prudential Ins. Co. of America.

Before SHANGLER, Chief Judge, and PRITCHARD and WASSERSTROM, JJ.

PRITCHARD, Judge.

The dispositive issues are whether Anna B. Thomas, the former spouse of Joseph E. Farley, deceased, is (1) entitled to the death benefit proceeds of a paid-up whole life policy issued by The Prudential Insurance Company of America on Joseph's life on February 10, 1930, or alternatively, (2) whether Anna is entitled to be reimbursed for her payments of the weekly premiums of eighty-four cents to keep the policy alive 'in the reasonable expectation of being the beneficiary of it.'

Motions for summary judgment were directed against Anna's petition by Florence J. Farley individually and as administratrix of Joseph's estate and by Prudential. These motions were sustained by the trial court. Prudential also filed a cross-claim against Florence individually and as administratrix, asking for judgment against her for any amount which might be found to be due Anna B. Thomas from Prudential. Florence filed a motion for summary judgment as to Prudential's cross-claim which was also sustained and Prudential did not file a notice of appeal from that judgment against it.

Anna and Joseph were married on January 14, 1930. On February 3, 1930, Joseph, then 38 years of age, made application to Prudential for a $1,000.00 Whole Life policy, with a weekly premium of eighty-four cents. The name of a beneficiary was not specified in the blank space provided in the application, and on February 10, 1930, Prudential issued its policy No. 81 143 741 on Joseph's life. Anna and Joseph were divorced on November 21, 1939. Thereafter, Joseph married Florence, but they were separated between 9 and 10 years prior to his death on September 8, 1964. At all times during the marriage of Anna and Joseph, as alleged by her, she paid the weekly premiums on the policy, and after separation up until March 15, 1962, at which time the policy became paid up in full. The total of premiums paid by Anna was '$1,300.00 more or less.' According to Anna's deposition testimony, Prudential's agent, Armstrong, wrote the instant policy. Agent Orlando was collecting premiums when Joseph and Anna separated, and until she married the second time, at which time Agent Gilchrist was collecting the premiums. At that time Anna had a conversation with Gilchrist about the policy: 'I told him that we were divorced, and it was a policy that I had on my first husband, and I wanted to know about the insurance policy, about if I could retain the policy, and he said, 'Yes,' as long as I paid the premium, and he asked me if I had the policy, and I told him I did have. * * * I wanted to know about paying the premium on the policy to him, if I could collect if anything happened to Mr. Farley, and he said, 'Yes,' as long as I paid the premiums and I held the policy, that I could.' All subsequent agents to Gilchrist told Anna that so long as she held the policy, and paid the premiums, they would pay nobody but her. When the policy was paid up, Prudential so noted that fact on it and returned it to Anna.

On September 14, 1964, Anna submitted the proof of death of Joseph to Prudential. On November 2, 1964, it informed Anna by letter that payment on the policy was being withheld because there was no named beneficiary, and that it had been unable to obtain a release from Joseph's present wife (Florence), who was also making a claim. Further action was withheld by Prudential until it was presented with a court order appointing an administrator or executor of Joseph's estate. Letters of administration were issued to Florence J. Farley on November 6, 1964. The inventory included only personal property: a 1962 Chevrolet Sedan valued at $850.00, and the proceeds of the instant policy, $1,726.96 on Joseph's life. The policy proceeds were paid to Florence as administratrix on December 4, 1964. Anna admitted that she did not pay Joseph's funeral bill, and it is not controverted that Florence arranged for the funeral and paid for the expenses thereby incurred.

The policy which was held by Anna and upon which she alleges she paid all the premiums specifies that upon proof of death of the insured, payment will be made to his executors or administrators, unless payment be made under the succeeding paragraph, 'Facility of Payment,' which provides payment may be made 'to any relative by blood or connection by marriage of the Insured, or to any person appearing to said Company to be equitably entitled to the same by reason of having incurred expense on behalf of the Insured, for his or her burial, or for any other purpose * * *.' Payment of premiums could be paid to an authorized representative of the company with the requirement that they be entered at the time of payment in the 'premium receipt book belonging with this policy.' It was further provided that no agent had the power to make or modify the contract, 'or to bind the Company by making any promise, or by making or receiving any representation or information.' Anna never read the policy, she had little education; and she relied on the statements contained in the premium receipt books: 'If you do not fully understand your policy, please ask your agent; If you do not fully understand your policy, please ask your agent to explain it; If there is anything you do not understand about your policies do not hesitate to Consult Your Agent.'

Under all of the undisputed facts contained in the pleadings, interrogatories and depositions which were before the trial...