22 S.E.2d 126 | Ga. | 1942
1. Where the beneficiary in a life-insurance policy entered into a written contract with another person, agreeing that she would transfer and assign to that person all of her right, title, or interest in the policy, in extinguishment of a debt which she owed to the transferee, and for other valuable considerations moving from the transferee to her, and, as a result of this agreement and other writings signed by such original beneficiary and the insured, the policy was so changed by the insurer as to designate such other person as beneficiary, on interpleader after the death of the insured the original beneficiary could not avoid the contract between her and the substituted beneficiary, on grounds of *594 duress and conspiracy, without obtaining the equitable relief of cancellation, and as to such relief she would be subject to the rule that he who would have equity must do equity. The evidence showed without dispute that she had not complied or offered to comply with this rule in any respect; and there being no evidence that such an offer, if made, would have been rejected, she was not entitled to recover as against the substituted beneficiary upon any theory relating to duress or conspiracy.
2. There was no evidence that the contract of assignment between the original and the substituted beneficiary constituted a wager on the part of the latter, or was intended as a cover therefor.
3. Under the preceding rulings, the court did not err in directing the verdict in favor of the substituted beneficiary.
After death of the insured in November, 1941, the sum payable under the policy (about $2500, after deducting a loan in favor of the insurer) was claimed by both Miss Bray and Mrs. Malcolm. In view of these conflicting claims the insurer filed a suit in equity, praying that the adverse claimants be required to interplead, and tendering the sum into court. The respondents answered, asserting their separate claims; and the case proceeded solely as a contest between Miss Bray and Mrs. Malcolm, as to which of them was entitled to the money. After the introduction of evidence the court directed a verdict in favor of Mrs. Malcolm. Miss Bray excepted, assigning error on that ruling, insisting that there were issues of fact which should have been submitted to the jury.
There is no contention by Miss Bray that she did not owe Mrs. Malcolm $48.60 for medicines and the like; but it is insisted that the agreement between them, and the other writings which resulted in the substitution of Mrs. Malcolm as beneficiary, were invalid for the following reasons: (1) They were obtained by duress, in that Mrs. Malcolm threatened to throw the insured into the street unless the indebtedness was paid. (2) They were the result of a conspiracy between Miss Bray's own attorney and Mrs. Malcolm; and (3) since Mrs. Malcolm had no interest in the life of the insured, the agreement was a wagering contract on her part, and was void as contrary to public policy.
The pleadings and the evidence showed the facts stated above, and additional facts and circumstances as follows: The contract of June 28, 1941, between Miss Bray and Mrs. Malcolm, contained the following stipulations: Miss Bray agreed to assign to Mrs. Malcolm all her right, title, and interest in the policy, in consideration of the agreement of Mrs. Malcolm to cancel all indebtedness which she held against Miss Bray, amounting to $48.60, to continue to furnish all necessary medicines and medical attention to the insured during the remainder of his life, and after his death to pay his funeral and burial expenses to the amount of $475, to pay all premiums on the policy accruing before his death, and to relieve Miss Bray of "all responsibilities for the care, nursing, and comfort of said Hugh B. Hodo as long as he shall live." Miss *596 Bray, being at that time the designated beneficiary, also executed a "release and re-assignment" of the policy; and the insured requested in writing that the insurer designate Mrs. Malcolm as beneficiary. The company then placed upon the policy an entry to the effect that all prior designations were revoked, and that "Leila M. Malcolm is designated as direct beneficiary."
Miss Bray in her answer assailed the alleged contract between herself and Mrs. Malcolm, and "the purported assignments made in pursuance thereof," as invalid for the reasons above stated, and prayed that they be canceled and rescinded. She prayed to recover from the insurance company and Mrs. Malcolm the proceeds of the insurance policy as deposited in court; and for general relief.
Mrs. Malcolm sought to recover as the beneficiary finally designated, and relied also on the contract of assignment and the other writings to which reference has been made. Other facts are stated in the opinion. 1. The plaintiff in error was the beneficiary in a life-insurance policy, and the insured, who was her divorced husband, had also assigned all of his interest in the policy to her. On basis of a written agreement between her and Mrs. Malcolm, and other writings signed by her and the insured, the policy was so changed as to substitute Mrs. Malcolm as the beneficiary. Unless the agreement was a wagering contract, it was based upon valuable considerations, consisting in part of extinguishment of a debt owed by Miss Bray to Mrs. Malcolm. The existence of the debt is admitted. The other considerations consisted of promises by Mrs. Malcolm to pay all future premiums on the policy, to furnish all necessary medicines and medical attention to the insured during the remainder of his life, to relieve Miss Bray of all responsibility for his care, nursing, and comfort so long as he should live, and after his death to pay his funeral and burial expenses to an amount specified. There is no contention that Mrs. Malcolm did not fully perform her part of the agreement precisely as she promised to do. The insured having died and the proceeds of the policy being in court under an interpleader, the judge directed a verdict in favor *597 of Mrs. Malcolm. The question is whether there were issues of fact that should have been submitted to the jury.
In the circumstances, Miss Bray could not recover as against Mrs. Malcolm without avoiding the written agreement and "the purported assignments" on some ground. Two of the three grounds on which she sought to avoid them were duress and conspiracy. She could not avoid them in equity on either of these grounds without obtaining the relief of cancellation; and since she would thus require affirmative equitable relief, she was bound by the rule that he who would have equity must do equity. Under this rule, before she would be entitled to recover, it would be incumbent on her to pay or tender to Mrs. Malcolm the amount of the debt which she owed to her, and otherwise restore or offer to restore the original status. The evidence showed that she did not do or offer to do equity in any respect, and there was nothing to show that such an offer if made would have been rejected. It follows that she could not recover on the basis of either duress or conspiracy. Code, § 37-104; Williams v. Fouche,
2. "The insured may direct the money to be paid to his personal representative or to his widow, his children, or his assignee. Upon such direction given, and assented to by the insurer, no other person may defeat the same." Code, § 56-903. "One has the right to procure insurance on his own life and assign the policy to another, who has no insurable interest in the life insured, provided it be not done by way of cover for a wager policy." Rylander v. Allen,
3. For the reasons stated above, regardless of other questions, the court did not err in directing the verdict in favor of Mrs. Malcolm.
Judgment affirmed. All the Justices concur.