Case Title: Edwards v. Wolf

Citation: 278 Or. 255, 563 P.2d 717

Docket Number: 

State: oregon

Court: Oregon Supreme Court

Date: 1977-05-03T00:00:00Z

Document:
563 P.2d 717 (1977)
278 Or. 255
Louise Diane EDWARDS and Robert F. Edwards, Respondents,
v.
Linda Sue WOLF, Appellant.

Supreme Court of Oregon, Department 2.
Argued and Submitted April 6, 1977.
Decided May 3, 1977.
John R. Miller, Salem, argued the cause and filed briefs for appellant.
Timothy J. Harold, Springfield, argued the cause for respondents. With him on the brief were Joseph J. Leahy, and Harms & Harold, Springfield.
Before DENECKE, C.J., and TONGUE, BRYSON and DAVIS, JJ.
DAVIS, Justice Pro Tem.
This is a declaratory judgment proceeding to determine whether the plaintiffs or the defendant are entitled to the proceeds of a life insurance policy on the life of *718 Michael Edwards. Trial was before the court, and a judgment was entered granting plaintiff Robert Edwards the proceeds of the policy.
The basis of defendant's appeal is that the court erred in admitting evidence contrary to the parol evidence rule, in admitting hearsay evidence as to the decedent's intent, and failure to award defendant a judgment for the proceeds of the life insurance policy.
Prior to trial the parties entered into a written stipulation of facts which discloses that Michael Edwards, hereinafter referred to as decedent, purchased a life insurance policy with Continental Life and Accident Company with a face value of $10,000. Plaintiff Robert Edwards, decedent's father, was named beneficiary at the time of the issuance of this policy.
Thereafter, decedent married the defendant and, at the suggestion of decedent's mother, filed an amendment to the policy, removing his father as the beneficiary and substituting his wife. This amendment appeared in the records of the insurance company, reflecting the name "Linda Sue Edwards, wife," as beneficiary. No change was required or made upon the policy in the possession of the decedent and from the date of issuance until his death the named beneficiary appearing on the policy was plaintiff Robert Edwards.
Subsequently, decedent and the defendant dissolved the marriage. The decree of divorce and the property settlement agreement did not provide for the disposition of the insurance policy although the parties agreed by stipulation that decedent was the sole owner of the policy with the right to designate or change the beneficiary.
The parties further agreed, by stipulation, as follows:
Plaintiff argues that the trial court erred in admitting parol evidence of the decedent's intent when there was a clear, unambiguous, integrated contract between decedent and the insurance company. The parol evidence rule[1] might be violated under such circumstances if this suit were between the estate of the decedent and the insurance company. "[P]arol evidence can be used to vary or contradict a contract when the litigation is between a party to the contract and a stranger * * *." Carolina Casualty v. Oregon Auto, 242 Or. 407, 408 P.2d 198 (1966).
Defendant contends that the following dialogue was hearsay and that the trial court erred in overruling the objection to it.
In this case the statement of the decedent was not offered to show the truth of the statement, but it was to show his intent that his father would be the beneficiary of this policy. In Marr v. Putnam, 213 Or. 17, 321 P.2d 1061 (1958), we said, at page 25, 321 P.2d at page 1066:
To the same effect, see Sheedy v. Stall, 255 Or. 594, 468 P.2d 529 (1970). It is our opinion that the trial court did not err in overruling defendant's objection to the testimony elicited.
In support of the court's ruling that plaintiff Robert Edwards, rather than defendant, is entitled to the proceeds of this insurance policy, the trial court relied on the case of Northern Life Ins. Co. v. Burkholder, 131 Or. 537, 283 P. 739, rehearing denied 134 Or. 401, 293 P. 919 (1930). This decision held "that maximum effect should be given *720 to the insured's intention to change the beneficiary of his insurance policy."
In 19 A.L.R.2d 35, it states:
Northern Life Ins. Co. v. Burkholder, supra, is cited in support of the above rule, as is a majority of the courts in the United States. However, it would appear that the decision in Northern Life Ins. Co. was an exception to the general rule, according to the Annotation previously cited (19 ALR2d 35), for, at page 52, it said:
Although the facts are distinguishable between Northern Life Ins. Co. and this suit, the evidence in both cases reflects that neither of the decedents made any effort to comply with the terms of the insurance policies in changing beneficiaries before their deaths. As noted in 19 ALR2d 35, there must be at least some attempt made on the part of the insured to change a beneficiary before equitable relief will be applied. How much or how little depends, apparently, upon the facts of each case. The question for this court's determination is whether we should follow the rule, as previously stated in this opinion, or to make an exception to this rule, as did the court in Northern Life Ins. Co. and the trial court in this case.
For one reason, and one reason only, we affirm the trial court's ruling in this equitable proceeding on the basis that the defendant entered into a written stipulation agreeing that it was the decedent's intent at the time of his death that plaintiff Robert Edwards receive the proceeds of the insurance policy. See paragraphs (11), (12), (13), (14), and (16) of the stipulation, as quoted previously in this opinion.
"Equity regards as done that which ought to be done."[2]
Affirmed. Costs to neither party.
[1]  ORS 41.740.
[2]  19 ALR2d 35.