Title: First American National Bank v. Evans
Citation: 417 S.W.2d 778
Docket Number: N/A
State: Tennessee
Issuer: Tennessee Supreme Court
Date: July 28, 1967

417 S.W.2d 778 (1967) FIRST AMERICAN NATIONAL BANK, Administrator of the Estate of Milton S. Evans, Deceased, Appellee, v. Jewell B. EVANS, Mrs. Earnest H. Zimmerlee, Kenneth Warren Evans, and Franklin D. Evans, Appellee and Appellants. Supreme Court of Tennessee. July 28, 1967. *779 Rebecca Thomas, Nashville, for Mrs. Earnest H. Zimmerlee, Kenneth Warren Evans, and Franklin D. Evans, appellants. Neil Robertson, Ashland City, for Jewell B. Evans, appellee. CRESON, Justice. This appeal comes from the Chancery Court of Cheatham County, Tennessee. On May 6, 1966, the appellee, First American National Bank, Administrator of the Estate of Milton S. Evans, filed its bill for declaratory judgment. That bill named as defendants Jewell B. Evans, the widow of Milton S. Evans, Mrs. Earnest H. Zimmerlee, Kenneth Warren Evans, and Franklin D. Evans, the children of Milton S. Evans, deceased, by a prior marriage. The question presented for determination in that court and in this was and is who is entitled to the proceeds of a promissory note executed by Charles A. Petre and wife, Frances F. Petre, in the original principal amount of $41,000.00, and payable to "Milton S. Evans et ux". This note represented the proceeds of a sale of real estate belonging to Milton S. Evans. Mr. Evans had acquired the entire title to this property, by reason of his survivorship of his first wife. A stipulation of facts was entered into in the trial court. The case was heard in the trial court upon bill and answer, and stipulation of facts. The facts stipulated are as follows: On January 17, 1967, the trial court filed a memorandum opinion. That opinion concluded that Milton S. Evans and his wife, Jewell B. Evans, took the promissory note as tenants by the entirety, with concomitant right of survivorship. Thus, the trial court determined that upon the death of Milton S. Evans, Jewell B. Evans became the sole owner of the note in question. On February 18, 1967, a final decree was entered, declaring the ownership of the note in question to be vested in Jewell B. Evans. Appeal has been timely perfected to this Court by Mrs. Earnest H. Zimmerlee, Kenneth Warren Evans, and Franklin D. Evans. It is admitted by these appellants that there is really only one question for decision by this Court, which is, as stated by them, as follows: This Court, after a careful examination of the cases and text authority cited by both appellants and appellee, and much independent research, has concluded that the Chancellor correctly answered this question in the affirmative. The Chancellor, in his memorandum opinion, relied heavily upon the case of Smith v. Haire (1915) 133 Tenn. 343, 181 S.W. 161. That case establishes, beyond question, that a tenancy by the entirety may be created in this State in personal property, and this without regard to the source of the property so held. This Court, in that opinion, said the following: The Court of Appeals, in an opinion affirmed by this Court in Preston v. Smith (1955) 41 Tenn. App. 222, 293 S.W.2d 51, quoted, with approval, the following from American Law of Property, Vol. II, Sec. 6.6, page 25: This position is supported by the annotation in 64 A.L.R.2d 33 (Estate by Entirety, Personalty, Sec. 10). In this annotation, it is shown that a promissory note made payable to husband and wife is generally held to create a tenancy by the entirety. This proposition is supported by cases from many jurisdictions. Thus, the language used in the promissory note presently before this Court; that is, "Milton S. Evans et ux", in our opinion, in the absence of any showing of an intention to the contrary, unquestionably created a tenancy by the entirety. The authorities relied upon by the appellants are, in the main, distinguishable on their facts. The appellants cite the cases of Oliphant v. McAmis (1954) 197 Tenn. 367, 273 S.W.2d 151, Melhorn v. Melhorn (1961) 208 Tenn. 678, 348 S.W.2d 319, and Sloan v. Jones (1951) 192 Tenn. 400, 241 S.W.2d 506, for the proposition that in order for a tenancy by the entirety to be created in personal property, evidence of an intention to create a tenancy by the entirety over and beyond making the note payable to husband and wife is essential. They argue that there is no such showing in the present case. In Oliphant v. McAmis, supra, there was no written conveyance to husband and wife. In Melhorn v. Melhorn, supra, the parties were not husband and wife, as in this case. There is nothing to be found in Sloan v. Jones, supra, in conflict with what is herein said and held. It might be noted that all three of these cases recognize the fact that a tenancy by the entirety may be created in personal property, but none of them involve so classic a situation as the present case where a property interest is unqualifiedly conveyed to husband and wife. The judgment of the trial court is affirmed, with costs of this appeal assessed against Mrs. Earnest H. Zimmerlee, Kenneth Warren Evans, and Franklin D. Evans. BURNETT, C. J., and DYER, CHATTIN and HUMPHREYS, JJ., concur.