Court Opinion

ID: 9852433
Source: CourtListenerOpinion
Date Created: 2023-09-24 05:30:20.432394+00
Date Added: 2024-06-11T09:22:27.682293
License: Public Domain

Hunter, J.
(dissenting) — The majority characterize the “real issue” in this case as a conflict between contract law and community property law. I see no conflict between the contract entered into by the decedent with the pension trustees of the General Electric Company, and the community property law of this state.
The majority opinion reasons that the word “all” in the community property agreement necessarily included the husband’s interest in the pension trust contract, and the community property agreement must control its disposition. With this I agree, except for the fact that the separate property of the decedent acquired prior to the execution of the community property agreement was encumbered with certain contractual provisions which could not be wiped out by the unilateral conduct of the decedent.
The decedent’s property was transmuted from separate property to community property under Volz v. Zang, 113 Wash. 378, 194 Pac. 409 (1920), for the purposes of thé community property agreement. However, the funds in controversy were encumbered with a detailed trust agreement that provided the only manner' a beneficiary could be designated to receive this fund. The majority treat these provisions as being in “conflict” with community property law. They rely on Wilson v. Wilson, 35 Wn. (2d) 364, 212 P. (2d) 1022 (1949), and Occidental Life Ins. Co. v. Powers, 192 Wash. 475, 74 P. (2d) 27 (1937), to resolve this purported conflict. It is admitted, however, that the particular considerations found in those cases are not applicable here. In those cases, the court held that the wife could not be deprived of her interest in community property by a beneficiary designation in favor of a third party. The underlying policy reason behind those décisions is that the wife helped create the community property, and she should' not be *937deprived of her interest by an act of her husband. Marston v. Rue, 92 Wash. 129, 159 Pac. 111 (1916).
It is my view that there are no prevailing public policy considerations or applicable community property laws which require that these funds, which were contributed to the trust prior to the execution of the community property agreement, should be considered in the same light as property which has been accumulated subsequent to marriage. The pension trust contract should control.
The instant case is analogous to a change of beneficiary in a life insurance contract, and the reasoning found in the construction of life insurance contracts is applicable here. The basic rule is stated in 29A Am. Jur., Insurance § 1678:
“. . . it is well settled that the insurer may, as a matter of contract and by appropriate stipulation or condition expressed in the policy, prescribe or regulate the method of changing beneficiaries, and ordinarily a change of beneficiary can be accomplished only in the manner pointed out in the policy, with the result that an attempt to make such change in any other manner is ineffectual.
This court has said that provisions in a life insurance policy relating to a change of beneficiary are valid and must be substantially complied with: Mere intent alone to effect a change of beneficiary is not enough. Sun Life Assur. Co. of Canada v. Sutter, 1 Wn. (2d) 285, 95 P. (2d) 1014, 125 A.L.R. 1089 (1939). In the Sutter case, an unsigned notice of change of beneficiary was mailed to the insurance company. We held that this constituted a substantial compliance with the requirements of that contract for a change of beneficiary. In the instant case, no notice whatsoever was delivered to the pension board trustees for a change of beneficiary. The mere execution of a community property agreement does not constitute a substantial compliance with the contractual provision for a change of beneficiary, even though it might be evidence of an intention to do so. The majority opinion will upset the established law relative to the change of beneficiaries in life insurance con*938tracts, and will sub silentio overrule the rationale of the Sutter case.
The judgment of the trial court should be reversed and the cause remanded with directions to enter judgment awarding the interpleaded funds to the defendant, except as otherwise stipulated by the parties.
Ott, C. J., and Rosellini, J., concur with Hunter, J.
June 15, 1964. Petition for rehearing denied.