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Smart Summary

Factual and Procedural Background

This appeal arises from a suit by Wood Vercher, administrator of the succession of Emile H. Vercher, against Laura Roy (daughter of the deceased and wife of Levy Roy). Emile Vercher, who lived with Mrs. Roy for the last eight years of his life and was cared for by her, executed an unprobated instrument purporting to be a will in 1925. On March 5, 1927, Vercher made a 12‑month time deposit of $2,600 with the People's Bank of Natchitoches; the certificate read that the deposit was payable to Emile H. Vercher, or in case of his death to Laura Roy. The certificate remained in Vercher's possession until his death; he told Mrs. Roy he wished her to have it and where it was located. After his death an administrator was appointed; Mrs. Roy retained possession of the certificate and refused to deliver it to the administrator. The administrator sued for delivery of the certificate or, if she failed to deliver, for authorization to collect it from the bank and cancel it upon payment. Mrs. Roy claimed the certificate as a manual gift and, alternatively, sought compensation for boarding and nursing the deceased; Levy Roy intervened asserting a boarding claim but his intervention was dismissed. The trial court ruled for the administrator, ordering delivery (and authorizing payment by the bank to the administrator), and reserved any claim Mrs. Roy might have against the succession. Mrs. Roy appealed.

Legal Issues Presented

  1. Whether the certificate of deposit is a corporeal movable susceptible of transfer by manual gift and, if so, whether there was an actual delivery sufficient to effect a manual gift.
  2. Whether the clause making the deposit payable "in case of his death to Laura Roy" operated to transfer the certificate or its proceeds to Mrs. Roy upon the depositor's death (i.e., whether it constituted a valid donation mortis causa).
  3. Whether Mrs. Roy is entitled to compensation for boarding and nursing services rendered to the deceased while she and her husband lived in community.
  4. Whether the judgment may authorize payment by the bank (a nonparty) to the administrator.

Arguments of the Parties

Appellant's (Mrs. Roy) Arguments

  • The deposit certificate was made payable to her in the event of her father's death and she is the owner by virtue of a manual gift from her father.
  • Alternatively, if she is not the owner, she claims $2,080 for boarding (416 weeks at $5/week) and $1,000 for nursing (100 weeks at $10/week).

Appellee's (Administrator) Arguments

  • The administrator sought an order requiring Mrs. Roy to deliver the certificate to the succession, and alternatively authorization to collect the certificate from the bank and cancel it upon payment to the succession.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Succession of De Pouilly, 22 La. Ann. 97 Support for the proposition that an obligation to pay (credit) is incorporeal rather than a corporeal movable. Used to support the conclusion that a certificate of deposit evidences an obligation (incorporeal) and therefore is not susceptible to donation by manual gift.
Succession of Leroy, 157 La. 1077, 103 So. 328, 40 A.L.R. 503 Support for the proposition that a certificate evidencing a deposit is an incorporeal obligation, not a corporeal movable. Applied to reinforce that the deposit certificate could not be transferred by manual gift because it represents an incorporeal credit/obligation.
Barriere v. Gladding's Curator, 17 La. 144 Authority that donations mortis causa can be made only by last will and testament. Applied to hold that a clause making the deposit payable to Mrs. Roy upon death could not operate as a donation mortis causa and thus did not vest ownership upon the depositor's death.

Court's Reasoning and Analysis

The court began by identifying the relevant Civil Code provisions governing donations and manual gifts (arts. 1536 and 1539) and the nature of corporeal versus incorporeal things (art. 460). It concluded that a certificate of deposit is not a corporeal movable but is merely evidence of a credit and an obligation to pay; accordingly, it is incorporeal and not subject to manual gift (citing Succession of De Pouilly and Succession of Leroy). The court further analyzed the facts and found no actual delivery: mere statements by the depositor that he wanted his daughter to have the certificate and telling her where it was located, without endorsement or other act of delivery (the certificate being payable to order), did not constitute the real delivery required for a manual gift. The court rejected the argument that the payable‑on‑death clause transferred title, reasoning that to treat it as effective would make it a donation mortis causa, which can be made only by last will (citing Barriere). The court also considered the alternative characterization of the clause as a post‑death attempt to pay an obligation to Mrs. Roy and held that any such obligation must be established against the succession in the succession proceedings. On Mrs. Roy's claim for compensation, the court found the services were rendered during the existence of the community with her husband and without evidence that paraphernal funds were expended; compensation, if due, belongs to the community (Act No. 186 of 1920; Civil Code art. 2334 prior to amendment), and the husband (head of community) was not before the court because his intervention was dismissed. Finally, the court construed the trial court's direction to the bank (a nonparty) as an authorization for the administrator to collect the certificate from the bank and affirmed the judgment on that basis.

Holding and Implications

HOLDING: The judgment of the trial court is affirmed.

Direct consequences: the certificate of deposit is decreed to belong to the succession and the administrator is entitled to possession and to collect from the bank (the trial court's order is construed as authorization to collect). Mrs. Roy's claim that the certificate was a manual gift is denied (certificate is incorporeal and, in any event, delivery was not shown). Her alternative claim for compensation is denied on the ground that, having been performed during the matrimonial community, any compensation would belong to the community rather than to her individually. No broader or new legal precedent is announced beyond the court's application of existing code provisions and cited authorities.

VERCHER v. ROY ET AL.

OVERTON, J.

Plaintiff is the administrator of the succession of Emile H. Vercher. Defendant is the daughter of the deceased and the wife of Levy Roy, with whom she lived in community during the entire period covered by this suit. Vercher was about seventy-nine years of age when he died. He left at his death seven children, including Mrs. Roy, and three grandchildren, who were the issue of the marriages of two deceased children, as his forced heirs. During the last eight years of his life he lived with his daughter, Mrs. Roy. During a part of that time his health was far from good, and during the last year of that period it was such as to require constant attention, which his daughter gave him day and night.

There was no agreement, so far as appears, that Mrs. Roy would be compensated for the board and lodging she furnished her father, nor does it appear that demand was ever made upon him for payment. However, the deceased evidently intended to reward his daughter for the services she had performed, and was still performing, for on August 3, 1925, nearly two years prior to his death, he appeared before a notary and executed what purports to be his last will and testament, leaving what moneys and effects he might possess at his death to Mrs. Roy, assigning as reason for the bequest that "she has taken care of me for some years and at present I am making my home with her." This will was never presented for probate, evidently for the reason that it is virtually devoid of every essential of a will.

On March 5, 1927, slightly over a month before, Vercher died, he made a time deposit of $2,600 in the People's Bank of Natchitoches, and received, as evidence therefor, a certificate, the body of which, so far as pertinent, reads as follows: "Emile H. Vercher has deposited in this bank $2,600 payable to the order of Emile H. Vercher, or in case of his death to Laura Roy." The deposit was made on twelve months' time, to bear interest at 4 per cent. per annum up to maturity.

The certificate remained in the possession of the deceased until his death, although he told his daughter from time to time that he wished her to have it, and about a week before he died he repeated this desire, and told her where the certificate would be found.

When Vercher died, and an administrator was appointed to his succession, Mrs. Roy refused to deliver the certificate to the administrator, claiming it as her own. This suit followed, in which the administrator sues Mrs. Roy for judgment ordering her to deliver to him the certificate, and, in the event she should fail to deliver it, then for judgment authorizing him to collect it from the bank, and canceling the same upon its payment to him.

Defendant appeared and filed her answer to this demand, admitting that the certificate was in her possession, and admitting her refusal to deliver it to the administrator. She sets forth that the certificate was made payable to her father, and, in the event of his death, to her, and asserts title to it as a manual gift by her father to her, and, should it be held that she is not the owner of the certificate, then she sues the administrator for boarding her father for a period of four hundred and sixteen weeks at $5 a week, amounting to $2,080, and for nursing him for a period of one hundred weeks, at $10 a week, amounting to $1,000. Levy Roy, the husband of Laura Roy, intervened in the case and claimed $2,080 for the same board that his wife claimed in her answer.

There was judgment for the administrator, decreeing the succession to be the owner of the certificate, and ordering Mrs. Roy to deliver it to the administrator on or before July 27, 1927, and, although the bank was not a party to the suit, ordering it to pay the administrator the amount of the certificate, with whatever interest may be due thereon, less $104, paid to the deceased and credited on the certificate, whether the certificate was delivered by Mrs. Roy or not, the payment to operate as a full discharge to the bank, and reserving to Mrs. Roy whatever claim she may have against the succession, and dismissing, in accordance with a motion of his counsel, the intervention of Levy Roy, as in case of nonsuit.

Article 1536 of the Civil Code provides that: "An act shall be passed before a notary public and two witnesses of every donation inter vivos of immovable property or incorporeal things, such as rents, credits, rights or actions, under the penalty of nullity." Article 1539 provides that: "The manual gift, that is, the giving of corporeal movable effects, accompanied by a real delivery, is not subject to any formality."

The contention of Mrs. Roy that she is entitled to the certificate as a manual gift is not supported by the law. A certificate of deposit is not a corporeal movable, and therefore is not subject to donation by manual gift. It is merely a credit in favor of another for money deposited, which the one receiving the deposit binds himself to pay to the one making it or to his order. The certificate is the mere evidence that the deposit was made and of the obligation to pay, and an obligation to pay is not corporeal, but incorporeal. Civil Code, art. 460; Succession of De Pouilly, 22 La. Ann. 97; Succession of Leroy, 157 La. 1077, 103 So. 328, 40 A.L.R. 503.

However, even were the certificate of deposit a corporeal effect, and therefore susceptible of donation by actual delivery, nevertheless plaintiff's title to it would not be valid, for the record fails to show an actual delivery. Telling the one claiming to be donee, a few days before the alleged donor's death, where the certificate would be found, namely, in his trunk, to hold the certificate and present it at the bank for payment, coupled with the statement that he wanted the alleged donee to have it for services performed, without even making an effort to indorse the certificate, although it was payable to order, does not show an actual delivery of it, but rather a wish that the donee should have the certificate, with information as to where it would be found.

Our conclusion is that not only was the certificate not susceptible of transfer by manual gift, but even as a manual gift it was null for want of actual delivery.

The fact that the certificate was made payable to the depositor, and, in the event of his death, to Mrs. Roy, does not entitle the latter to the certificate or its proceeds, on the happening of that event. To hold otherwise would be to give to the clause in favor of Mrs. Roy the effect of a donation mortis causa, when such donations can be made only by last will and testament. Civil Code, arts. 1750 and 1469; Barriere v. Gladding's Curator, 17 La. 144. On the other hand, if the clause be viewed as an attempt to pay, after the death of the deceased, any obligation due Mrs. Roy, it is ineffective, for such obligation, at that time, must be established contradictorily with the succession, and paid, if it exists, by the succession.

As to Mrs. Roy's claim for services rendered to the deceased, made in the event she is not decreed to be the owner of the certificate, no judgment can be rendered in her favor for the claim. The services were rendered during the existence of the community of acquets and gains, and while she and her husband were living together. It does not appear that any of her paraphernal funds were expended in performing the services. Compensation for services, though performed by the wife, is not due her, under these circumstances, but is due, if due at all, to the community, of which the husband is head and master. Act No. 186 of 1920; Civil Code, art. 2334, prior to amendment by Act No. 186 of 1920. As we have seen, the husband is not before the court, for his intervention, upon his own motion, was dismissed as in case of nonsuit. It may be observed that the administrator has asked for no amendment to the judgment.

Construing that the provision of the judgment ordering the bank, which was no party to the suit, to pay the certificate to the administrator, in accordance with the prayer of the petition, as a mere authorization of the administrator to collect the certificate from the bank, the judgment should be affirmed.

The judgment is affirmed.

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VERCHER v. ROY
(Dec 1, 1930)