{ "id": 8525321, "name": "BRENDA S. McLAIN, Administratrix of the Estate of L. J. Mack, deceased v. ALICE M. WILSON and HOME FEDERAL SAVINGS & LOAN ASSOCIATION", "name_abbreviation": "McLain v. Wilson", "decision_date": "1988-09-06", "docket_number": "No. 8827SC139", "first_page": "275", "last_page": "278", "citations": [ { "type": "official", "cite": "91 N.C. App. 275" } ], "court": { "name_abbreviation": "N.C. Ct. App.", "id": 14983, "name": "North Carolina Court of Appeals" }, "jurisdiction": { "id": 5, "name_long": "North Carolina", "name": "N.C." }, "cites_to": [ { "cite": "64 S.E. 200", "category": "reporters:state_regional", "reporter": "S.E.", "year": 1909, "pin_cites": [ { "page": "202" } ], "opinion_index": 0 }, { "cite": "150 N.C. 447", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 11271575 ], "year": 1909, "pin_cites": [ { "page": "451" } ], "opinion_index": 0, "case_paths": [ "/nc/150/0447-01" ] }, { "cite": "52 S.E. 578", "category": "reporters:state_regional", "reporter": "S.E.", "year": 1905, "pin_cites": [ { "page": "579" } ], "opinion_index": 0 }, { "cite": "140 N.C. 262", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8651867 ], "year": 1905, "pin_cites": [ { "page": "265" } ], "opinion_index": 0, "case_paths": [ "/nc/140/0262-01" ] }, { "cite": "72 S.E. 1003", "category": "reporters:state_regional", "reporter": "S.E.", "year": 1911, "pin_cites": [ { "page": "1005" } ], "opinion_index": 0 }, { "cite": "157 N.C. 276", "category": "reporters:state", "reporter": "N.C.", "year": 1911, "pin_cites": [ { "page": "281" } ], "opinion_index": 0 }, { "cite": "25 S.E. 2d 390", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1943, "pin_cites": [ { "page": "392" } ], "opinion_index": 0 }, { "cite": "223 N.C. 97", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8599621 ], "year": 1943, "pin_cites": [ { "page": "100" } ], "opinion_index": 0, "case_paths": [ "/nc/223/0097-01" ] } ], "analysis": { "cardinality": 421, "char_count": 8226, "ocr_confidence": 0.815, "pagerank": { "raw": 3.6856254361847664e-07, "percentile": 0.8918296008763446 }, "sha256": "fa1106201f42925a183bff3d845978bc5d0c92d23b982e28187d62ebc77059ae", "simhash": "1:8db381e4368d85ce", "word_count": 1357 }, "last_updated": "2023-07-14T21:33:36.579827+00:00", "provenance": { "date_added": "2019-08-29", "source": "Harvard", "batch": "2018" }, "casebody": { "judges": [ "Judges Eagles and Smith concur." ], "parties": [ "BRENDA S. McLAIN, Administratrix of the Estate of L. J. Mack, deceased v. ALICE M. WILSON and HOME FEDERAL SAVINGS & LOAN ASSOCIATION" ], "opinions": [ { "text": "ORR, Judge.\nOn appeal, defendant contends that she is entitled to the funds on deposit in the three accounts. Defendant argues that the right of survivorship was properly established under N.C.G.S. \u00a7 41-2.1, and that the notation requiring withdrawals to be made only by L. J. Mack had no effect on her interest in the account. We agree.\nThe notation \u201cwithdrawals only by L. J. Mack\u201d is in direct contradiction to the clause that Home Federal \u201cact pursuant to any one or more of the joint tenants\u2019 signatures, shown below, in any manner in connection with this account . . . .\u201d (Emphasis added.) Therefore, we must review the signature cards in light of contract law to determine if either or both clauses are in effect before determining whether or not the signature cards comply with N.C.G.S. \u00a7 41-2.1.\nThe law of contracts in North Carolina provides many rules of construction. Three of those rules are particularly pertinent to this case. First, \u201c[t]he intent as embodied in the entire instrument must prevail . . . .\u201d Electric Supply Co. v. Burgess, 223 N.C. 97, 100, 25 S.E. 2d 390, 392 (1943). Three factors are considered in ascertaining the intent of the contract; \u201cthe nature of the instrument, the condition of the parties executing it, and the objects which they had in view.\u201d Refining Co. v. Construction Co., 157 N.C. 276, 281, 72 S.E. 1003, 1005 (1911).\nHere, all three factors indicate an intent that both parties have a right of survivorship in the bank accounts. The nature of the instrument is a standard form for a joint bank account with right of survivorship. The parties were two lay people acting without benefit of legal counsel to execute a contract providing for joint tenancy with right of survivorship. This objective is evidenced by the stipulations that the parties were joint tenants with right of survivorship, that a pro rata share of all deposits made by one was a gift to the other, and that Home Federal was to pay any part or all of the funds to the survivor.\nThe second applicable rule of construction is that a clause \u201cwhich is utterly repugnant to the body of the contract and irreconcilable with it, will be rejected; likewise, a subsequent clause irreconcilable with a former clause and repugnant to the general purpose and intent of the contract, will be set aside.\u201d Jones v. Casualty Co., 140 N.C. 262, 265, 52 S.E. 578, 579 (1905). In the case sub judice, the instrument is a form contract with the notation regarding withdrawals which was added subsequent to the original wording of the contract. Therefore, the notation is a subsequent clause which directly contradicts the former clause that Home Federal honor \u201cany one or more\u201d of the parties\u2019 signatures \u201cin any manner\u201d regarding the accounts.\nWe cannot conceive of a construction that would reconcile the two clauses. Either both parties may act alone or together \u201cin any manner in connection with [the] accounts]\u201d or only one of the two parties, L. J. Mack, may withdraw the funds. However, both clauses cannot be true at the same time. This analysis is also important with regard to the third rule of construction which states that \u201ceach and every part of the contract must be given effect, if this can be done by any fair or reasonable interpretation . . . .\u201d Davis v. Frazier, 150 N.C. 447, 451, 64 S.E. 200, 202 (1909). After much consideration we cannot foresee an interpretation of this contract which would reconcile the two clauses in such a way as to reasonably allow both to take effect.\nHaving determined that the two clauses are irreconcilable, we now must consider whether or not the notation regarding withdrawals is also repugnant to the general purpose of the contract.\nGiven the three factors discussed earlier, the intent and general purpose of the contract was to provide a joint bank account with right of survivorship. While right of survivorship as a legal incident to joint tenancy has been abolished in North Carolina, N.C.G.S. \u00a7 41-2, the legislature has provided for the right of survivorship in bank accounts which meet certain statutory requirements. N.C.G.S. \u00a7 41-2.1 (1984).\nN.C.G.S. \u00a7 41-2.1(b) states in pertinent part:\nA deposit account established under subsection (a) of this section shall have the following incidents:\n(1) Either party to the agreement may add to or draw upon any part or all of the deposit account, and any withdrawal by or upon the order of either party shall be a complete discharge of the banking institution with respect to the sum withdrawn. [Emphasis added.]\nBut for the withdrawal clause, the contract would clearly comply with N.C.G.S. \u00a7 41-2.1. We therefore conclude that under the accepted rules of contract construction, the withdrawal clause should be disregarded and the contractual terms allowing both parties the right to act in any manner regarding the account will control.\nThus, the trial court\u2019s ruling in favor of the plaintiff is reversed, and the case is remanded for further action consistent with this opinion.\nReversed and remanded.\nJudges Eagles and Smith concur.", "type": "majority", "author": "ORR, Judge." } ], "attorneys": [ "Brenda S. McLain, attorney for plaintiff-appellee.", "Frank Patton Cooke, by Malcolm B. McSpadden, attorney for defendant-appe llant." ], "corrections": "", "head_matter": "BRENDA S. McLAIN, Administratrix of the Estate of L. J. Mack, deceased v. ALICE M. WILSON and HOME FEDERAL SAVINGS & LOAN ASSOCIATION\nNo. 8827SC139\n(Filed 6 September 1988)\nBanks and Banking \u00a7 4\u2014 signature card for joint account \u2014 notation limiting withdrawals to one cotenant \u2014 notation ineffective to affect survivorship rights\nWhere signature cards for three bank accounts designated a deceased person and defendant \u201cas joint tenants with right of survivorship\u201d and instructed defendant bank \u201cto act pursuant to any one of the joint tenants\u2019 signatures ... in any manner in connection with this account and, ... to pay ... to any one or the survivor,\u201d a typed addition indicating that withdrawals were to be made only by the deceased person had no effect on defendant\u2019s interest in the accounts, since the right of survivorship was properly established under N.C.G.S. \u00a7 41-2.1; the intent of the parties was to establish accounts with right of survivorship; the notation limiting withdrawals was a subsequent clause which was irreconcilable with the former clause requiring the bank to honor any of the parties\u2019 signatures; and the notation regarding withdrawals was repugnant to the general purpose of the contract.\nAppeal by defendant Wilson from Gardner (John MJ, Judge. Judgment entered 29 October 1987 in Superior Court, Cleveland County. Heard in the Court of Appeals 2 June 1988.\nPlaintiff, administratrix of the estate of L. J. Mack (deceased), brought a declaratory action against Alice M. Wilson and Home Federal Savings & Loan Association (Home Federal). Plaintiff sought adjudication regarding the rights of the parties to four bank accounts (three of which are the subject of this appeal) on deposit at Home Federal.\nThe three accounts in question before this Court are account numbers 1-207607-0, 620041744, and 620041720. The signature cards for each of these accounts designated L. J. Mack and Alice M. Wilson \u201cas joint tenants with right of survivorship\u201d and instructed Home Federal \u201cto act pursuant to any one or more of the joint tenants\u2019 signatures, shown below, in any manner in connection with this account and, ... to pay, without any liability for such payment, to any one or the survivor or survivors at any time.\u201d Both L. J. Mack and Alice M. Wilson signed all three cards.\nOn each card beside Alice M. Wilson\u2019s typed name appears the word \u201cbeneficiary.\u201d However, each card has a typed addition indicating that withdrawals be made only by L. J. Mack. Although both could deposit money into the accounts, L. J. Mack made all of the deposits.\nThe trial judge, sitting without a jury, concluded that these accounts \u201care not deposit accounts with right of survivorship in that these accounts do not contain the fundamental incident set forth in G.S. 41-2.1(b)(l) that either party to the agreement may draw upon any part or all of the deposit account.\u201d The trial court ruled that the estate of L. J. Mack was entitled to all of the funds on deposit in these accounts. From this judgment, defendant Alice M. Wilson appeals.\nBrenda S. McLain, attorney for plaintiff-appellee.\nFrank Patton Cooke, by Malcolm B. McSpadden, attorney for defendant-appe llant." }, "file_name": "0275-01", "first_page_order": 303, "last_page_order": 306 }