Opinion
Civil Action No. 99-0682-CB-L.
June 2, 2000.
ORDER
This matter came before the Court for hearing on May 22, 2000, on a Motion to Authorize Settlement (Doc. 40) filed by James A. Philips (Defendant Philips), the Guardian ad Litem of Tiffany S. Adams, Cortani S. Adams, and Dustin Adams (the minors). A Joint Stipulation of Dismissal filed by Allstate Life Insurance Company (Allstate) and Defendant Shanda Allen (Allen) (Doc. 48) and a Motion to Discharge filed by Allstate (Docs. 44 and 47) are also pending. The record reflects that notice of the hearing was given to all parties and Barbara A. Cannon, as conservator of the estates of the minors. John R. Spencer, attorney for Shanda Allen and Defendant Philips were present in the courtroom, and Howard K. Glick, attorney for Allstate participated by telephone. Based upon the record in this cause and the parties' arguments, the Court FINDSas follows:
1. This Court has jurisdiction over the subject matter of this proceeding and the res, which consists of insurance policy proceeds interpled by the Plaintiff, plus interest, in a total amount of approximately $36,324.60, as well as personal jurisdiction over the parties.
2. The proceeds arise from a policy of insurance issued by Plaintiff Allstate with respect to the life of Gordon Scott Adams (Adams), who was involved in an accident on October 31, 1997. According to the police report, Adams was injured when he lost control of the motorcycle he was driving and it skidded on the roadway. A few days later, Adams died from the injuries received in the accident.
3. At the time of his death, Adams was insured under a policy of insurance (Master Policy #64403113, certificate #1111995857818) issued by Plaintiff Allstate which provided benefits in the amount of $30,000.00. These proceeds were interpled by Plaintiff in connection with this proceeding, originally filed in the Circuit Court of Mobile County, Alabama, CV-99-00l 104. The Court is advised that this sum, plus accumulated interest, remains on deposit with the Clerk of that Court.
4. The pertinent beneficiary designation under this policy states that the proceeds thereof are payable as follows:
"At your death, to your spouse, if living; otherwise equally to your living children, including stepchildren and adopted children, if any; otherwise, equally to your living parents; otherwise, to your estate."
5. Although Adams and Shanda Allen were divorced on April 25, 1997, Allen has filed a claimYor the entire amount of the proceeds alleging that she is the common law wife of Adams. Defendant Philips has filed a denial of those allegations and has conducted substantial discovery, including the lengthy deposition of Shanda Allen.
6. Counsel for Shanda Allen contends that substantial evidence exists, notwithstanding their divorce, that both Adams and Shanda Allen intended to continue their marital relationship. The Court is advised that this evidence is based on the fact that after their divorce, Adams and Shanda Allen immediately returned to their common residence and continued to live with one another until approximately October 8, 1997 (except during periods Adams was incarcerated). Counsel for Shanda Allen has provided the Court with a number of documents which support Allen's contentions, such as account statements, written statements and letters from Adams himself, and Mobile County Metro Jail and Mobile Police Department records. Accordingly, the Court finds that there is substantial evidence that Adams and Shanda Allen continued to live together as man and wife, notwithstanding their divorce in April 1997.
7. This substantial evidence exists despite, as Defendant Philips properly points out, that the time periods at issue are brief, that Allen and Adams separated on or about October 8, 1997, and that Allen failed to identify herself as Adams' spouse in connection with a policy claims form and other matters.
8. Alabama law recognizes the validity of common law marriages, requiring: (1) capacity; (2) present agreement or consent to be husband and wife; (3) public recognition of the existence of the marraige; and (4) cohabitation or mutual assumption openly of marital duties and obligations. Adams v. Boan, 559 So.2d 1084 (Ala. 1990); Copeland v. Richardson, 551 So.2d 353 (Ala. 1989).
9. The Court finds that the record contains evidence of each of these required elements in order to prove the existence of a common law marriage between Adams and Shanda Allen.
10. The proposed settlement which is the subject of Defendant Philips' motion arises in the context of these facts. Based upon these facts, and given the uncertainty of the outcome of any litigation in relation thereto and the delay and substantial expense which would most certainly be incurred in connection with further preparation and trial of these issues, this Court finds that the proposed settlement is fair and reasonable. Furthermore, the Court finds that it is in the best interests of the minors for the proposed settlement to be approved.
Based upon the foregoing, this Court ORDERS as follows:
1. In view of the Joint Stipulation of Dismissal filed by Allstate and Shanda Allen (Doc. 48), the Court DISMISSES with prejudice the counterclaim asserted by Allen, with costs taxed as paid.
2. The Motion to Discharge filed by Allstate is hereby GRANTED (Docs. 44 and 47). Accordingly, it is ORDERED, ADJUDGED, and DECREED that the parties to this suit are restrained and permanently enjoined from instituting or further prosecuting any action against Allstate in any court concerning or seeking a recovery of the proceeds of Policy #64403113, Certificate #1111995857818 of insurance insuring the life of Gordon Adams.
3. The Motion to Authorize Settlement filed by the Defendant Philips is due to be and hereby is GRANTED.
4. In consummation of such settlement and upon determination that Defendant Philips' request for Guardian ad litem fees is reasonable, the Honorable Susan Wilson, Clerk of the Circuit Court of Mobile County, Alabama, is herebyORDERED to disburse the sums in her possession (approximately $36,324.60) as follows:
(1) one check in the amount of $18,162.29 made payable to Shanda Allen, to be delivered to John R. Spencer, 1860 Government Street, Mobile, Alabama 36606;
(2) one check in the amount of $2,500.00 made payable to James A. Philips, to be delivered to James A. Philips, Post Office Box 433, Huntsville, Alabama 35804, for service as Guardian ad Litem;
(3) one check in the amount of $5,220.77 made payable to Barbara Cannon, as Conservator of the Estate of Tiffany S. Adams, to be delivered to Ms. Cannon at 6004 Vogel Court, Mobile, Alabama 36693;
(4) one check in the amount of $5,220.77 made payable to Barbara Cannon, as Conservator of the Estate of Dustin Adams, to be delivered to Ms. Cannon at 6004 Vogel Court, Mobile, Alabama 36693;
(5) one check in the amount of $5,220.77 made payable to Barbara Cannon. as Conservator of the Estate of Cortani S. Adams, to be delivered to Ms. Cannon at 6004 Vogel Court, Mobile, Alabama 36693;
To the extent that funds remain in the hands of the Clerk after such disbursement, the funds shall be divided among the payees identified in the same proportions utilized above. If for any reason the Clerk of the Circuit Court of Mobile County is unable to comply with this order, the Clerk is alternatively ORDERED to transfer the monies deposited in Allstate Life Insurance Company v. Barbara Cannon. et al., CV-99-00 1104 to the Clerk of this Court.
DONE this the 2nd day of June, 2000.