O'Connor v. Travelers Insurance Co.

Lawrence O’Connor (plaintiff) was the minor child of Dalton and Ruth O’Connor. After Dalton and Ruth’s marriage terminated, Ruth married Charles Lonon (defendant). In 1954, during Ruth’s marriage to Lonon, Ruth became an employee of a company that purchased life-insurance policies for employees as an employment benefit. Ruth had the right to designate and change the policy beneficiary at any time. Initially, Ruth designated Lonon as the beneficiary, but in 1955, she changed the beneficiary to her minor son Lawrence with Lonon’s knowledge. Ruth and Lonon maintained separate bank accounts throughout their marriage. Ruth always deposited her earnings into her self-managed account and used her earnings to send money to Lawrence and for her own personal expenditures, such as clothing. Lonon was aware that Ruth maintained a separate account and that she used her earnings for herself and her son. In May 1956, Ruth died in an automobile accident. Lawrence, through a guardian, sued the insurance company (defendant) and Lonon for a declaration of rights concerning the life-insurance policies. If the insurance policies were Ruth’s separate property, Lawrence would be entitled to the entire proceeds. However, if the polices were community property, Lawrence would be entitled to a one-half interest only. The trial court ruled in Lawrence’s favor, and Lonon appealed.