Banko v. Malanecki
Banko v. Malanecki
Opinion of the Court
In January 1974, appellant Gail Malaneeki, and appellee, William Banko, began living together in Malanecki’s home. Banko then moved some new and used furniture valued at $4,000 into Malanecki’s home. Banko also satisfied Malanecki’s outstanding car loan and house mortgage.
On May 29, 1975, Banko filed a complaint in equity in which he sought reimbursement for the following: the money that he deposited in the joint bank account; the money he expended to satisfy Malanecki’s debts; and the furniture that he put in Malanecki’s home. On February 11, 1980, the chancellor ordered that Malaneeki return one-half the money deposited in the joint bank account to Banko. The chancellor further ordered that Malaneeki return one-half the furniture or one-half its value to Banko plus interest from July 1974.
The first issue raised in this appeal is whether Banko made a gift to Malanecki of a joint interest in the bank account. The Superior Court held that Banko did not make such a gift to Malanecki because a confidential relationship existed between them. We disagree.
When two parties sign a contract with a bank that creates a joint interest in a bank account with the right of survivorship, there is prima facie evidence of the intent of the party funding the account to make an inter vivos gift to the other joint tenant. Estate of Gladowski, 483 Pa. 258, 396 A.2d 631 (1979). In this case, Malanecki and Banko signed a contract with the bank that created a joint interest in the account with the right of survivorship,
Once prima facie evidence of a gift is established, a presumption arises that the gift is valid, and the burden is then on the contestant to rebut the presumption by clear, precise and convincing evidence. Estate of Clark, 467 Pa. 628, 359 A.2d 777 (1976). The presumption is rebutted if it is established that a confidential relationship existed between the donor and donee at the time of making of the alleged gift. Estate of Clark, supra.
A confidential relationship exists if the parties do not deal on equal terms “... but, on the one side there is an overmastering influence, or, on the other, weakness, depend
The Superior Court found that a confidential relationship existed between the parties because Malanecki represented to the bank that she was Banko’s wife. The fact that Malanecki signed the deposit contract as Banko’s wife is in no way probative of whether a confidential relationship existed between Banko and Malanecki at the time the bank account was opened.
The second issue raised is whether Malanecki acquired a joint interest in the furniture placed in her home by Banko. The Superior Court concluded that Malanecki did acquire such an interest based upon this Court’s decision in DiFlorido v. DiFlorido, 459 Pa. 641, 331 A.2d 174 (1975). We disagree.
Banko owned all of the furniture valued at $4,000.00 that he placed in Malanecki’s home. There is no evidence that he intended to give any interest in the furniture to Malanecki. Consequently, Malanecki did not acquire a joint interest in the furniture.
We therefore reverse the Superior Court’s order concerning the bank account and award Banko one-half the funds in the bank account ($2,600) plus interest from July 1974. In addition, we reverse the Superior Court’s order concerning the furniture and award Banko the full value of the furniture ($4,000) plus interest from July 1974.
. The balance of Malanecki’s house mortgage was $2,195.18, and the balance of her car loan was $3,782.86.
. Malaneeki signed the deposit contract as Gail Banko.
. The chancellor also found that Banko was not entitled to be reimbursed for the money he expended to satisfy Malanecki’s car loan and house mortgage. The Superior Court affirmed this portion of the chancellor’s order.
. The parties attempted to create a “tenants by the entirety” bank account. However, since they were not married, they in fact created a joint tenancy in the bank account. Maxwell v. Saylor, 359 Pa. 94, 58 A.2d 355 (1948).
. This Court has not totally invalidated attempts to create a tenancy by the entirety interest merely because an unmarried man and woman misrepresent that they are married, but has held that a joint tenancy is created. Maxwell v. Saylor, 359 Pa. 94, 58 A.2d 355 (1948).
. In support of his position Banko argues that he trusted Malanecki. There is no indication that this trust was anything more than the normal trust between a man and woman in an intimate relationship.
. Malanecki withdrew the entire amount of funds from the account for her own benefit. When one joint tenant withdraws funds from a joint bank account with the purpose of depriving the other joint tenant of use or title to the funds, the joint tenancy is terminated and a tenancy in common is created. Estate of Allen, 488 Pa. 415, 412 A.2d 833 (1980). A tenant in common of a bank account is entitled to one-half the funds that were in the account at the time of the improper withdrawal. Estate of Allen, supra.
Concurring Opinion
concurring.
I concur in the result. This record is devoid of support for the chancellor’s determination that the parties “did plan to marry.” Indeed, although appellee William Banko testified that he had hoped that he and appellant Gail Malanecki would eventually marry, it was appellee’s own testimony that appellant “didn’t want to get married.” Thus, it cannot be concluded that the proceeds from the sale of the former Banko residence were in any respect applied by appellee “in anticipation of . .. marriage.” DiFloridio v. DiFloridio 459 Pa. 641, 651, 331 A.2d 174, 180 (1975).
Although the majority does not specifically address whether appellee is entitled to relief with respect to his satisfaction of appellant’s car loan and house mortgage, it is clear that the Superior Court properly denied appellee relief on these claims.
Reference
- Full Case Name
- William BANKO v. William MALANECKI and Gail Malanecki, A/K/A Gail Woodard, A/K/A Gail Banko. Appeal of Gail MALANECKI
- Cited By
- 18 cases
- Status
- Published