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Keywords

contractpleamotionsummary judgmentwillcompliancemotion for summary judgment

contractplaintiffdefendantattorneyliabilityhearingmotionsummary judgmentwillcompliancemotion for summary judgment

Related Cases

Lincoln Life and Annuity Co. of New York v. Caswell, 31 A.D.3d 1, 813 N.Y.S.2d 385, 2006 N.Y. Slip Op. 02658

Facts

In April 1985, Aetna Life Insurance issued a life insurance policy to Martha L. Hubbard, which allowed for changes in beneficiary through a signed request. The insured changed the beneficiary designation twice, with the last change in October 1987 naming her son as primary beneficiary and Caswell as contingent beneficiary. After the insured's death in May 2004, conflicting claims arose regarding the policy proceeds, leading to the interpleader action initiated by Lincoln Life. The insured's will, executed in June 2003, specifically referred to the policy but did not follow the required procedure for changing the beneficiary.

In June 2004, Caswell and the nominated executors of the insured's estate, by their respective attorneys, sent letters to the insurance company asserting conflicting claims to the proceeds of the ′854 policy.

Issue

Did the insured's specific testamentary disposition of her life insurance policy in her will constitute substantial compliance with the policy's requirements for effecting a change of beneficiary?

Rule

The method prescribed by the insurance contract must be followed in order to effect a change of beneficiary, and a general testamentary statement in a will does not override a prior designation made in accordance with the terms of the policy.

The general rule is that 'the method prescribed by the insurance contract must be followed in order to effect a change of beneficiary.'

Analysis

The court determined that the insured's will, while indicating her intent regarding the policy proceeds, did not constitute an attempt to comply with the policy's requirements for changing beneficiaries. The insured had previously followed the correct procedure to change beneficiaries and had not taken any steps to comply with the policy's requirements after executing her will. Therefore, the court concluded that the will did not effectuate a change of beneficiary under the policy.

Although the will may constitute some evidence of the insured's subjective intentions, the making of the will plainly was not an attempt to comply with the simple change-of-beneficiary procedure set forth in the ′854 policy.

Conclusion

The court modified the lower court's order to grant Caswell's motion for summary judgment to the extent of declaring him the sole beneficiary of the insurance policy, while affirming the other aspects of the order.

Accordingly, the order of the Supreme Court, Bronx County (Mary Ann Brigantti–Hughes, J.), entered on or about March 7, 2005, which denied defendant Caswell's motion for summary judgment on his counterclaim, granted plaintiff's cross motion for leave to deposit into court the proceeds of Policy No. U1179854, issued by Aetna Life Insurance and Annuity Company to Martha L. Hubbard, deceased, discharged plaintiff from any liability under such policy, and granted the branch of plaintiff's cross motion seeking costs, disbursements and reasonable attorneys' fees to the extent of setting the matter down for a framed issue hearing, should be modified, on the law, to grant Caswell's motion for summary judgment to the extent of declaring him the sole beneficiary of the subject insurance policy, and otherwise affirmed, without costs.

Who won?

Bennie Caswell prevailed in the case as the court declared him the sole beneficiary of the insurance policy based on the prior beneficiary designation.

Caswell's motion for summary judgment should have been granted to the extent of declaring him the sole beneficiary of the ′854 policy.

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