Flesner v. Flesner

845 F. Supp. 2d 791, 52 Employee Benefits Cas. (BNA) 2714, 2012 WL 113708, 2012 U.S. Dist. LEXIS 4615
District Court, S.D. Texas·Decided January 13, 2012·No. Civil Action No. H-10-3758·Published·Cited by 5 cases

Opinion

MEMORANDUM OPINION

NANCY K. JOHNSON, United States Magistrate Judge.

Pending before the court1 are Plaintiffs Cross-motion for Summary Judgment (Doc. 38) and Defendants’ Cross-motion for Summary Judgment (Doc. 39). The court has considered the motions, all relevant filings, and the .applicable law. For the reasons set forth below, the court GRANTS Plaintiffs cross-motion for summary judgment and GRANTS IN PART and DENIES IN PART Defendants’ cross-motion for summary judgment.

I. Case Background

A. Factual History

William Martin Flesner (“decedent”) began working for Logix Communications, [794] Inc. (“Logix”) in 1998.2 Several years later, on February 6, 2002, the decedent married Plaintiff.3 Through a voluntary term life insurance program offered by his employer, the decedent obtained life insurance policies with Reliance Standard Life Insurance Company (“Reliance”) and Colonial Life and Accident Insurance Company (“Colonial”) in 2002 and 2005, respectively.4 Plaintiff was designated as the primary beneficiary under both policies.5 The decedent did not name any contingent beneficiaries.6

On or about November 5, 2009, Plaintiff and the decedent were divorced and the 221st Judicial District Court in Montgomery County, Texas, issued a final divorce decree.7 In the divorce decree, Plaintiff was divested of “all right, title, interest, and claim in and to” the property awarded to decedent as his sole and separate property, including:

The sums, whether matured or unmatured, accrued or unaccrued, vested or otherwise, together with all increases thereof, the proceeds therefrom, and any other rights related to any profit-sharing plan, retirement plan, Keogh plan, pension plan, employee stock option plan, 401(k) plan, employee savings plan, accrued unpaid bonuses, disability plan, or other benefits existing by reason of the husband’s past, present, or future employment.8

Almost six months after the divorce, on April 26, 2010, the decedent passed away without having changed the designated beneficiary under his life insurance policies.9

Plaintiff and Defendants each made claims to the proceeds of the decedent’s insurance policies.10 This lawsuit was filed shortly thereafter.

B. Procedural History

Plaintiff initiated this civil action on October 12, 2010, naming William G. Flesner, Reliance, Colonial, and ING Life Insurance and Annuity Company (“ING”) as defendants.11 Two days later, on October 14, 2010, William G. Flesner, individually and in his capacity as the executor of the decedent’s estate, and Maurine San Francis filed a claim against Plaintiff in the 418th Judicial District of Montgomery County, Texas, alleging breach of contract and seeking a declaratory judgment entitling them to decedent’s life insurance proceeds.12 Plaintiff removed the case pending in the 418th Judicial District Court to this court on the basis of federal question jurisdiction and moved to consolidate that [795] case with the present lawsuit.13 Although Defendants moved to remand the case back to state court, the court granted Defendants’ subsequent motion to withdraw the motion to remand.14

On October 27, 2010, the court dismissed ING without prejudice as a defendant in the suit.15 One day later, Colonial filed an answer and counterclaim to Plaintiffs complaint, a cross-claim against Defendant William G. Flesner, and counterclaims against Interpleader Defendants William G. Flesner and Maurine San Francis.16 Colonial further filed an unopposed motion to deposit the insurance funds of its policy with decedent into the court registry.17 On December 8, 2010, Reliance also filed an unopposed motion to deposit the insurance funds of its policy into the court registry.18 The court granted both motions to deposit funds on December 9, 2010.19 Upon depositing their respective funds, Colonial and Reliance were dismissed as defendants in the suit, leaving William G. Flesner, in his individual capacity and as executor of the decedent’s estate, and Maurine San Francis (“Defendants”) as the sole remaining defendants.20

Plaintiff and Defendants filed the pending cross-motions for summary judgment on June 30, 2011.21 Twenty days later, on July 20, 2011, Plaintiff responded to Defendants’ motion and Defendants responded to Plaintiffs motion.22

II. Summary Judgment Standard

Summary judgment is warranted when the evidence reveals that no genuine dispute exists regarding any material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Brown v. City of Houston, Tex., 337 F.3d 539, 540-41 (5th Cir.2003). A material fact is a fact that is identified by applicable substantive law as critical to the outcome of the suit. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Ameristar Jet Charter, Inc. v. Signal Composites, Inc., 271 F.3d 624, 626 (5th Cir.2001). To be genuine, the dispute regarding a material fact must be supported by evidence such that a reasonable jury could resolve the issue in favor of either party. Anderson, 477 U.S. at 250, 106 S.Ct. 2505; TIG Ins. Co. v. Sedgwick James of Wash., 276 F.3d 754, 759 (5th Cir.2002).

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Flesner v. Flesner, 845 F. Supp. 2d 791, 52 Employee Benefits Cas. (BNA) 2714, 2012 WL 113708, 2012 U.S. Dist. LEXIS 4615 (S.D. Tex. 2012).

845 F. Supp. 2d 791 (Flesner v. Flesner) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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