Hallingby v. Hallingby

693 F. Supp. 2d 360, 2010 U.S. Dist. LEXIS 20247, 2010 WL 779291
CourtDistrict Court, S.D. New York
DecidedMarch 3, 2010
Docket06 Civ. 5059(VM)
StatusPublished
Cited by7 cases

This text of 693 F. Supp. 2d 360 (Hallingby v. Hallingby) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hallingby v. Hallingby, 693 F. Supp. 2d 360, 2010 U.S. Dist. LEXIS 20247, 2010 WL 779291 (S.D.N.Y. 2010).

Opinion

DECISION AND ORDER

VICTOR MARRERO, District Judge.

Plaintiff Jo Davis Hallingby (“J. Hallingby”), as Executrix of the Estate of Paul Hallingby, Jr. (the “Estate”), brought this action in New York State Supreme Court, New York County (the “State Court”) against defendant Mai V. Hallingby, now known as Mai V. Harrison (“Harrison”) and the Metropolitan Life Insurance Company (“MetLife”) to recover certain annuity benefits and to enforce the marital property settlement dated May 5, 1994 (the “Settlement Agreement”) between decedent Paul Hallingby, Jr. (“P. Hallingby”) and Harrison, his former wife. MetLife removed the action to this Court, contending that the recovery of the annuity benefits at issue was governed by the Employee Retirement Income Security Act of 1974 (“ERISA”). See 29 U.S.C. § 1001 et *362 seq. The Court then dismissed the action against MetLife with prejudice.

The remaining parties, J. Hallingby and Harrison, brought cross-motions for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure (“Rule 56”). By Decision and Order dated March 26, 2008, 541 F.Supp.2d 591, (the “Decision and Order”), the Court granted Harrison’s motion and denied J. Hallingby’s motion on the grounds that J. Hallingby’s claims were foreclosed by ERISA and the terms of the two group annuity contracts at issue, Contract No. 10438 and Contract No. 1179A (collectively, the “Annuities”). 1 J. Hallingby appealed the judgment to the United States Court of Appeals for the Second Circuit, arguing that her claims were governed by New York state law, not ERISA. By Decision and Order dated July 24, 2009, 574 F.3d 51 (the “Second Circuit Decision and Order”), the Second Circuit concluded that J. Hallingby’s claims were not governed by ERISA, vacating the judgment and remanding the matter for adjudication under state law. 2

J. Hallingby and Harrison now bring renewed cross-motions for summary judgment pursuant to Rule 56. For the reasons stated below, Harrison’s motion is GRANTED in part and DENIED in part and J. Hallingby’s motion is GRANTED in part and DENIED in part.

I. BACKGROUND 3

A. FACTS

The facts underlying this action are set forth in the Second Circuit Decision and Order, familiarity with which is assumed. In summary, P. Hallingby married Harrison on May 18, 1983. During the course of the marriage, P. Hallingby procured the Annuities, which provided for future monthly payments to P. Hallingby beginning on his retirement. P. Hallingby designated Harrison as the survivor annuitant who would receive the annuity payments in the event of his death. P. Hallingby retired on October 1, 1986, and the Annuities vested on that date in accordance with their terms.

Several provisions contained in the Annuities are relevant to the instant motions. Paragraph 3.3(B) of the Annuities states, “[i]f both the Annuitant and the survivor annuitant are alive on the [Annuitant’s retirement date], the Annuitant will not have the right to change the survivor annuitant for any reason.” (Dolan Decl., Ex. B at Group Annuity Contract 10438 ¶ 3.3(B).) However, ¶ 4.5 of the Annuities states that, “[i]n the case of any annuity that has a provision for payment to a beneficiary, the designation of beneficiary may be changed by filing written notice of the change with Metropolitan on an appropriate form.” {Id. ¶ 4.5.) Additionally, the Annuities also state that MetLife will:

*363 honor any valid court order relating to the provision of child support, alimony payments, or marital property rights to a Spouse, former Spouse, child or other dependant of an Annuitant covered under this Contract if such order does not require payments under a form of benefit not otherwise available under this Contract nor increase the present value of the benefit payable under the Contract ....

(Id. ¶ 3.19.)

P. Hallingby and Harrison divorced June 7,1994. The State Court entered the judgment (the “Judgment of Divorce”), which incorporated by reference the Settlement Agreement. The Settlement Agreement provided that Harrison and P. Hallingby

acknowledge that they have no right, title or interest in any of the bank accounts, securities, pension plans, retirement plans, profit sharing plans, annuities or IRAs now in the name of the other, whether in the other’s sole name or jointly or in trust for another.

(Dolan Deck, Ex. C. at Settlement Agreement Art. 11(2).)

P. Hallingby married J. Hallingby on November 17, 1994. On the same day, P. Hallingby submitted the proper change-of-beneficiary forms to MetLife in order to revoke Harrison and designate J. Hallingby as survivor annuitant under the Annuities. MetLife declined the request.

P. Hallingby died on June 1, 2005. Following his death, MetLife began making payments to Harrison. J. Hallingby filed the instant action in State Court against Harrison and MetLife on May 30, 2006, alleging breach of contract and unjust enrichment against Harrison, and claiming that J. Hallingby had the right to the survivor benefits under the Annuities.

B. PROCEDURAL HISTORY

MetLife removed the action to this Court on June 30, 2006, arguing that ERISA governed the issue of entitlement to the Annuities. At a pretrial conference before Magistrate Judge Andrew Peck, MetLife represented that it had no interest in the outcome of the dispute, and that it would make payments to either Harrison or J. Hallingby, as decided by the Court. By Order dated August 1, 2007, Magistrate Judge Peck dismissed MetLife from the action with prejudice.

The remaining parties moved for summary judgment by motions dated September 14, 2007. In its Decision and Order, this Court denied J. Hallingby’s motion and granted Harrison’s motion, holding that ERISA’s anti-alienation provision and the terms of the Annuities precluded Harrison’s waiver of her vested interest as survivor annuitant. On appeal, the Second Circuit concluded that ERISA did not govern the case, vacating this Court’s decision. After determining that the federal courts retained subject matter jurisdiction, the Second Circuit remanded the case and instructed this Court to adjudicate J. Hallingby’s claims under state law.

II. LEGAL STANDARD

In connection with a Rule 56 motion, “[sjummary judgment is proper if, viewing all the facts of the record in a light most favorable to the non-moving party, no genuine issue of material fact remains for adjudication.” Samuels v. Mockry, 77 F.3d 34

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Bluebook (online)
693 F. Supp. 2d 360, 2010 U.S. Dist. LEXIS 20247, 2010 WL 779291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hallingby-v-hallingby-nysd-2010.