Martineau v. Currutt

CourtDistrict Court, D. Utah
DecidedJanuary 19, 2022
Docket1:21-cv-00045
StatusUnknown

This text of Martineau v. Currutt (Martineau v. Currutt) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martineau v. Currutt, (D. Utah 2022).

Opinion

CLERK U.S. DISTRICT COURT IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH

DIANE MARTINEAU, MEMORANDUM DECISION AND Plaintiff, ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS WITHOUT v. PREJUDICE

KEVIN CURRUTT; NORTHWESTERN Case No. 1:21-cv-00045-JNP-DBP MUTUAL LIFE INSURANCE COMPANY; MUTUAL TRUST LIFE INSURANCE District Judge Jill N. Parrish COMPANY; and JOHN DOES 1–10,

Defendants.

Plaintiff Diane Martineau is a licensed life insurance agent who sold whole life insurance policies to Abigail Buchmiller and Amanda Roseburg (collectively, “the sisters”). The sisters subsequently cancelled their policies, which allegedly caused Martineau to lose significant commissions. Martineau sued Defendant Kevin Currutt, a life insurance agent for Northwestern Mutual Life Insurance Company (“Northwestern”), for tortious interference with business relations for his alleged role in the cancellations, as well as for defamation per se and false light. Martineau also sued Northwestern for vicarious liability.1

1 Martineau also sued Mutual Trust Life Insurance Company (“MTL”) for negligence. However, before this case was removed to federal court, Martineau filed a motion in state court to amend her complaint and in that motion represented that “[u]pon the complaint being amended to include Mr. Currutt and Northwestern, [she] has agreed to dismiss Defendant Mutual Trust Life Insurance Company from the case.” ECF No. 5-34 ¶ 5. Although the motion to amend was granted, ECF No. 5-39, the amended complaint—at least on its face—still includes MTL as a defendant, and the court is not aware of any state court order dismissing MTL from this case. Accordingly, as far as the court is concerned, Martineau’s claim against MTL remains a live controversy. Regardless, because Defendants’ Motion to Dismiss does not substantively address Martineau’s negligence claim against MTL, the court does not consider or discuss that claim any further. Before the court is Currutt and Northwestern’s (collectively, “Defendants”) Motion to Dismiss for Failure to State a Claim (ECF No. 16). For the reasons set forth herein, the court GRANTS Defendants’ Motion to Dismiss WITHOUT PREJUDICE. BACKGROUND2 Martineau is a licensed life insurance agent. In late 2019, Martineau, acting as an agent for

Mutual Trust Life Insurance Company (“MTL”), sold whole life insurance policies to the sisters. These policies were “specially-designed whole life insurance policies with immediate access to a high percentage of cash value, guaranteed growth and stability.” ECF No. 5-41 ¶ 20. Consequently, the policies were expensive, with the sisters hoping to “mak[e] monthly premium payments of $800,000 into the policies within the year.” Id. ¶ 27. Martineau’s projected commissions from the sale of these and related policies were “approximately $2,250,000.” Id. ¶ 30. One feature of the policies was a “free-look” period of 30 days, during which time the sisters could cancel their policies and “receive a refund of their fully paid premium to that point without any penalties from MTL.” Id. ¶ 39. Although the sisters did not cancel their policies during

the free-look period, in or around February 2020, the sisters “began conversing with Currutt of Northwestern” after the sisters were referred to him by their business bank. Id. ¶ 41. “At some point prior to February 18, 2020, Currutt commenced a campaign to figure out how to cancel Buchmiller’s and Roseburg’s respective MTL policies without incurring any penalties while receiving a full refund of the premium payments they made.” Id. ¶ 42. “This campaign entailed at least three separate phone calls [during which] Currutt stated that he was calling on behalf of [the sisters].” Id. In addition, Currutt advised and instructed the sisters to send

2 “The facts are recited from the complaint on a motion to dismiss, but the court makes no findings of facts as to such allegations.” See Spence v. Basic Rsch., No. 2:16-cv-925-CW, 2017 U.S. Dist. LEXIS 85175, at *2 n.1 (D. Utah May 31, 2017). to MTL “their unsigned policy delivery receipt documents” and to claim “that they had never signed the policies” and, therefore, were entitled to a full refund. Id. ¶ 50. However, this ploy was unsuccessful because MTL “already had in its possession copies of the policies signed by” the sisters. Id. Then, on or around March 10, 2020, Currutt and the sisters contacted MTL and accused

Martineau of “persaud[ing] Buchmiller and Roseburg to purchase the insurance policies with unethical behavior and by falsely representing the features of the life insurance policies and defrauding Buchmiller and Roseburg.” Id. ¶ 80. But, “[b]y this time, MTL was familiar with Currutt’s repeated fishing inquiries.” Id. ¶ 54. Thus, when Mark Creighton, the regional vice president for MTL, became aware of Currutt’s accusations regarding Martineau and the sisters’ efforts to cancel their policies, he “decided that [the] policies should not yet be canceled because [he] hoped that [Martineau] could work through the issues with Buchmiller and Roseburg.” Id. ¶ 66. Despite Creighton’s decision to postpone cancellation of the sisters’ policies, the policies were cancelled as “free-look” cancellations on March 17, 2020 “[d]ue to a miscommunication internally

at MTL.” Id. ¶ 67. Based on the foregoing, Martineau sued Currutt for tortious interference with business relations, defamation per se, and false light. Martineau also sued Northwestern for vicarious liability under a theory of respondeat superior.3 Defendants moved to dismiss all of these claims under Federal Rule of Civil Procedure 12(b)(6).

3 The sisters were previously also defendants in this action, but they reached a settlement agreement with Martineau and have since been dismissed from the lawsuit. See ECF No. 5-16. LEGAL STANDARD Dismissal of a claim under Federal Rule of Civil Procedure 12(b)(6) is appropriate where the plaintiff fails to “state a claim upon which relief can be granted.” “The court’s function on a Rule 12(b)(6) motion is not to weigh potential evidence that the parties might present at trial, but to assess whether the plaintiff’s complaint alone is legally sufficient to state a claim for which

relief may be granted.” Dubbs v. Head Start, Inc., 336 F.3d 1194, 1201 (10th Cir. 2003) (citation omitted). Thus, when considering a motion to dismiss for failure to state a claim, a court “accept[s] as true all well-pleaded factual allegations in the complaint and view[s] them in the light most favorable to the plaintiff.” Burnett v. Mortg. Elec. Registration Sys., Inc., 706 F.3d 1231, 1235 (10th Cir. 2013). A complaint survives a motion to dismiss for failure to state a claim when the complaint contains “sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable

inference that the defendant is liable for the misconduct alleged.” Id. Indeed, the complaint must allege more than labels or legal conclusions and its factual allegations “must be enough to raise a right to relief above the speculative level.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007).

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