New England Mutual Life Insurance v. Anderson

888 F.2d 646, 1989 WL 120406
CourtCourt of Appeals for the Tenth Circuit
DecidedOctober 16, 1989
DocketNos. 87-2883, 89-3080
StatusPublished
Cited by1 cases

This text of 888 F.2d 646 (New England Mutual Life Insurance v. Anderson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New England Mutual Life Insurance v. Anderson, 888 F.2d 646, 1989 WL 120406 (10th Cir. 1989).

Opinion

SETH, Circuit Judge.

New England Mutual Life Insurance Company brought this diversity action seeking a declaratory judgment that it was not obligated to pay $270,000 under an insurance policy issued on the life of Martin Anderson because the policy had been fraudulently procured. Lorna Anderson Eldridge, Martin Anderson’s widow (since remarried) who was a defendant below, filed a counterclaim seeking the policy proceeds. She later disclaimed any interest in the proceeds, and prosecuted the counterclaim on behalf of the four minor children of the marriage. At the conclusion of trial on August 28, 1987, the jury found that the policy had not been fraudulently procured. New England was held liable for the full amount of the policy. In these two consolidated appeals, New England argues that the trial court erred in instructing the jury on the issue of procurement; in excluding certain evidence and testimony at trial; and (No. 89-3080) in denying New England’s Rule 60(b) motion for relief from judgment. We affirm.

Martin and Lorna Anderson lived in Em-poria, Kansas with their four daughters. He was a chief medical technologist and she worked as secretary to a local Lutheran pastor named Tom Bird. Martin Anderson had “always been one to have life insurance and be concerned about it,” his brother testified. Mr. Anderson had attended a seminar on life insurance and owned life insurance since at least 1980. A fellow employee of Martin Anderson testified that Mr. Anderson more than once encouraged him to increase his insurance coverage and acted like an insurance salesman.

Martin Anderson had previously purchased life insurance of New England in March 1982. This was a $300,000 term life policy purchased from agent Chris Kimble whom Martin Anderson knew in the Optimist Club. However, when premiums on the policy went unpaid starting in December 1982, the policy lapsed.

This case concerns a second New England policy on Martin Anderson’s life. In April 1983, Lorna Anderson visited the agent Chris Kimble at his office. She discussed life insurance with him, and he gave her a policy application which she took with her when she left. Martin Anderson met with Mr. Kimble after an Optimist Club meeting some time later. Mrs. Anderson was not present. Together they filled out the blank application form which the agent had given Mrs. Anderson earlier, and which Martin Anderson had brought with him. He applied for a $270,000 policy that included whole life, term life, and an accidental death benefit. He tendered a check for $90 to the agent, and in May he submitted to examinations required by New England which then issued the policy on May 26, 1983. Mr. Kimble later discussed with Mr. Anderson the details of the policy, at Mr. Anderson’s request.

Lorna Anderson became involved with the Reverend Tom Bird, and took a job at his church to be close to him. Eventually they came to view Martin Anderson as an obstacle to their happiness, and to view murder as the solution to their problems. To this end, they approached a Mr. Carter for help in hiring a hit man to kill Mr. Anderson. Although they paid $5,000 to Mr. Carter in September 1983, the murder did not take place as planned.

However, Martin Anderson was murdered on November 3, 1983. Martin and Lorna Anderson were returning to Emporia from Fort Riley. Lorna Anderson, who was driving, feigned illness and pulled over to the side of the road. She persuaded Mr. Anderson to get out of the family van. Reverend Bird, who had been waiting at the predesignated roadside spot, shot Mar[649]*649tin Anderson several times in the head with a .22 pistol that Lorna Anderson had provided him earlier. Mr. Anderson died at the scene.

New England complains that the instructions to the jury were defective. The trial court enjoys substantial latitude in tailoring the instructions so long as they fairly and adequately cover the issues presented. Challenges to the trial court’s language or formulation of the charge are reversible only for an abuse of discretion. Richards v. Attorneys’ Title Guar. Fund, Inc., 866 F.2d 1570, 1573 (10th Cir.). A party has no vested interest in any particular form of instructions and, of course, all instructions are considered together.

Under Kansas law an insurer is relieved of liability under a life insurance policy if it can prove that the beneficiary procured the policy with the predetermined intent to kill the insured. Chute v. Old American Ins. Co., 6 Kan.App.2d 412, 629 P.2d 734, 738-39. The trial court in the case before us submitted this case to the jury in the form of a special verdict consisting of two questions: Did Lorna Anderson procure the insurance policy on Martin Anderson’s life? Did she intend to murder him at the time she procured the policy? The jury found that she did not procure the policy, and it did not address the question of fraudulent intent.

New England argues that the instructions to the jury on the procurement issue were flawed in that they did not take into account the “unique circumstances” of the marital relationship. New England believes that the jury should have been allowed to consider the respective degree of participation of Martin and Lorna Anderson in the procurement of the policy, and that the jury should have been allowed to find that Lorna Anderson indirectly procured the policy even though Martin Anderson may have actually applied for or paid the premium for the policy.

The trial court’s instructions on the issue of procurement were straightforward:

“In determining whether the policy of insurance on the life of Martin K. Anderson was procured through fraud, you must determine who actually procured the life insurance policy. If you find that Martin K. Anderson executed the application and procured the insurance for his own purposes and thus became the actual contracting party with the insurance company, then the insurance policy was not procured through fraud and you must find in favor of the defendants.
“If, however, you find by clear and convincing evidence that (1) Lorna Anderson Eldridge conceived the idea of murdering Martin K. Anderson prior to the time the insurance policy was procured, and (2) with that thought in mind Lorna Anderson Eldridge herself procured the policy, either in person or acting through Martin K. Anderson as an innocent instrumentality so that the insurance policy was, in actual effect, at its inception a contract between Lorna Anderson El-dridge and New England Mutual Life Insurance Company, then you must find in favor of the plaintiff.
“ ‘Procurement’ or ‘to procure’ means to cause a thing to be done, to instigate, to persuade, induce, and prevail upon, to cause a person to do something.”

Given the broad definition of “procurement” that New England advanced — the soundness of which we need not consider— the instruction that it proffered and that the trial court rejected differed little from the instructions as given, though it emphasized indirect procurement. The trial court’s instruction however permitted the jury to find indirect procurement.

The trial court correctly stated the applicable Kansas law concerning “procurement.” See Wheeler v. John Deere Co., 862 F.2d 1404

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Bluebook (online)
888 F.2d 646, 1989 WL 120406, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-england-mutual-life-insurance-v-anderson-ca10-1989.