O'Brien v. McMahon ex rel. Todd

44 So. 3d 1273, 2010 Fla. App. LEXIS 15063, 2010 WL 3909644
District Court of Appeal of Florida·Decided October 7, 2010·No. No. 1D10-0015·Published·Cited by 8 cases

Opinion

BENTON, J.

Elizabeth Anne O’Brien appeals the summary, declaratory, partial1 final judgment ruling that she had no right to proceeds of her uncle Calvin L. Todd, Jr.’s life insurance policy. The trial court concluded that the late Mr. Todd had, in compliance with the policy’s terms, substituted his younger daughter for his niece as a beneficiary some years before he died. We affirm.

On May 4, 1990, Prudential Insurance Company (Prudential) issued the life insurance policy in question under which — as is customary, see 29 Bertram Harnett & Irving I. Lesnick, Appleman on Insurance § 180.08 (2d ed. 2006) (“[I]n most life insurance policies the right to change the beneficiary is reserved.”) — Mr. Todd, as the policy’s owner, was free to change beneficiaries. Insofar as pertinent, the policy provided only:

You may designate or change a beneficiary. Your request must be in writing and in a form that meets our needs. It will take effect only when we file it at our Home Office; this will be after you send the contract to us to be endorsed, if we ask you to do so. Then any previous beneficiary’s interest will end as of the date of the request. It will end even if the insured is not living when we file the [1276]*1276request. Any beneficiary’s interest is subject to the rights of any assignee we know of.

On October 18, 1999, Mr. Todd executed a Prudential form2 adding his newly-adopted daughter, Heather Ashley Todd, and removing his niece, Ms. O’Brien, as a beneficiary.3 He designated Paul and Gloria McCreary as guardians of the property both for Heather Ashley Todd and for his older daughter, Madison Anne Todd, who remained a co-beneficiary. Each daughter was to receive half of the insurance proceeds.

After Mr. Todd died on September 28, 2007, internal Prudential emails sent October 26 and 27, 2007, stated that the policy’s beneficiaries were Madison and Heather Todd, but also said that Prudential needed to confirm the beneficiaries of record, and that an April 17, 1996, change4 was the last fully processed5 beneficiary change on the policy.

In response to the complaint for declaratory judgment Ms. O’Brien filed against Robert and Tonya Hurst (the adoptive parents of Heather Ashley Todd), Carol Todd, the decedent’s ex-wife and mother of Madison Anne Todd, and Prudential, Prudential counterclaimed for declaratory relief and interpleaded the Estate of Calvin Todd (Estate) and T.T. Todd Corporation. On June 23, 2009, Ms. O’Brien filed a motion for summary judgment, arguing [1277]*1277that her uncle had not strictly complied with the requirements of his life insurance policy in effecting the change of beneficiary, and that Prudential had not “accepted” his 1999 (or 2000) changes. On September 11, 2009, both the Hursts and the Estate filed cross motions for summary judgment, arguing that Mr. Todd’s change of beneficiaries had been effective under the policy.

On November 20, 2009, the trial court denied Ms. O’Brien’s motion for summary judgment and granted summary judgment for the Hursts and the Estate.6 Finding that Prudential had received the 1999 change of beneficiary form and filed it in its home office, the trial court stated:

Thereafter, another discussion took place via correspondence and telephone calls relating to the status of Mr. and Mrs. McCreary in overseeing the proceeds of the policy; while the girls remained minors. In addition, Prudential entered into a discourse with Mr. Todd regarding the method of payment, whether lump sum or other alternatives. While these additional matters constitute disputed issues of fact, they are not material to the issue of designation of beneficiaries.

The trial court found that Mr. Todd had strictly complied with the applicable policy provisions, and specifically concluded that he had met the “requirements of using the form required by Prudential in designating a change of beneficiary....”

On review of summary judgment, “this court applies the de novo standard of review to determine whether there are genuine issues of material fact and whether the trial court properly applied the correct rule of law.” Futch v. Wal-Mart Stores, Inc., 988 So.2d 687, 690 (Fla. 1st DCA 2008) (citing Volusia County v. Aberdeen at Ormond Beach, L.P., 760 So.2d 126, 130 (Fla.2000); Sierra v. Shevin, 767 So.2d 524, 525 (Fla. 3d DCA 2000)). It has been specifically held that “ ‘construction of an insurance policy is a question of law for the court and is subject to de novo review.’ ” Liebel v. Nationwide Ins. Co. of Fla., 22 So.3d 111, 114-15 (Fla. 4th DCA 2009) (quoting Flaxman v. Gov’t Employees Ins. Co., 993 So.2d 597, 599 (Fla. 4th DCA 2008)).

Contract principles apply to the interpretation of an insurance policy, which is a type of contract. See Am. Strategic Ins. Co. v. Lucas-Solomon, 927 So.2d 184, 186 (Fla. 2d DCA 2006). “In construing a contract, the court should consider its plain language and take care not to give the contract any meaning beyond that expressed. When the language is clear and unambiguous, it must be construed to mean ‘just what the language therein implies and nothing more.’ ” Walker v. State Farm Fire & Cas. Co., 758 So.2d 1161, 1162 (Fla. 4th DCA 2000) (citations omitted).

In general, the right of an insured owner to change the beneficiaries of a life insurance policy “depends on the terms of contract between the insurer and insured as expressed in the insurance policy.” Martinez v. Saez, 650 So.2d 668, 669 (Fla. 3d DCA 1995) (quoting Shuster v. N.Y. Life Ins. Co., 351 So.2d 62, 64 (Fla. 3d DCA 1977)). In the present case, Prudential is the insurer and Mr. Todd is the insured. Ms. O’Brien makes no claim here [1278]*1278or below that her uncle was under any legal obligation to make or keep her as a beneficiary under the policy. See generally Palm Lake Partners II, LLC v. C & C Powerline, Inc., 38 So.3d 844, 849 (Fla. 1st DCA 2010) (“A ‘promisor and a promisee can by agreement create a duty to a beneficiary which cannot be varied without his consent. But in the absence of such an agreement the parties retain control over the contractual relation they have created.’ ”) (quoting Restatement (Second) of Contracts 311 cmt. f. (1981)).

Ms. O’Brien grounds her entire position on Prudential’s putative rights under the contract, rights which as to her are jus tertii She asserts no rights that Prudential itself could not have asserted (if it had been so inclined) when she argues “that a beneficiary under a life insurance policy may be changed only by strict compliance with the conditions set forth in the policy.” Brown v. Di Petta, 448 So.2d 561, 562 (Fla. 3d DCA 1984) (citing Gerstel v. Arens, 143 Fla. 20, 196 So. 616 (1940); Warren v. Prudential Ins. Co. of Am., 138 Fla. 443, 189 So. 412 (1939); Sheppard v. Crowley, 61 Fla. 735, 55 So. 841 (1911)).7 Yet Prudential does not make this argument or in any other way align itself with Ms. O’Brien’s efforts to claim the policy proceeds (or a portion thereof) for herself.

Pretermitting the question whether Ms. O’Brien should be heard to urge the rights of a third party who has elected to stand mute, we turn to the pertinent policy language:

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O'Brien v. McMahon ex rel. Todd, 44 So. 3d 1273, 2010 Fla. App. LEXIS 15063, 2010 WL 3909644 (Fla. Ct. App. 2010).

44 So. 3d 1273 (O'Brien v. McMahon ex rel. Todd) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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