Rottmund v. Continental Assurance Co.

761 F. Supp. 1203, 1990 U.S. Dist. LEXIS 17607, 1990 WL 285670
CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 27, 1990
DocketCiv. A. 89-5970
StatusPublished
Cited by3 cases

This text of 761 F. Supp. 1203 (Rottmund v. Continental Assurance Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rottmund v. Continental Assurance Co., 761 F. Supp. 1203, 1990 U.S. Dist. LEXIS 17607, 1990 WL 285670 (E.D. Pa. 1990).

Opinion

MEMORANDUM AND ORDER

HUYETT, District Judge.

This is an action brought by the Estate of David R. Artz pursuant to the Pennsylvania Slayers Act, 20 Pa. Cons. Stat.Ann. §§ 8801-8815 (Purdon 1975 & Supp.1989), for the proceeds of two life insurance policies. Plaintiff Patti M. Rottmund, formerly Patti M. Artz, is suing in her capacity as the Executrix of the Estate of her former husband, David R. Artz. The life insurance policies in question insured the life of the decedent David Artz and were issued by defendants Continental Assurance Company (“Continental”) and Constitution Life Insurance Company (“Constitution”).

Plaintiff has filed a motion for summary judgment, defendant Continental has filed a motion for summary judgment, and defendant Constitution has filed a motion for summary judgment. For the reasons set forth below, I shall deny all three motions for summary judgment.

I.

Summary judgment is appropriate if there exists no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Small v. Seldows Stationery, 617 F.2d 992, 994 (3d Cir.1980). The court does not resolve questions of disputed fact, but simply decides whether there is a genuine issue of fact which must be resolved at trial. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2510-11, 91 L.Ed.2d 202 (1986); Ettinger v. Johnson, 556 F.2d 692 (3d Cir.1977). The facts must be viewed in the light most favorable to the opposing party, and reasonable doubt as to the existence of a genuine issue of material fact is to be resolved against the moving party. Continental Insurance Co. v. Bodie, 682 F.2d 436, 438 (3d Cir.1982). However, “there is no issue for trial unless there is sufficient evidence favoring the nonmoving party for a jury to return a verdict for that party. If the evidence is merely colorable, or is not significantly probative, summary judgment may be granted.” Anderson, 477 U.S. at 249-50, 106 S.Ct. at 2510-11 (citations omitted). The inquiry is whether the evidence presents a sufficient disagreement to require submission to the jury, or whether it is so one-sided that one party must prevail as a matter of law. Id. at 252, 106 S.Ct. at 2512.

II.

On April 25, 1984, the decedent David Artz, as owner and Chief Executive Officer of Conestoga Fuels, Inc. (“CFI”), entered into an agreement [hereinafter the “Stock Purchase Agreement” ] with Samuel Lom-bardo. Under the terms of the Stock Purchase Agreement, Lombardo agreed to purchase all of the outstanding shares of stock in CFI for a total purchase price of $1,500,-000.00. After executing the Stock Purchase Agreement, Artz purchased the two insurance policies which are the subject of the present action, designating CFI as the beneficiary of both policies. Subsequently, Artz changed the beneficiary of both policies to Conestoga Holding, Inc., an erroneous designation for Conestoga Holding Company (“CHC”). CHC was jointly owned by Samuel Lombardo and John Kramer.

David Artz was murdered on February 19, 1985. As of the date of Artz’s death, the Stock Purchase Agreement had not been fully executed, but service contracts had been undertaken in reliance upon it. On July 25, 1985, plaintiff, Artz’s wife, entered into an agreement [hereinafter the “Agreement”] with Lombardo, Kramer, and others who were parties to the service contracts to terminate the Stock Purchase Agreement as well as the service contracts. Plaintiff made this Agreement in both her *1205 individual capacity and in her capacity as Executrix of the Estate of David R. Artz.

The Agreement refers to three life insurance policies, all of which insured the life of David Artz. Lombardo, Kramer and the others agreed to make no claim of ownership to, or claim the proceeds payable from, a life insurance policy with Continental, Policy No. 03229330. In exchange, plaintiff, referred to in the Agreement as Patti Artz, and CFI agreed to make no claim of ownership to, or claim the proceeds payable from, a life insurance policy with Constitution, Policy No. 8087059, and a life insurance policy with Continental, Policy No. 3264721. Neither of the defendant insurance companies was a party to the Agreement, nor part of the negotiations leading up to the Agreement.

Pursuant to their rights under the Agreement and as the owners of the CHC, the designated beneficiary, Lombardo and Kramer commenced an action against Continental and Constitution for the proceeds of the two insurance policies at issue in the present case. Continental and Constitution filed a separate action alleging, among other things, that Lombardo and Kramer had no legal rights to the insurance proceeds because they had organized and implemented the murder of the insured, David Artz. The two actions were consolidated and later withdrawn when Lombardo and Kramer voluntarily relinquished any and all claims to the proceeds under the two life insurance policies.

After Lombardo and Kramer abandoned their claims, plaintiff, on behalf of the Estate of David R. Artz, made a demand upon Continental and Constitution for payment of the proceeds under the policies. Both Continental and Constitution rejected plaintiff’s demand. Thereafter, plaintiff filed the present action based on the premises that, under the Pennsylvania Slayer’s Act, 20 Pa. Cons. Stat. Ann. §§ 8801-8815 1 , the proceeds of the two life insurance policies, Continental Policy No. 3264721 and Constitution Policy No. 8087059, should be paid to the decedent’s estate.

III.

In her motion for summary judgment, plaintiff makes two arguments: (1) that this court should construe the allegations made by Continental and Constitution in the previous lawsuit as binding admissions in this lawsuit and, thus, conclusive of certain facts; and (2) that there is no evidence to support the defendants’ defenses. Plaintiff contends that she is entitled to summary judgment because she satisfies her burden of proving that Lombardo and Kramer are responsible for the death of David Artz merely by introducing evidence that defendants made the same allegation with respect to Lombardo and Kramer in the earlier lawsuit. Plaintiff’s contention is totally without merit.

The averments of plaintiff’s Complaint are based upon, and in some cases verbatim reiterations of the averments made by the defendants in their Amended Complaint in the prior lawsuit (United States District Court, Eastern District of Pennsylvania, Civil Action No. 85-48675). In the earlier lawsuit, defendants sought to preclude Lombardo and Kramer from recovering any of the proceeds of the very insurance policies which are the subject of this litigation.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

U.S. Bank N.A. v. O'Meara, D.
Superior Court of Pennsylvania, 2017
Arrowood Indemnity Co. v. Hartford Fire Insurance
774 F. Supp. 2d 636 (D. Delaware, 2011)
Rottmund v. Continental Assurance Co.
813 F. Supp. 1104 (E.D. Pennsylvania, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
761 F. Supp. 1203, 1990 U.S. Dist. LEXIS 17607, 1990 WL 285670, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rottmund-v-continental-assurance-co-paed-1990.