West Coast Life Ins Co v. Degner

CourtDistrict Court, D. Connecticut
DecidedSeptember 24, 2024
Docket3:22-cv-00443
StatusUnknown

This text of West Coast Life Ins Co v. Degner (West Coast Life Ins Co v. Degner) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
West Coast Life Ins Co v. Degner, (D. Conn. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT --------------------------------------------------------------- x WEST COAST LIFE INSURANCE COMPANY, : : Interpleader Plaintiff, : : MEMORANDUM & -against- : ORDER ON CROSS- : MOTIONS FOR QUINN JAMES DEGNER, GRETA : SUMMARY JUDGMENT GRACE DEGNER, and KATRIN : MARIA DEGNER, : 3:22-CV-00443 (VDO) : Interpleader Defendants. : --------------------------------------------------------------- x VERNON D. OLIVER, United States District Judge: This interpleader action was brought by West Coast Life Insurance Company (“West Coast”) to resolve competing claims to the proceeds of Kristin Schleiter’s (“Schleiter”) life insurance policy. The Court previously entered default judgment against one of the deceased’s daughters, Katrin Degner (“Katrin”), who did not appear to defend this action, and discharged and dismissed West Coast from the case. Before the Court are the motion for summary judgment of the deceased’s husband, Quinn Degner (“Quinn”), and the cross-motion for summary judgment of the deceased’s daughter, Greta Degner (“Greta”). After careful consideration of the record and applicable law and for the following reasons, Quinn’s motion for summary judgment is granted in part and denied in part and Greta’s cross-motion for summary judgment is denied. The issue of whether Schleiter substantially complied with her life insurance policy’s procedures to change the beneficiary remain before the trier of fact. I. BACKGROUND A. Undisputed Facts The following facts are undisputed and are based on the record, including the parties’ pleadings,1 and the parties’ Local Rule 56(a) statements.2 On January 11, 2002, West Coast issued a policy insuring Schleiter’s life with a face

amount of $1,000,000.00 (the “Policy”). (Compl., ECF No. 1 ¶ 7.) Schleiter’s policy application designated her husband Quinn as the Policy’s primary beneficiary and their daughter Greta as the contingent beneficiary. (Id.) Quinn and Schleiter were married in 1991. (Greta’s 56(a)2 ¶ 1.) In June 2017, Schleiter was diagnosed with amyotrophic lateral sclerosis (“ALS”), a progressive condition that gradually led to her deterioration and death. (Quinn’s 56(a)2 ¶ 4.) Schleiter’s ALS prevented

her from signing a document by hand and forced her to respond to questions by spelling out words with the assistance of her eye-gaze device. (Id. ¶ 11.) In July 2020, Schleiter gave a durable statutory power of attorney to Quinn, which authorized him to change the beneficiary designation. (Greta’s 56(a)2 ¶ 6; ECF No. 54-2.)

1 The pleadings include: West Coast’s Interpleader Complaint, ECF No. 1; Quinn’s Answer and Cross-Claim, ECF No. 23; Greta’s Answer and Cross-Claim, ECF No. 25; Greta’s Answer to Quinn’s Cross-Claim, ECF No. 33; and Quinn’s Answer to Greta’s Cross-Claim, ECF No. 34. 2 The parties’ Local Rule 56(a) statements include: Quinn’s Local Rule 56(a)1 Statement of Undisputed Material Facts (“Quinn’s 56(a)1,” ECF No. 53); Greta’s Local Rule 56(a)2 Statement of Facts in Opposition to Summary Judgment (“Greta’s 56(a)2,” ECF No. 61-1); Greta’s Local Rule 56(a)1 Statement of Undisputed Material Facts (“Greta’s 56(a)1,” ECF No. 58); and Quinn’s Local Rule 56(a)2 Statement of Facts in Opposition to Summary Judgment (“Quinn’s 56(a)2,” ECF No. 62-1). 1. Fairfield Probate Court Proceedings On May 5, 2021, Schleiter petitioned the Court to appoint her sister, Laura Brune, as her voluntary conservator of the estate and person. (Greta’s 56(a)2 ¶ 8.) Schleiter’s counsel in the probate proceedings, Heather Lange, submitted an affidavit with the voluntary

conservatorship petition stating, in relevant part, “I believe Ms. Schleiter to be competent and to understand the nature and consequences of her request.” (Quinn’s 56(a)2 ¶ 13.) Attorney Lange repeated this belief during the hearing itself. (Id.) At the hearing on May 18, 2021, the Court canvassed Schleiter, who confirmed that she did not want Quinn serving in the role of conservator. (Id. ¶¶ 13, 14.) At the conclusion of the hearing, the Court stated, “I’m satisfied that, that your client [Schleiter] has capacity, Attorney Lange, and [] I should be speaking straight to her, and that this is what her wish is. So I’m going to go ahead and let you know,

usually I wait, but I'm going to grant the petition.” (Id. ¶ 15.) That same day, a Fiduciary’s Probate Certificate was issued to Brune by the Fairfield Probate Court. (ECF No. 58-3 at 6.) The Fairfield Probate Court (Maxham, J.) issued a formal written decree on June 17, 2021 (the “June 2021 decree”). (Greta’s 56(a)2 ¶ 9.) The June 2021 decree provided that Brune, as conservator of Schleiter’s estate, was given specific authority over certain of Schleiter’s financial affairs and required Brune to “make a true and complete inventory of all

property of [Schleiter] and file the inventory with the court within two months of the date of appointment.” (Id. ¶ 10; ECF No. 54-5 at 3.) Additionally, as conservator of Schleiter’s person, Brune was given authority over Schleiter’s personal and medical care, her residence, and personal effects. (Greta’s 56(a)2 ¶ 11; ECF No. 54-5 at 2.) The June 2021 decree also provided that Schleiter “shall retain all rights and authority not expressly assigned to the conservator.” (Greta’s 56(a)2 ¶ 12; ECF No. 54-5 at 3.) On October 26, 2022, in a decree related to Quinn’s petition to compel Brune to file an accounting (the “October 2022 Decree”), the Probate Court stated that “Laura Brune was appointed voluntary conservator of the estate and person . . . on June 17, 2021.” (Greta’s 56(a)2

¶ 15; ECF No. 54-9 at 2.) 2. Brune’s Requests To Change The Policy’s Beneficiary On May 19, 2021, Brune sent an email to West Coast stating that she was “appointed conservator for [her] sister, Kristin Schleiter . . . [and that] [t]his overrides the previous power of attorney held by Quinn Degner . . . We would appreciate this being handled as quickly as possible.” (ECF No. 55-1 at 2.) Brune also submitted to West Coast the May 18, 2021 Fiduciary’s Probate Certificate. (Greta’s 56(a(2 ¶ 23.) Brune submitted multiple requests to change the Policy’s beneficiary on May 19, 2021.

At 8:36 a.m. CDT, Brune, purporting to act on behalf of Schleiter, electronically submitted to West Coast Life a Change of Beneficiary form designating Greta and Katrin as the Policy’s primary and contingent beneficiaries. (Id. ¶ 24.) Brune then electronically submitted to West Coast another Change of Beneficiary form designating Quinn as the Policy’s primary beneficiary, and herself as the Policy’s contingent beneficiary. (Id. ¶ 25.) Subsequently, at 8:48 a.m. CDT, Brune electronically submitted to West Coast Life another Change of Beneficiary

form designating Greta and Katrin as the Policy’s primary beneficiaries, and herself as the Policy’s contingent beneficiary. (Id. ¶ 26.) 3. The Divorce Action In 2021, the marriage between Quinn and Schleiter deteriorated. (Greta’s 56(a)2 ¶ 18.) On May 19, 2021, Quinn filed for divorce, prompting automatic orders from the Superior Court to Schleiter and Quinn. (Quinn’s 56(a)2 ¶ 26.) The automatic orders stated that, “[n]either party shall change the beneficiaries of any existing life insurance policies, and each party shall maintain the existing life insurance . . . policies in full force and effect.” (ECF No. 58-11 at 4.) They added that “[t]he automatic orders shall be effective with regard to the plaintiff or the

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West Coast Life Ins Co v. Degner, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-coast-life-ins-co-v-degner-ctd-2024.