Adams v. Macy, Civ. A. No. 19506.
| Decision Date | 23 June 1970 |
| Docket Number | Civ. A. No. 19506. |
| Citation | 314 F. Supp. 399 |
| Parties | Naomi ADAMS v. John W. MACY, Jr., Chairman, Robert E. Hampton, and Ludwig J. Andolsek, Commissioners being and comprizing the members of the United States Civil Service Commission. |
| Court | U.S. District Court — District of Maryland |
M. Richard Moss, Baltimore, Md., for plaintiff.
George Beall, U. S. Atty., and Clarence E. Goetz, Asst. U. S. Atty., Baltimore, Md., for defendants.
Plaintiff brings this suit in the United States District Court for the District of Maryland to recover death benefits alleged to be due her as the designated beneficiary of her deceased husband under the Federal Employees Group Life Insurance Program.
The parties have stipulated the following facts:
Plaintiff, Naomi Adams, married Clarence E. Adams on March 2, 1964. Clarence Adams, an examining clerk with the Social Security Administration in Baltimore, Maryland, retired from the federal service on grounds of medical disability effective December 16, 1965.
In addition to his retirement benefits, Clarence Adams was insured for $5,000 life insurance under the provisions of Group Life Policy 17,000-G, purchased by the Civil Service Commission from the Metropolitan Life Insurance Company of New York in accordance with the Federal Employees Group Life Insurance Act. Clarence Adams died of cancer of the larynx on March 20, 1968, at his home in Baltimore.
Clarence Adams executed several life insurance "Designation of Beneficiary" forms during and after retirement from federal employment. On February 26, 1966, he named plaintiff and Hilda Evans to receive equal half shares of the aforesaid life insurance. On September 1, 1967, he executed another "Designation of Beneficiary" form directing that three-quarters of his life insurance proceeds be paid to the plaintiff and one-quarter to Hope and Rose Neely. This designation was received by the Civil Service Commission on September 8, 1967.
On December 7, 1967, another "Designation of Beneficiary" was sent to the Commission. This form designated plaintiff, Naomi Adams, as sole recipient of benefits under the Federal Employees Group Life Insurance Program.
On December 7, 1967, Clarence Adams was suffering from terminal cancer and the Designation of Beneficiary sent to the Commission was signed with an "X". All prior documents signed by Clarence Adams throughout the years were signed by writing out his name. The December 7, 1967, Designation of Beneficiary was witnessed by the plaintiff Naomi Adams and their attorney, M. Richard Moss.
The Commission returned the designation for the reason that the designated beneficiary had signed as one of the witnesses in violation of the applicable regulations. No further Designation of Beneficiary was received. The proceeds of the life insurance policy were paid in accordance with the September 1, 1967, designation, i. e., three-fourths of the proceeds to the plaintiff, Naomi Adams, and one-fourth of the proceeds to Hope and Rose Neely.
The dispute in this case is over the interpretation of 5 U.S.C. sec. 8705(a) and implementary regulations, particularly 5 C.F.R. 870.901(c):
A witness to a designation of beneficiary is ineligible to receive payment as a beneficiary.
As stipulated, it was for that reason that Standard Form No. 54 entitled Designation of Beneficiary was returned to the insured.
The plaintiff contends that her signature was mere surplusage and that despite the regulation, the intention of the insured as...
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Metropolitan Life Ins. Co. v. Potter
...pointed out earlier, the Eleventh Circuit in O'Neal cited McShan with approval. Other cases reaching similar results are: Adams v. Macy, 314 F.Supp. 399 (D.Md.1970) (designation-of-beneficiary form, which was witnessed by the beneficiary in violation of a federal regulation stating that a b......
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Metropolitan Life Ins. Co. v. Manning
...uniformly have so held since the 1966 amendment. Stribling v. United States, 419 F.2d 1350, 1353-54 (8 Cir. 1969); Adams v. Macy, 314 F.Supp. 399, 400-01 (D.Md.1970); Pekonen v. Edgington, 298 F.Supp. 158 (E.D.Cal.1969). While the facts in these cases may show less clearly than in the case ......
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Estate of Hanley by Hanley v. Andresen, 11588-0-I
...be restricted. 5 C.F.R. § 870.901(e). Literal compliance with the statute is necessary in designating a beneficiary. Adams v. Macy, 314 F.Supp. 399, 401 (D.Md.1970). Federal case law also establishes that the designated beneficiary is legally entitled to the proceeds as against other compet......
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Metropolitan Life Ins. Co. v. Smith
...Group Life Insurance Act (hereafter "the Act"). Stribling v. United States, 419 F.2d 1350, 1354 (8th Cir.1969); Adams v. Macy, 314 F.Supp. 399, 401 (D.Md.1970); Pekonen v. Edgington, 298 F.Supp. 158, 159 (E.D.Cal.1969); see 5 U.S.C. § 8705(a) (1982) (beneficiary provisions of the Act); S.Re......