Ann Arbor Trust Co. v. North Am. Co. for Life and Health Ins., 75--1217

• Decision Date: 19 January 1976
• Docket Number: No. 75--1217,75--1217
• Citation: 527 F.2d 526
• Parties: ANN ARBOR TRUST COMPANY, Plaintiff-Appellant, v. NORTH AMERICAN COMPANY FOR LIFE AND HEALTH INSURANCE et al., Defendants- Appellees.
• Court: U.S. Court of Appeals — Sixth Circuit

Page 526

527 F.2d 526

ANN ARBOR TRUST COMPANY, Plaintiff-Appellant, v. NORTH AMERICAN COMPANY FOR LIFE AND HEALTH INSURANCE et al.,

Defendants- Appellees.

No. 75--1217.

United States Court of Appeals, Sixth Circuit.

Argued Oct. 6, 1975.

Decided Dec. 8, 1975.

Rehearing Denied Jan. 19, 1976.

William D. Barense, Dobson, Griffin & Barense, Ann Arbor, Mich., for plaintiff-appellant.

John E. S. Scott, B. Kingsley Buhl, Dickinson, Wright, McKean & Cudlip, Detroit, Mich., for defendants-appellees North American Co. for Life and Health Ins., Provident Life and Accident Ins. Co. and Massachusetts Mut. Life Ins. Co., Jack C. Radcliffe, Jr., Dahlberg, Mallender & Gawne, Detroit, Mich., for defendant-appellee Professional Life and Casualty Co.

Before PHILLIPS, Chief Judge, and PECK and LIVELY, Circuit Judges.

PHILLIPS, Chief Judge.

This appeal involves the suicide provisions of four life insurance policies. Jurisdiction is based on diversity of citizenship. Michigan law controls.

On November 5, 1971, Alexander P. Dukay, a practicing psychiatrist, shot and killed his daughter and his wife, and then reloaded the revolver and killed himself in the kitchen of their home in Ann Arbor, Michigan. Within two years prior to his death, Dr. Dukay purchased nine insurance policies, all of which contained provisions to the effect that if the insured should commit suicide while sane or insane within two years from the date of issue, the only liability of the insurance companies would be to return the premiums paid.

Nine suits were filed in Michigan State courts. Four of these cases were transferred to the United States District Court. The District Court granted summary judgment in favor of the insurance companies. The trust company, beneficiary under the policies, appeals. For a more detailed recitation of facts, reference is made to the decision of Chief District Judge Fred W. Kaess in the action against North American Company, reported at 383 F.Supp. 311 (E.D.Mich.1974).

The other five cases, involving the same questions of law, remain pending in Michigan trial courts.

The District Court held that the actions of the insured constituted 'suicide, sane or insane' within the meaning of the exclusionary provisions of the North American Insurance policy, whether or not the insured had the capacity to comprehend the physical nature or consequences of his act.

We conclude that this decision is supported by the rationale of the following controlling opinions of the Supreme Court of Michigan: Courtemanche v. Supreme Court, Independent Order of Foresters, 136 Mich. 30, 98 N.W. 749 (1904); Sabin v. Senate of the National Union, 90 Mich. 177, 51 N.W. 202 (1892); Blackstone v. Standard Life & Accident Ins. Co., 74 Mich. 592, 42 N.W. 156 (1889); Streeter v. Western Union Mutual Life & Accident Society of the U.S., 65 Mich. 199, 31 N.W. 779 (1887); and John Hancock Mutual Life Ins. Co. v. Moore, 34 Mich. 41 (1876).

It is recognized, however, that the law in this area is not settled. See Annotation, 9 A.L.R.3d 1015 (1966). This court cannot be certain what interpretation the Supreme Court of Michigan would place upon its five earlier decisions cited above, the latest of which was announced in 1904. Under Erie Railroad Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), it is our obligation to make a considered 'educated guess' as to what decision would be...