Hassoun v. Reliastar Life Ins. Co., Case No. 17–cv–60528–BLOOM/Valle

• Court: United States District Courts. 11th Circuit. United States District Courts. 11th Circuit. Southern District of Florida
• Writing for the Court: BETH BLOOM, UNITED STATES DISTRICT JUDGE
• Citation: 288 F.Supp.3d 1334
• Parties: Nawal M. HASSOUN, Plaintiff/Counter–Defendant, v. RELIASTAR LIFE INSURANCE COMPANY, a Minnesota company, Defendant/Counter–Plaintiff. Reliastar Life Insurance Company, a Minnesota company, Third–Party Plaintiff, v. Labeeb Hassoun, individually, Kayria T. Hassoun, individually, and Jameel M. Hassoun, individually, Third–Party Defendant.
• Docket Number: Case No. 17–cv–60528–BLOOM/Valle
• Decision Date: 19 January 2018

288 F.Supp.3d 1334

Nawal M. HASSOUN, Plaintiff/Counter–Defendant,
v.
RELIASTAR LIFE INSURANCE COMPANY, a Minnesota company, Defendant/Counter–Plaintiff.

Reliastar Life Insurance Company, a Minnesota company, Third–Party Plaintiff,
v.
Labeeb Hassoun, individually, Kayria T. Hassoun, individually, and Jameel M. Hassoun, individually, Third–Party Defendant.

Case No. 17–cv–60528–BLOOM/Valle

United States District Court, S.D. Florida.

Signed January 19, 2018

288 F.Supp.3d 1337

Andres H. Lopez, The Andres Lopez Law Firm, Fort Lauderdale, FL, for Plaintiff/Counter–Defendant.

John R. Catizone, Angela Marie Swenka, Litchfield Cavo LLP, Fort Lauderdale, FL, for Defendant/Counter–Plaintiff/Third–Party Plaintiff.

Peter Alan Dyson, Metnick, Levy & Dyson, Delray Beach, FL, for Third–Party Defendant.

OMNIBUS ORDER ON MOTIONS FOR SUMMARY JUDGMENT, MOTION FOR DISCHARGE, AND MOTIONS TO STRIKE

BETH BLOOM, UNITED STATES DISTRICT JUDGE

THIS CAUSE is before the Court upon several motions filed by the parties. Plaintiff Nawal M. Hassoun ("Plaintiff" or "Nawal")¹ filed initially filed her complaint in state court seeking declaratory judgment. ECF No. [1–2]. Defendant and Third–Party Plaintiff, Reliastar Life Insurance Company ("Reliastar")² timely removed. See ECF No. [1].

On August 15, 2017, Reliastar filed its operative Second Amended Counterclaim and Third–Party Complaint in Interpleader, interpleading Plaintiff; Labeeb Hassoun ("Labeeb"), now voluntarily dismissed from the action; and the Third Party Defendants Kayria T. Hassoun and Jameel M. Hassoun ("Kayria" and "Jameel," together, the "Third Party Defendants"). ECF No. [54] ("Interpleader Complaint"). In the Interpleader Complaint, Reliastar seeks an order requiring Nawal, Labeeb, Kayria, and Jameel to interplead their rights, discharging Reliastar

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from all liability, awarding Reliastar attorneys' fees, and dismissing it from the action. Id. at 5–6.

Plaintiff filed her operative Second Amended Complaint on September 13, 2017 against Reliastar and the Third Party Defendants. ECF No. [64]. Plaintiff's Second Amended Complaint asserts a sole cause of action for declaratory judgment that (1) insurance policy in question was in full force and effect at the time of the insured Walid Hassoun's death; (2) that Walid Hassoun changed the beneficiary under the Policy to the Plaintiff; and (3) that Plaintiff is the beneficiary under the Policy. Plaintiff also seeks an award of attorneys' fees. Id. at 6–7.

Six motions are currently pending before the Court related to the operative pleadings as follows:

1. Reliastar's Motion for Discharge from Action and Permanent Injunction from Future Claims and Incorporated Memorandum of Law, ECF No. [77];

2. Third–Party Defendants' Motion for Final Summary Judgment, ECF No. [82];

3. Reliastar's Motion for Summary Judgment and Memorandum of Law, ECF No. [84];

4. Plaintiff's Cross–Motion for Summary Judgment, ECF No. [87];

5. Third–Party Defendants' Motion to Strike Statement of Material Facts Pursuant to Local Rule 56.1(a), ECF No. [96];

6. Reliastar's Motion to Strike Declarations of Dr. Mustafa Hamed [D.E. 86–11] and Mahiatab Nayef Cheblac [D.E. 86–12] and Affidavit of Nawal Hassoun [D.E. 86–13], ECF No. [104]

The parties filed oppositions to each motion, and for all motions except Reliastar's Motion to Strike, ECF. No. [104], the movants each filed replies. All six motions are ripe for review.

I. FACTUAL BACKGROUND³

A. The Life Insurance Policy

On January 18, 2016 Walid Hassoun ("Walid" or the "Insured") passed away in Tripoli, Lebanon, leaving behind a $130,000 employer-sponsored life insurance policy under the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. §§ 1001 et seq. See ECF Nos. [85] ¶ 2; [86] ¶ 14; [86–5], [90–5], and [92–4] ("Death Certificate"); [86–11] ¶ 2; [90] ¶ 14; [92] ¶ 14. The parties agree that the entirety of the insurance policy at issue contains three separate documents: a two page document entitled Schedule of Benefits, a booklet also entitled Schedule of Benefits ("Schedule of Benefits Booklet"), and a handwritten form which appears to memorialize the general terms of the group policy held between Walid's employer, the Law Companies Group, and Reliastar. See ECF Nos. [9–1], [22–1], [54–1], [86–1], [90–1], [92–1] ("Policy"). The Schedule of Benefits Booklet states that the Policyholder and Administrator is the Law Companies Group. Id.⁴

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Under the section entitled "Life Insurance," the Policy explains what a beneficiary is, how to change the beneficiary, and to whom the Policy proceeds are paid. The relevant contract terms state in full:

Beneficiary

The beneficiary is named to receive the proceeds to be paid at your death. You may name one or more beneficiaries. You cannot name the Policyholder as beneficiary.

You may name, add, or change beneficiaries by written request as described below. You may also choose to name a beneficiary that you cannot change without his or her consent. This is an irrevocable beneficiary.

How do you name, add, or change beneficiaries?

You can name, add, or change beneficiaries by written request if all of these are true:

• Your coverage is in force.

• We have written consent of all irrevocable beneficiaries.

• You have not assigned the ownership of your insurance. The rights of an assignee are described under the Assignment section.

All requests are subject to our approval. A change will take effect as of the date it is signed but will not affect any payment we make or action we take before receiving your notice.

To whom do we pay proceeds?

We pay proceeds to the beneficiary. If there is more than one beneficiary, each receives an equal share, unless you have requested another method in writing. To receive proceeds, a beneficiary must be living on the earlier of the following dates:

• The date we receive proof of your death.

• The 10th day after your death.

If there is no eligible beneficiary or if you did not name one, we pay proceeds to the persons listed below in order. The person must be living on the tenth day after your death:

1. Your spouse.

2. Your children.

3. Your parents.

4. Your estate.

ECF No. [54–1] at 11 (emphasis in original). The Definitions section defines "written, in writing" as "signed and dated and received at our Home Office in a form we accept." Id. at 16. The parties dispute whether the Policy requires that changes to a beneficiary require affirmative approval by Reliastar. ECF Nos. [83] ¶ 5–6; [85] ¶ 3; [86] ¶ 2; [90] ¶ 2; [92] ¶ 2; [98] ¶ 4.

Walid enrolled in the policy in the fall of 1995 using a form entitled "1996 Enrollment Form," naming his wife, Chafnaze Chablak, as the primary beneficiary and his brother, Labeeb Hassoun, as the contingent beneficiary. See ECF No. ECF Nos. [9–2], [22–2], [54–2], [86–2], [90–2], and [92–2] at 1 ("1996 Enrollment Form"); see also ECF Nos. [85] ¶ 4; [86] ¶ 7; [90] ¶ 7; [92] ¶ 7; [98] ¶ 7; [101] ¶ 7. The 1996 Enrollment Form is dated October 22, 1995 and bears a signature which reads "Walid Hassoun." ECF No. [54–2] at 1. The beneficiary form also bears a stamp

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which indicates it was received by Reliastar on July 18, 1996. Id.

B. The 2006 Beneficiary Form

On December 20, 2006, a beneficiary designation form was received by Reliastar ("2006 Beneficiary Form"). ECF No. [52–2], [54–3], [86–3], [90–3], and [92–3]; see also ECF Nos. [85] ¶ 8; [86] ¶ 8; [98] ¶ 8; [101] ¶ 8; [82–1], [83–1], and [86–10], Moerbitz Tr. at 126–27. The 2006 Beneficiary Form named four beneficiaries: Third Party Defendants (Walid's mother and brother) and Amal M. Hassoun and Siam M. Hassoun (two of Walid's sisters, now deceased). ECF No. [54–3] at 1; see also ECF Nos. [85] ¶ 5; [86] ¶ 8; [90] ¶ 8; [92] ¶ 8; [98] ¶ 6. The form is dated November 28, 2006 in Plantation, Florida; bears a signature which is dissimilar to the 1996 Enrollment Form; and is notarized. ECF Nos. [54–3] at 1; [85] ¶ 6; [86] ¶ 2; [98] ¶ 24. The instructions on the form to the insured state: "Type or print legibly in ink. Sign and date the form. Return the original and retain a copy for your records." ECF No. [54–3] at 1. The directions to the Plan Administrator state: "Send the completed form to the insurance company for approval if any of the following apply: 1) The wording used in the request differs from the examples given on the reverse side; 2) The policy/certificate has been assigned; 3) The previous beneficiary is irrevocable; or 4) The coverage is under an individual policy.... For forms that do not require insurance company approval, retain a copy of the approved form with the insured's records." Id.

The 2006 Beneficiary Form contains a handwritten notation that Walid was "on waiver," meaning that Reliastar had determined he was completely disabled and no longer needed to pay premiums to maintain the Policy. See Moerbitz Tr. at 48, 67–68; [86] ¶ 5; [98] ¶ 5. Moerbitz testified that it is Reliastar's policy to maintain all change of beneficiary forms for insureds that are "on waiver." See Moerbitz Tr. at 67–68; ECF Nos. [86] ¶ 6 and [101] ¶ 6.⁵ By way of letter dated...