Head v. Metropolitan Life Ins. Co., C6-89-1035
| Decision Date | 19 December 1989 |
| Docket Number | No. C6-89-1035,C6-89-1035 |
| Citation | 449 N.W.2d 449 |
| Parties | Dianne Colette HEAD, Respondent, v. METROPOLITAN LIFE INSURANCE COMPANY, et al., Defendants. Appeal of Gerry STEELE. |
| Court | Minnesota Court of Appeals |
Syllabus by the Court
1. Dissolution decree requiring husband to name former wife beneficiary of employment-provided life insurance to secure spousal maintenance entitles former wife to full life insurance proceeds as sole beneficiary upon his death.
2. Imposition of constructive trust is proper remedy where former wife has superior equitable interest in life insurance proceeds deceased husband designated for a co-beneficiary in violation of dissolution decree.
Sheryl Ramstad Hvass, William J. Egan, Rider Bennett Egan & Arundel, Minneapolis, for respondent.
Gary M. Johnson, George G. Eck, Dorsey & Whitney, Minneapolis, for appellant.
Heard, considered and decided by RANDALL, P.J., and FOLEY and LANSING, JJ.
An August 13, 1987 judgment and decree dissolved the marriage of respondent Dianne Colette Head and Carlton LeRoy Head. No appeal was brought from the judgment. On August 10, 1988, Carlton died unexpectedly. Dianne then commenced this related lawsuit in the same district court, claiming the dissolution decree entitles her to the proceeds of an insurance policy on Carlton's life. Appellant Gerry Steele, a co-beneficiary of Carlton's life insurance policy, now appeals a summary judgment placing a constructive trust in favor of Dianne on the disputed life insurance proceeds. We affirm.
Dianne, age 48, and Carlton, age 53, were married in 1960. Dianne was primarily a mother and homemaker during the marriage and was not employed outside the home for over 25 years.
Dianne has hypertension and pemphigus, a skin disease now apparently in remission as a result of medication. The trial court found she was often fatigued and lacked physical stamina. The trial court further found Dianne was virtually unemployable at the time of the dissolution, and even with substantial vocational and psychological counseling was not likely to get a job paying more than $14,000 a year. Carlton's earning capacity was found to be substantial. Dianne's reasonable monthly expenses were found to be $2,150; Carlton's were $2,453.
The parties sold the marital home and divided the proceeds. Life insurance policies in effect on Carlton's life were cashed in and the money divided between the parties. Dianne was awarded $93,009 in marital assets and $50,000 in nonmarital assets. Carlton was awarded $88,031 in marital assets.
At the time of the dissolution trial in April 1987, Carlton's 13-year job with Honeywell was ending. On May 26, 1987, after trial but before entry of the dissolution judgment and decree, Carlton obtained employment with Prime Computer.
The trial court found Carlton had a net monthly income from his new job of $2,444, but noted it likely he would make more after a training period elapsed. Dianne was awarded spousal maintenance of $1,000 a month until her death or remarriage. In its conclusion of law No. 2, the trial court said:
Either party may move the Court for a re-evaluation of the spousal maintenance one year from the date of this judgment and decree and no change in circumstances need be shown since the incomes of the Petitioner and Respondent are subject to change at this time.
The dispute before this court concerns a decree provision requiring that Carlton name Dianne beneficiary of employment-provided life insurance as security for spousal maintenance.
The following colloquy took place at the dissolution trial:
BY [CARLTON'S ATTORNEY]:
Q. Mr. Head, you know, hopefully you are going to get a job and hopefully you will get a job with a company that has a group life policy?
A. Hopefully.
Q. Would you be willing to agree that if and when that happens that you would make your wife the beneficiary of that group policy?
A. Is that a requirement?
Q. It's not a requirement. I'm just asking if you are willing to do that because of the difficulty that I have been discussing earlier on these other policies?
A. I guess I don't understand my options enough to say yes or no on that.
Q. ( [Carlton's attorney], continuing.) As the Court indicated that it's traditional that there is some life insurance that's to be made available in case, you know, you get hit by a truck?
A. So you are saying in part or in whole or what or just a certain level?
Q. Typically--you know, I don't know to what employer you are talking about. Most employers, you know, and it's hard for me to give you any specifics, but as a fringe benefit larger companies usually provide some sort of group life which apparently you don't have at Honeywell, do you?
Q. ( [Carlton's attorney], continuing.) How much is that?
A. I don't know. That information was turned over a long time ago.
Q. What I'm talking about is something similar to that because the concern I have is that the Court will order these particular policies be kept in force. We are tying up a lot of cash values and that's why I'm saying an appropriate option--
A. Okay.
Q. --might be that you get--
A. I understand, yes.
Carlton's deposition was taken after trial and after he obtained his new job. He gave generally vague testimony about the amount of life insurance he had through his job at Prime Computer, "guessing" it was about $128,000. Carlton testified he had made Dianne and Steele each 50% beneficiaries of the policy.
Conclusion of law No. 5 states:
Life Insurance to Secure Spousal Maintenance. That the Petitioner shall keep and maintain in full force and effect the policy or policies of life insurance available through his employment on himself, naming the Respondent beneficiary thereof, until the Petitioner is no longer obligated to provide spousal maintenance. Should Petitioner fail to maintain Respondent as beneficiary, then Respondent shall have a claim against Petitioner's estate for said amount.
Dianne moved for re-evaluation of the spousal maintenance and scheduled a hearing for August 9, 1988. At Carlton's request, the hearing was continued until October 12, 1988. Hearing was never had because of Carlton's death.
It was learned after Carlton's death that at the time of the dissolution his employer paid for $60,000 worth of insurance and Carlton paid, at a low rate, for another $180,000, for a total of $240,000 of insurance. At the time of his death, the respective figures were $70,000 and $210,000, or a total of $280,000. The amount of life insurance Carlton could get varied with his income. Dianne and Steele were designated as co-beneficiaries.
After Carlton's death, Steele filed a claim as a co-beneficiary of the insurance. Dianne filed a claim for all of the insurance. The insurer denied Dianne's claim, and said it would give each beneficiary one-half of the proceeds. This litigation resulted.
1. Did the trial court err in interpreting the dissolution decree to entitle Dianne to receive the entire proceeds of Carlton's job-related life insurance?
2. Did the trial court err in imposing a constructive trust?
1. To evaluate the trial court's interpretation of the decree, we must first determine whether an agreement was reached as to the life insurance provision. Our review of the record shows it supports the trial court's finding that no agreement was reached.
In their summary judgment memoranda, Steele and Dianne took the position an agreement had been reached, but disputed what it was. Dianne argued she would be the beneficiary of all life insurance Carlton got from his new job. Steele argued Dianne would have claim only to an amount set by the court necessary to protect payment of spousal maintenance. Steele further argued Dianne would have claim only to life insurance paid for by Carlton's employer, not any extra Carlton might purchase.
The trial court found Carlton did not agree to carry any insurance to benefit Dianne after the dissolution. The trial court also noted Carlton's failure to make any proposal regarding life insurance, even though requested by Dianne in her post-trial submissions. Furthermore, the trial court indicated to Carlton that he did not have to agree as the court would decide the issue.
It is undisputed a court has jurisdiction to interpret and clarify a judgment which is ambiguous or uncertain on its face, even after the time for appeal has passed. Palmi v. Palmi, 273 Minn. 97, 103, 140 N.W.2d 77, 81 (1966). Whether language is ambiguous is a question of law. Halverson v. Halverson, 381 N.W.2d 69, 71 (Minn.Ct.App.1986).
As noted, the first sentence of the body of the disputed provision reads:
That the Petitioner shall keep and maintain in full force and effect the policy or policies of life insurance available through his employment on himself, naming the Respondent beneficiary thereof, until the Petitioner is no longer obligated to provide spousal maintenance.
By itself, this provision clearly says Dianne was to get all of the job-related life insurance.
Steele argues, however, that ambiguity arises because of the caption to the provision. She argues that "Life Insurance to Secure Spousal Maintenance" indicates the purpose of the insurance was to provide "security" for the spousal maintenance, not to give Dianne rights as part of the property division. Steele says a requirement that an obligor "maint...
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