Hennig v. Didyk

• Decision Date: 28 July 2014
• Docket Number: No. 05–13–00656–CV.,05–13–00656–CV.
• Citation: 438 S.W.3d 177
• Parties: Wendy Jeanelle HENNIG, Appellant v. Michael “Miro” DIDYK, Individually and as Independent Administrator of the Estate of Matthew Michael Didyk, Deceased, Appellee.
• Court: Texas Court of Appeals

438 S.W.3d 177

Wendy Jeanelle HENNIG, Appellant

v.Michael “Miro” DIDYK, Individually and as Independent Administrator of the Estate of Matthew Michael Didyk, Deceased, Appellee.

No. 05–13–00656–CV.

Court of Appeals of Texas, Dallas.

July 28, 2014.

Kelly Akins, Dallas, for Appellant.

Charles M. Wilson III, Dallas, for Appellee.

Before Justices LANG, MYERS, and BROWN.

OPINION

Opinion by Justice MYERS.

Appellant Wendy Jeanelle Hennig appeals from a judgment entered in favor of appellee Michael “Miro” Didyk, individually and as independent administrator of the estate of Matthew Michael Didyk, deceased, appellant's former husband, following a nonjury trial. In three issues, appellant argues the trial court erred by (1) failing to give effect to the decedent's designation of appellant as the beneficiary of contested life insurance proceeds; (2) failing to give res judicata effect to a decision from a federal district court; and (3) finding and concluding appellee was entitled to the life insurance proceeds. We affirm.

Background and Procedural History

Appellee Michael “Miro” Didyk is the independent administrator of the estate of his son, Matthew Michael Didyk, deceased, and appellant Wendy Jeanelle Hennig is the decedent's former wife. At the time of his death in September 2010, the decedent was insured by a life insurance policy issued as part of an employee benefit plan. It is undisputed that the decedent was insured by the life insurance policy as a result of his employment, and that the life insurance policy was part of the decedent's employee welfare benefit plan subject to the Employee Retirement Income Security Act of 1974 (ERISA).

In April 2005, the decedent had designated his then-wife, appellant, as the beneficiary of the policy. On May 15, 2007, decedent and appellant were divorced by an agreed final decree of divorce, in cause number 401–51025–07, styled In the Matter of the Marriage of Matthew Michael Didyk and Wendy Jeanelle Didyk, in the 401st Judicial District Court of Collin County, Texas. The divorce decree provided in part:

Division of Marital Estate

A. Property to MATTHEW MICHAEL DIDYK

IT IS ORDERED AND DECREED that MATTHEW MICHAEL DIDYK is awarded as his sole and separate propertyall right, title, and interest, and claim in and to the property listed in Schedule “A”, attached to this Decree and incorporated herein as if fully set out, and WENDY JEANELLE DIDYK is divested of all right, title, and interest, and claim in and to that property.

B. Property to WENDY JEANELLE DIDYK

IT IS ORDERED AND DECREED that WENDY JEANELLE DIDYK is awarded as her sole and separate property all right, title, interest, and claim in and to the property listed in Schedule “B”, attached to this Decree and incorporated herein as if fully set out, and MATTHEW MICHAEL DIDYK is divested of all right, title, interest, and claim in and to that property.

Schedule “A” of the decree, entitled “Property Awarded to Matthew Michael Didyk,” awarded the decedent, in part:

5. All sums, whether matured or unmatured, accrued or unaccrued, vested or otherwise, together with all increases thereof, the proceeds therefrom, and any other rights related to any profit-sharing plan, retirement plan, Keogh plan, pension plan, employee stock option plan, 401(k) plan, employee savings plan, accrued unpaid bonuses, disability plan, or other benefits existing by reason of the husband's past, present, or future employment.

....

9. All policies of life insurance (including cash values) insuring the husband's life.

Schedule “B,” entitled “Property Awarded to Wendy Jeanelle Didyk,” similarly provided, in part:

7. All sums, whether matured or unmatured, accrued or unaccrued, vested or otherwise, together with all increases thereof, the proceeds therefrom, and any other rights related to any profit-sharing plan, retirement plan, Keogh plan, pension plan, employee stock option plan, 401(k) plan, employee savings plan, accrued unpaid bonuses, disability plan, or other benefits existing by reason of the wife's past, present, or future employment.

....

11. All policies of life insurance (including cash values) insuring the wife's life.

The decedent died on September 25, 2010. The beneficiary designation in the life insurance policy, however, was never changed by the decedent, and appellant remained the designated beneficiary in the policy at the time of the decedent's death.

In December 2010, a probate court in Collin County appointed appellee “Miro” Didyk, the decedent's father, to serve as the independent administrator of the decedent's estate. The probate court subsequently signed a “Judgment Declaring Heirship” that found the lawful heirs of the decedent's estate were his parents—“Miro” Didyk and Virginia Didyk, his wife—in equal shares. Both appellee, as the independent administrator of the decedent's estate, and appellant, as the then-designated beneficiary, made claim to the proceeds of the life insurance policy.

In June 2011, the life insurance company filed an interpleader action in federal court and tendered into the registry of the United States District Court for the Eastern District of Texas, Sherman Division, the disputed life insurance proceeds payable under the policy and the accrued interest—a total of $377,897.26. Based on the agreement of both appellant and appellee, the insurance company was dismissed from the action.

Appellant moved for summary judgment in the federal court action, arguing the ERISA statute required the proceeds of the life insurance policy be paid to her. The federal court issued a memorandum opinion on September 27, 2012, that granted appellant's motion for summary judgment and ordered the life insurance proceeds distributed to appellant. Although the court rejected appellee's arguments, it concluded, in part:

Nonetheless, the Court agrees with Didyk that, as to any claims regarding the enforcement of the Agreed Final Decree of Divorce under Chapter 9 of the Texas Family Code and for the suit for breach of contract against Wendy Jeanelle Hennig, the proper forum is in the State Court Action pending in the 401st District Court of Collin County, Texas. See Kennedy, 555 U.S. at 300, 129 S.Ct. at 875 (“Nor do we express any view as to whether the Estate could have brought an action in state or federal court against Liv to obtain the benefits after they were distributed.”). The Court, therefore, does not make any finding here that Hennig is ultimately entitled to the insurance benefits. That is a matter for the state court to determine. The Court's role here is limited—to distribute the funds as the ERISA plans requires. Whether Hennig is obligated to turn those funds over (and the consequences for any failure to do so) falls under the divorce Decree which is not a matter over which this Court has jurisdiction.

Unam Life Ins. Co. of America v. Wendy Jeanelle Hennig and Michael Didyk, as Independent Administrator of the Estate of Matthew Michael Didyk, No. 4:11CV366, slip op. at 7 (E.D.Tex. September 27, 2012). In a final judgment signed on October 24, 2012, the federal court ordered the clerk of the court to pay the interpleaded funds to appellant.

Appellee filed this lawsuit in the same Collin County district court that signed the decree of divorce between appellant and decedent. Appellee's original petition, filed on January 12, 2012, initially sought recovery of the life insurance proceeds pursuant to Chapter 9 of the Texas Family Code and breach of contract. After the federal court issued its memorandum opinion, the petition was amended (on November 19, 2012) to add that, under Texas Family Code § 9.301, the designation of appellant as beneficiary was not effective as a matter of law. In response, appellant amended her answer to plead, in addition to a general denial, the affirmative defenses of ERISA preemption of § 9.301 and res judicata based on the federal court's memorandum opinion.

A non-jury trial was held in the 401st district court on December 6, 2012. Staci Fletcher, the decedent's administrative assistant for eleven years, was employed by the same company as the decedent and had the same life insurance coverage. She testified ¹ that sometime in late October or early November of 2008, she assisted the decedent in logging into the computer system to change his insurance benefits. After accessing the decedent's insurance benefits, they learned appellant was still his designated beneficiary. Fletcher testified that the decedent “was very angry and frustrated with himself” when he made this discovery, and “couldn't believe that he never remembered to change it before.” They called the decedent's father, appellee, to obtain his social security number for the purpose of effecting a beneficiary change. Fletcher testified that she was sitting beside the decedent and watched him as he logged into the computer system concerning his benefits and made the change to remove appellant as the beneficiary and replace her with appellee. Fletcher testified that the decedent “just completed the information on the computer system,” and that she believed the beneficiary information had been changed.

After the decedent's death, however, Fletcher learned the actions he took to change the beneficiary designation were ineffective. Fletcher testified that an employee was required to download a form, sign it, and send it to the insurance company. Unless the employee followed those steps, the beneficiary change was incomplete and ineffective.² There was no doubt in Fletcher's mind that the decedent thought he changed the beneficiary designation in his policy.

On February 25, 2013, the trial court signed the final judgment and made findings of fact and conclusions of law that the court dictated into the record. Subsequently, on April 12, 2013, the trial court signed further supplemental findings of fact and conclusions of law in addition to those dictated into the record. The trial court ordered the life insurance...