Metropolitan Life Ins. Co. v. Barnes

• Decision Date: 31 July 1991
• Docket Number: No. 90-201-C-5.,90-201-C-5.
• Parties: The METROPOLITAN LIFE INSURANCE COMPANY, Plaintiff, v. Sophia L. BARNES and Lisa M. Barnes, Defendants. Bessie K. BARNES, Defendant/Third Party Plaintiff, v. The MONSANTO COMPANY, Third Party Defendant.
• Court: U.S. District Court — Eastern District of Missouri

770 F. Supp. 1393

The METROPOLITAN LIFE INSURANCE COMPANY, Plaintiff, v. Sophia L. BARNES and Lisa M. Barnes, Defendants.

Bessie K. BARNES, Defendant/Third Party Plaintiff, v. The MONSANTO COMPANY, Third Party Defendant.

No. 90-201-C-5.

United States District Court, E.D. Missouri, E.D.

July 31, 1991.

Stanley Walch, Roman P. Wuller, Thompson & Mitchell, St. Louis, Mo., for Metropolitan Life Ins. Co.

Lena A. Conley, St. Louis, Mo., for Sophia L. and Lisa M. Barnes.

James R. Hanlin, Clayton, Mo., for Bessie K. Barnes.

Richard J. Pautler, William S. Port, Peper, Martin, Jensen, Maichel & Hetlage, St. Louis, Mo., for Monsanto Co.

MEMORANDUM

LIMBAUGH, District Judge.

Plaintiff The Metropolitan Life Insurance Company ("Metropolitan") issued Group Policy No. 11100 (the "Policy") to third party defendant The Monsanto Company ("Monsanto"). The Policy provided for the payment of life insurance benefits to the designated beneficiary of an eligible participating employee upon the death of that employee. Latham Barnes, who was employed by Monsanto at its W.F. Queeny plant, was insured under the Policy. After his death, Latham's two daughters, Sophia Barnes and Lisa Barnes, and his wife, Bessie Barnes, made claims to the life insurance benefits. After receiving the conflicting claims, Metropolitan filed a complaint in interpleader pursuant to Fed.R.Civ.P. 22 against defendants Sophia, Lisa, and Bessie.

Metropolitan deposited with the Registry of the Court the life insurance benefits payable to Latham's beneficiary under the Policy, and was dismissed with prejudice from this action. On February 28, 1990 Bessie filed a third party complaint against Monsanto for breach of contract and breach of fiduciary duty. On March 7, 1991 Bessie dismissed her third party complaint against Monsanto. Therefore, the only remaining claim before the Court is the determination of the proper beneficiary of Latham's life insurance benefits. This action was tried before the Court on March 19, March 20, and May 2, 1991. The Court, having considered the pleadings, testimony of witnesses, and documents admitted into evidence hereby makes the following findings of fact and conclusions of law as required by Fed.R.Civ.P. 52.

I. Findings of Fact

On May 29, 1976 Latham and Bessie were married. At the time of their marriage Latham and Bessie both had children from previous marriages. Latham had two daughters, Sophia and Lisa, by his first wife Addie Barnes. At the time of Latham's and Bessie's marriage Sophia was twelve years old and Lisa was six years old. Bessie had one son, Bruce Germany, by her first husband and twin sons, Sherman Hawkins and Sherwin Hawkins, by her second husband. Sophia and Lisa lived with their mother but visited and spoke with Latham frequently. From 1976 to 1982 Sophia's and Lisa's relationship with Bessie was cordial. In 1982 the relationship between Bessie and her stepdaughters began to deteriorate.¹ After 1982 Sophia's and Lisa's contact with their father became increasingly more infrequent. By 1985 the contact between Latham and his daughters dwindled to an occasional telephone call and a rare visit. Sophia and Lisa assert that they maintained only minimal contact with their father because Bessie made them feel unwelcome during visits, and interrogated them when they attempted to contact Latham by telephone. Bessie claims that Sophia and Lisa were always welcome in her home, and that she never intercepted or interfered with telephone calls between Latham and his daughters.

The marriage of Latham and Bessie was turbulent. Bessie testified that Latham drank three half pints of whiskey and six cans of beer per day.² In 1980 Latham began to experience serious health problems caused by alcohol consumption and smoking. Latham was hospitalized on numerous occasions from 1980 to his death for congestive heart failure, caused by alcohol abuse, and emphysema.

Latham and Bessie argued over financial matters.³ On several occasions Latham removed Bessie's name from their joint checking account to deprive Bessie of access to family funds. Later, Latham would change his mind and place Bessie's name back on the account. On occasion Bessie would pick up Latham's paycheck from Monsanto without his permission. Latham would become enraged when he would attempt to pick up his paycheck and it had already been given to Bessie. Between February, 1981 and April, 1981 Bessie picked up Latham's check approximately three times without his permission. Elvester Young, the accounts payable supervisor and paymaster at Monsanto's W.F. Queeny plant, testified that Latham's and Bessie's disputes over financial matters prompted a change in policy at that plant. In mid-1981 the W.F. Queeny plant adopted a policy that the spouse of a Monsanto employee must have the Monsanto employee write a note or phone the payroll department before the spouse could pick up the employee's paycheck.⁴

Bettye Avery has been Monsanto's benefits representative at the W.F. Queeny plant since May, 1980. During the course of her position as benefits representative Bettye became familiar with Latham and Bessie. Because Latham's health was poor, Latham often visited Bettye concerning his medical benefits. Latham also involved Bettye in a dispute between Latham and Bessie over the medical coverage of Sophia and Lisa. Latham asked Bettye to prevent Bessie from interfering with medical benefits paid for the treatment of Sophia and Lisa.

Bettye testified that Latham visited her in 1985 in order to change the beneficiary of his life insurance benefits. On August 20, 1985 Latham executed, in Bettye's presence, a "special beneficiary designation" form on which he designated Sophia and Lisa as his primary beneficiaries and Tom Barnes, Latham's brother, as contingent beneficiary of his life insurance benefits.⁵ After August 20, 1985 Latham never contacted Bettye concerning a change of beneficiary form.

In 1987 Bessie grew concerned that Latham had replaced her as beneficiary of his life insurance benefits. Bessie called Bettye to inquire about the beneficiary designation. Bettye refused to release any information. In late 1987 or early 1988 Bessie visited Bettye in order to obtain a change of beneficiary form. Bettye informed Bessie that she could only give a change of beneficiary form to Latham. Bessie telephoned Monsanto's Creve Coeur office and talked to an unidentified Monsanto employee concerning a change of beneficiary form. Later, Bessie received a change of beneficiary form in the mail. Although the envelope was addressed to Bessie, Latham opened it and placed the change of beneficiary form in a dresser drawer.

On May 8, 1989 Latham was hospitalized at DePaul Hospital for shortness of breath and other ailments. On May 14, 1989 Latham was released from the hospital. After his release Latham was alert, lucid, and mobile. Bessie and Sherwin testified as to the following events on the afternoon of May 16, 1989. Latham called Bessie into the kitchen and showed her the change of beneficiary form that he formerly placed in his dresser drawer.⁶ Latham told Bessie that he wanted to make her the beneficiary of his life insurance benefits because he was concerned that Bessie would not have sufficient funds with which to live after his death. Latham had Bessie complete the change of beneficiary form because "he did not feel like writing." After Bessie completed the form that designated herself as beneficiary, Latham called Sherwin into the kitchen to witness his signature. Latham began to sign the form "L. Barnes" but crossed out his first initial and signed the form "Latham Barnes".⁷ Latham gave the executed change of beneficiary form to Bessie and told her: "Take this form to Bettye Avery and tell her I told you to bring this." On May 25, 1989 Latham was readmitted to DePaul Hospital because he had difficulty breathing. Latham remained at DePaul Hospital until his death on June 20, 1989. Latham was alert until approximately one week before his death.

On May 31, 1989 Sherwin drove Bessie to Monsanto to see Bettye.⁸ The W.F. Queeny plant visitor register shows that Bessie and Sherwin checked in at 9:35 a.m. and checked out at 9:55 a.m. on that day. The versions of Bettye and Bessie as to what transpired during that visit are substantially different. Bessie testified that she presented the change of beneficiary form to Bettye but Bettye refused to accept it. Bettye said she had to hear from Latham before she would accept the form. Bessie told Bettye that Latham was at DePaul Hospital and she could call or visit him there.⁹ Bettye testified that Bessie visited her in order to obtain a change of beneficiary form. Bettye told Bessie that she could not give her a form or reveal the identity of the beneficiaries. Bessie then stated: "Give me a change of beneficiary form and I won't tell anyone where I got it." Bettye was upset by Bessie's offer and refused to cooperate.

From May 16, 1989 to the time of his death Latham did not telephone or otherwise contact Bettye Avery to inform her of his desire to change the beneficiary on this life insurance policy.

Sophia and Lisa visited Latham during his last illness. Sophia flew in from California to see her father; Lisa visited her father from her college residence in Greenville, Illinois. During Sophia's visit Latham could not talk, and consequently did not discuss his life insurance policy with her.¹⁰ Lisa visited Latham during his hospital stay from May 8, 1989 to May 14, 1989. During this stay Latham told her that he wanted his daughters to have his life insurance benefits. After Latham's death Sophia and Lisa filed claims dated August 2, 1989 for his insurance benefits.

Annie Harris, Nettie Betts, and Sherman Hawkins testified on behalf of Bessie. Annie is a friend of Bessie's who lived four blocks from Bessie and Latham. On May 15, 1989 Annie visited Bessie. During the visit Annie spoke with Latham in the kitchen.¹¹ Latham informed...