New England Mut. Life Ins. Co. v. Calvert, 73-324C(3).

• Court: United States District Courts. 8th Circuit. United States District Court (Eastern District of Missouri)
• Writing for the Court: NANGLE
• Citation: 459 F. Supp. 979
• Parties: NEW ENGLAND MUTUAL LIFE INSURANCE COMPANY, Plaintiff, v. James Henry CALVERT, et al., Defendants.
• Docket Number: No. 73-324C(3).,73-324C(3).
• Decision Date: 14 November 1978

459 F. Supp. 979

NEW ENGLAND MUTUAL LIFE INSURANCE COMPANY, Plaintiff,
v.
James Henry CALVERT, et al., Defendants.

No. 73-324C(3).

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

November 14, 1978.

Don B. Sommers, Sommers & Holloran, Inc., St. Louis, Mo., for plaintiff.

P. Terence Crebs, Frederick J. Dana, Gallop, Johnson, Godiner, Morganstern & Crebs, Andrew P. Deschu, Nangle & Schwartz, St. Louis, Mo., for defendants.

MEMORANDUM

NANGLE, District Judge.

Following a remand by the United States Court of Appeals for the Eighth Circuit, a trial was held in this cause. On March 23, 1976, this Court had granted plaintiff's motion for summary judgment, holding the insurance policies which are the subject of this suit to be void ab initio. The March 23, 1976 order of the Court became final and conclusively binding as to defendants Ronald Calvert and James Calvert because neither appealed the ruling.

This case was tried before the Court without a jury. The Court having considered

459 F. Supp. 980

the pleadings, the testimony of the witnesses, the documents in evidence, the stipulations of the parties, and being otherwise fully advised in the premises hereby makes the following findings of fact and conclusions of law as required by Rule 52, Federal Rules of Civil Procedure

FINDINGS OF FACT

1. Plaintiff New England Mutual Life Insurance Company is a mutual insurance company, organized pursuant to the laws of the state of Massachusetts with its principal place of business in that state. Defendant Shirley Ann Null is the administratrix of the estate of Victor G. Null, deceased.

2. Prior to July 19, 1972, Victor Null sought financial backing for the development of an invention, a rotary motor. Ronald and James Calvert agreed to provide the financial backing. Victor Null and the Calverts agreed to procure life insurance upon the life of Victor Null to protect the investment of the Calverts. Null and the Calverts made application to plaintiff for $500,000 insurance; William S. Comfort and Harold L. Whitney were the agents of plaintiff with whom Null and the Calverts dealt.

3. Frank W. French, Jr., assistant vice-president for plaintiff, advised Whitney, by telegram-teletype, that plaintiff would only issue $150,000 "corporate insurance" but would be willing to issue $100,000 personal insurance upon receipt of a new application by defendant Null. William Comfort advised Null and Ronald Calvert of this decision, and further advised them that were Null to purchase a personal life insurance policy, he would be the owner of the same and would therefore have the right to assign the policy to the Calverts. Null agreed to purchase $100,000, with accidental death benefits. His estate was named as beneficiary thereof; however, Null contracted for this insurance solely for the reason that he wanted to assign the same to the Calverts, thus providing the security that the Calverts...