New York Life Insurance Co. v. Cannon

• Decision Date: 24 September 1937
• Citation: New York Life Insurance Co. v. Cannon, 22 Del. Ch. 269, 194 A. 412 (Del. Ch. 1937)
• Court: Court of Chancery of Delaware
• Parties: NEW YORK LIFE INSURANCE COMPANY, a corporation of the State of New York, v. MATTIE M. CANNON, ALINE C. CULVER, Administratrix c. t. a. of the estate of William H. Cannon, deceased, and the Del-Mar-Va Mortgage Company, a corporation of the State of Delaware

194 A. 412

22 Del.Ch. 269

NEW YORK LIFE INSURANCE COMPANY, a corporation of the State of New York, v. MATTIE M. CANNON, ALINE C. CULVER, Administratrix c. t. a. of the estate of William H. Cannon, deceased, and the Del-Mar-Va Mortgage Company, a corporation of the State of Delaware

Court of Chancery of Delaware, Sussex

September 24, 1937

BILL OF INTERPLEADER. The complainant as insurer has deposited in the registry of the court the amount due under a policy of life insurance issued by it upon the life of William H Cannon. The bill calls on the defendants to interplead their respective claims to the deposited sum.

The insured died on March 6, 1932. The defendant Mattie M. Cannon was his wife. She was divorced from the insured on February 16, 1931. The policy of insurance was dated January 11, 1916. The beneficiary named therein was Mattie M. Cannon, wife of the insured. The right to change the beneficiary was reserved to the insured. The policy provided that such change of beneficiary could be made by the insured "by filing written notice thereof at the Home Office of the Company accompanied by the Policy for suitable endorsement thereon. Such change shall take effect when endorsed on the Policy by the Company and not before."

After the insured and his wife were divorced, viz., in February 1932, the company was advised by its local agent at Delmar Delaware, that the insured desired to change the beneficiary named in his policy to his own executors, administrators or assigns. Thereupon the company sent an appropriate form to its agent at Delmar to be executed by the insured. The insured signed the form requesting the change of beneficiary and presumably the same was duly received by the company, for it is attached to the company's bill as an exhibit.

The request was not, however, accompanied by the policy, and of course there was no endorsement on the policy by the company of a change in the beneficiary.

The answer of the insured's administratrix c. t. a. avers, on information and belief, that the reason the policy did not accompany the application for a change of beneficiary, was because the policy was in the possession of the beneficiary the insured's former wife, who refused to deliver the same. The stipulation of the appearing parties, after stating that the insured executed the form and delivered it to the company's agent, proceeds further to state that "the said policy of insurance, however, being in the possession of Mattie M. Cannon, at that time divorced from the said William H. Cannon, was not delivered to said Insurance Company in order that the change of beneficiary might be entered thereon."

Mattie M. Cannon though served with subpoena has suffered a decree pro confesso to be taken against her for want of an answer.

The Del-Mar-Va Mortgage Company is a judgment creditor in a judgment entered by confession against William H. Cannon and Mattie M. Cannon on a bond given to secure a mortgage. There is a balance due on the judgment of $ 658.52 and The Del-Mar-Va Mortgage Company has attempted to collect the same by garnishment proceedings against the insurer taken under an execution issued against Mattie M. Cannon, on the theory that the proceeds of the policy belong to her as the beneficiary named therein.

The administratrix of William H. Cannon claims the proceeds on the theory that the proceeds belong to her as administratrix.

The case was heard on bill, answers and stipulation filed by the appearing parties through their solicitors.

Decree entered adjudging the sum due under the policy to belong to the administratrix c. t. a. of William H. Cannon.

Clarence A. Southerland and Paul Leahy, of the firm of Ward & Gray, for complainant.

Howard W. Bramhall, for defendant Aline C. Culver, administratrix c. t. a. of William H. Cannon, deceased.

James M. Tunnell and James M. Tunnell, Jr., of the firm of Tunnell & Tunnell, for defendant Del-Mar-Va Mortgage Company.

OPINION

THE CHANCELLOR:

The contest is between the administratrix of the insured and The Del-Mar-Va Mortgage Company. The latter's rights are derived through Mattie M. Cannon.

The question is--Did the insured, as against Mattie M. Cannon, effect a change of beneficiary...