Principal Mutual Life Ins. Co. v. Karney, 4:96CV1999SNL.

• Decision Date: 08 May 1998
• Docket Number: No. 4:96CV1999SNL.,4:96CV1999SNL.
• Citation: 5 F.Supp.2d 720
• Parties: PRINCIPAL MUTUAL LIFE INS. CO., Plaintiff, v. Elaine S. KARNEY, et al., Defendants.
• Court: U.S. District Court — Eastern District of Missouri

5 F.Supp.2d 720

PRINCIPAL MUTUAL LIFE INS. CO., Plaintiff, v. Elaine S. KARNEY, et al., Defendants.

No. 4:96CV1999SNL.

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

May 8, 1998.

COPYRIGHT MATERIAL OMITTED

Richard J. Pautler, Thompson Coburn, St. Louis, MO, for Principal Mut. Life Ins. Co.

Michael Armin Wolff, Charles A. Seigel, III, Seigel and Wolff, P.C., St. Louis, MO, for Stacey Wohl.

Steven M. Hamburg, Michael W. Newport, Summers and Compton, St. Louis, MO, for Andrea Lyn Wohl, Leroy Kopolow and Robert J. Wohl.

Stuart L. Oelbaum, of counsel, Steven M. Hamburg, Michael W. Newport, Summers and Compton, St. Louis, MO, for James Sherby, and Andrea Lyn Wohl.

Stuart L. Oelbaum, of counsel, Nichols and Challis, Richard S. Bender, Rosenblum and Goldenhersh, St. Louis, MO, for Melissa Wohl.

MEMORANDUM

LIMBAUGH, District Judge.

Plaintiff insurer brought this interpleader action for resolution of conflicting claims to the proceeds of a life insurance policy on decedent Mark Wohl. On October 14, 1997 the Court discharged plaintiff Principal Mutual from this case pursuant to a stipulated Consent Order and Judgment (# 64). The adverse parties presently before this Court are: 1) Elaine Wohl Karney — former (first) wife of decedent Mark Wohl; 2) Andrea Wohl — younger of the two (2) daughters born of the marriage of Elaine Wohl Karney and Mark Wohl; 3) Stacey Wohl — older of the two (2) daughters born of the marriage of Elaine Wohl Karney and Mark Wohl; 4) Robert Wohl — decedent Mark Wohl's father; 5) Leroy Kopolow — an insurance representative and co-trustee of alleged insurance trust; and 6) Melissa Anne Wohl — third wife and present widow of decedent Mark Wohl.¹

Presently pending before the Court are cross-motions for summary judgment filed by all of the adverse parties. On July 7, 1997 defendants Andrea Wohl, Robert Wohl, and Leroy Kopolow filed for summary judgment contending that a property settlement agreement (or commonly referred to as a separation agreement) entered into by decedent and Elaine Wohl Karney, and incorporated into the final decree of divorce, constituted an equitable assignment of the policy to Andrea Wohl, and furthermore, gave her a vested interest in the subject life insurance policy. They further argue that such a vested interest could not be divested by decedent's subsequent attempt to change the beneficiary on the subject policy to his widow, Melissa Anne Wohl. These defendants seek to have a constructive trust imposed on the full amount of the insurance policy's proceeds, plus accrued interest, on behalf of defendant Andrea Wohl. See, Court pleading # 39, filed July 7, 1997. Defendant Melissa Anne Wohl filed a counter motion for summary judgment contending that she is entitled to the full amount of the insurance policy's proceeds (plus interest accrued) as the last named beneficiary on the policy. She further contends that any obligation that decedent Mark Wohl had to financially provide for Andrea and Stacey Wohl has been fulfilled by the creation of a "Children's Trust" in 1991. She furthermore contends that the statute of limitations has run on the other defendants' attempt to enforce the separation agreement allegedly regarding the subject insurance policy. Finally, she contends that if the Court should enforce the separation agreement as it regards the distribution of the proceeds of the subject insurance policy, defendants Andrea Wohl and Stacey Wohl are only entitled to $100,000.00, with the remainder of the proceeds to go to her.² See, Court pleading # 51, filed July 31, 1997. On September 9, 1997 defendant Stacey Wohl filed her separate motion for summary judgment. She essentially adopts her sister's motion, except she requests that a constructive trust be imposed on behalf of both she and her sister Andrea. See, Court pleading # 62, filed September 9, 1997.

The case was set for trial on the Court's non-jury trial docket of November 24, 1997. On November 7, 1997 the Court inquired of counsel as to whether this matter could be resolved by ruling on the instant summary judgment motions without the necessity of trial testimony. See, Court correspondence # 66. All counsel responded that this case could be resolved solely on the basis of the dispositive motions without the necessity of trial testimony. See, Court documents # 67, # 68, and # 69. This case was removed from the Court's non-jury trial docket and, thus, stands ripe for final disposition on the basis of the defendants' summary judgment motions.

Courts have repeatedly recognized that summary judgment is a harsh remedy that should be granted only when the moving party has established his right to judgment with such clarity as not to give rise to controversy. New England Mut. Life Ins. Co. v. Null, 554 F.2d 896, 901 (8th Cir.1977). Summary judgment motions, however, "can be a tool of great utility in removing factually insubstantial cases from crowded dockets, freeing courts' trial time for those that really do raise genuine issues of material fact." Mt. Pleasant v. Associated Elec. Coop. Inc., 838 F.2d 268, 273 (8th Cir.1988).

Pursuant to Fed.R.Civ.P. 56(c), a district court may grant a motion for summary judgment if all of the information before the court demonstrates that "there is no genuine issue as to material fact and the moving party is entitled to judgment as a matter of law." Poller v. Columbia Broadcasting System, Inc., 368 U.S. 464, 467, 82 S.Ct. 486, 7 L.Ed.2d 458 (1962). The burden is on the moving party. Mt. Pleasant, 838 F.2d at 273. After the moving party discharges this burden, the nonmoving party must do more than show that there is some doubt as to the facts. Matsushita Elec. Industrial Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). Instead, the nonmoving party bears the burden of setting forth specific facts showing that there is sufficient evidence in its favor to allow a jury to return a verdict for it. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Celotex Corp. v. Catrett, 477 U.S. 317, 324, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

In passing on a motion for summary judgment, the court must review the facts in a light most favorable to the party opposing the motion and give that party the benefit of any inferences that logically can be drawn from those facts. Buller v. Buechler, 706 F.2d 844, 846 (8th Cir.1983). The court is required to resolve all conflicts of evidence in favor of the nonmoving party. Robert Johnson Grain Co. v. Chem. Interchange Co., 541 F.2d 207, 210 (8th Cir.1976). With these principles in mind, the Court turns to an examination of the facts.

Decedent Mark Wohl married defendant Elaine Wohl Karney (hereinafter referred to as simply "Elaine") on June 13, 1971. Two daughters were born of this marriage: defendant Stacey Wohl (Stacey), born June 10, 1975, and defendant Andrea Wohl (Andrea), born May 21, 1977.

On January 4, 1982 decedent and Elaine were divorced. Their divorce decree specifically incorporated the terms of their "separation agreement". Article II, Paragraph 5 of the separation agreement³ states:

"Respondent [Mark Wohl] agrees that until each said children [Stacey Wohl and Andrea Wohl] attains the age of twenty-one (21) years, he shall maintain in full force and effect an insurance trust which has been created naming the children the beneficiaries of not less than One Hundred Thousand Dollars ($100,000.00) face value of the proceeds and designating Robert J. Wohl and Leroy Koplow [sic] as co-trustees of said insurance trust."

At the time of the divorce, a $100,000.00 life insurance policy had been issued by Bankers Life Co. (now known as the interpleader plaintiff Principal Mutual Life Ins. Co.) on decedent Mark Wohl to Mark's employer, Premium Associates.⁴ The founder and (then) majority shareholder of Premium Associates was Mark's father, defendant Robert Wohl (Robert). This policy, Policy # 2795695, had been sold to Premium Associates in 1975 by defendant Leroy Kopolow.⁵ The original beneficiaries of this policy were Premium Associates (for the reimbursement of all premiums paid) and Elaine (for the remainder value of the policy).

In 1984, Mark married Pamela Wohl and two (2) additional children were born of this marriage (Ashley and Molly). Mark and Pamela were divorced on May 6, 1993.

In 1994, Mark married defendant Melissa Anne Wohl (Melissa). No children were born of this marriage. On August 1, 1996 Mark died of cancer. At the time of his death, he was still married to Melissa.

After Mark's divorce from Elaine, and while he was married to Pamela, Premium Associates took out another life insurance policy on Mark. In October 1987, Premium Associates acquired a $750,000.00 life insurance policy on Mark from General American Life Ins. Co. (the General American policy). The named trustee and sole beneficiary of the policy was Premium Associates Defined Benefit Plan (the Plan).

In July 1991, Mark created a "Revocable Living Trust" (hereinafter simply referred to as the RLT) naming himself the trustee. As a separate provision of this RLT, Mark created the "Children's Trust Share" which provided pro-rata benefits to defendants Stacey and Andrea, as well as his two daughters by Pamela, upon each of the children reaching certain ages. This "Children's Trust Share" was amended three (3) times, the last time being shortly before his death.⁶ None of the amendments named defendants Robert Wohl and/or Leroy Kopolow as trustees. All the amendments provided, that in the event of the death of any one of his four daughters without descendents prior to distribution, that the decedent daughter's share would lapse and be prorated among the surviving siblings.

Although it is unclear, it appears that when the RLT was originally created, it was named the "beneficiary" of the Principal policy. In 1995, when the RLT was amended for the second time, Mark directed that the...