Shapiro v. United States, 85

• Decision Date: 04 March 1948
• Docket Number: Docket 20760.,No. 85,85
• Citation: 166 F.2d 240
• Parties: SHAPIRO v. UNITED STATES et al.
• Court: U.S. Court of Appeals — Second Circuit

166 F.2d 240 (1948)

SHAPIRO v. UNITED STATES et al.

No. 85, Docket 20760.

Circuit Court of Appeals, Second Circuit.

March 4, 1948.

Winfred C. Allen, of New York City (Winfred C. Allen and James G. Mitchell, both of New York City, of counsel), for Annette Shapiro, plaintiff-appellee.

Edenbaum & Katz, of New York City (Jacques Katz and Edward Norwalk, both of New York City, of counsel), for Clara Shapiro, defendant-appellant.

Before L. HAND, AUGUSTUS N. HAND and FRANK, Circuit Judges.

AUGUSTUS N. HAND, Circuit Judge.

This is an appeal by the defendant Clara Shapiro, mother of one Jerry Shapiro, from a judgment determining that the latter's wife, the plaintiff Annette Shapiro, was entitled to the proceeds of a National Service Life Insurance Policy in the sum of $10,000 issued to her deceased husband on March 1, 1942. At the time the policy issued Jerry Shapiro was unmarried and had designated his mother Clara Shapiro as the beneficiary. He married the plaintiff on October 3, 1942, and thereafter, on or about December 19, 1942, undertook to change the beneficiary of the insurance by having his wife substituted as beneficiary for his mother, the defendant Clara Shapiro. On February 22, 1944, Jerry Shapiro died in a fire in an army camp whereupon Annette Shapiro brought this suit against the United States to obtain the benefits payable under the policy. The United States impleaded the mother Clara Shapiro, who answered claiming the full benefits of the policy on her own behalf.

The case was tried before Hon. Joseph Smith, without a jury, who held that the insured had effectuated a change of the policy, that his widow was entitled to the proceeds, and awarded judgment in her favor accordingly. The decision was essentially based on findings of the judge that the insured had expressed an intention to change the beneficiary originally named in his policy and had done an affirmative act to effectuate the intention. Whether these findings are correct is the chief dispute on the present appeal. We can see no reason to doubt that they are supported by substantial evidence and that the judgment rendered was not only justified but required by the proof.

According to the testimony of plaintiff's witness Bauer, assistant chief attorney of the Legal Division of the New York Regional Office of the Veterans Administration, a change of beneficiary of a National Service Life Insurance Policy may be made by an insured at any time without the knowledge or consent of the previous beneficiary but, to be effective, it must be made by notice in writing signed by the insured and forwarded by the latter or his agent to the Veterans Administration, containing sufficient information to identify the insured. Bauer added that whenever practicable such notices should be given on blanks prescribed by the Veterans Administration, upon receipt of which the designation would be effective as of the date of execution, provided that any payment made before receipt of notice of change by the Veterans Administration should be deemed properly made and a satisfaction in full of the obligations of the United States to the extent of such payments. The testimony of Bauer is borne out by the regulations of the Veterans Administration. 7 Fed.Reg.8363, § 10.3447 (October 16, 1942).

In December, 1942, the insured reported to Lt. Dunn, a battalion adjutant at Fort McClellan, Alabama, and said that he had recently been married and wished to change the beneficiary of his insurance policy from his mother to his wife. A day or two later, he stated to Dunn that he wished to fill out the form so changing his beneficiary. Lt. Dunn told a clerk to give Shapiro the form for changing his life insurance beneficiary. The clerk gave him a W. D., A. G. O. Form No. 41 which, though entitled "Designation of Beneficiary", was not designed to be used to change the beneficiary of an insurance policy but was a form intended for designating the beneficiary of the six months' gratuity, payable in case of death, and the person to be notified in case of emergency. See Plaintiff's Exhibit 2. Shapiro filled out and signed this form, naming his wife as primary beneficiary, and his mother as alternate beneficiary, in the event the wife died before payment was made. Lt. Dunn then witnessed this form, which was forwarded by the message center to the War Department in Washington. Testimony as to these circumstances of the completion of this form was given by Lt. Dunn and was credited by the District Judge. Upon the death of the insured both his widow and mother made claims to the Veterans Administration for payment under the policy. The widow's claim was rejected by the Veterans Administration; the mother's claim was allowed and payments in the amount of $1,349.90 were made to her under the policy. Thereupon, the widow brought this suit, in which the United States impleaded the mother as a defendant.

The findings of the trial judge that Shapiro had changed the beneficiary of his insurance policy are indubitably supported. It is most unlikely that when he signed Form No. 41 that he could have...