Sun Life Assurance Co. of Canada v. Horn

• Decision Date: 05 February 2018
• Docket Number: Civil Action No. ELH-17-434
• Parties: SUN LIFE ASSURANCE COMPANY OF CANADA, Plaintiff, v. MARGERY HORN, et al. Defendants.
• Court: U.S. District Court — District of Maryland

SUN LIFE ASSURANCE COMPANY OF CANADA, Plaintiff, v. MARGERY HORN, et al. Defendants.

Civil Action No. ELH-17-434

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

February 5, 2018

MEMORANDUM OPINION

In this interpleader action, Sun Life Assurance Company of Canada ("Sun Life") filed suit against Margery Horn and John Simmons to resolve a dispute as to the lawful beneficiary of the proceeds under a group term life insurance policy held by Margery Horn Simmons (the "Decedent, "Ms. Simmons," or "Ann"), who died on December 1, 2016. ECF 1 (the "Complaint").¹ The insurance policy is governed by the Employee Retirement Income Security Act of 1974 ("ERISA"), 29 U.S.C. §§ 1001 et seq., and was submitted as an exhibit with the suit. See ECF 1-1 at 1-47.

Margery Horn, the Decedent's elderly mother, and John Simmons, the Decedent's husband for some 35 years, each claim entitlement to the death benefits of $64,000 under the policy. The dispute is rooted in a power of attorney that Ms. Simmons executed in favor of her sister, Carol Parker. Relying on the terms of the power of attorney, Ms. Parker changed the beneficiary designation under the Policy from Mr. Simmons to Ms. Horn.

Mr. Simmons filed a Third-Party Claim against Ms. Parker alleging, inter alia, that Ms. Simmons lacked the mental capacity to execute a valid power of attorney in favor of Ms. Parker. ECF 13 at 9. Sun Life subsequently deposited the disputed funds of $64,000 into the registry of the Court. Thereafter, it was discharged from the case. ECF 25.²

Now pending is a pre-discovery motion for partial summary judgment filed by Mr. Simmons (ECF 22), supported by a memorandum of law (ECF 22-2) and a Statement of Undisputed Facts (ECF 22-1 at 1-6) (collectively, the "Motion"), as well as several exhibits. See ECF 22-1 at 7-21. In sum, he contends that the terms of the power of attorney provided by the Decedent to Ms. Parker did not authorize Ms. Parker to change the policy's beneficiary designation. ECF 22 at 2-3. Ms. Horn and Ms. Parker jointly oppose the Motion (ECF 23), with a supporting memorandum of law (ECF 23-2) (collectively, the "Opposition") and multiple exhibits. ECF 23-3 at 1-35. Mr. Simmons replied (ECF 24, "Reply") and submitted an additional exhibit. See ECF 24-1.

The Motion is fully briefed and no hearing is necessary to resolve it. See Local Rule 105.6. For the reasons that follow, I shall deny the Motion.

I. Factual Background³

Margery Horn Simmons, known as Ann, was the policyholder of a Sun Life group term life insurance policy, number 216716-001 (the "Policy"), which provided a death benefit of $64,000. ECF 1, ¶¶ 7-9; ECF 1-1 at 1-47 (Policy No. 216716-001); ECF 22-1 at 7-11 (undatedAffidavit of John Simmons), ¶¶ 1, 5;⁴ ECF 22-1 at 2-5, ¶ 11. Ms. Simmons became a policyholder in 2008, as a benefit of her employment with Christiana Care Health Systems. ECF 1, ¶ 8; ECF 22-2 at 4.

The Policy defines "Beneficiary" as "the person (other than the Employer) who is entitled to receive death benefit proceeds as they become due under this Policy. A Beneficiary must be named by the Employee on a form acceptable to Sun Life and executed by the Employee." ECF 1-1 at 13. Further, the Policy provides that a Beneficiary designation is generally revocable. Id. at 43. It adds, in Section VII (H.): "Any request for change of Beneficiary must be in a written form and will take effect as of the date the Employee signs and files the change with the Employer." Id.

On or about July 1, 2016, Ms. Simmons designated her husband, John Simmons, as the beneficiary of the Policy. ECF 1, ¶ 10; ECF 1-1 at 52-53 (Open Enrollment Form); ECF 23-3 at 1-2 (same); ECF 22-1 at 8, ¶ 5.⁵ At the time of Ms. Simmons's death in December 2016, she was 61 years of age and had been married to Mr. Simmons for about 35 years. ECF 22-1 at 8, ¶ 1; ECF 23-3 at 25 (Certificate of Death).⁶

Mr. Simmons claims that he has been totally disabled since he was 47 years of age. ECF 22-1 at 10, ¶ 2. In August 2017, when Mr. Simmons filed his undated Affidavit (ECF 22-1 at 10-11), he was 63 years old. Id. at 10, ¶ 1.

Mr. Simmons avers that during 2016, his wife "suffered from numerous medical conditions requiring lengthy hospitalizations and extensive medical treatment." Id. at 10-11, ¶ 6. Mr. Simmons recounts in his Affidavit that on July 29, 2016, paramedics removed his wife from their home "due to her deteriorated medical condition." Id. at 9, ¶ 7. According to Mr. Simmons, Ann's medical care was thereafter directed by her sister, Ms. Parker, "without consultation" with him. Id. at 9, ¶ 8. As noted, Ms. Simmons died on December 1, 2016. Id. at 9, ¶ 9.

The events of July 29, 2016, have been "the source of great controversy between the parties." ECF 22-2 at 4 n.1. It appears undisputed that on that date Ms. Simmons was at home, unconscious, "slumped" in a chair, and was covered with a blanket, despite warm temperatures both inside and outside the house. ECF 22-2 at 4 n.1; see ECF 23-3 at 27, ¶ 5 (Affidavit of Margery Horn); ECF 23-3 at 29-30 (Affidavit of Bonnie Horn, Decedent's sister), ¶ 5. Several of Ms. Simmons's biological family members ("family members") claim that they attempted to reach Ms. Simmons, but Mr. Simmons repeatedly insisted that she was sleeping. See, e.g., ECF 23-3 at 27, ¶¶ 3, 4; ECF 23-3 at 29-30, ¶¶ 3, 5.

Bonnie Horn, a sister of the Decedent found Ms. Simmons "unresponsive, leaning off the arm of a recliner as if she was trying to reach the phone on the end table next to the recliner, covered in blankets . . . even though it was hot out." ECF 23-3 at 29, ¶¶ 4-5. Bonnie then called 911. Id. ¶ 5. According to Margery, Bonnie, and Brenda Snider, another sister of the Decedent, Mr. Simmons would not allow the emergency medical technicians ("EMT") to enter the house. ECF 23-3 at 27, ¶ 6; ECF 23-3 at 29, ¶ 7; ECF 23-3 at 28 (Affidavit of Brenda Snider). The EMTs eventually entered the house, transferred Ms. Simmons to an ambulance, and then transported her to a hospital. ECF 23-3 at 29, ¶ 8; ECF 22-1 at 9, ¶ 7; ECF 23-3 at 27, ¶ 7; ECF23-3 at 28, ¶ 5; ECF 23-3 at 29, ¶¶ 9-10. Bonnie avers that Mr. Simmons declined to go to the hospital with his wife. ECF 23-3 at 29, ¶ 8.

According to the Decedent's family members, Ms. Simmons was diagnosed as having suffered several mini-strokes. ECF 23-3 at 27, ¶ 7; ECF 23-3 at 28, ¶ 5; ECF 23-3 at 29, ¶ 9. In addition, the family members claim that Ms. Simmons was malnourished and dehydrated. ECF 23-3 at 27, ¶ 7; ECF 23-3 at 28, ¶ 5; ECF 23-3 at 29, ¶ 9.⁷

Ms. Simmons was transferred to the Life Care Hospital in Westchester, Pennsylvania on September 3, 2016. ECF 23-3 at 31-32 (Affidavit of Ms. Parker), ¶ 5; see ECF 23-3 at 35 (Affidavit of Gary Ratliff, Decedent's friend), ¶ 2. She was later transferred to the "Bridge Park Nursing Home" (hereinafter, "Bridge Park"). ECF 23-3 at 33 (Affidavit of Cathey Fischbein, Nursing Supervisor at Bridge Park), ¶ 2; ECF 23-3 at 34 (Affidavit of Vandella Mossenburg-Bey, Director of Social Services at Bridge Park), ¶ 1.

On October 14, 2016, while Ms. Simmons was receiving care at Bridge Park, she executed a Maryland statutory power of attorney form (the "Form"), granting power of attorney to her sister, Carol Parker. ECF 23-3 at 31, ¶ 9; ECF 23-3 at 33, ¶ 1; ECF 23-3 at 34, ¶ 2; ECF 23-3 at 33, ¶¶ 6-8. The form is titled "Maryland Statutory Form Personal Financial Power of Attorney." ECF 22-1 at 14-21; ECF 23-3 at 3-9. Ms. Simmons also gave her sister a medical power of attorney. See ECF 23-3 at 31-32, ¶¶ 9-10.

The execution of the Form was witnessed by a notary public (ECF 23-3 at 8), and was also witnessed by Margery Horn and Cathey Fischbein (ECF 23-3 at 9), the Unit Nursing Supervisor at Bridge Park. ECF 23-3 at 33, ¶ 1. Although Mr. Simmons asserts that it is unknown whether his wife had the mental capacity to execute a power of attorney, he contends that the matter is not material to the Motion. ECF 22-2 at 4 n.2. And, for the purpose of the Motion, Mr. Simmons "assumes, arguendo, that the power of attorney was validly executed . . . ." ECF 24 at 13.⁸

The Form (ECF 23-3 at 3-9; ECF 22-1 at 14-21) enumerates seven "general" authorities granted by the power of attorney (see, e.g., ECF 23-3 at 4), as well as specific authorities pertaining to eight "subjects." Id. at 4-7. Notably, one of the "subjects" covered insurance and annuities. Id. at 5-6. That subject states, in relevant part, id. at 4: "I authorize my agent to . . . modify . . . a contract procured by . . . the principal that insures . . . either the principal or another person, whether or not the principal is a beneficiary under the contract . . . ."

Exercising the power of attorney on behalf of Ms. Simmons, Parker filed a petition in the District Court for Baltimore City on October 14, 2016, seeking a protective order against Mr. Simmons on behalf of Ms. Simmons. ECF 23-3 at 14-15 (Addendum to Petition for ProtectiveOrder); ECF 22-2 at 2 n.1. The petition appears to allege elder abuse and neglect by Mr. Simmons in regard to the events of July 29, 2016. ECF 22-2 at 4, n.1.⁹ By consent, Parker, on behalf of Margery Simmons, and Mr. Simmons, entered a Final Protective Order (ECF 23-3 at 10-13), in which Mr. Simmons did not admit fault. Id. at 11. Under the Final Protective Order, Mr. Simmons was barred from abusing, threatening to abuse, or harassing Ms. Simmons. Id. at 11, ¶ 2. Additionally, he was granted visitation with Ms. Simmons under the supervision of hospital staff, until such time as Ms. Simmons terminated his visitation. Id. at 11, ¶ 3.

Of import here, Parker avers that Ms. Simmons asked her to change the beneficiary under the Policy from Mr. Simmons to Margery Horn. ECF 23-3 at 32, ¶ 11. On or about November 1, 2016, Ms. Parker submitted a change of beneficiary request to Sun Life, designating her mother, Margery Horn, as the beneficiary under the Policy. ECF 1, ¶ 12; ECF 1-1 at 55-56 (Change of Beneficiary Form).

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