UNITED SERVICES LIFE INSURANCE COMPANY v. Moss

• Decision Date: 03 July 1969
• Docket Number: Civ. A. No. 68-C-10-H.
• Parties: UNITED SERVICES LIFE INSURANCE COMPANY, Plaintiff, v. Ella Kathleen McLamb MOSS and Betty L. Barlow Moss Yates, Defendants.
• Court: U.S. District Court — Western District of Virginia

303 F. Supp. 72

UNITED SERVICES LIFE INSURANCE COMPANY, Plaintiff, v. Ella Kathleen McLamb MOSS and Betty L. Barlow Moss Yates, Defendants.

Civ. A. No. 68-C-10-H.

United States District Court W. D. Virginia, Harrisonburg Division.

July 3, 1969.

W. W. Wharton, Wharton, Aldhizer & Weaver, Harrisonburg, Va., for plaintiff.

T. Brooke Howard, Howard, Morris, Hancock, Mains & Howard, Alexandria, Va., for Ella Moss.

W. J. Phillips, Front Royal, Va., for Betty Yates.

OPINION and JUDGMENT

DALTON, Chief Judge.

The plaintiff, an insurance company incorporated under the laws of the District of Columbia and with its principal place of business therein, brings this action of interpleader against the defendants, both residents and citizens of Virginia. The plaintiff issued a policy of insurance on the life of Robert E. Moss. There were two change of Beneficiary and Agreement for Payment of Policy Proceeds forms introduced into evidence. The first is not challenged as being invalid. The second was purportedly signed by Robert Moss in Rotterdam, Netherlands making Robert's second wife, Ella Kathleen McLamb Moss, the beneficiary. This policy was held by Robert for a period of over two years and was never returned to the plaintiff for endorsement. Both defendants, Betty L. Barlow Moss and Ella Kathleen McLamb Moss, have made claims against the plaintiff insurance company for the proceeds of the policy on the life of the deceased, Robert E. Moss. The plaintiff is without knowledge or information sufficient to enable it to determine the validity or superiority of the claims of the defendants. Upon the institution of this proceeding the plaintiff has deposited and paid into the registry of this court the sum of $21,179.71, being the sum due on the policy. It has been ordered that the defendants, Ella Kathleen McLamb Moss and Betty L. Barlow Moss Yates, interplead in this action to determine to whom the $21,179.71 belongs. It has been further ordered that the plaintiff is discharged from liability on the policy in question and that both defendants are perpetually enjoined and restrained from making any further claim against the plaintiff on account of this policy or anything growing out of the same. This is an equitable interpleader action where there is diversity of citizenship between the plaintiff stakeholder and the defendant claimants. 28 U.S.C. § 1332 (1964); John Hancock Mut. Life Ins. Co. v. Kraft, 200 F.2d 952 (2nd Cir. 1953).

In 1958, Robert Moss purchased a policy of life insurance (the policy now in question) with a face value of $20,000.00 from the plaintiff, the United Services Life Insurance Company. Betty L. Barlow Moss, his wife at that time, was made the beneficiary in the policy and any children born of the marriage or adopted by them were the contingent beneficiaries. The right to change the beneficiary was reserved to Robert Moss. Robert Moss had another policy with the Prudential Life Insurance Company on his life with his wife Betty being made the beneficiary.

In 1963 Robert and Betty Moss obtained a divorce in Indiana, although their home was in Front Royal, Virginia. The divorce decree awarded custody of their one son, Michael, who was then eight years old, to his mother. Approximately three months after they were divorced, Robert requested that his former wife Betty deliver to him the two existing policies on his life, which were then in her possession. She says that at the time he made this request he did so in order to notify the United Services Life Insurance Company that he intended to change the family plan in that policy because he was divorced (this being the policy in issue). Robert did cancel the Family Insurance Benefit provision at this time and also executed a Change of Beneficiary and Agreement For Payment of Policy Proceeds form, having it properly endorsed by the company. This form left his former wife Betty as the beneficiary. It further made their son Michael the contingent beneficiary with the proceeds to be held in trust if Michael was a minor when the policy became payable to him. Betty as beneficiary is prohibited from withdrawing more than $2,500 in any one year.

On April 7, 1965, Robert Moss married Ella Kathleen McLamb. In June of 1965 they were transferred to Rotterdam, Netherlands. Robert wrote to the United Services Life Insurance Company requesting the necessary form to change the beneficiary on the policy now in issue. Ella Kathleen Moss has testified that she filled in this form on June 14, 1965, for her husband and that he signed it at this time. On May 27, 1965, the company had sent a letter to Robert Moss requesting him to send in the completed form and explaining that "Until the necessary requirements are received the existing beneficiary designation and method of payment will remain in effect." The policy of insurance itself states:

Unless otherwise provided, any beneficiary named herein may be changed at any time on written notice thereof filed at the Home Office of the Company. Such change shall take effect only upon its endorsement on the policy by the Company but upon such endorsement, the change will relate back to and take effect as of the date said written notice of change was signed whether the Insured be living at the time of such endorsement or not, but without prejudice to the Company on account of any payment made by it before receipt of such written notice at its Home Office.

This form was never mailed to the company and was discovered among Robert's personal papers by his widow, Ella Kathleen Moss, after his death. Robert Moss' purported signature has been overwritten by someone for reasons that are still unknown. Two handwriting experts have testified that the overwritten signature was not that of Robert Moss. One has testified that the original underwritten signature was the authentic signature of Robert Moss and the other has testified that it was not.

In May, 1966, Robert and his wife, Ella Kathleen Moss, visited his mother. His mother testified that she talked with her son about setting up a trust for Michael. She further testified that he at this time told her that Betty will have "all the money she will need. * * * She will have $2,000 a year besides what she gets from the government."

Robert's mother saw him for the last time while visiting at his home in Newport News, Virginia in March, 1967. At this time she asked Robert about Michael's education should anything happen to Robert. She testified that he said, "There is $2,000 a year for insurance plus what she Betty will get will be all she needs to send Michael anyplace he needs to go."

The United Services Life Insurance Company has issued another policy of life insurance to Robert in the amount of $10,000.00, naming his wife, Ella Kathleen Moss, as the beneficiary. On February 12, 1968, a...