BROWN v. THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Filing
40
ORDER granting 24 Motion for Summary Judgment; denying as moot 29 Cross-Motion to Interplead and Dismiss. The Clerk shall enter a judgment awarding Deborah Phillips the Death Benefit and Premium Refund with interest, costs, and attorneys fees. The Clerk is directed to close the case. Signed by JUDGE RICHARD SMOAK on 5/18/2012. (jem)
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF FLORIDA
PANAMA CITY DIVISION
KELLA BROWN, on behalf of and for the
benefit of JONATHAN R. PHILLIPS,
deceased,
Plaintiff,
v.
CASE NO. 5:11-cv-405-RS-EMT
THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA, a New
Jersey corporation, and UNKNOWN
BENEFICIARY OF OSGO GROUP
POLICY G-32000,
Defendants.
_________________________________/
THE PRUDENTIAL INSURANCE COMPANY
OF AMERICA,
Third-Party Plaintiff,
v.
DEBORAH PHILLIPS,
Third-Party Defendant,
___________________________________/
ORDER
Before me are Deborah Phillips’s Motion for Summary Judgment (Doc. 24),
Prudential Insurance Company of America’s Response and Cross-Motion to
Interplead and Dismiss (Doc. 29), Deborah Phillips’s Response to the Cross-
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Motion to Interplead and Dismiss (Doc. 33), Kella Brown’s Response to the
Motion for Summary Judgment and the Cross-Motion to Interplead and Dismiss
(Doc. 34), and Deborah Phillips’s Reply (Doc. 35).
I. STANDARD OF REVIEW
The basic issue before the court on a motion for summary judgment is
“whether the evidence presents a sufficient disagreement to require submission to a
jury or whether it is so one-sided that one party must prevail as a matter of law.”
Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251, 106 S. Ct. 2505, 2512 (1986).
The moving party has the burden of showing the absence of a genuine issue as to
any material fact, and in deciding whether the movant has met this burden, the
court must view the movant’s evidence and all factual inferences arising from it in
the light most favorable to the nonmoving party. Adickes v. S.H. Kress & Co., 398
U.S. 144 (1970); Fitzpatrick v. City of Atlanta, 2 F.3d 1112, 1115 (11th Cir. 1993).
Thus, if reasonable minds could differ on the inferences arising from undisputed
facts, then a court should deny summary judgment. Miranda v. B & B Cash
Grocery Store, Inc., 975 F.2d 1518, 1534 (11th Cir. 1992) (citing Mercantile Bank
& Trust v. Fidelity & Deposit Co., 750 F.2d 838, 841 (11th Cir. 1985)). However,
a mere ‘scintilla’ of evidence supporting the nonmoving party's position will not
suffice; there must be enough of a showing that the jury could reasonably find for
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that party. Walker v. Darby, 911 F.2d 1573, 1577 (11th Cir. 1990) (citing
Anderson, 477 U.S. at 251).
II. BACKGROUND
I accept the facts in the light most favorable to the non-movant. See Galvez
v. Bruce, 552 F.3d 1238, 1239 (11th Cir. 2008) (citing Vinyard v. Wilson, 311 F.3d
1340, 1343 n.1 (11th Cir. 2002)). “ ‘All reasonable doubts about the facts should
be resolved in favor of the non-movant.’ ” Id. (quoting Burton v. City of Belle
Glade, 178 F.3d 1175, 1187 (11th Cir. 1999); Clemons v. Dougherty County, 684
F.2d 1365, 1368-69 (11th Cir. 1982).
The deceased, Jonathan R. Phillips, was a veteran of the United States Air
Force. Through the Office of Servicemember’s Group Life Insurance (“OSGLI”),
Prudential Insurance Company of America (“Prudential”) provided Group Life
Insurance benefits to the United States Department of Veteran Affairs under group
policy number G-3200 (the “Plan”). Jonathan Phillips was insured under the Plan,
and at the time of his death, Plan benefits in the amount of $50,000 (the “Death
Benefit”) became due and payable.
On September 5, 2008, Jonathan Phillips named Deborah Phillips, his wife
at the time, as the sole designated beneficiary to the Plan. (Doc. 24, Ex. A).
Jonathan Phillips died on August 9, 2011. Because Deborah Phillips was still
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listed as the sole beneficiary, OSGLI processed the Premium Refund to her in
November 2011.
On or about November 17, 2011, Kella Brown commenced this action
seeking a declaratory judgment to award her the Death Benefit. Brown contends
that after Jonathan and Deborah Phillips were divorced, he revoked his Last Will
and Testament and replaced it with a new once on November 5, 2009, and that he
notified “the Department of Veteran Affairs of the removal of Kelly from all
benefits, policies, and other entitlements comprised within Phillips’ military
pension plan; to include the benefits due under Philips’ SGLI Policy G-3200.”
(Doc. 34). Brown’s contention is that Jonathan Phillips intended to remove
Deborah Phillips as the sole beneficiary.
III. ANALYSIS
The Administrator of Veteran Affairs contracted with Prudential to serve as
the primary insurer under the SGLIA. The Administrator has also promulgated
regulations implementing the SGLIA, pursuant to his general rulemaking authority
over veterans’ programs. Ridgway v. Ridgway, 454 U.S. 46, 53 (1981).
These [regulations] provide that the insured “may designate any person,
firm, corporation, or legal entity” as a policy beneficiary, and any such
“designation or change of beneficiary … will take effect only if it is in
writing, signed by the insured and received [by the appropriate office] prior
to the death of the insured.” A change of beneficiary “may be made at any
time and without the knowledge or consent of the previous beneficiary.”
And “[n]o change or cancellation of beneficiary … in a last will or
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testament, or in any other document shall have any force or effect unless
such change is received by the appropriate office.”
Id. (internal citiations omitted)(citing 38 C.F.R. § 9.16).
Brown acknowledges that the beneficiary of the insurance policy at issue
was not changed prior to the insured’s death. (Doc. 35, “[T]he only benefit that
was not changed was the policy in dispute in this instant action.”) Although the
deceased divorced Deborah Brown and changed his last will and testament, a new
beneficiary to this policy was never designated in writing to Prudential, the
appropriate office. Therefore, Deborah Phillips is the proper beneficiary to the
Death Benefit and Premium Refund under the Plan.
IV. CONCLUSION
Deborah Phillips’s Motion for Summary Judgment (Doc. 24) is
GRANTED. The Clerk shall enter a judgment awarding Deborah Phillips the
Death Benefit and Premium Refund with interest, costs, and attorneys’ fees.
Prudential’s Cross-Motion to Interplead and Dismiss (Doc. 29) is DENIED as
moot. The Clerk is directed to close the case.
ORDERED on May 18, 2012.
/s/ Richard Smoak
RICHARD SMOAK
UNITED STATES DISTRICT JUDGE
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