Metlife Life and Annuity Company of Connecticut v. Akpele et al

Filing 129

ORDER granting the Trustees 119 Motion for Disbursement of Funds from the Registry of the Court and denying Defendant Herreras 122 Renewed Motion to Enforce Settlement. Signed by Judge Thomas W. Thrash, Jr. on 6/20/16. (jkl)

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION
METLIFE LIFE AND ANNUITY
COMPANY OF CONNECTICUT,
Plaintiff,
v.

CIVIL ACTION FILE
NO. 1:13-CV-3898-TWT

UZO AKPELE, et al.,
Defendants.

ORDER

This is an interpleader action. It is before the Court on the Motion for
Disbursement of Funds From the Registry of the Court by AIE Surgical Practice, LLC
Defined Benefit Plan [Doc. 119].
I. Background
Dr. Ignatius Akpele incorporated AIE Surgical Practice, LLC, as a Georgia
limited partnership on September 5, 2000.1 Dr. Akpele was the sole member of that
practice.2 On April 19, 2005, AIE Surgical Practice established the AIE Surgical

1

Def. Herrera’s Statement of Material Facts ¶ 1.

2

Id. ¶ 2.

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Practice, LLC Defined Benefit Plan.3 The Plan was approved by the IRS as a tax
qualified, § 412(I), non-integrated pension plan on August 23, 2006.4 Dr. Akpele was
the sole trustee named in the plan documents.5
To fund the Defined Benefit Plan, he applied for a whole life insurance policy
in the face amount of $5,148,206.00 with Travelers Life and Annuity Company,
which is now known as MetLife Life and Annuity Company of Connecticut.6 That
application was dated April 27, 2005.7 Dr. Akpele signed the application as trustee of
the Defined Benefit Plan and designated that plan as the owner of the life insurance
policy.8 Initially, Dr. Akpele designated Defendants Uzo Akpele and their minor child,
J.E.A., (the “Akpele Defendants”) as beneficiaries of the life insurance policy.9 During
the underwriting process, the beneficiary on the insurance policy was changed to the
Defined Benefit Plan.10 The Akpele Defendants dispute whether Dr. Akpele
3

Id. ¶ 3.

4

Id. ¶¶ 3-4.

5

Id. ¶ 6.

6

Id. ¶ 8.

7

Id.

8

Id. ¶¶ 10-11.

9

Id. ¶ 12.

10

Id. ¶ 13.

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authorized this change.11 They recognize, however, that the Defined Benefit Plan
documents require the plan to be the beneficiary of any insurance policies purchased
for the purpose of funding the plan.12 In fact, Travelers could not issue the policy until
the Defined Benefit Plan was listed as both the owner and beneficiary of the life
insurance policy.13 Travelers issued the policy on Dr. Akpele’s life with a contract
date of April 19, 2005, in the amount of $5,148,206.00, with the Defined Benefit Plan
as the designated beneficiary.14 When MetLife acquired Travelers Life, it reissued the
policy as a MetLife policy with identical terms.15
Dr. Akpele became ill in December 2009, was diagnosed with terminal multiple
myeloma cancer and other attendant illnesses in early 2010, and passed away on
December 30, 2010.16 Unaware that Dr. Akpele had died, MetLife sent a statement
regarding imputed income in January of 2011.17 After learning of Dr. Akpele’s death,

11

Id.

12

Defs. Uzo Akpele and J.E.A.’s Br. in Opp’n of Ann Herrera’s Mot. for
Partial Summ. J. and in Supp. of Their Counter-Mot. for Summ. J., at 19, 25.
13

Pl.’s Statement of Facts ¶¶ 15-16, 18.

14

Def. Herrera’s Statement of Material Facts ¶ 14.

15

Id.; Pl.’s Statement of Facts ¶ 35.

16

Def. Herrera’s Statement of Material Facts ¶¶ 15-16.

17

Pl.’s Statement of Facts ¶ 51.

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MetLife sent a claim packet addressed to his family on February 1, 2011.18 That letter
explained that the benefits were payable to the trustee of the Defined Benefit Plan and
requested that the trustee send the paperwork to process the claim.19 MetLife made a
second request that the trustee send claim paperwork on May 7, 2011.20 By order of
the Probate Court of Fulton County, Georgia, Defendant Ann J. Herrera was appointed
temporary administrator of Dr. Akpele’s estate on July 1, 2011.21 On November 29,
2012, Uzo Akpele called MetLife and requested the benefits from the policy.22
MetLife noted that Mrs. Akpele stated that she was not the trustee, but would have the
trustee return the required form and certified death certificate.23 On December 12,
2012, the Akpele Defendants filed a claim with MetLife for proceeds under the life
insurance policy.24 MetLife refused to pay death benefits to the Akpele Defendants,
citing the ground that they were not the listed beneficiaries.25 Instead, MetLife filed
18

Id. ¶ 52.

19

Id. ¶ 53.

20

Id. ¶ 54.

21

Def. Herrera’s Statement of Material Facts ¶ 22.

22

Pl.’s Statement of Facts ¶ 55.

23

Id. ¶ 56.

24

Def. Herrera’s Statement of Material Facts ¶ 24.

25

Pl.’s Statement of Facts ¶ 58.

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its interpleader complaint on November 22, 2013, and deposited the death benefits
with interest in the amount of $635,562.25 on December 16, 2013.26 The Trustee of
the Plan has filed this Motion to Disburse Funds. The Defendant Herrera contends
that the Court should enforce a settlement agreement between the Estate and the
Akpele Defendants.
II. Discussion
The AIE DB Trust mandates that no participant or beneficiary shall have the
right to “alienate, anticipate, commute, pledge, encumber, or assign any of the benefits
or payments which he may expect to receive, contingently or otherwise, under [the]
Plan, except the right to designate a Beneficiary or Beneficiaries . . . .” Consistent
with ERISA, the Trustee is the sole beneficiary of the Plan's assets and may not
alienate, assign, or otherwise make such Plan assets subject to other legal or equitable
process. Furthermore, counsel for the Akpele Defendants had no authority to bind the
Trustee to a settlement agreement with Dr. Akpele’s Estate. Therefore, the funds in
the registry of the Court must be paid to the AIE Surgical Practice, LLC Defined
Benefit Plan.

26

Id. ¶ 60.

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III. Conclusion
The Trustee’s Motion for Disbursement of Funds From the Registry of the
Court by AIE Surgical Practice, LLC Defined Benefit Plan [Doc. 119] is GRANTED.
The Defendant Herrera’s Renewed Motion to Enforce Settlement [Doc. 122] is
DENIED.
SO ORDERED, this 20 day of June, 2016.

/s/Thomas W. Thrash
THOMAS W. THRASH, JR.
United States District Judge

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