UNUM Life Insurance Company of America v. Norton et al

Filing 52

ORDER: The Clerk is DIRECTED to DISBURSE the interpleader funds as pursuant to the Order. The Clerk is DIRECTED to Terminated Motions 48, 49, and 51 as MOOT. Signed by Magistrate Judge Elizabeth Preston Deavers on 09/28/2015. (sr)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF OHIO
EASTERN DIVISION

UNUM LIFE INSURANCE
COMPANY OF NORTH AMERICA,
Plaintiff,
Civil Action 2:14-cv-2180
Magistrate Judge Elizabeth P. Deavers

v.

SUSAN NORTON, et al.,
Defendants.
ORDER
UNUM Life Insurance Company of America (“UNUM”) filed this interpleader action
seeking a judicial determination as to which claimants are the proper beneficiaries under group
life insurance policies that were issued as part of an employee welfare benefit plan to Decedent
James Kavanaugh (“Decedent”). This Court has subject matter jurisdiction over this interpleader
action under the equitable relief provision of the Employee Retirement Income Security Act of
1974. 29 U.S.C. § 1132(a)(3)(B)(ii).
In February 2014, Decedent designated Susan Norton as the beneficiary of the full
$50,000 in proceeds at issue in this action. (Interpleader Compl. ¶¶ 6–7, ECF No. 1.) The plan
documents reflect that on June 19, 2014, Decedent changed his beneficiary designation, naming
Jamie Kavanaugh (“Jamie”) as the beneficiary of $30,000 in proceeds and Susan Norton and
Lacey Kavanaugh (“Lacey”) as beneficiaries, each of whom were entitled to $10,000 in
proceeds. (Id. at ¶ 8.) Decedent died on June 21, 2014. (Id. at ¶ 9.) Ms. Norton challenges the
June 2014 change in beneficiary designation and asserts that she was the rightful beneficiary to
the entirety of the proceeds. (Id. at ¶ 10.) Jamie asserts that the June 2014 designations are

correct such that she is entitled to $30,000 of the proceeds. (Id. at ¶ 11–13.) Jamie and Ms.
Norton filed answers to UNUM’s Interpleader Complaint and cross-claims against each other
and Lacey. (ECF Nos. 9 and 10.) Lacey did not file an Answer or otherwise enter an
appearance, prompting Jamie and Ms. Norton for move for default judgment against Lacey.
(ECF Nos. 48 and 49.) In addition, Jamie moved for summary judgment as to the validity of the
June 2014 change in beneficiaries. (ECF No. 51.)
This matter came before the Court for a settlement conference on September 23, 2015.
Jamie and Ms. Norton participated in the mediation. Jamie and Ms. Norton agreed not to object
to a Court Order directing disbursement to Lacey for the entire $10,000 to which she could claim
entitlement. Jamie and Ms. Norton further agreed to disbursement of $26,000 to Jamie and
$14,000 to Susan.
Accordingly, the Clerk is DIRECTED to DISBURSE the interpleader funds as follows:
C

$26,000 plus prorated interest to Jamie Kavanaugh, 2112 Arlington
Avenue, Apt. C, Upper Arlington, OH, 43221.

C

$14,000 plus prorated interest to Susan Norton, check payable to Susan
Norton & O’Reilly Law Offices IOLTA Account, 30 Hill Road South,
Suite B, Pickerington, OH, 43147;

C

$10,000 plus prorated interest to Lacey Kavanaugh, 285 Johnson Avenue,
Frankfort, KY, 40601.

In addition, the Clerk is DIRECTED to TERMINATE ECF Nos. 48, 49, and 51 as MOOT and
remove this action from the Court’s pending cases list.
IT IS SO ORDERED.
Date: September 28, 2015

/s/ Elizabeth A. Preston Deavers
ELIZABETH A. PRESTON DEAVERS
UNITED STATES MAGISTRATE JUDGE