Holman v. New York Life Insurance Company et al
Filing
131
MEMORANDUM DECISION granting 127 Motion for Entry of Judgment and Award of Costs as Prevailing Party ; denying 128 Plaintiffs Request for Award of Costs or Apportionment of Costs. Signed by Judge Ted Stewart on 05/15/2012. (asp)
IN THE UNITED STATES COURT FOR THE DISTRICT OF UTAH
CENTRAL DIVISION
DARYL P. HOLMAN, an individual,
Plaintiff,
MEMORANDUM DECISION AND
ORDER ON REQUEST FOR
ENTRY OF JUDGMENT
vs.
NEW YORK LIFE INSURANCE
COMPANY, a Delaware corporation,
NYLINK INSURANCE AGENCY
INCORPORATED, a Delaware corporation,
and DOES I-X,
Case No. 2:10-CV-490 TS
Defendants.
This matter is before the Court on Defendants New York Life Insurance Company and
Nylink Insurance Agency Incorporated’s (collectively “Defendants” or “NYL”) Request for
Entry of Judgment and Award of Costs as Prevailing Party. Plaintiff Daryl Holman has filed an
Objection, arguing that he was also a prevailing party and should be awarded costs.
I. BACKGROUND
On April 22, 2010, Plaintiff filed suit in state court against NYL, seeking the benefit of a
life insurance policy (“the Policy”) in the name of Taylor Holman (“the Insured”), who passed
away earlier that year. The action was removed to this Court on May 26, 2010. In its Answer,
NYL stated that, due to an ongoing police investigation and a claim of entitlement to the Policy
benefit by the Insured’s sister Stacy Holman, there was “uncertainty regarding the rightful
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recipient of all or a part of the Policy Benefit.” 1 NYL therefore sought to interplead the Policy
benefit until the Court determined the rightful recipient of the funds.
On May 17, 2011, the Court held that Taylor Holman was the rightful recipient.
However, Stacy Holman continued to have a right to appeal this judgment until she waived her
rights to appeal through releases between 1) Stacy Holman and Daryl Holman; and 2) Stacy
Holman and NYL. Soon after Plaintiff sent NYL the releases, Plaintiff filed a Motion for
Summary Judgment, wherein he argued that he was immediately entitled to the Policy benefit in
light of Stacy Holman’s waivers. NYL paid Plaintiff the Policy benefit soon thereafter, plus 3.5
percent interest on the entire benefit from the date of death.
Plaintiff’s remaining claims were for breach of contract, breach of the covenant of good
faith and fair dealing, and breach of fiduciary duty. On January 26, 2012, the Court granted
summary judgment in favor of NYL and against Plaintiff on all three claims.
II. ANALYSIS
Under Fed. R. Civ. P. 54(d), “[u]nless a federal statute, these rules, or a court order
provides otherwise, costs—other than attorney’s fees—should be allowed to the prevailing
party.” Plaintiff argues that NYL was only partially successful and that he was also a prevailing
party, as NYL ultimately paid Plaintiff the policy benefit. However, this overlooks the fact that
NYL stated in its initial Answer: “New York Life makes no claim to ownership of the Policy
Benefit, and is prepared to deposit the sum of $1,292,233.00, plus interest from the date of the
Insured’s death, into the registry of the Court.” 2 The Court also held that Plaintiff’s claim to the
Policy benefit was fairly debatable and that NYL did not breach the covenant of good faith and
1
Docket No. 3, at 14.
2
Id. at 15.
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fair dealing with respect to its handling of the Policy benefit. Furthermore, the Court finds that
much of the delay in ultimately receiving the Policy benefit is attributable to time spent on
discovery and briefing of Plaintiff’s unsuccessful claims against NYL. Therefore, the Court
finds that NYL is the prevailing party and is entitled to costs.
III. CONCLUSION
Based on the foregoing, it is therefore
ORDERED that Defendants’ Request for Entry of Judgment and Award of Costs as
Prevailing Party (Docket No. 127) is GRANTED. It is further
ORDERED that Plaintiff’s Request for Award of Costs or Apportionment of Costs
(Docket No. 128) is DENIED.
The Court will enter judgment by separate Order. The Clerk of the Court is directed to
tax costs against Plaintiff and close this case forthwith.
DATED May 15, 2012.
BY THE COURT:
_____________________________________
TED STEWART
United States District Judge
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