Facts

In 1989, plaintiff purchased an annuity contract from defendant Cal Farm. In 1994, Cal Farm sent an "amendment" to the policy. Plaintiff never received the amendment and therefore never agreed to same. The proposed amendment changed the manner upon which death benefits would be paid. One of the owners of the annuity died and Cal Farm paid the death benefits pursuant to the terms of the proposed amendment, rather than the original contract.

PLAINTIFF'S CONTENTIONS:
The proposed amendment was not effective and not binding on plaintiff. The original contract was the only valid agreement between the parties. Accordingly, defendants mistakenly paid benefits to Tracy Hansing Lee (pursuant to the 1994 amendment).

DEFENDANT'S CONTENTIONS:
The 1994 amendment was effective and binding on plaintiff, as plaintiff either received the same and did not object, or, in the alternative, plaintiff accepted the tax benefits that came with the terms of the 1994 amendment.

Result

Decision for plaintiff. Following the court's decision, plaintiff waived his right to proceed with his bad faith claim in exchange for the lump sum annuity benefits in the amount of $205,807.31.

Length

one day