Facts

On July 13, 1998, Lillian Harris bought an annuity policy for $42,693.63 from Life Investors Insurance Co. of America. In 2008, Transamerica Life Insurance Co. acquired it and assumed its obligations. In May, Harris and Joanna Jones learned that Harris' caretaker, Karl Nagel, had been misappropriating funds from the annuity by saying that he was Harris' son and forging her signature on checks drawn from the account of the Lillian B. Harris Family Trust. Transamerica believed Nagel was her son and told him how to take the funds. In 2010, Harris sued Transamerica and Nagel for misappropriation. Transamerica and Harris thereafter settled and entered into a settlement agreement. Later, Harris sued Transamerica based on the settlement agreement.

PLAINTIFF'S CONTENTIONS:
Harris alleged that after they entered into the settlement, Transamerica stopped any more payments on the annuity and declined to give back her initial deposit. She consequently alleged Transamerica violated the terms of the annuity and that she had not yet surrendered the annuity. Her claims included breach of the implied covenant of good faith and fair dealing, conversion, violations of the unfair competition law, and financial elder abuse.

DEFENDANT'S CONTENTIONS:
Defendant argued that after the settlement was executed, Harris gave up the annuity and Transamerica paid the rest of the money she was owed in full.

Result

The court granted Transamerica's motion for summary judgment, explaining that there was sufficient evidence that Transamerica fulfilled all of its contractual obligations on the annuity after the parities settled.

Other Information

FILING DATE: April 18, 2013.