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Insurance
Breach of Contract
Interpleader

The Guardian Life Insurance Company of America v. Melissa Joy Harger; Kenneth P. Harger; Benjamin L. Harger, Richard Wiebe, as Co-Trustee of the Harger Living Trust dated March 5, 2012; Ernest Benion Jr., as Co-Trustee of the Harger Living Trust dated March 5, 2012; and Does 1 through 10, inclusive

Published: May 28, 2016 | Result Date: Apr. 20, 2016 | Filing Date: Jan. 1, 1900 |

Case number: 5:15-cv-02502-JGB-SP Bench Decision –  $20,135

Court

USDC Central


Attorneys

Plaintiff

Michael B. Bernacchi
(Burke, Williams & Sorensen LLP)

Keiko J. Kojima
(Burke, Williams & Sorensen LLP)


Defendant

Suzanne M. Graves
(Law Office of Suzanne M Graves)


Facts

Kenneth Harger, now deceased, worked for Pacific Hydrotech and was a participant in its employee welfare benefit plan. Plaintiff, an insurance company and successor issuer of the plan, filed an interpleader action seeking to resolve a dispute regarding conflicting claims from defendants for Harger's life insurance death benefits payable under the plan. The amount in dispute was $20,134.79, including accrued interest.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that it received adverse and conflicting claims to the benefits from the trustees of Harger's estate and his daughter Melissa. It also contended that Harger's other children were potential claimants to the proceeds if the court determined there was no beneficiary designated under the plan. As such, it asked the court to restrain defendants from instituting any action against it for recovery under the policy, and asked that defendants be required to interplead and settle amongst themselves their respective proceeds under the policy.

DEFENDANT'S CONTENTIONS:
Melissa contended that she was entitled to the proceeds because Harger designated her as the sole primary beneficiary when he enrolled with his employer for coverage, whereas the trustees contended that because there was no beneficiary designated under the policy, the proceeds defaulted to the estate.

Result

In accordance with the stipulation reached between the parties, the court ordered 75 percent of the $20,134.79 in proceeds, which amounts to $15,101.09, to be paid to Melissa, and 25 percent, which amounts to $5033.70, to be paid to Harger's estate, care of the trustees. Additionally, plaintiff was discharged from any liability to defendants with respect to the policy.

Other Information

Defendants Melissa Joy Harger, Kenneth P. Harger and Benjamin L. Harger were in pro per.


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