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Insurance
Life Insurance
Interpleader

State Farm v. Esther Renko, Jeremiah Covington, Barrett Covington

Published: May 18, 2004 | Result Date: Mar. 4, 2004 | Filing Date: Jan. 1, 1900 |

Case number: GIN027571 Bench Decision –  $200,000

Judge

William S. Dato

Court

San Diego Superior


Attorneys

Plaintiff

Philip M. Cohen


Defendant

Kamilla Kodama

Wayne Templin

Alex B. Scheingross


Experts

Defendant

Breffni Barrett
(medical)

Facts

Karen Covington, the mother of the defendants Barrett and Jeremiah Covington, began a relationship with George Organ shortly after her husband died in 1993. Karen's husband was the father of the defendants Barrett and Jeremiah Covington. At the time of his death, the defendants were 12 and 10 years of age. Their relationship began in Colorado and shortly afterwards they moved with the defendants to San Diego. Once in San Diego, George Organ informed his friends that he could not live with Karen Covington's children. In 1999, Jeremiah Covington, then 18, moved out of the house. In 2000, George Organ kicked the defendant Barrett Covington (who was 16 at the time) out of the house. In 2001, George Organ and Karen Covington purchased a residence. At the suggestion of their insurance agent, they each took out a $200,000 life insurance policy insuring each other's life. The purpose of the policies was to cover the mortgage in the event of either's death. Esther Renko, the mother of George Organ, was named the alternate beneficiary of Karen Covington's life insurance. George Organ murdered Karen Covington and one of his friends in August 2002 and then committed suicide.

Settlement Discussions

The defendants Covington made a C.C.P. Section 998 offer to Renko for $10,000 which was not accepted. At a settlement conference, the Covingtons increased their offer to Renko to $20,000. Renko offered each of the Covingtons $20,000 and $10,000 to Barrett Covington's child, a total of $50,000. The settlement judge suggested that the parties split the money, $100,000 to Renko, $100,000 to be divided between the Covingtons.

Result

The court voided the beneficiary designation of Esther Renko and ruled that Barrett and Jeremiah Covington should receive the entire $200,000 policy.

Other Information

PLEASE PROVIDE THE NAME, TEL AND FAX NO. OF PLAINTIFF ATTY.


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