Keife v. Metropolitan Life Insurance
931 F. Supp. 2d 1100
D. Nev.2013Background
- Consolidated class-action alleging FEGLI life-insurance policy breaches by MetLife.
- FEGLI Program created in 1954 under FEGLIA; MetLife contract with the federal government; OFEGLI administers payments.
- TCAs (retained asset accounts) adopted in 1994 for FEGLI benefit payments.
- Keife v. MetLife involves Betty May Keife’s death and MetLife’s TCA payment; Keife was the named beneficiary.
- Simon v. MetLife involves Brian Simon’s death; Simon was beneficiary and received a TCA with drafts; action consolidated into Keife.
- Court previously held FEGLI Policy is a valid contract and now addresses breach, damages, and payment-form issues related to TCAs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether payment under Section 5 includes TCAs | Keife argues payment means immediate one-sum check. | Keife and Simon contend TCAs are not payment. | No breach; payment via TCAs is authorized and constitutes payment. |
| Whether payment was immediate and in one sum | Keife and Simon claim delay and multiple-sum payouts. | MetLife paid immediately and in one sum by establishing TCAs with full benefits. | MetLife satisfied immediacy and one-sum payment. |
| Whether Section 20 alternative settlements apply | Keife and Simon did not consent to alternative forms. | Parties agreed to TCA payments under Section 20. | No breach; plaintiffs agreed to TCA payments under Section 20. |
| Damages due to alleged delay | Delays trigger Section 4 delayed settlement interest. | No delay; interest properly paid and damages not shown. | No damages; summary judgment granted. |
Key Cases Cited
- Shelton v. Shelton, 78 P.3d 507 (Nev. 2003) (contract terms ambiguous; interpret with parties’ intent and course of performance)
- NGA #2 Ltd. Liab. Co. v. Rains, 946 P.2d 163 (Nev. 1997) (contract interpretation; plain language and surrounding circumstances)
- Las Vegas Sands, LLC v. Nehme, 632 F.3d 526 (9th Cir. 2011) (contract interpretation; intent from conduct and surrounding circumstances)
- Mogel v. UNUM Life Insurance Co., 547 F.3d 23 (1st Cir. 2008) (ERISA fiduciary duty; not controlling for FEGLI contract here)
- Continental Cas. Co. v. Summerfield, 482 P.2d 308 (Nev. 1971) (insurance contract interpretation under Nevada law)