Life Investors Insurance Co. of America v. Federal City Region, Inc.
2012 U.S. App. LEXIS 16701
8th Cir.2012Background
- Corrado solicited Life Investors' insurance products and Life Investors advanced funds, with Corrado granting liens on commissions, credits, or property rights and on Life Investors’ pension-related assets (OPT).
- A 1993 settlement attempt set the interest to be paid from Corrado’s bonuses and the principal from his OPT; Corrado never signed the written Settlement Agreement.
- Life Investors later possessed a document it claimed bore Corrado’s signature and sent it to Corrado, though Corrado never signed the actual agreement.
- From 1993 to 1999 Life Investors applied annual bonuses to Corrado’s account rather than paying them as specified by the Settlement, while Corrado received financial statements lacking Settlement references.
- In 2000 Corrado sought to liquidate his OPT, Life Investors asserted the Settlement debt; in 2003 the OPT portion was transferred to a non-ERISA account; Corrado later sued in Maryland and Life Investors filed this action in Iowa.
- The district court granted Life Investors summary judgment on the contract claim, awarding substantial damages; Corrado appeals, and the court reverses and remands.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Corrado was bound by the Settlement despite disputed signatures | Corrado did not sign or assent to terms. | Corrado ratified by accepting benefits under the Settlement. | Reversed; summary judgment improper. |
| Whether the Settlement was properly authenticated for summary judgment | Settlement lacked proper authentication. | Settlement should be admitted as party-produced evidence. | Remand to address authentication. |
| Whether Corrado’s appeal is moot | Judgment already paid; mootness applies. | Restitution possible; not moot. | Not moot. |
| Whether the district court relied on improper ratification authorities to bind Corrado | Ratification supported by referenced authorities. | Inapplicable authorities used; cannot bind Corrado. | Reversed for improper ratification analysis. |
Key Cases Cited
- Ferguson v. Cape Girardeau Cnty., 88 F.3d 647 (8th Cir. 1996) (summary judgment de novo standard of review)
- Hiatt v. Mazda Motor Corp., 75 F.3d 1252 (8th Cir. 1996) (application of Federal Rules to authentication)
- Morgan v. United Parcel Serv. of Am., Inc., 380 F.3d 459 (8th Cir. 2004) (abuse-of-discretion in admissibility determinations; Rule applicability)
- Stute Co. v. United States, 402 F.3d 820 (8th Cir. 2005) (restitution when judgment later invalidated)
- Ali v. Cangemi, 419 F.3d 722 (8th Cir. 2005) (mootness and appellate considerations in payment of judgments)
- Tungseth v. Mutual of Omaha Ins. Co., 43 F.3d 406 (8th Cir. 1994) (mootness; payment of judgment does not automatically end appeals)
- CNH Capital Am. v. McCandless, 2007 WL 1498357 (N.D. Iowa 2007) (ratification and undue-influence concepts (discussed but not controlling))
- Lindsay Mfg. Co. v. Hartford Accident & Indem. Co., 118 F.3d 1263 (8th Cir. 1997) (predicting state-law decisions in diversity cases)