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McIntire Ex Rel. Rivers v. Lang
254 P.3d 745
Or. Ct. App.
2011
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Background

  • Heather McIntire was married three times; respondent Lang is her former husband, now guardian-ad litem for J. (Heather’s son) and alive as petitioner in the case; Fred McIntire is Heather’s other former spouse and co-petitioner; dissolution judgment required life insurance for securing support obligations; Heather later obtained and then allowed to lapse a $250,000 Farmers life insurance policy naming Lang as beneficiary; the policy lapses were not timely managed or reported to the insurers by the parties; Heather died intestate in 2007, triggering estate administration; probate court found respondent’s $250,000 claim valid and imposed a constructive trust over Heather’s estate assets; petitioners challenged the constructive trust on appeal; the court applied de novo review to determine whether respondent possessed a property interest in the estate under the dissolution judgment; the court held that Heather was obligated to obtain life insurance and that respondent had a property interest in the estate; the court rejected petitioners’ equitable defenses related to failure to file a supplemental judgment or notify insurers; the final judgment permitted partial payment of the claim to respondent.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether respondent has a property interest in Heather’s estate through a constructive trust. Respondent contends the dissolution judgment created a trust over Heather’s estate assets. Petitioners contend the judgment lacks a net life-insurance obligation or property interest. Yes; respondent has a property interest in the estate.
Whether the dissolution judgment unambiguously required Heather to obtain life insurance. The judgment unambiguously requires insurance to secure support obligations and to benefit their child. The judgment’s lack of a spousal/child-support obligation renders the provision meaningless unless interpreted broadly. Unambiguous and requires Heather to obtain life insurance.
Whether the equitable defense of failure to protect rights bars enforcement. Respondent did not need to file a supplemental judgment to preserve rights. Equitable defenses apply to prevent unjust outcomes and non-vigilance. Equitable defense rejected; public policy to enforce insurance provisions prevails.

Key Cases Cited

  • Tupper v. Roan, 349 Or. 211 (2010) (unjust enrichment and constructive trust standards in similar settings)
  • Yogman v. Parrott, 325 Or. 358 (1997) (contract interpretation; ambiguity determined by context)
  • North Pacific Ins. Co. v. Hamilton, 332 Or. 20 (2001) (ambiguity in contract interpretation; approach to ambiguous terms)
  • Barnes v. Eastern Western Lbr. Co., 205 Or. 553 (1955) (unjust enrichment as governing principle for constructive trusts)
  • Cook v. Cook, 167 Or. 474 (1941) (equitable relief and vigilantification maxim)
  • Yogman v. Parrott, 325 Or. 358 (1997) (contract interpretation; ambiguity determined by context)
Read the full case

Case Details

Case Name: McIntire Ex Rel. Rivers v. Lang
Court Name: Court of Appeals of Oregon
Date Published: Mar 16, 2011
Citation: 254 P.3d 745
Docket Number: P0801041; A141918
Court Abbreviation: Or. Ct. App.