145 So. 3d 664
Miss.2014Background
- 1987 Bagley purchased a cancer and dread-disease policy through agent McPhail, issued by American Heritage Life Insurance Company.
- Policy is a cancer and dread-disease reimbursement policy, not a life-insurance policy with a named beneficiary right.
- In 2008 Bagley was diagnosed with cancer and sought to change the beneficiary to the Straits; McPhail attempted to complete a change-of-beneficiary form but never finalized it due to Hurricane Fay and lack of contact with American Heritage.
- Bagley signed the form intending to name the Straits; the form did not list the Straits as beneficiaries at the time of signing.
- Bagley died before the form could be completed; the policy proceeds ultimately went to Bagley’s estate as indicated by the policy terms and probate proceedings.
- In 2009 the estate sought to include the policy proceeds in its final accounting; the Straits pursued litigation alleging multiple causes of action, which the circuit court dismissed, and the Court of Appeals later reversed before certiorari was granted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Straits may recover as third-party beneficiaries to the policy. | Straits were intended beneficiaries of Bagley’s policy. | Policy did not provide for beneficiary designation or change; Straits cannot be named beneficiaries. | Straits have no viable third-party-beneficiary entitlement under the policy. |
| Whether any genuine issues of material fact exist to support relief. | Questions remain about McPhail’s conduct and policy administration. | Policy terms bar beneficiary change and related duties; no material facts support relief. | No genuine issues of material fact; relief not warranted. |
Key Cases Cited
- Scaggs v. GPCH-GP, Inc., 931 So.2d 1274 (Miss. 2006) (de novo review for dismissal and summary judgment)
- Kilhullen v. Kan. City Ry., 8 So.3d 168 (Miss. 2009) (de novo review standard for dismissals/summaries)
- Lang v. Bay St. Louis/Waveland Sch. Dist., 764 So.2d 1234 (Miss. 1999) (standard for reviewing dismissal and summary judgment)