Steven Atherton v. Lincoln National Life Insurance Company
332952
| Mich. Ct. App. | Oct 17, 2017Background
- Plaintiff Atherton challenges Lincoln National Life Insurance for disbursing excess annuity funds to his ex-wife without calculating value as of the marriage date under the divorce consent judgment.
- Consent judgment awarded the ex-wife 50% of the marital share from the marriage date to May 28, 2014, plus or minus gains to segregation.
- Defendant mailed a notice of the consent judgment and provided an authorization form directing transfer of 50% of value as of May 28, 2014 plus gains/losses to the ex-wife.
- Plaintiff signed the authorization, and Lincoln distributed $49,474.39 to the ex-wife as her share.
- Plaintiff sought relief against the ex-wife (resulting in money returned) and then sued Lincoln for negligence and breach of contract; the trial court granted summary disposition for Lincoln and found plaintiff estopped from arguing negligence.
- The appellate court affirmed the trial court’s grant of summary disposition for Lincoln on both theories.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Duty in negligence separate from contract | Atherton argues Lincoln owed a duty arising from the consent judgment. | Lincoln contends no duty exists apart from contract; relation is contract-based. | No tort duty; contract governs; summary disposition affirmed. |
| Breach of contract based on marriage-date limit | Atherton argues Lincoln breached by ignoring the marriage-date limitation. | Lincoln argues authorization complied with the contract; date not specified. | Authorization satisfied the contract; no breach; summary disposition affirmed. |
Key Cases Cited
- Casey v Auto-Owners Ins Co, 273 Mich App 388; 729 NW2d 277 (2006) (writing requirement; not required to sign exactly as written if it reflects the correct disbursement)
- Spiek v Dep’t of Transp, 456 Mich 331; 572 NW2d 201 (1998) (summary disposition standard; no genuine issue of material fact)
- Antoon v Community Emergency Med Serv, Inc, 190 Mich App 592; 476 NW2d 479 (1991) (duty can arise from contract or extra-contractual relationship)
- Bank of America, NA v First American Title Ins Co, 499 Mich 74; 878 NW2d 816 (2016) (elements of breach of contract including damages)