Cheatham v. Cheatham (235 F.2d 249, 1956)

STARR, District Judge.

David Cheatham, one of the defendants in the trial court, appeals from a judgment for Elizabeth Cheatham, plaintiff and appellee, entered on the jury’s return of a special verdict, and from the order denying his motion for a new trial.

Plaintiff and Fletcher Burkette Cheat-ham, a brother of defendant David Cheat-ham, were married in 1938 and thereafter lived together in Detroit, Michigan. On April 1, 1951, defendant The Equitable Life Assurance Society of the United States issued to plaintiff’s husband its certificate under an employee group insurance policy, whereby it agreed that upon his death it would pay to' plaintiff, his wife, as the designated beneficiary the sum of $7,500. Plaintiff’s husband, while serving in the armed forces of the United States prior to January, 1944, applied for and received a policy of national service life insurance in the amount of $10,-000, and in March, 1951, he converted this policy into a so-called five-year-level-premium-term plan insurance policy, and designated plaintiff, his wife, as the beneficiary.

Plaintiff’s husband became ill in 1949, underwent medical treatment, later suffered from epileptic seizures, was hospitalized, and in April, 1952, was operated on for a malignant tumor of the brain, He never thereafter fully recovered his health. In September, 1952, he went to Tennessee with his brother, defendant David Cheatham, who was a practicing attorney in Pulaski. Thereafter his brother on one or more occasions advised him on legal matters relating to his life-insurance policies and regarding his making a will. On December 11, 1952, he designated his brother as a substitute beneficiary in place of the plaintiff, his wife, in both the Equitable Life policy and the national service policy. He died in Pulaski September 11, 1953.

In her complaint in the district court plaintiff alleged in substance that her husband, Fletcher Burkette Cheatham, by reason of his physical and mental illness resulting from a malignant tumor of the brain and a surgical operation therefor, was without mental capacity to change the beneficiary designated in his insurance policies, and that his brother, defendant David Cheatham, by undue influence and duress had induced him to change the beneficiary and to designate said brother, David Cheatham, as beneficiary in place of plaintiff, his wife. The plaintiff asked that the purported change of beneficiary in the policies be declared null and void; that she be determined to be the beneficiary under the policies; and that judgment be entered in her favor against defendants Equitable Life Assurance Society and the United States of America under their respective policies. It may be noted that the defendant insurers admit liability under their policies.

Defendant David Cheatham answered, (jenyjng the material allegations of the comp]ajnt and plaintiff’s right to the re-S0Ught. The case was tried to a jury; an