Hirsch v. Travelers Insurance Co.
New Jersey Superior Court, Appellate Division
341 A.2d 691, 134 N.J. Super. 466 (1975)
- Written by Serena Lipski, JD
Facts
Jack M. Hirsch and Shirley Hirsch were divorced. During their marriage, Jack and Shirley had two children, Janis E. Hirsch and Carol E. Hirsch Bidwell (plaintiffs). In the property-settlement agreement, Jack agreed to designate Janis and Carol as the irrevocable beneficiaries and pay the premiums of several life-insurance policies held by Travelers Insurance Co. (Travelers) and other insurance companies (collectively, the insurance companies) (defendants). Jack also agreed to maintain certain securities in trust for Janis’s and Carol’s educations. Jack then married Doris Hirsch (defendant) and made several changes to the life-insurance policies, making Doris the beneficiary of some policies, borrowing money against others, reducing the face amounts of others, and failing to pay premiums on others. Jack also sold the securities in the education trust. Janis and Carol alleged that Jack used the proceeds from his changes to the life-insurance policies and sale of the securities to purchase a land and build a home for Doris. Jack died in 1973, giving Doris sole ownership of the house. Upon discovering Jack’s actions, Janis and Carol sued the life-insurance companies, the executor of Jack’s estate, and Doris, seeking a constructive trust on the house. Doris filed a motion to dismiss the claims against her, arguing that she had not been unjustly enriched. The trial court agreed and dismissed the claims against Doris. Janis and Carol appealed.
Rule of Law
Issue
Holding and Reasoning (Per curiam)
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