Johnson v. North American Life and Casualty Co.
Illinois Appellate Court
241 N.E.2d 332, 100 Ill. App. 2d 212 (1968)
- Written by Serena Lipski, JD
Facts
Virginia Johnson (plaintiff) was married to Richard Johnson, who died of cancer. Richard had two children from a previous marriage. While Richard was suffering from cancer before his death, he asked Virginia to agree to allow their joint property to be encumbered to secure loans to treat Richard’s illness. In exchange, Richard agreed to designate Virginia as the beneficiary of his life-insurance policy with North American Life and Casualty Co. (North American Life) (defendant). Virginia agreed to the arrangement, which was an enforceable contract under state law. The couple’s joint property was encumbered in exchange for loans spent to treat Richard’s illness, and Richard designated Virginia as his beneficiary. However, Richard then secretly changed his beneficiary from Virginia to his two children from his prior marriage. Richard died insolvent. Virginia filed a complaint seeking the proceeds of Richard’s life-insurance policy. North American Life moved to dismiss Virginia’s complaint, arguing that Virginia was seeking equitable relief, which was inappropriate because Virginia could sue Richard’s estate, a remedy at law. The lower court granted North American Life’s motion, and Virginia appealed.
Rule of Law
Issue
Holding and Reasoning (Moran, J.)
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