New York Court of Appeals
45 N.Y.2d 233 (1978)
Mary Simonds (plaintiff) separated from her husband, Frederick Simonds. Pursuant to their separation agreement, Frederick was to maintain life insurance policies with Mary as the beneficiary. Frederick allowed the policies to lapse and instead bought other policies with his second wife and daughter (defendants) as the beneficiaries. Upon Frederick’s death, his estate was insolvent, and there were no policies with Mary as a beneficiary. Mary brought an action against Frederick’s second wife and daughter, seeking to impose a constructive trust on their insurance proceeds to the extent of $7,000. The trial court granted partial summary judgment to Mary and imposed a constructive trust on $7,000 paid to the second wife. The appellate division affirmed. The defendants appealed.
Rule of Law
Holding and Reasoning (Breitel, C.J.)
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