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Woolsey v. Nationwide Insurance Co.

697 F. Supp. 1053 (1988)

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Woolsey v. Nationwide Insurance Co.

United States District Court for the Western District of Arkansas

697 F. Supp. 1053 (1988)

Facts

Nationwide Insurance Company (defendant) issued a life-insurance policy for William King. After William’s death, Nationwide paid the benefits, totaling approximately $15,000, to William’s parents, Billy and Anna King (defendants). However, under the policy and Arkansas law, the benefits should have been paid to William’s estate. The estate’s personal representative (plaintiff) sued Nationwide, seeking the proceeds of the life-insurance policy. Nationwide then filed a claim against Billy and Anna, seeking restitution if it was required to pay out the benefits a second time. Billy and Anna presented evidence that they paid for expenses related to William’s death, including his funeral and medical bills, that they would not have paid without the life-insurance proceeds. Billy and Anna never received notice of the opening of the estate, so they never had the opportunity to seek reimbursement of those expenses from the estate.

Rule of Law

Issue

Holding and Reasoning (Arnold, J.)

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