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Distinguished by McCarthy v. Mulcahy, Mass.App.Ct., January 24, 2012

Original Image of 868 N.E.2d 636 (PDF)

69 Mass.App.Ct. 414
Appeals Court of Massachusetts,
Middlesex.

Adam J. CANNON & another 1

v.
Marie E. CANNON.

No. 06–P–495.
Argued April 2, 2007.
Decided June 25, 2007.

Synopsis
Background: Insured's children brought action against his estranged wife to recover their share of life insurance proceeds
based on breach of contract, promissory estoppel, and money had and received contrary to change of beneficiary form and
alleged agreement to remit share to children. The Superior Court Department, Middlesex County, Thomas E. Connolly, J.,
2005 WL 3105701, entered summary judgment in favor of wife. Children appealed.

Holdings: The Appeals Court, Grasso, J., held that:

1 statutory requirement of signature by disinterested witness had no application to children's claim against wife;
2 wife received consideration for agreement to addition of children as beneficiaries and alleged agreement to remit share of
proceeds to children;
3 the alleged agreement to remit share of proceeds could be basis for promissory estoppel claim and claim for money had and
received; and
4 factual questions precluded summary judgment.

Reversed and remanded.

West Headnotes (12)

1 Insurance
217 Insurance
Statutory requirement that disinterested person be witness to signature of person
requesting change in life insurance policy beneficiary had no application to claim by 217XXIX Persons Entitled to Proceeds
insured's children against his estranged wife for a share of proceeds; their claim existed 217XXIX(F) Life, Health and Accident
independently of the statute and flowed from the probate and family court's Insurance
authorization of change, execution of the change of beneficiary designation, and the 217k3472 Change of Beneficiary, in
children's subsequent reliance on that change request and estranged wife's promise to General
share the proceeds if they did not file the change of beneficiary designation. M.G.L.A. c. 217k3475 Mode and Sufficiency
175, § 123. 217k3475(1) In general

1 Case that cites this headnote

217 Insurance

217XXIX Persons Entitled to Proceeds

217XXIX(F) Life, Health and Accident

Insurance
217k3478 Spouses, Parents and Children

217k3481 Divorce or Separation;

Agreements and Settlements
217k3481(1) In general

2 Insurance
217 Insurance
Insured's estranged wife received consideration for her agreement with insured to add his
children as beneficiaries to life insurance policy during divorce proceedings, even though 217XXIX Persons Entitled to Proceeds
witness did not sign change of beneficiary form and it was not submitted to insurer; while 217XXIX(F) Life, Health and Accident
insured was dying, probate and family court allowed each spouse to withdraw $50,000 Insurance
from investment account and add beneficiaries to policies, the ability to change 217k3478 Spouses, Parents and Children
beneficiaries on her policy and receive cash was a benefit to wife, and the change of Divorce or Separation;
217k3481
beneficiary designation and wife's assent to that designation was part of a greater Agreements and Settlements
bargained-for exchange in the division of the marital estate by which each received 217k3481(1) In general
immediate cash and ceded a two-thirds interest in the other's life insurance policy.
M.G.L.A. c. 175, § 123.

3 Contracts
95 Contracts
The law is not concerned with the adequacy of the consideration, as long as it is valuable.
95I Requisites and Validity
1 Case that cites this headnote Consideration
95I(D)
95k53 Adequacy

4 Contracts
95 Contracts
The fact that a part of the consideration, standing alone, might have been illusory is no
objection to the sufficiency of the consideration; the law is not concerned with the 95I Requisites and Validity
adequacy of the consideration, as long as it is valuable. 95I(A) Nature and Essentials in
General
1 Case that cites this headnote 95k10 Mutuality of Obligation

95k10(1) In general

95 Contracts

95I Requisites and Validity

95I(D) Consideration

95k53 Adequacy

95 Contracts

95I Requisites and Validity

95I(D) Consideration

95k54 Sufficiency in General

95k54(1) In general

5 Insurance
217 Insurance
As intended third-party beneficiaries, insured's children were entitled to enforce contract
between insured and estranged wife to add insured's children as beneficiaries to life 217XXIX Persons Entitled to Proceeds
insurance policy during divorce proceedings; the contract was made pursuant to court 217XXIX(F) Life, Health and Accident
order for benefit of children. Insurance
217k3478 Spouses, Parents and Children

217k3481 Divorce or Separation;

Agreements and Settlements
217k3481(3) Effect on right to change
beneficiary

6 Insurance
217 Insurance
Decision by insured's children to abandon effort to seek payment from life insurer by
filing beneficiary change form was consideration for agreement by insured's estranged 217XXIX Persons Entitled to Proceeds
wife to remit children's share of proceeds to them, even though disinterested witness 217XXIX(F) Life, Health and Accident
failed to sign form and insurer could have refused to pay children. Insurance
217k3478 Spouses, Parents and Children

217k3481 Divorce or Separation;

Agreements and Settlements
217k3481(1) In general

7 Contracts
95 Contracts
Abandonment of a claim brought in good faith is good consideration for a promise even if
the claim ultimately might have been unsuccessful. 95I Requisites and Validity

95I(D) Consideration

95k70 Forbearance

95k72 Existence or validity of right or

remedy

8 Estoppel
156 Estoppel
Alleged agreement by insured's estranged wife to collect life insurance policy proceeds
and pay insured's children their share in lieu of them filing beneficiary change 156III Equitable Estoppel
designation with insurer could be basis for promissory estoppel claim by children; family 156III(B) Grounds of Estoppel
court judge allowed insured to add children as beneficiaries during divorce proceedings,
156k82 Representations
estranged wife signed assent to change, the alleged agreement amounted to a promise
that reasonably could be expected to induce forbearance of a substantial character and 156k85 Future events; promissory
estoppel
did so, and the children had a colorable claim to proceeds, even though possibility
existed that the insurer would not recognize the change since disinterested witness failed
to sign the form. M.G.L.A. c. 175, § 123.

1 Case that cites this headnote

9 Judgment
228 Judgment
Genuine issues of material fact as to whether a representation was made by insured's
estranged wife or on her behalf regarding how life insurance proceeds would be collected 228V On Motion or Summary
Proceeding
and shared with insured's children and whether the children reasonably relied on that
representation to their detriment precluded summary judgment on children's promissory 228k181 Grounds for Summary
Judgment
estoppel claim to share of proceeds collected by wife.
228k181(15) Particular Cases
5 Cases that cite this headnote 228k181(23) Insurance cases

10 Implied and Constructive Contracts

205H Implied and Constructive
Alleged agreement by insured's estranged wife to collect life insurance policy proceeds Contracts
and pay insured's children their share in lieu of them filing beneficiary change
205HI Nature and Grounds of
designation with insurer could be basis for claim by children for money had and received. Obligation
205HI(B) Money Received
2 Cases that cite this headnote
205Hk15 Consideration or Purpose for
Which Money Was Received
205Hk19 Reception by defendant under
promise or duty to pay
plaintiff

11 Implied and Constructive Contracts

205H Implied and Constructive
An action for money had and received lies to recover money which should not in justice Contracts
be retained by the defendant, and which in equity and good conscience should be paid to
205HI Nature and Grounds of
the plaintiff. Obligation
205HI(B) Money Received
3 Cases that cite this headnote
205Hk10 In general

12 Judgment
228 Judgment
Genuine issues of material fact as to alleged agreement by insured's estranged wife to
collect life insurance proceeds and remit share to insured's children in lieu of them filing 228V On Motion or Summary
Proceeding
change of beneficiary form with insurer precluded summary judgment on whether wife
had money which in equity and good conscience belonged to the children. 228k181 Grounds for Summary
Judgment

1 Case that cites this headnote 228k181(15) Particular Cases

228k181(23) Insurance cases

All Citations
69 Mass.App.Ct. 414, 868 N.E.2d 636

End of Document © 2020 Thomson Reuters. No claim to original U.S. Government Works.

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