Susman Godfrey Wins Summary Judgment In $5 Million Life Settlement Rescission Lawsuit
PR Newswire
A New York state court recently rejected as a matter of law an insurance company’s attempt to rescind a $5 million life insurance policy, holding that the insurer – Lincoln Life & Annuity Company of New York – waived its rights to obtain rescission by seeking and accepting premium payments after it filed its lawsuit. The trial litigation firm Susman Godfrey L.L.P. represents the victorious policy owner. Lincoln’s lawsuit was based on allegations that the insurance policy lacked an insurable interest because it was procured by third-parties for investment purposes. The policy owner vigorously defended the legitimacy of the policy, and also contended that Lincoln’s post-litigation conduct — which included the acceptance of over $100,000 in additional premium payments, premiums Lincoln sought to retain in its lawsuit — barred Lincoln’s claims. The court agreed, and dismissed Lincoln’s suit after granting Susman Godfrey’s motion for summary judgment.
Commentary by Michael Abraham:
Though this is a great win it does indicate the problem of buying high value policies from people who have bought these purely for investment purposes rather than the intended purpose of life insurance – protection!
Published on 06 Jul 2010 at 05:27 am
