Bolen v. Lobaina
Bolen v. Lobaina
Opinion of the Court
Famela Bolen and William Lobaina were divorced in 1991. Lobaina, who thereafter remarried, died on April 6, 2003. At the time of his death, the
Plaintiff argues that her daughter was entitled to the proceeds of the life insurance policy under the terms of the judgment of divorce. We agree. Under a paragraph entitled “SUPPORT OF MINOR CHILDREN — LIFE INSURANCE,” the divorce judgment provided as follows:
IT IS FURTHER ORDERED AND ADJUDGED that both Plaintiff and Defendant shall forthwith irrevocably designate the minor children as beneficiaries of any life insurance policies they may have by virtue of their employment and they shall continue said minor children as beneficiaries until such time as their obligation to support said minor children as hereinbefore provided shall have been terminated or until the further Order of the Court.
The judgment of divorce also provided that Lobaina, who was the plaintiff in the divorce action, was to pay child support until Amanda reached eighteen years of age or graduated from high school, but in no event past the age of nineteen and one-half. Amanda was sixteen-years old when her father died. Accordingly, the support obligation was still in place at the time of his death.
Plaintiff argues that, under the express terms of the judgment, Lobaina was obligated to name Amanda as the beneficiary of his employer-provided life insurance benefit. We agree. Because the judgment of divorce was
Judgments entered pursuant to the agreement of parties are of the nature of a contract. Massachusetts Indemnity & Life Ins Co v Thomas, 206 Mich App 265, 268; [520] NW2d [708] (1994). Furthermore, a settlement agreement, which is what this property settlement agreement is, is a contract and is to be construed and applied as such. Id.; supra; Eaton Co Bd of Road Comm’rs v Schultz, 205 Mich App 371,379; [521] NW2d [847] (1994). Absent a showing of factors such as fraud or duress, courts act properly when they enforce such agreements. Balabush v Balabush, 199 Mich App 661, 662; 502 NW2d 381 (1993). Interpretation of unambiguous and unequivocal contracts is a question of law. In re Loose, 201 Mich App 361, 366; 505 NW2d 922 (1993).
The life insurance provision in the judgment of divorce in this case is clear and unambiguous. Both parties to the divorce were to “irrevocably designate the minor children as beneficiaries of any life insurance policies they may have by virtue of their employment,” and that obligation was to continue until their obligation to support the minor children was terminated. It is undisputed that Lobaina had a $40,000 life insurance policy provided through his employment and that there was still an obligation to support Amanda. Therefore, by the clear and unambiguous terms of the divorce judgment, Lobaina was obligated to name Amanda as the beneficiary of that policy. Accordingly, the trial court erred in ruling in defendant’s favor.
Defendant relies on In re Monreal Estate,
In Self, there was a similar provision in the divorce settlement. Specifically, it required that the minor children be maintained as beneficiaries of the father’s employer-provided life insurance as long as the father’s “ ‘duty to support them shall continue.’ ”
The Monreal Court looked to Gray v Independent Liberty Life Ins Co,
We disagree with defendant’s suggestion in her brief that the only purpose of a life insurance provision in a divorce judgment is to secure the future payment of child support. That is a possible purpose for the clause, but it certainly is not the only purpose. The parties may simply wish to provide additional security for their minor children in the event that a parent dies while one or more of the children are still minors. Ultimately, it does not matter why the parties agreed to require that any minor child be a beneficiary of the life insurance policy. The fact remains that the explicit language of the divorce judgment so provides. Conversely, had the parties wished to only secure the payment of any remaining child support, the language of the judgment could have been drafted accordingly — we are not concluding that there is an inherent obligation to make the minor children beneficiaries of the whole amount of the par-
Indeed, the life insurance provision is not at all related to the support obligation beyond the fact that the obligation to name the children , as beneficiaries ended at the same time that the support obligation ended. But there was no obligation to maintain insurance in an amount necessary to secure the support obligation. That is, Lobaina was obligated to name the minor children as beneficiaries of the employer-provided life insurance regardless of the amount of that insurance. The insurance might have been more than enough to secure the unpaid support obligation, or it may have been woefully inadequate — and there was no requirement for Lobaina to obtain other life insurance to secure the support obligation. If the parties’ only intent was to ensure the security of future child support payments, the provision would have required that Lobaina maintain sufficient life insurance, regardless of source, to achieve that goal. But Lobaina was under no obligation to maintain any life insurance beyond that provided by his employer.
For that matter, both parents were required under the judgment to name their children as beneficiaries of their employer-provided life insurance, yet only the father was obligated to pay child support. This fact further supports the view that the life insurance clause was not merely intended to secure the payment of future child support. While not essential to reach this conclusion, this mutual obligation clause makes the conclusion that the insurance clause was not intended to secure child support payments very compelling.
Next, defendant argues that she should receive credit for the amount that the minor child will receive from social security for survivor benefits because of decedent’s death, citing Frens v Frens.
Finally, plaintiff argues that the trial court erred in denying her an award of attorney fees. We agree. The judgment of divorce provided as follows:
If either party hereto fails to comply with any of the terms and conditions of the Judgment of Divorce, the prevailing party shall be entitled to their actual attorney fees, in addition to all other statutory attorney fees and costs from the losing party.
Decedent failed to comply with the terms of the judgment regarding the naming of his minor child as the beneficiary of his employer-provided life insurance. Plaintiff prevailed in the action to enforce the judgment. Accordingly, she is entitled to an award of her actual attorney fees. On remand, the trial court shall determine the appropriate amount of that award.
Reversed and remanded to the trial court for further proceedings consistent with this opinion. We do not retain jurisdiction. Plaintiff may tax costs.
Gramer v Gramer, 207 Mich App 123, 125; 523 NW2d 861 (1994).
126 Mich App 60; 337 NW2d 312 (1983), aff'd 422 Mich 704 (1985).
Id. at 64.
MCR 7.215(J)(1).
We do not believe the Supreme Court’s opinion in Monreal is relevant to this case because the Supreme Court’s focus was on a question not present here, namely whether the decedent’s adult children should share in the life insurance proceeds.
See, e.g., Metropolitan Life Ins Co v Self, 129 Mich App 242; 341 NW2d 488 (1983).
Monreal, supra at 64.
Id. at 245 n 1.
57 Mich App 590; 226 NW2d 574 (1975).
Monreal, supra at 64.
Krueger v Krueger, 88 Mich App 722, 725; 278 NW2d 514 (1979), citing Newton v Security Nat’l Bank of Battle Creek, 324 Mich 344; 37 NW2d 130 (1949).
Krueger, supra at 724-725; see also Kasper v Metro Life Ins Co, 412 Mich 232; 313 NW2d 904 (1981).
191 Mich App 654; 478 NW2d 750 (1991).
Reference
- Full Case Name
- In re LOBAINA ESTATE (BOLEN v. LOBAINA)
- Cited By
- 1 case
- Status
- Published