Life Insurance Policy – Beneficiary

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7^th Circuit Court of Appeals

Case Name: Samaron Corp v United of Omaha Life Insurance Company

Case No.: 15-3446

Officials: POSNER, EASTERBROOK, and WILLIAMS, Circuit Judges.

Focus: Life Insurance Policy – Beneficiary

Rightful beneficiary of life insurance policy waives right to money when given to wrong party.

“The first would be to emphasize that, although the board discussed the issue, it did not adopt a resolution. In Indiana, whose law controls this litigation, boards act by majority vote. Ind. Code §23-1-34-5(c) (vote at meeting); cf. Ind. Code §23-1-34-2 (decision without a meeting based on written consent of all directors). Apparently Troyer conducted business informally; it operated by consensus (at least until Holtz used his 61% interest to get rid of Buck). The district judge wrote that Indiana allows corporate boards to make binding decisions by consensus, without voting on resolutions. The judge did not cite anything for this proposition, and our own search did not turn anything up. But Troyer does not contest this aspect of the district court’s analysis. Pages 27–28 of Troyer’s brief mention in passing that the board did not adopt a resolution waiving the firm’s right to the money, but the brief does not contain any legal argument about the subject. Any potential challenge to this aspect of the district court’s disposition has been forfeited.”

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.