- Amount
- $673,000 (court-ordered payment to our clients)
- Counsel
- Interpleader Law
- Result for
- Five of the insured's children, our clients
- Case
- Wilty v. Prudential Insurance Co. of America
- Court
- U.S. District Court, Western District of Tennessee
- Docket
- No. 2:18-cv-02602-JTF
- Decided
- November 19, 2021
- Issue
- Recovering ERISA life benefits already paid to a beneficiary, resolved by court-approved settlement
The insurer paid the insured’s ERISA group life benefit to his widow before his children sued over it. The insurer then counterclaimed for interpleader, and the court issued a temporary restraining order freezing the money already paid. The court found the insurer likely to succeed on a constructive trust claim because the widow had not been ruled out as a suspect in the death. A later consent order required part of the money returned and the rest held for deposit with the court.
We represented five of the insured’s children. The case was resolved by agreement, and because a minor was among the claimants, the court appointed a guardian ad litem, who reported that the settlement was in the minor’s best interests. The court approved the settlement and ordered the registry funds disbursed, with our clients receiving the amount shown plus a share of interest. No court decided the slayer question.
What it shows. Money already paid out under an ERISA plan can sometimes be frozen and recovered, which keeps the claimants’ dispute alive until it can be resolved.
Read the court's order
- Order freezing the paid benefits (Sept. 25, 2018) (PDF)
- Consent order approving settlement (Nov. 19, 2021) (PDF)
- Judgment (Dec. 1, 2021) (PDF)
For a detailed legal summary of this decision, see interpleader.com's decisions library.
Past results do not guarantee a similar outcome. This summary describes the court's ruling; it is not legal advice about any other case.
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