Estate of Malkin v. Wells Fargo Bank, NA, No. 19-14689 (11th Cir. 2021)Annotate this Case
In this dispute over an illegal stranger-originated life insurance (STOLI) policy, the district court found that the AIG Policy at issue lacked an insurable interest at its inception and was therefore void under Delaware Code Annotated Title 18, 2704(a), which, in relevant part, governs the purchase of a life insurance policy on the life of another person.
The Eleventh Circuit affirmed the district court's decision allowing the Estate to recover the policy's proceeds under section 2704(b) and finding that the policy was void. However, the court reversed the district court's decision to strike Berkshire's counterclaims for fraudulent and negligent misrepresentations. The court deferred its decision on the remaining issues in this case pending certification of two questions to the Supreme Court of Delaware. The court stated that Berkshire may be entitled to the premiums it paid and the district court erred by striking its misrepresentation counterclaims. The court reserved judgment on the questions of whether the district court properly calculated prejudgment interest to which the Estate is entitled.
The court issued a subsequent related opinion or order on June 23, 2022.