The Estate of Charles D. Smith v. Kansas City Chrome Shop, Inc., No. 21-3196 (8th Cir. 2022)Annotate this Case
This case concerns a $225,000 life insurance policy issued on the life of C.S. When C.S. died in 2018, his estate (“Estate”) made a claim for the policy proceeds. His former employer, Kansas City Chrome Shop (“KCCS”), together with KCCS’s president, Dora Clark-Wall, made a competing claim. After the district court granted partial summary judgment in favor of the Estate, Clark-Wall brought equitable claims in her personal capacity. Following a bench trial, the district court found that Clark-Wall was entitled to an equitable portion of the proceeds totaling $55,253.28 and that the Estate was entitled to the remaining $169,746.72. KCCS and Clark-Wall appealed.
The Eighth Circuit affirmed. The court explained that Clark-Wall’s continued payments and renewal of the policy were essentially a gamble on C.S’s life—a benefit she hoped to reap if he died before she did. The law does not view such conduct favorably. The court, therefore, failed to see how the principles of fairness and justice demand that Clark-Wall is awarded accumulated interest on her payments. Accordingly, the court found no abuse of discretion in the district court’s equitable award to Clark-Wall.