Kelly Ann Wells v. United States Life

The appellant, Kelly Wells, filed an action against the respondents, United States Life Insurance Company, Amway Distributors Association and Amway Distributors Insurance Trust Fund, seeking recovery under an insurance policy on the life of her husband, Ray Wells, and requesting punitive damages for the alleged bad faith denial of her claim. The district court dismissed the complaint, on summary judgment, determining that Ray Wells died prior to the effective date of the insurance. The appellant maintains that factual issues exist with respect to whether the respondents may properly deny liability, and that summary judgment was therefore inappropriate. The respondents cross-appeal, challenging the district courts designation of the appellant as the prevailing party and its award of costs to her. As explained below, we affirm the courts order of dismissal. We further vacate the award of costs to the appellant and remand the case to the district court to award costs to respondents.