Hedger v. Reynolds

Invoking the diversity jurisdiction of the court, the appellee brought this suit to set aside an instrument she had signed at the request of her deceased husband which had enabled him to have a policy of insurance on his life, in which she had previously been the sole beneficiary without right reserved to the insured to change the beneficiary, amended to give him that right. Before his death, he revoked the designation of his wife as beneficiary and had the appellant designated as such. When the insured died, the policy was payable to a third party to whom it had been assigned as security for money loaned to the insured. The insurance company paid the proceeds of the policy to the assignee who, after deducting the amount due him, paid the remainder to the appellant. Additional relief sought was to have appellant declared a constructive trustee, for the benefit of the appellee, of that part of the proceeds of the policy which the appellant had received. After trial by court, judgment was entered for the plaintiff-appellee setting aside the instrument the appellee had signed and impressing a trust for her benefit upon the proceeds of the policy which had been paid to her. This appeal is from that judgment. The insurance company was named as a defendant but did not appear and has no interest in the suit.