Kitchen & Bath Creations, Ltd. v. Guardian Life Insurance Co. of America
Court: Appellate Division of the Supreme Court of the State of New York; December 18, 1996; New York; State Appellate Court
The Supreme Court of New York County, under Judge Stuart Cohen, issued an order on July 7, 1995, reversing the prior decision that granted the defendant's motion to dismiss the complaint. The court ruled unanimously that the motion was denied and the complaint reinstated. Central to the case is the dispute over whether the decedent had the authority to change the primary beneficiary of a life insurance policy. The court found that it was erroneous to dismiss the complaint based solely on the “Conditional Receipt” provided by the defendant, which did not explicitly reserve the right to change the beneficiary. The Conditional Receipt is characterized as an interim document while the insurer assesses the risk of the application and does not conclusively establish the defense claimed by the defendant. Moreover, it was noted that the decedent had executed a standard "Notice of Change of Owner and Designation of Beneficiary" form shortly before his death, which contradicts the defendant's position. This situation creates a triable issue of fact that precludes summary judgment, distinguishing it from similar cases where no such dispute was present. The decision was concurred by Judges Murphy, Milonas, Tom, Williams, and Andrias.