Rose Coleman v. Bryan Olson

Excerpt

This is the second time this dispute has been before this court. The appeal arises from a violation of Tenn. Code Ann. § 36-4-106(d)(2), which prohibits a divorcing party from "canceling, modifying, terminating, assigning, or allowing the lapse" of any insurance policy that provides coverage to either spouse or their children without the consent of the other spouse, a court order, or abatement of the action. In this case, the wife modified her life insurance policy by replacing her husband with her mother as the sole beneficiary of the policy during the pendency of a divorce action and without the husband's consent or a court order. The wife died one week later, which caused an abatement of the divorce action. After the insurance company remitted the proceeds of approximately $393,000 to the wife's mother, the husband commenced this action to recover the proceeds. Following the first trial, the trial court found the wife intended to remove the husband and substitute their minor child as the insurance beneficiary, and it awarded the proceeds to the child. Both parties appealed. In the first appeal, we reversed the trial court and, after applying an equitable-balancing test, awarded the proceeds to the husband. See Coleman v. Olson, No. M2015-00823-COA-R3-CV, 2016 WL 6135395, at 15 (Tenn. Ct. App. Oct. 20, 2016) [hereinafter Coleman I]. The Tennessee Supreme Court affirmed our use of an equitable-balancing test but determined there was insufficient evidence to decide the merits on appeal. Coleman v. Olson, 551 S.W.3d 686, 697 (Tenn. 2018) [hereinafter Coleman II]. Thus, the Supreme Court remanded the case to the trial court with instructions to hear additional evidence and, after considering the equities of the parties, "remedy the violation of the statutory injunction by awarding all or a portion of the life insurance benefits to either or both parties." Id. at 688. However, the Court did not identify the equitable factors to consider. Following an evidentiary hearin