Miller v. Branch Banking & Trust Co.

The appellee's right to the appellant's deceased husband's insurance proceeds, which he assigned to appellee as collateral on a loan on which he later defaulted, arose at the time of his death, not at the time of default.

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This case involves entitlement to insurance proceeds between Gail Miller and Branch Banking & Trust Company “the Bank”. The parties filed cross-motions for summary judgment, and the trial court found in favor of BB&T and against Miller. In her sole enumeration of error, Miller claims that the trial court erred in so ruling. For the following reasons, we affirm. A trial court properly awards summary judgment when the moving party has demonstrated that there is no genuine issue of material fact and that the evidence, viewed most favorably to the non-moving party, warrants judgment as a matter of law.1 Viewed in this manner, the record reveals that Franklin Miller was issued an insurance policy with MONY Life Insurance Company in 1976, and his wife Gail Miller was listed as the beneficiary. In February 1977, Franklin Miller assigned the policy to the Bank as collateral for a loan.2 Franklin Miller apparently defaulted on the loan, and he filed for bankruptcy in 1981. When Franklin Miller died in December 2005, both Gail Miller and the Bank asserted claims to the proceeds of the policy.

MONY filed an interpleader action, paid the proceeds of the policy into the registry of the court, and was subsequently dismissed from the case. Miller and the Bank then filed cross-motions for summary judgment. Miller argued before the trial court that the assignment of the policy was an instrument under seal and that the statute of limitation to sue on such instrument is twenty years.3 And Miller asserts that the statute began to run when her husband defaulted on the underlying obligation, which occurred in 1981. Thus, Miller reasons, the Bank may no longer recover based upon the assignment. The Bank, on the other hand, argues that it is entitled to its collateral regardless of the statute of limitation. The trial court apparently agreed with the Bank, granting its motion for summary judgment and denying Miller’s. We find no error in this ruling.

Miller v. Branch Banking & Trust Co.

The appellee's right to the appellant's deceased husband's insurance proceeds, which he assigned to appellee as collateral on a loan on which he later defaulted, arose at the time of his death, not at the time of default.

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