On September 24, 1996, appellee-plaintiff Royal Maccabees Life Insurance Company “Royal Maccabees” filed the underlying complaint for interpleader in the Superior Court of Fulton County, tendering the proceeds of a life insurance policy on the life of Dr. Russell Erhardt the “Erhardt policy” and “Dr. Erhardt,” respectively. Royal Maccabees alleged that the ownership of the Erhardt policy was in issue and named appellant Lynn B. Dunn “Mrs. Dunn”and appellee Ruth A. Erhardt “Mrs. Erhardt” as the defendants below. The ownership issue arose out of competing claims for the Erhardt policy’s death benefit which were filed by Mrs. Erhardt, on behalf of the Irrevocable Trust of Russell Erhardt, and filed by Mrs. Dunn, as Executrix of the Estate of Dennis J. Dunn “Mr. Dunn”. After discovery Mrs. Erhardt and Mrs. Dunn filed cross motions for summary judgment. The superior court granted Mrs. Erhardt’s motion and denied that of Mrs. Dunn. Mrs. Dunn now appeals.
The undisputed evidence shows that Mr. Dunn and Dr. Erhardt were business partners in Open MRI, L.P. the “partnership”, each owning a 50 share thereof. The partners determined that in the event one of the partners should die the surviving partner should have the means to buy out any partnership interest devolving to the widow of the deceased partner. To this end, Royal Maccabees insurance policies in the amount of $500,000.00 each were purchased on the lives of each partner. The details necessary to make Dr. Erhardt the owner of the Dunn insurance policy were completed before Mr. Dunn’s death in an automobile accident in January 1995. The proceeds payable under the Dunn policy were paid to Dr. Erhardt, providing him funds necessary to purchase Mr. Dunn’s interest in the partnership which devolved to Mrs. Dunn through Mr. Dunn’s estate. The Erhardt policy lapsed after Mr. Dunn’s death. Royal Maccabees subsequently reinstated the policy in Dr. Erhardt as the owner. Dr. Erhardt, in turn, designated Mrs. Erhardt, as Trustee of the Irrevocable Trust of Russell Erhardt, as the owner and beneficiary of the policy. The Erhardts thereafter paid all the premiums due on the policy. Dr. Erhardt died on February 16, 1996. The competing claims for the proceeds of the Erhardt policy and Royal Maccabees’ interpleader followed. Held:
