Breach Of Contract Award
Elderly Woman Purchases An Annuity For Life And Insurance Company Stops Payments After Five Years
Our client was a woman in her 70s who purchased an annuity for life and 5 years certain. She thought that she would receive a monthly benefit for life and if she were to die within the first 5 years after purchasing the annuity, her beneficiaries would receive whatever monthly benefits were left during the 5 year period. If she were to die after the first five years of the annuity, her beneficiaries would receive nothing. After five years the insurance company stopped paying her annuity benefits. Relying on the plain language of the annuity contract Attorney Raipher D. Pellegrino filed suit in the U.S. District Court alleging breach of contract among other claims. Utilizing an actuarial expert, the jury returned a verdict for breach of contract finding the annuity was for the life of our client and awarding full back benefits and interest.
The insurance company appealed to the First Circuit Court of Appeals and Attorney Raipher D. Pellegrino successfully defended the jury's verdict and the insurance company's appeal was denied and jury's verdict upheld.
Result: The insurance company was found to be guilty of breach of contract and negligent misrepresentation. Our client was awarded back payments for life and a monetary stipend for her emotional distress. The insurance company appealed the decision to the First Circuit and lost its appeal. Attorney Raipher D. Pellegrino prevailed.
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