Maryland National Bank v. Naomi Bauer Tower

HAYNSWORTH, Chief Judge.

In imposing a constructive trust upon the proceeds of an insurance policy in the hands of the widow of the insured in favor of the pension plan trustee, we think the District Court was quite correct to the extent that the proceeds represented the cash surrender value but incorrect as to the excess which would constitute a windfall to either claimant.

The National Life Insurance Company filed an impleader action, paying into the registry of the Court $11,500, representing the proceeds of an insurance policy issued upon the life of Crestón H. Bauer. The contending…