A Minnesota judge has blocked efforts by Sun Life Assurance Company of Canada to amend a complaint in a lawsuit alleging lack of insurable interest in connection with 7 life insurance policies purchased by an 84-year-old businessman.
Sun Life Assurance, a unit of Sun Life Financial Inc., Toronto, originally filed the complaint in the U.S. District Court in Minneapolis in September 2007.
The defendants named in the complaint include names John Paulson, the purchaser of the policies, as well as the agents who handled the transaction and several investors.
Coventry First L.L.C., Fort Washington, Pa., one of the sources of investment funds listed, moved to dismiss the complaint, arguing that the complaint did not sufficiently allege that Coventry had intended and agreed to buy the policy when Paulson acquired it.
The court granted the Coventry First motion.
After Coventry First succeeded with that motion, the other defendants also asked to be dismissed, contending that the claims against them were “identical” to the claims against Coventry First.
The latest order, signed Sept. 3, states that Sun Life then asked the defendants to agree to an amended complaint.
When the defendants declined, Sun Life filed a request to submit an amended complaint to the court.
U.S. Magistrate Judge Susan Richard Nelson writes in the order of the Sun Life request that the request lacks the “requisite specificity” that the defendants reached an agreement with defendant Paulson or “intended to purchase the policies at the time they were issued.”
“Indeed,” Nelson writes, “the allegations could refer to any person or entity” and the Sun Life motion “contains no specific factual allegations of intent.”