D. Harris-Lowe

The plaintiff, Richard Froud, brought an action against his sister, Susan Froud, seeking disgorgement of life insurance proceeds she received following their mother's death.

Richard alleged that a family agreement required the mother's $1,000,000 life insurance policy to be reduced to $500,000 in exchange for him receiving a house at a discounted price.

The court found that the written agreements, including an Agreement of Purchase and Sale and an Acknowledgment, did not contain a condition to reduce the policy.

The court also dismissed claims of breach of fiduciary duty and bad faith, concluding that the parties acted in their own best interests.

The action was dismissed in its entirety.

The moving parties (third parties in the main action) sought costs against the responding party (defendant/third party plaintiff) after the responding party discontinued the third party claim.

During the litigation, the responding party had made an assignment in bankruptcy.

The trustee in bankruptcy subsequently sold and assigned the third party claim back to the responding party, who then filed a Notice of Discontinuance.

The court held that because no judgment or costs order was made prior to the bankruptcy, the costs were not a provable debt in bankruptcy.

The court further held that the assignment of the claim by the trustee did not change the character of the matter or revive the costs liability.

The motion for costs was dismissed.