Lincoln National Life Insurance Co. has asked a Pennsylvania state court to release it from a heated legal battle involving a $4.5 million life insurance payout, leaving the court to decide between competing claims.
Lincoln Life $4.5M Benefit Trial : Competing Claims Spark Court Battle
In a dramatic turn of events on Monday, Lincoln National’s attorney, Michael J. Joyce, argued before Allegheny County Court of Common Pleas Judge Alan Hertzberg that the insurer is caught in the crossfire of competing claims from Chun Lim Abbott and the Abbott Family Limited Partnership. Both parties are contending for a share of the $7 million policy on the late Dominic Abbott, with each side accusing Lincoln of failing to honor its obligations.
Joyce argued that Lincoln had already deposited the contested funds into escrow, where they accrue interest, and that the insurer’s decision to remain neutral should not be seen as bad faith or a breach of contract. “Lincoln’s stance is simply to wait for the parties to resolve their issues,” Joyce said. “Our decision not to choose sides should not be deemed actionable or indicative of bad faith.”
The Dispute’s Origins
Dominic Abbott, who amassed a fortune through his wig business and subsequent investments, passed away in June 2023. Following his death, his widow, Chun Lim Abbott, filed a claim with Lincoln for her share of the $7 million policy. However, the family partnership asserts that it was promised the entire payout as repayment for a loan to Dominic. They argue that a beneficiary change form that split the policy 60-40 between Chun Lim and the partnership was invalid because the manager who signed it allegedly lacked proper authority.
