Lincoln National Life Insurance v. Gordon R.A. Fishman Irrevocable Life Trust

ORDER DENYING PLAINTIFF’S MOTION TO DISMISS AND GRANTING DEFENDANT MUTUAL CREDIT CORPORATION’S AND SPURLING GROUP II, LLC’S MOTION FOR SUMMARY JUDGMENT

Plaintiff The Lincoln National Life Insurance Company (“Lincoln”) has brought this case, arguing that its issuance of three $10 million insurance policies on the life of Dr. Gordon R.A. Fishman was unlawfully procured by the increasing prevalent practice of unrelated third parties taking, at the outset, a stake in life insurance policies (sometimes referred to as stranger originated or owned life insurance (“STOLI”) or investor owned life insurance (“IOLI”)), rendering the same void and thereby relieving Lincoln from having to pay out on those policies when they come due.

Defendants Mutual Credit Corporation (“MCC”) and Spurling Group II, LLC, joined by defendant Harvey Schwitzer, serving as trustee of The Gordon R.A. Fishman Irrevocable Life Trust, who helped finance Dr. Fishman’s ability to take out and pay the premiums on such life insurance policies, have since filed a motion for summary judgment, arguing that the evidence indicates that, for a period of time from when the policies where first secured and for a two-year…