Eric S. Dutson v. Farmers Insurance Exchange

35 F.3d 570 4 A.D. Cases 160 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Eric S. DUTSON, Plaintiff-Appellant, v. FARMERS INSURANCE EXCHANGE, et al., Defendants-Appellees. No. 93-35205. United States Court of Appeals, Ninth Circuit. Argued and Submitted July 13, 1994. Decided Sept. 9, 1994. 1 Before: TANG and WIGGINS, Circuit Judges, and HENDERSON * , District Judge. 2 MEMORANDUM ** 3 Plaintiff Eric S. Dutson ("Dutson") is afflicted with hemophilia and has been HIV positive for approximately five years. In December, 1986, he began working as a Farmers Insurance ("Farmers") agent. As a Farmer's agent, plaintiff sold several annuity and life insurance policies to his father, Zenos Dutson, including a flexible payment annuity ("FPA"). To avoid paying taxes on the sale of such annuities, Zenos and Eric Dutson agreed to transfer the FPA to a life insurance policy held by Zenos Dutson and use a loan from the policy to pay for the home. As part of this transaction, defendant…