Chavis S. Rahming v Colina Insurance Ltd

• Jurisdiction: Bahamas
• Court: Supreme Court (Bahamas)
• Judge: Fraser, Snr.J
• Judgment Date: 16 October 2024
• Docket Number: 2019/CLE/gen/01775

Between

Chavis S. Rahming

First Claimant

and

Anstacia E. Adderley (as Co-Administrator and Legal Guardian of Amber A. Rahming)

Second Claimant

and

Sudia Munroe (as Co-Administrator and Legal Guardian of Amber A. Rahming)

Third Claimant

and

Scotiabank (Bahamas) Limited

Fourth Claimant

and

Colina Insurance Limited

Defendant

Before:

Her Ladyship The Honourable Madam Senior Justice Deborah Fraser

2019/CLE/gen/01775

IN THE SUPREME COURT

COMMON LAW AND EQUITY DIVISION

Application for Leave to strike out and remove the First, Second and Third Claimant — Rule 19.2 (5) of the Supreme Court Civil Procedure Rules 2022

Appearances:

Mr. Joseph Moxey for First, Second and Third Claimants

Ms. Shanelle Bethel for Fourth Claimant

Mr. E. Terry North and Mr. Darzhon Rolle for the Defendant

RULING

Fraser, Snr.J

1 This application was filed by the Defendant, Colina Insurance Limited (“Colina”) seeking to strike out the First Claimant, Chavis Rahming, Second Claimant, Anastacia E. Adderley, and Third Claimant Sudia Munroe (collectively “the Claimants”) from these proceedings.

• 1.1 The ground for the Defendant's application is that the First, Second and Third Claimants have no legal or beneficial interest in the life insurance policy issued by the Defendant to the deceased, Albert Hesketh Rahming Jr,

• 1.2 the dispute concerning the assignment of the said policy lies between the Fourth Claimant, Scotiabank (Bahamas) Limited, and the Defendant, and

• 1.3 the First, Second and Third Claimant have no standing in these proceedings.

BACKGROUND

2 The substantive issue in this matter centers on the validity of an alleged assignment of the deceased's Life Insurance Policy (Policy No. 28003487) to the Fourth Claimant, Scotiabank (Bahamas) Limited.

3 [[3.] The deceased, Albert Hesketh Rahming Jr., passed away on 13 th November 2016. Following the death of the deceased, Letters of Administration were issued to the Claimants, who are Co-administrators of the deceased estate and Legal Guardian of his minor children.

4 The Claimants assert that Colina failed to honour the life insurance policy, leading to Scotiabank refusal to issue a Certificate of Satisfaction for a mortgage held by the deceased. They claim this failure adversely jeopardized the estate and infringed their legal right.

5 Colina argues that the Claimants are not beneficiaries under the policy and lack legal standing in this dispute, which centers solely on the validity of the alleged policy assignment to Scotiabank.

ISSUES

6 The key issue is whether the Claimants have the locus standi to participate in these proceedings under Rule 19.2(5) of the Civil Procedure Rules (“CPR”).

LAW

7 The Court's power to remove a party from a proceeding is found in CPR Rule 19.2 (1)(a) and Rule 19.2(5) which provides:

“ 19.2 Change of parties.

(1) The Court may add, substitute or remove a party —

(a) on application by a party; or

(5) The Court may by order remove any party if it considers that it is not desirable for that person to be a party to the proceedings.”

8 According to Section 2 of the Insurance Act Chapter 347 “policyholder” is defined as the person who holds legal title to the policy, including the assignee.

9 Section 168 of the Insurance Act Chapter 347 (Ch. 347”) provides that an assignee who gives notice of an assignment becomes the policyholder, with rights and interests under the policy. Beneficiaries or other parties without a direct legal interest cannot assert claims on the policy.

EVIDENCE

The Affidavit evidence of D'Andra Johnson (“Johnson Affidavit”)

10 On 11 ^th October 2024, Colina filed the Johnson Affidavit which provides that the Defendant issued a life insurance policy to the deceased in 1996, with the deceased's mother, Marie Rahming, as the primary beneficiary. After the deceased's death, Mrs. Rahming received a total payout of $172, 352.41 including an accidental death and dismemberment benefit. The Claimants...