Opinion ID: 182984
Heading Depth: 2
Heading Rank: 2

Heading: The Equities Favor B & K

Text: The district court held that even if Hansen had satisfied all elements of reformation, reformation would nevertheless be improper because the equities do not lie in Hansen's favor. We agree. B & K purchased a one-million-dollar life insurance policy on McDonald's life as a way to finance its business. It paid the premium on this policy for four years. Meanwhile, McDonald was a dishonest employee who exploited his position in the company and misappropriated B & K's funds. In an effort to swindle even more from B & K, McDonald attempted to transfer ownership of the policy from B & K to himself so that he could make Hansen the beneficiary of the policy before he killed himself. Although Hansen denies any knowledge of McDonald's planned suicide, the evidence on the record strongly suggests otherwise. And while creditors who invested in B & K remain unpaid, Hansen seeks a windfall in the amount of one million dollars from the very policy which was purchased in order to protect the creditors. She does so despite the fact that she never had any connection with B & K's business, despite the fact that neither McDonald nor Hansen ever paid any insurance premium on the policy, and despite the fact that her relationship with McDonald was apparently over at the time of his death. Given the record before us, there is no doubt that the equities favor B & K and its creditors. We therefore affirm summary judgment in favor of B & K. See, e.g., Richards v. Land Star Grp., Inc., 224 Wis.2d 829, 593 N.W.2d 103, 111 (Wis. Ct.App.1999) (holding that reformation is an equitable remedy that is meant to grant relief to parties only when the equities lie in their favor).