Counihan v. Allstate Ins. Co., 194 F. 3d 357 - Court of Appeals, 2nd Circuit 1999

Plaintiff-Appellant Josephine Counihan appeals from a judgment entered in the United States District Court for the Eastern District of New York (Wexler, J.) imposing a constructive trust in favor of plaintiff-intervenor-appellee the United States of America (the government or the United States ) on benefits paid pursuant to an insurance policy issued by defendant Allstate Insurance Co. ( Allstate ). During the course of forfeiture proceedings against Counihan, but prior to the final entry of judgment, the property which the United States sought to seize by forfeiture was partially destroyed by arson. After the fire, Counihan brought the action giving rise to this appeal against Allstate to recover the insurance proceeds. The United States intervened in the action, asserting that it was entitled to the benefits of the fire insurance policy under a theory of constructive trust. The district court imposed a constructive trust on the proceeds, concluding that Counihan would be unjustly enriched if she were to receive the benefits of the fire insurance policy. Affirmed