A highly contentious dispute involving the death benefits of a deceased gay man was settled last week.
Joseph A. Hallman and Stephen T. Gallagher were domestic partners in Philadelphia for several years before parting ways in 2009.
Gallagher died in May 2011 after a protracted illness. Prior to his death, he was employed as an analyst programmer at the Department of Biostatistics and Epidemiology, Center for Genetics and Complex Traits, at the University of Pennsylvania Medical Center.
For the past five years, Hallman pursued Gallagher’s life-insurance benefits, totaling about $354,000 plus interest. But Gallagher’s mother, Joann P. Gallagher, contended she’s entitled to the benefits.
In 2014, Philadelphia Orphans’ Court Judge John W. Herron ruled that Hallman failed to prove he was the beneficiary for Gallagher’s life-insurance policies. As a result, the proceeds should go to Joann Gallagher as the default beneficiary, according to Herron’s ruling.
But Hallman appealed in state Superior Court, and in November the court remanded the case back to Herron for further consideration.
There’s no paper copy of a form signed by Gallagher designating Hallman as the beneficiary of his life-insurance policies. At issue was the accuracy of electronic data indicating that such a designation was made by Gallagher.
On May 23, after a conference with Herron, the case was settled. The proceeds will be distributed evenly between both sides by Aetna Inc., the insurer.
Barry F. Penn, an attorney for Hallman, issued this statement about the settlement:
“This is a bittersweet outcome. My client was never in it solely for the money. He pursued his claim because it was the right thing to do. He’s glad that it’s over. But he doesn’t think justice has been rendered. Neither do I. The reality is, you’ll never convince me Stephen Gallagher didn’t want to leave the money to Joseph Hallman. Stephen made the designation, leaving the money to Joseph. It’s in the computer records. That’s what he wanted and it should have been honored. We’re talking about two simple life-insurance policies that Stephen paid for. Unfortunately, his wishes aren’t being respected.”
Gallagher’s brother, Michael J. Gallagher Jr., issued this statement about the settlement:
“I am extremely confident my mother would have prevailed had the case gone to trial. However, I am relieved that this is over so she can no longer have to endure the pain this case has caused. My mother and family have been through so much as a result of Joe trying to take this money. My parents cared for my brother for six months and liquidated their retirement savings to do so. They buried their youngest son and, since his death, my father died. Joe had no relationship with Stephen for three years prior to his death and was not the designated beneficiary. My brother wanted for my parents to be taken care of and, as a result of Joe’s attempts, my mother, a 71-year-old widow, alone, on a fixed income, and in poor health, is left to grieve not only the loss of a son and a husband but is also left without the comfort my brother intended. My brother and father would be incredibly disappointed in Joe.”
Michael Gallagher said a portion of his mother’s share of the proceeds will be contributed to a foundation established in his brother’s memory.
“After expenses, my mother is making a contribution to my brother’s foundation, the Stephen Gallagher Fund. It’s under the auspices of the William Way LGBT Center. Stephen’s final wish, in addition to caring for my parents, was to support a camp for LGBT youth.”