Stevenson et al v. Massachusetts Mutual Life Insurance Company et al
Beck, Amsden & Stalpes, PLLC represents the Stevenson family of Miles City, Montana, owners of Stevenson & Sons Funeral Homes, in a significant lawsuit against Massachusetts Mutual Life Insurance Company, former insurance broker Joshoa Gardner, and several affiliated financial entities. The family alleges they were misled into purchasing high-risk financial products that caused substantial financial losses.
Defendants in the Case
The lawsuit, Stevenson et al. v. Massachusetts Mutual Life Insurance Company et al., names the following defendants:
- Summit Financial Group – A sole proprietorship and/or d/b/a of Joshoa Gardner
- GP Capital Partners LLC
- The Penn Mutual Life Insurance Company
- The Penn Insurance and Annuity Company
- Wintrust Life Finance
- Succession Capital Alliance
Case Overview
Filed in the U.S. District Court for the Missoula Division of Montana, the lawsuit involves the sale of $67.5 million in premium-financed life insurance policies. According to the Stevensons, Gardner presented these policies as: “Responsible, safe, and tax-friendly estate planning tools.” Instead, the family alleges they were burdened with over $8 million in additional costs due to premium interest and loans, far exceeding the policies’ face value.
How the Issue Started
In early 2014, Gardner, then a registered agent for Massachusetts Mutual Life Insurance Company and Penn Mutual, persuaded Todd Stevenson to purchase these high-risk policies. Gardner later recommended that three other family members establish irrevocable trusts to acquire additional policies.
About Premium-Financed Life Insurance
Premium-financed life insurance is a complex and high-risk financial strategy. Key features include:
- Borrowing funds from a third-party lender to pay insurance premiums
- Policies generally suitable only for high-net-worth individuals seeking to preserve liquidity
The Stevensons’ lawsuit contends that these policies were unsuitable for their conservative, financially unsophisticated, and risk-averse profile.
Financial Impact
- Total contributions—including debt service on loans—exceeded the valuation of the policies by approximately $8 million
- The third-party lender, The Burgess Group, is alleged to have connections to Gardner, compounding the family’s losses
- As interest rates rose, the returns on the Stevenson family’s cash investments could not keep pace with escalating loan interest, premiums, and service fees, leaving the family with a substantial financial deficit
Legal Claims
The defendants are accused of:
- Professional negligence
- Fraud
- Breach of fiduciary duty
- Misrepresentation
The lawsuit alleges Gardner and affiliated companies failed to provide accurate information, disclose risks, or assess policy suitability, ultimately causing the family’s financial ruin.
Relief Sought
The Stevenson family is seeking:
- Rescission of the insurance contracts
- Restitution for financial losses
- Punitive damages
- A full accounting of all payments made
Case Update: Court Allows Lawsuit to Proceed
Beck, Amsden & Stalpes, LLC continues to represent the Stevenson family in the ongoing lawsuit against Joshoa Gardner and financial entities, including Wintrust Life Finance and Succession Capital Alliance.
Court Ruling
U.S. District Judge Dana L. Christensen recently denied multiple motions to dismiss, allowing the case to move forward. Key points include:
- Denial of motions to dismiss filed by Joshoa Gardner, Wintrust Life Finance, Succession Capital Alliance, and other defendants
- Core claims of professional negligence, fraud, breach of fiduciary duty, and misrepresentation may proceed
This ruling represents a significant procedural victory for the plaintiffs and underscores the strength of the legal arguments presented by Beck, Amsden & Stalpes. The case can now progress toward a potential trial or settlement.
Why This Update Matters
- Confirms that the court recognizes the plausibility of fraud and professional negligence claims
- Reinforces the duty of financial advisors and insurers to exercise reasonable care
- Highlights the ongoing risks of premium-financed life insurance for unsophisticated clients
Sources