Problem:
Harry and David were partners in a small mortgage business. Harry provided the financing, and David did the administrative work. Harry was pursuing a secret love affair with David's wife, Susan. David suffered from a serious heart condition. Harry took out a $2,000,000 insurance policy on David's life with Galaxy Life Insurance Company, naming Susan as the beneficiary.
Harry and Susan confronted David with their affair and demanded that David agree to a divorce. The shock triggered a fatal heart attack. Galaxy refused to pay.
Is the company on strong legal grounds?
If so, why?
If not, why not?