Judge Gregory Keosian, Case Number: 23STCV02171, Date: 2024-03-27 Tentative Ruling

Judge: Gregory Keosian, Case: 23STCV02171, Date: 2024-03-27 Tentative Ruling

Case Number: 23STCV02171 Hearing Date: March 27, 2024 Dept: 61

Defendant and Cross-Complainant Old Republic Surety Company’s Motion to Deposit Bond Funds with Court and Restrain Prosecution of Actions is GRANTED. Moving party is awarded costs and attorney fees in the amount of $6,943.84, to be taken from the bond amount, with the remainder to be deposited with the court.

I. MOTION TO DISCHARGE INTERPLEADER STAKEHOLDER

“Any person, firm, corporation, association or other entity against whom double or multiple claims are made, or may be made, by two or more persons which are such that they may give rise to double or multiple liability, may bring an action against the claimants to compel them to interplead and litigate their several claims.” (Code Civ. Proc. § 386, subd. (b).)

An interpleader action is an equitable proceeding. In an interpleader action, the court initially determines the right of the plaintiff to interplead the funds; if that right is sustained, an interlocutory decree is entered which requires the defendants to interplead and litigate their claims to the funds. Upon an admission of liability and deposit of monies with the court, the plaintiff then may be discharged from liability and dismissed from the interpleader action. [Citations.] The effect of such an order is to preserve the fund, discharge the stakeholder from further liability, and to keep the fund in the court's custody until the rights of the potential claimants of the monies can be adjudicated. By implementing an interpleader action and obtaining a discharge from further liability, the stakeholder avoids tort liability.

(Virtanen v. O'Connell (2006) 140 Cal.App.4th 688, 698, internal citations and quotation marks omitted.)

“After any such complaint or cross-complaint in interpleader has been filed, the court in which it is filed may enter its order restraining all parties to the action from instituting or further prosecuting any other proceeding in any court in this state affecting the rights and obligations as between the parties to the interpleader until further order of the court.” (Code Civ. Proc. § 386, subd. (f).)

Defendant and Cross-Complainant Old Republic Surety Company (ORSC) has filed a cross-complaint in interpleader in this action. A number of parties, including Plaintiff Walter Banos, Grandview Financial Services, Inc., Evelyn Vega, Centennial Casualty Company, in excess of the amount of the bond originally posted under Vehicle Code § 11710. (Stengal Decl. ¶ 4; Lee Decl. ¶¶ 2–6.) Thus ORSC seeks an order to allow it to deposit the amount of the bond — $49,960 — with the court to allow these competing claims to be resolved in the interpleader action it has filed, and to enjoin further prosecution of any proceedings affecting the interpleader. (Motion at pp. 7–8.) No opposition to the motion has been filed.

ORSC also seeks attorney fees and costs under Code of Civil Procedure § 386.6, which states, “A party to an action who follows the procedure set forth in Section 386 or 386.5 may insert in his motion, petition, complaint, or cross complaint a request for allowance of his costs and reasonable attorney fees incurred in such action.” (Code Civ. Proc. § 386.6, subd. (a).) “In ordering the discharge of such party, the court may, in its discretion, award such party his costs and reasonable attorney fees from the amount in dispute which has been deposited with the court. At the time of final judgment in the action the court may make such further provision for assumption of such costs and attorney fees by one or more of the adverse claimants as may appear proper.” (Ibid.)

Here, ORSC requests 136.48 in costs (filing fees), and attorney fees in the amount of $6,943.84, representing 23.8 hours of attorney work at $240 per hour and 3.8 hours of attorney work at $260 per hour. (Lee Decl. ¶ 8.) Per Code Civ. Proc. § 386.6, this amount is to be paid from the $49,960 bond amount, leaving $43,016.16 to be deposited with the court. (Proposed Order.)

The motion is GRANTED, and ORSC is awarded costs and attorney fees in the amount of $6,943.84, to be taken from the bond amount, with the remainder to be deposited with the court.