Judge: Latrice A. G. Byrdsong, Case: 23STLC00095, Date: 2023-10-24 Tentative Ruling

Case Number: 23STLC00095    Hearing Date: October 24, 2023    Dept: 25

PROCEEDINGS:     MOTION TO DISCHARGE STAKEHOLDER

MOVING PARTY:   Plaintiff North American Company for Life and Health Insurance

RESP. PARTY:         None

Motion TO DISCHARGE STAKEHOLDER

(CCP §§ 386)

TENTATIVE RULING:

Plaintiff North American Company for Life and Health Insurance’s Motion to Discharge is GRANTED.

SERVICE:

[X] Proof of Service Timely Filed (CRC, rule 3.1300)                      OK

[X] Correct Address (CCP §§ 1013, 1013a)                                      OK

[X] 16/21 Court Days Lapsed (CCP §§ 12c, 1005(b))                       OK

OPPOSITION: None filed as of September 11, 2023.         [   ] Late                      [X] None

REPLY:          None filed as of September 11, 2023.           [   ] Late                      [X] None

ANALYSIS:

I.                    Background

On January 5, 2023, Plaintiff North American Company for Life and Health Insurance (“Plaintiff”) filed a Complaint for Interpleader against Defendants Kelly N. Graham-Lawrence (“Kelly”) and Scott A. Graham (“Scott”).

On May 16, 2023, Scott filed an answer.  On May 26, 2023, Kelly answered.

On August 4, 2023, Plaintiff filed the instant Motion to Discharge Stakeholder (“Motion”). 

No opposition has been filed to Plaintiff’s Motion.

II.                 Legal Standard

“An interpleader action is traditionally viewed as two suits: one between the stakeholder and the claimants to determine the stakeholder's right to interplead, and the other among the claimants to determine who shall receive the funds interpleaded ... As against the stakeholder, claimants may raise only matters which go to whether the suit is properly one for interpleader; i.e., whether the elements of an interpleader action are present.”  (State Farm Fire & Cas. Co. v. Pietak (2001) 90 Cal.App.4th 600, 612.)

If the stakeholder claims no interest in the funds or property held, he or she need not file an interpleader cross-complaint.  He or she may simply apply to the court for permission to deposit the money or property with the court clerk, and for an order discharging him or her from further liability to the adverse claimants.  Such an order will also substitute the adverse claimants as parties to the action; or, if only money is involved, simply dismiss the stakeholder.  (Code Civ. Proc., §§ 386(a), 386.5.)

The motion must be supported by an affidavit by the stakeholder establishing the ground for interpleader.  (Code Civ. Proc., § 386, subd. (a).)  The supporting affidavit must also state that the moving party is “a mere stakeholder with no interest in the amount or any portion thereof and that conflicting demands have been made upon him for the amount by parties to the action…”  (Code Civ. Proc., § 386.5.)  Notice of the motion must be served on each of the adverse claimants to the funds or property.  (Code Civ. Proc., §§ 386, subd. (a), 386.5.) 

“Where a deposit has been made pursuant to Section 386, the court shall, upon the application of any party to the action, order such deposit to be invested in an insured interest-bearing account.”  (Code Civ. Proc., § 386.1.)

III.              Discussion

A.     Motion to Discharge

The subject matter of the instant Motion is a $24,921.59 death benefit from an annuity contract. (Motion, pg. 2, ¶ 4.) Scott and Kelly are siblings, and the decedent is their father. (Decl. Zook-Ballou, ¶¶ 7, 10.)

Plaintiff filed a Complaint in Interpleader naming the following claimants to the bond:

1.      Kelly N. Graham-Lawrence

2.      Scott A. Graham.

Plaintiff states that it “is indifferent as to which of the claimants is entitled to the proceeds of the Annuity Contract and is only interested in paying and discharging its admitted liability under the Annuity Contract once; however, it has been unable to do so by reason of the adverse and conflicting claims of the Defendants and thus filed a Complaint for Interpleader.”  (Decl. Zook-Ballou ¶19.) 

Plaintiff has served the moving papers on Scott and Kelly via U.S. mail and electronic mail. 

Plaintiff asserts it has deposited the funds with the court. (Motion, pg. 2, ¶ 4.) On January 9, 2023, it provided notice of the deposit.

Plaintiff North American Company for Life and Health Insurance’s Motion to Discharge is GRANTED.

IV.              Conclusion & Order

Plaintiff North American Company for Life and Health Insurance’s Motion to Discharge is GRANTED.

Moving party is ordered to give notice.