Connecticut General Life Ins. Co. v. Yaw

• Decision Date: 19 November 1931
• Parties: CONNECTICUT GENERAL LIFE INS. CO. OF HARTFORD, CONN., v. YAW et al.
• Court: U.S. District Court — Western District of New York

53 F.2d 684 (1931)

CONNECTICUT GENERAL LIFE INS. CO. OF HARTFORD, CONN., v. YAW et al.

District Court, W. D. New York.

November 19, 1931.

G. M. Blackmon, of Jamestown, N. Y., for plaintiff.

William S. Stearns, of Fredonia, N. Y., for defendant Lottie E. Yaw.

KNIGHT, District Judge.

This is an interpleader action, and application is made for an injunction restraining the prosecution of a pending action brought by the above-named Lottie E. Yaw against the above-named plaintiff.

The plaintiff herein is an insurance corporation organized and existing under the laws of the state of Connecticut. On December 30, 1922, it issued a policy of insurance, in the sum of $1,000, covering the life of Richard B. Yaw. Richard B. Yaw died March 9, 1931, then residing in the state of Florida and leaving a last will and testament which, it is claimed, has been duly probated, and in and by which the defendant Lucy M. Yaw was appointed executrix. Each of the defendants above named claims to be entitled to the moneys payable on said policy of insurance.

The defendant Lucy M. Yaw resides in Florida, and the defendant Lottie E. Yaw resides in this federal district.

On June 18, 1931, defendant herein, named Lottie E. Yaw, commenced an action in the Supreme Court, Chautauqua county, N. Y., against the above-named plaintiff, the Connecticut General Life Insurance Company of Hartford, Conn., to recover the sum of $1,000 on account of the policy of insurance hereinbefore mentioned, with interest from May 15, 1931. The complaint therein sets forth a cause of action for the total amount of such policy, with interest from the date aforesaid, and the demand for judgment follows such allegations. Before the expiration of the time for the defendant in such action to answer, the bill of interpleader herein was filed.

There was no laches on the part of the plaintiff herein in filing such bill of interpleader. Reasonable diligence only is required. It can hardly be said that petitioner has not acted with reasonable diligence in making the application herein before answering in the state court.

The bill of interpleader alleges there is unpaid on the policy $841.46. The claimant's complaint in the state court, her answering affidavit and answer (which can only be treated as an affidavit at this stage of the proceeding) deny such allegation, and allege that there is due thereon $1,000, with interest from May 15, 1931. The complaint in the action in the state court alleges that the last-mentioned amount, with such interest, is due, and the answer in the action in the state court denies that such amount is due, and alleges that the amount due is $816.46. The act authorizing interpleader in a case of this character, chapter 273 of the Laws of 1926 (title 28, USCA, § 41, subd. 26), permits it where it is brought by an insurance company, where there are two or more adverse claimants, citizens of different states, to a fund arising out of a policy of insurance providing for the payment of $500 or more, and where "such company * * * has paid the amount of such * * * policy into the registry of the court, there to abide the judgment of the court."

The plaintiff herein has deposited into the registry of this court the sum of $861.45. The purpose of an interpleader action is to permit a company, such as the plaintiff herein, to relieve itself from the danger of double liability. It seems to me that it is a prerequisite to the right of interpleader under the statute that there must be no dispute regarding the amount of the liability of the party bringing the action of interpleader, and that the undisputed fund must be paid into court. In this case, it is plain there is a dispute as to whether the plaintiff herein owes one of the adverse claimants $1,000 and interest or $841.45, and that the latter amount only was paid into court at the time of the application herein.

The right of interpleader has long been recognized in state and federal courts. It existed at common law in limited forms. It is based on the theory that there are adverse claimants to a fund in which a third party claims no interest, and that such third party is ready and willing to pay over such fund and then be absolved from further liability upon it. Irrespective of the statute to which reference has been made, the right of interpleader exists where there is diversity of citizenship and the amount in dispute exceeds $3,000. In such a case, in an application for interpleader, it must appear that there are adverse claims to the same fund, and that petitioner has no beneficial interest in it. Kingdom of Roumania v. Guaranty Trust Co. (D. C.) 244 F. 195; Killian v. Ebbinghaus, 110 U. S. 571, 4 S. Ct. 232, 28 L. Ed. 246. It has been held with unanimity in many cases in state and federal courts that it cannot be maintained where petitioner is not absolutely absolved from any liability to all adverse claimants. It has been said to be an undeviating rule that claimant shall raise no question as to the amount of the claim.

Here we have a statute which extends the jurisdiction of the federal courts to certain cases where the amount involved is $500 rather than $3,000, and which specifically states the condition on which interpleader can be sustained therein. An...