Metropolitan Life Ins. Co. v. Segaritis

• Citation: 20 F. Supp. 739
• Decision Date: 24 September 1937
• Docket Number: No. 9751.,9751.
• Parties: METROPOLITAN LIFE INS. CO. v. SEGARITIS et al.
• Court: U.S. District Court — Western District of Pennsylvania

20 F. Supp. 739

METROPOLITAN LIFE INS. CO. v. SEGARITIS et al.

No. 9751.

District Court, E. D. Pennsylvania.

September 24, 1937.

Dechert, Smith & Clark, of Philadelphia, Pa., and Otto E. Farquhar, of Pottsville, Pa., for plaintiff.

Kilker & Kilker, of Girardville, Pa., for defendants.

MARIS, District Judge.

This is an interpleader bill filed by the plaintiff life insurance company against the administratrix of the estate of its insured and another. The insured died September 22, 1936, while the plaintiff's policy was in force. Proofs of death were filed by defendant Ellen Kavalus, who also produced the policy and claimed its proceeds. Defendant Anna Segaritis, as administratrix of the insured's estate, also claimed the proceeds of the policy and brought suit therefor in the court of common pleas of Schuylkill county, Pa. The policy contained the so-called "facility of payment" clause under which the plaintiff had the right at its election to make payment of the proceeds of the policy to the wife or any relative by blood or connection by marriage of the insured or to any person appearing to the company to be equitably entitled to the same by reason of having incurred expense on behalf of the insured or for his burial. In default of such election, however, the policy was payable to the executor or administrator of the insured. The bill was brought under 28 U.S.C. § 41, subd. 26, 28 U.S.C.A. § 41(26), which confers upon this court jurisdiction "of suits in equity begun by bills of interpleader or bills in the nature of bills of interpleader duly verified, filed by any person, firm, corporation, association, or society having in his or its custody or possession money or property of the value of $500 or more, or having issued a note, bond, certificate, policy of insurance, or other instrument of the value or amount of $500 or more, or providing for the delivery or payment or the loan of money or property of such amount or value, or being under any obligation written or unwritten to the amount of $500 or more, if —

"(i) Two or more adverse claimants, citizens of different States, are claiming to be entitled to such money or property, or to any one or more of the benefits arising by virtue of any note, bond, certificate, policy, or other instrument, or arising by virtue of any such obligation; and

"(ii) The complainant (a) has deposited such money or property or has paid the amount of or the loan or other value of such instrument or the amount due under such obligation into the registry of the court, there to abide the judgment of the court; or (b) has given bond payable to the clerk of the court in such amount and with such surety as the court or judge may deem proper, conditioned upon the compliance by the complainant with the future order or decree of the court with respect to the subject matter of the controversy."

Defendant Anna Segaritis, the administratrix of the insured, has moved to dismiss the bill for want of jurisdiction. Two reasons are assigned in support of her motion. The first is that the suit does not involve the value of $500, as required by the statute, the face amount of the policy being only $486. As to this it is sufficient to say that, while the face of the policy was only that amount, the plaintiff has admitted its liability to pay maturity dividends and accumulations in addition thereto. The total amount which it admits to be due and payable and which it has deposited in the registry of this court is $500.03. Since this is more than the amount stipulated in the statute, this court has jurisdiction so far as the amount in controversy is concerned.

The defendant Anna Segaritis further urges that the court has no jurisdiction, for the reason that there are not two adverse and bona fide claimants to the fund. Her argument is that the policy is payable by its terms to her as administratrix of the...