Hearing v. Minnesota Life Insurance Company

Filing 50

ORDER granting 40 MOTION to Stay Judgment pending 39 Notice of Appeal filed by Nikole C. Holloway. Disbursement of the interpleaded funds is hereby stayed until the appeal in the instant matter has been resolved. Holloway need not post a bond or other security in support of this stay. Signed by Magistrate Judge Leonard T Strand on 8/22/14. (copy to CR Financial) (djs)

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF IOWA
WESTERN DIVISION

JOETTA HEARING,
Plaintiff,
vs.

No. C13-4101-LTS
ORDER

MINNESOTA LIFE INS. CO.,
Defendant,
vs.
NIKOLE C. HOLLOWAY,
Third-Party Defendant.
____________________
This case is before me on a motion (Doc. No. 40) by third-party defendant Nickole
Holloway (Holloway) to stay enforcement, pending appeal, of the order (Doc. No. 38)
granting summary judgment in favor of plaintiff Joetta Hearing (Hearing). Hearing has
filed a resistance (Doc. No. 48) and Holloway has filed a reply (Doc. No. 49).
Having fully considered and weighed the relevant factors,1 I find that a stay is
appropriate pursuant to Federal Rule of Civil Procedure 62(d). This is an interpleader
action and the disputed insurance proceeds have been deposited with the Clerk. Doc.
No. 43. Because the court already has the funds in its possession, all parties are protected
from the risk that those funds will be disturbed or dissipated before this case is fully and
finally resolved. Under these circumstances, requiring Holloway to post a bond to obtain
a stay is entirely unnecessary. Federal courts have recognized that stays pending appeal
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In determining whether to grant a stay, the court must consider “(1) whether the stay applicant
has made a strong showing that he is likely to succeed on the merits; (2) whether the applicant
will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially
injure the other parties interested in the proceeding; and (4) where the public interest
lies.” Hilton v. Braunskill, 481 U.S. 770, 776 (1987).

without the requirement of additional security are appropriate in interpleader actions.
See, e.g., Life Ins. Co. of N. Am. v. Camm, No. 4:02-cv-0106-DFH-WGH, 2007 WL
2492384, at *1 (S.D. Ind. Aug. 29, 2007) (granting stay notwithstanding uncertainty as
to merits of appeal); Prudential Ins. Co. of America v. Kamrath, No. 4:03–CV–1736
CEJ, 2006 WL 3498397, at *2 (E.D. Mo. Dec. 4, 2006) (granting stay pending appeal
despite weak showing of likelihood of success on merits).
As such, the motion (Doc. No. 40) of third-party defendant Nickole Holloway for
a stay of judgment pending appeal is granted. Disbursement of the interpleaded funds
is hereby stayed until the appeal in the instant matter has been resolved. Holloway need
not post a bond or other security in support of this stay.

IT IS SO ORDERED.
DATED this 22nd day of August, 2014.

________________________________
LEONARD T. STRAND
UNITED STATES MAGISTRATE JUDGE

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