US Bank Trust, N.A. v. Dickey et al

Filing 59

Chief Judge Patti B. Saris: ORDER entered. ORDER OF DISMISSAL. This interpleader action is DISMISSED WITHOUT PREJUDICE. The Court has not addressed the case on the merits. However, based on the parties representations at the hearing, Defendants ind ividual claims to the surplus funds do not exceed $440,893.64. An interpleader action is not appropriate under these circumstances where the claimants are not adverse. See Hudson Sav. Bank v. Austin, 479 F.3d 102, 107 (1st Cir. 2007) ([I]nterple ader is not available unless the defendants claims are adverse to each other. (citation omitted)); see also State Farm Fire & Cas. Co. v. Tashire, 386 U.S. 523, 537 (1967) (noting that federal interpleader was not intended to serve the function of a bill of peace). For this reason, all claims and counterclaims in this action are DISMISSED WITHOUT PREJUDICE.(Geraldino-Karasek, Clarilde)

UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
___________________________________
)
U.S. BANK TRUST, N.A., AS TRUSTEE, )
FOR LSF9 MASTER PARTICIPATION
)
TRUST,
)
)
Plaintiff,
)
)
v.
)
Civil Action
)
No. 17-10009-PBS
JAMES S. DICKEY, ENDEAVOR CAPITAL )
FUNDING LLC f/k/a CAPITAL TRUST
)
FUNDING LLC, and UNITED STATES OF )
AMERICA,
)
)
Defendants.
)
___________________________________)
)
JAMES S. DICKEY,
)
)
Counterclaim
)
Plaintiff and
)
Third-Party
)
Plaintiff,
)
)
v.
)
)
U.S. BANK TRUST, N.A., AS TRUSTEE, )
FOR LSF9 MASTER PARTICIPATION
)
TRUST,
)
)
Counterclaim
)
Defendant, and
)
)
497 E. 4TH STREET LLC, and ANDREW )
SCHENA,
)
Third-Party
)
Defendants.
)
___________________________________)
ORDER OF DISMISSAL
November 20, 2017
Saris, C.J.
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BACKGROUND
Plaintiff U.S. Bank Trust, N.A., as Trustee for LSF9 Master
Participation Trust (“U.S. Bank”), filed this interpleader
action (Docket No. 1-3) in Suffolk County Superior Court,
pursuant to an order by the Boston Housing Court. U.S. Bank
sought to have the state court decide the rights of Defendants
James S. Dickey, Endeavor Capital Funding LLC f/k/a Capital
Trust Funding LLC (“Endeavor Capital”), and the United States of
America with respect to $440,893.64 in surplus funds from a
foreclosure sale. On January 4, 2017, Defendant United States of
America removed the case to this Court. Dickey then filed a
counterclaim against U.S. Bank and a third-party complaint
against 497 E. 4th Street LLC and Andrew Schena (Docket No. 23).
A hearing on the pending motions was held on November 20, 2017.
ORDER
This interpleader action is DISMISSED WITHOUT PREJUDICE.
The Court has not addressed the case on the merits. However,
based on the parties’ representations at the hearing,
Defendants’ individual claims to the surplus funds do not exceed
$440,893.64. An interpleader action is not appropriate under
these circumstances where the claimants are not adverse. See
Hudson Sav. Bank v. Austin, 479 F.3d 102, 107 (1st Cir. 2007)
(“[I]nterpleader is not available unless the defendants’ claims
are ‘adverse’ to each other.” (citation omitted)); see also
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State Farm Fire & Cas. Co. v. Tashire, 386 U.S. 523, 537 (1967)
(noting that “federal interpleader was not intended to serve the
function of a ‘bill of peace’”). For this reason, all claims and
counterclaims in this action are DISMISSED WITHOUT PREJUDICE.

SO ORDERED.

/s/ PATTI B. SARIS
____
Patti B. Saris
Chief United States District Judge

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