Life Insurance Company of North America v. Knipp et al

Filing 18

MEMORANDUM AND ORDER re: 17 MOTION for Summary Judgment filed by Defendant Jeffrey Knipp motion is GRANTED. IT IS FURTHER ORDERED that attorneys fees in the amount of $2250.00 are hereby awarded to the lawfirm of Hinshaw & Culbert son, LLP for the benefit of plaintiff Life Ins. Co. ofNorth America. IT IS FINALLY ORDERED that the Clerk of the Court is hereby directed to release the sum of $33,750.00 to defendant Jeff Knipp from the interpleader funds filed in this cause of action; and to release the sum of $2250.00 to Hinshaw & Culbertson, LLP for the benefit of plaintiff Life Ins. Co. of North America from the interpleader funds filed in this cause of action. Signed by District Judge Stephen N. Limbaugh, Jr on 10/17/12. (MRS) (CC: FINANCIAL)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION

LIFE INS. CO. OF NORTH AMERICA,

)
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Plaintiff,
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vs.
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JEFF KNIPP and SAMANTHA BRADLEY, )
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Defendants.
)

Case No. 4:12CV542SNLJ

MEMORANDUM AND ORDER
This matter is before the Court on defendant Knipp’s motion for summary judgment [17],
filed August 9, 2012. As of today’s date, no interested party has filed a responsive pleading or
any pleading objecting to the instant motion.
This ERISA cause of action concerns a group life insurance policy, Policy No. FLX961648, issued to Brookstone Co., Inc. as part of an employee benefit plan sponsored by
Brookstone. Decedent Tabatha L. Smith was an employee of Brookstone and a participant under
the plan at the time of her death on October 12, 2011.
Decedent Smith’s death benefit under the Plan was thirty-six thousand dollars
($36,000.00). At the time of her death, there were two (2) beneficiary designation forms on file
with interpleader plaintiff Life Ins. Co. of North America (LINA). Defendants Bradley and
Knipp both claimed to be entitled to the death benefit under one of the subject beneficiary
designation forms.
Due to the multiple claims presented to LINA for decedent Smith’s death benefits, LINA
filed this interpleader action under Rule 22 Fed.R.Civ.P. See, Interpleader Complaint [1], filed
March 22, 2012. Both defendants were served; however, only defendant Knipp filed a timely

answer to the interpleader complaint. On May 7, 2012 LINA filed its motion to deposit funds
[8]. Defendant Knipp filed his response objecting to the motion to deposit funds. See,
Defendant Knipp’s Response [9 and 10], filed May 8, 2012. Defendant Knipp objected to the
depositing of the entirety of the disputed funds; i.e. $36,000.00, instead arguing that he was
entitled to at least 50% of the funds, and that given defendant Bradley’s failure to respond to the
lawsuit, only her alleged entitlement of $18,000.00 should be deposited into the court registry.
On June 20, 2012 LINA filed its motion for default judgment as to defendant Bradley.
On July 19, 2012 this Court entered a judgment of default against defendant Bradley. See, Court
Order of Default Judgment [15]. On July 19, 2012, by docket text order, this Court granted
LINA’s motion to deposit interpleader funds. See, Docket Text Order [16]. On August 18, 2012,
LINA deposited the amount of $36,000.00 into the court registry.
Defendant Knipp now seeks summary judgment and payment from the court registry of
the entire amount of the interpleader funds, $36,000.00 to him alone. He contends, and no
interested party argues otherwise, that the default judgment against defendant Bradley is now
final, and that once the interpleader funds have been paid into the court registry (which has now
occurred), there is no factual or legal dispute between LINA and the remaining defendant Knipp.
Defendant Knipp further argues that based upon the Court’s directive that costs of litigation be
awarded to plaintiff’s counsel, the parties have agreed upon a reasonable attorneys’ fees award of
$2250.00 to the lawfirm Hinshaw & Culbertson, LLP for the benefit of plaintiff Life Ins. Co. of
North America (LINA). Thus, he requests that summary judgment be entered in his favor, and
the Clerk of the Court be directed to pay to defendant Knipp the sum of $33,750.00 and to
Hinshaw & Culbertson, LLP the sum of $2250.00 for the benefit of plaintiff Life Ins. Co. of
North America.

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In light of the circumstances, including the default judgment against defendant Bradley,
the payment of the interpleader funds into the court registry, and the failure of any interested
party to respond to the instant summary judgment motion, the Court finds that no material factual
or legal dispute exists precluding the granting of summary judgment to defendant Knipp.
Accordingly,
IT IS HEREBY ORDERED that defendant Knipp’s motion for summary judgment [17]
be and is GRANTED.
IT IS FURTHER ORDERED that attorneys’ fees in the amount of $2250.00 are hereby
awarded to the lawfirm of Hinshaw & Culbertson, LLP for the benefit of plaintiff Life Ins. Co. of
North America.
IT IS FINALLY ORDERED that the Clerk of the Court is hereby directed to release the
sum of $33,750.00 to defendant Jeff Knipp from the interpleader funds filed in this cause of
action; and to release the sum of $2250.00 to Hinshaw & Culbertson, LLP for the benefit of
plaintiff Life Ins. Co. of North America from the interpleader funds filed in this cause of action.
Dated this 17th day of October, 2012.

UNITED STATES DISTRICT JUDGE

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