Wilmington Trust v. Mason et al

Filing 31

ORDER granting defendant FBL Financial Group, Inc's 23 Motion for Interpleader. FBL Financial Group, Inc. may deposit the $108,226.25 in its possession that is at issue in this case with the Clerk of the Court pursuant to Federal Rul e of Civil Procedure 67. The Clerk of the Court shall deposit the funds into an interest-bearing account until further order of this Court. Upon being notified that the sum has been so deposited, the Court will dismiss FBL from this matter. Ordered by Judge John M. Gerrard. (Copy mailedto pro se party and to financial)(MKR) Modified on 1/6/2016 to reflect copy given to financial(MKR).

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA
WILMINGTON TRUST, N.A.,
Plaintiff and
Counter-Defendant,

8:15-CV-296
ORDER

vs.
SHARYL A. MASON,
Defendant and
Cross-Defendant,
and
FBL FINANCIAL GROUP, INC. d/b/a
FARM BUREAU FINANCIAL
SERVICES,
Defendant and
Counter-Plaintiff
and Cross-Plaintiff.
This matter is before the Court on FBL Financial Group, Inc.'s motion for
interpleader (filing 23). FBL requests the Court to order FBL to deposit the
funds referred to in the plaintiff's complaint into the registry of the Court, and
to dismiss FBL from the action once the funds are deposited as ordered. Filing
23. In support of its motion, FBL states that it possesses the funds referred to
in the plaintiff's complaint, that it disclaims any interest to those funds, and
that once it has deposited the funds with the Court, it will have no further
interest in this matter. Filing 23. No other party opposes this motion. See filing
25.
Interpleader is a procedural device that allows a party in possession of
property concededly belonging to another to avoid multiple liability. Gaines v.
Sunray Oil Co., 539 F.2d 1136, 1141 (8th Cir. 1976). Interpleader is permitted
only when the stakeholder is subject to multiple adverse claims against a single
fund or liability. Id. The first stage of interpleader may be initiated by a
defendant by way of counterclaim or cross-claim. Fed. R. Civ. P. 22. FBL has
done so by asserting counter- and cross-claims against the other parties. Filing
12.

After the stakeholder has initiated the first stage of interpleader, and
typically on some motion, the Court determines whether interpleader is
available. Great Am. Ins. Co. v. Bank of Bellevue, 366 F.2d 289, 293 (8th Cir.
1966); see 7 Charles Alan Wright, et al., Federal Practice and Procedure, § 1714
(3d ed. 2015). Once the Court has determined that interpleader is appropriate,
the Court may enter an order permitting the stakeholder to deposit the
property into the registry of the Court. See Bauer v. Uniroyal Tire Co., 630 F.2d
1287, 1291 n.4 (8th Cir. 1980). Next, if the Court finds that the stakeholder,
after depositing the property, is disinterested in the matter, the Court may
enter an order discharging the stakeholder. Nebraska Ass'n of Sch. Boards, Inc.
v. Strategic Governmental Sols., Inc., 2009 WL 205056, at *2 (D. Neb. Jan. 26,
2009); Wright, et al., supra; cf. 18 U.S.C. § 2361 (authorizing the court to
discharge plaintiffs bringing interpleader actions under the same
circumstances).
Here, FBL has property in its possession that is subject to multiple
adverse claims: both the plaintiff, Wilmington Trust, N.A., and the defendant
Sharyl A. Mason claim an interest in the property. See filings 1, 14.
Consequently, interpleader is appropriate, and the Court will permit FBL to
deposit the funds referred to in the plaintiff's complaint into the Registry of the
Court. In addition, neither of the other parties has asserted that FBL is
independently liable to them for any reason, and FBL asserts that once it has
deposited the property, it will have no interest in this matter. Thus, once the
Court receives notification that FBL has deposited the property, the Court will
dismiss FBL from the matter.
IT IS ORDERED:
1.

The defendant FBL Financial Group, Inc.'s motion for
interpleader (filing 23) is granted.

2.

FBL Financial Group, Inc. may deposit the $108,226.25 in its
possession that is at issue in this case with the Clerk of the
Court pursuant to Federal Rule of Civil Procedure 67.

3.

The Clerk of the Court shall deposit the funds into an
interest-bearing account until further order of this Court.

4.

Upon being notified that the sum has been so deposited, the
Court will dismiss FBL from this matter.

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Dated this 6th day of January, 2016.
BY THE COURT:
John M. Gerrard
United States District Judge

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