Knights of Columbus v. The Virginia Trust et al

Filing 60

ORDER Granting in part and Denying in part 59 Defendants Danny Hill and William Crosby's Ex Parte Motion to Access Safety Deposit Box. IT IS FURTHER ORDERED that all parties are prohibited from accessing and/or opening any safety deposit box held at Nevada State Bank, 8400 W. Lake Mead, Las Vegas, NV 89128, until further order from the court. Signed by Magistrate Judge Cam Ferenbach on 10/25/2012. (Copies have been distributed pursuant to the NEF - EDS)

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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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KNIGHTS OF COLUMBUS,

2:12-cv-00688-JCM -VCF

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Plaintiff,

ORDER

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vs.
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THE VIRGINIA TRUST, et al.,
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(Ex Parte Motion To Access Safety Deposit Box
#59)

Defendants.
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Before the court is defendants Danny Hill and William Crosby’s Ex Parte Motion to Access
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Safety Deposit Box. (#59).
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A.

Relevant Facts

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Plaintiff Knights of Columbus (hereinafter “Knights”) filed its complaint in interpleader on April
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25, 2012, against defendants The Virginia Trust, John Doe, Trustee of The Virginia Trust, Sheree
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Williams, William Crosby, Melanie Crosby, and Danny Hill. (#1). Plaintiff asserts that the defendants
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are “claimants and/or potential beneficiaries under two separate life insurance policies issued by Knights
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of Columbus to Raymond Williams,” and that “[t]his interpleader action is necessary to protect Knights
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of Columbus from multiple liabilities for those funds.” Id.
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On May 10, 2012, defendant Sheree Williams filed her answer, asserting that she “is entitled to
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all the proceeds of the Knights of Columbus insurance policies pursuant to NRS 134.050(4).” (#5-1).
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On June 29, 2012, defendants William Crosby and Danny Hill filed stipulations for extensions of time
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to respond to the interpleader complaint. (#16 and #17). On July 12, 2012, defendants William Crosby
and Danny Hill filed another stipulation for extension of time to respond to the interpleader complaint.

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(#20). The court signed the stipulation on July 13, 2012. (#21). On August 9, 2012, defendants Crosby
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and Hill filed an answer to the interpleader complaint and cross claims against Sheree Williams for (1)
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conspiracy, (2) constructive trust, and (3) equitable estoppel. (#27). Crosby and Hill seek “[a]ll benefits
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available under the [p]olicies,” attorneys’ fees and costs, that the court hold, “[i]n the vent that [Sheree
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Williams] receive[s] any money paid pursuant to the [p]olicies, that such money be held in a
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constructive trust for the benefit of [Crosby and Hill], and that Sheree Williams “be estopped from
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asserting any claim to the benefits of the [p]olicies.” Id. On August 27, 2012, Sheree Williams filed
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her answer to defendants Crosby and Hill’s cross claims (#27). (#34).
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On September 19, 2012, defendants Crosby and Hill filed a motion for recusal of the
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undersigned.

(#39).

On September 26, 2012, the undersigned issued an Amended Report and

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Recommendation, holding that the action is appropriate for an interpleader and recommending that
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Knights deposit the $500,473.34 with the court. (#42). On September 27, 2012, defendant Sheree
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Williams filed an opposition to the motion for recusal. (#44). On October 5, 2012, defendants Crosby
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and Hill filed a reply in support of their motion for recusal. (#47). On October 11, 2012, the
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undersigned issued an order denying the motion for recusal (#39) and stating that the court will defer
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ruling on pending motions (#40, #43, #46, and #49) until the time to object to the order has expired or, if
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a timely objection is filed, until the District Judge issues a ruling. (#50).
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On October 16, 2012, the District Judge adopted the undersigned’s amended R&R (#42) in its
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entirety. (#54). On October 24, 2012, defendants Crosby and Hill filed (not under seal) the instant ex
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parte motion to access safety deposit box. (#59).
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B.

Ex Parte Motion To Access Safety Deposit Box

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Defendants Crosby and Hill ask this court for an order allowing them to access a safety deposit
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box (#59 Exhibit A) containing “Legal Documents” that Raymond Williams indicated he held at Nevada
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State Bank. (#59). The court recognizes the possible importance of the safety deposit box and the need

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to secure its contents. As the time to object to the undersigned’s order regarding recusal (#50) has not
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expired, the ruling on the issue before the court is entered to maintain the status quo. All parties are
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prohibited from accessing and/or opening any safety deposit box held at Nevada State Bank, 8400 W.
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Lake Mead, Las Vegas, NV 89128 (hereinafter “Bank Office”), until further order from the court.
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In the absence of any modification of this order, if a party desires to access a safety deposit box
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located at the Bank Office, the court will set a conference call with all parties to establish procedures for
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such access.
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Accordingly and for good cause shown,
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IT IS ORDERED that defendants Danny Hill and William Crosby’s Ex Parte Motion to Access
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Safety Deposit Box (#59) is GRANTED in part and DENIED in part, as discussed above.
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IT IS FURTHER ORDERED that all parties are prohibited from accessing and/or opening any
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safety deposit box held at Nevada State Bank, 8400 W. Lake Mead, Las Vegas, NV 89128, until further
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order from the court.
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DATED this 25th day of October, 2012.
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_________________________
CAM FERENBACH
UNITED STATES MAGISTRATE JUDGE

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