JACKSON NATIONAL LIFE INSURANCE COMPANY v. LUNT et al

Filing 65

ORDER granting 58 Motion for Attorney Fees. The Clerk of Court is hereby directed to issue payment to Jackson National Life Insurance Company in the amount of $10,941.80, which money shall be paid out of the interpled funds deposited in this Courts registry. Signed by Magistrate Judge Robert C. Mitchell on 2/29/16. (kld)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF PENNSYLVANIA
JACKSON NATIONAL LIFE
INSURANCE COMPANY,

)
)
)
)
)
)
)
)
)
)
)
)

Plaintiff,
v.
LINDA LUNT, LISA DONOVAN,
LONNIE BRICE, BRIAN LAURICH,
ALEXANDER POLKOWSKI, and
RICHARD POLKOWSKI,
Defendants.

Civil Action No. 15-1629

MEMORANDUM OPINION & ORDER
Presently pending is Jackson National’s Motion for Attorney’s Fees [ECF No 58]. For the
reasons stated herein, the motion will be granted
Because we write for the parties, the Court will not provide a lengthy discussion of the
procedural and factual history of this case.
The action arises out of conflicting multiple claims to the proceeds of three life insurance
annuity policies (“the Policies”) issued by Jackson National to Flora Yurkanin, late of West
Newton, Westmoreland County, who died testate on January 17, 2015. [ECF No. 1]. Defendants
herein are claimants Lonnie Brice, Lisa Donovan, Brian Laurich, Alexander Polkowski, and
Richard Polkowski (hereinafter “Beneficiaries”), as well as adverse claimant, represented by
separate counsel, Linda Lunt.
On April 13, 2015, Jackson National filed the instant action in the United States District
Court for the Middle District of Pennsylvania at Case Number 3:15-cv-00717 (Conaboy, J) [ECF
No. 1].
On July 10, 2015, the Beneficiaries filed an Action for Declaratory Judgment in the Court
1

of Common Pleas of Westmoreland County [ECF No. 29-1) (“the Estate case”) for purposes of
determining the proper beneficiaries of the Jackson Life insurance policies.
After reviewing the briefs submitted, Judge Conaboy granted Jackson National’s Motion
for Judgment on the Pleadings by Order dated November 23, 2015. [ECF No. 36]. The Court
ordered Jackson National to pay the entire accrued sums on its annuity policies into that Court’s
registry and released Jackson National from further liability. [ECF No. 36]. On December 10,
2015, those sums were so received by that Court. On December 11, 2015, Judge Conaboy
summarily denied the Motion to Stay Proceedings in federal court and instead, directed transfer
of the case to this Court pursuant to 28 U.S.C. § 1404(a) in the interest of judicial economy and
overall convenience for the parties and witnesses. [ECF No. 38 at 6.]
On December 21, 2015, this Court entered an Order that the Clerk of Court for this
district deposit to the registry of this court the proceeds of the three annuity policies whose
beneficiary designation is at issue. Those sums totaled $141,003.40.
On January 14, 2016, this Court entered an order that the parties submit briefs addressing
why the case should or should not be stayed. [ECF No. 50]. On February 23, 2016, this Court
entered a Memorandum Opinion and Order staying the case pending resolution of matters filed
in the Court of Common Pleas of Westmoreland County. [ECF No. 63]
Jackson National’s Motion for Attorney Fees, Costs and Expenses was filed on February
19, 2016, prior to entry of the stay by this Court. (It had requested the award of fees and costs in
its Motion for Judgment on the Pleadings, without specificity as to amount, but requested Judge
Conaboy not rule on that request, the amount to be determined following resolution of the
Motion for Judgment on the Pleadings.) Jackson National asserts it has incurred $10,941.80 in
necessary and reasonable fees. [ECF No. 58, 59]. Defendants were given an opportunity to

2

respond to the motion, and on February 26, 2016, Beneficiaries filed a Response in Opposition
to Plaintiff’s Motion for Fees, Costs, and Expenses. [ECF No. 64]. Lunt did not file a response.
Beneficiaries concede that the award of attorney’s fees is within the sound discretion of
the court [ECF No. 64 at ¶1], but object because “Jackson refused to consider Beneficiaries’
request that matter [sic] be filed in Westmoreland County, Pennsylvania and caused a flurry of
filings that ultimately led to this Honorable Court’s February 23, 2016 Order staying this case
due to the pendency of the Westmoreland County actions.” [ECF No. 64 at ¶ 11]. The
Beneficiaries further argue that “[t]here was and is no legitimate reason for Jackson to have
commenced this Action in the Middle District (which transferred to the Western District) or even
in the Western District (which stayed due to the state court action(s)). [ECF No. 64 at ¶12].
The Beneficiaries ask that we award no fees or, in the alternative, that no fees be awarded for any
work except the mere preparation of the Complaint. [ECF No. 64 at ¶13].
That the interpleader action herein was permitted cannot be denied. Citing controlling
precedent CNA Insurance Company v. Waters, 926 F.2d 247, 249 n. 5 (3d Cir. 1991), in his
Memorandum granting the Motion for Judgment on the Pleadings, Judge Conaboy noted:
While complete diversity of citizenship does not exist among the
competing Defendants, there is minimal diversity here inasmuch as the
Defendants reside in at least three different states and the Plaintiff is incorporated
in still a fourth. Such minimal diversity is sufficient to support a party’s
invocation of statutory interpleader.
[ECF No. 37 at 2-3] We also note, as did Judge Conaboy, that no defendant opposed the
Motion for Judgment of the Pleadings. [ECF No. 37 at 3].
“A court has the discretion to award to an interpleader plaintiff attorneys fees and costs
if the plaintiff is (1) a disinterested stakeholder, (2) who had conceded liability, (3) has deposited
the disputed funds with the court, and (4) has sought a discharge from liability.” Metropolitan

3

Life Ins. Co. v. Kubichek, 83 F. App'x 425, 431 (3d Cir. 2003) (internal quotations omitted). In
such actions, a plaintiff is entitled to costs and reasonable counsel fees out of the funds deposited
with the court. Callwood v. V.I. Nat'l Bank, 221 F.2d 770, 780 (3d Cir.1955); Prudential Ins. Co.
of Am. v. Fantaye, No. 08–3172, 2009 WL 482699, at *2 (D. N.J. Feb.19, 2009).
Because the stakeholder “is considered to be helping multiple parties to an efficient
resolution of the dispute in a single court,” courts find that the stakeholder attorney's fees are
justified. Frontier Ins. Co. v. Mission Carrier, Inc., No. 91–5151, 1992 WL 209299, at *2 (D.
N.J. Aug.24, 1992) (citing Massachusetts Mut. Life Ins. Co. v. Cent. Penn Nat'l Bank, 372
F.Supp. 1027, 1044 (E.D. Pa.1974), aff'd, 510 F.2d 970 (3d Cir.1975)). Additionally, the work
required to bring an interpleader suit is minimal and therefore “the fee award should not
seriously deplete the fund.” Frontier Ins. Co., 1992 WL 209299, at *2.
Courts will only award attorney fees to a disinterested stakeholder, who is “involved ‘not
because of [his] own wrongdoing but rather because he is the mutual target of a dispute which is
not of his own making.’ ” Frontier Ins. Co., 1992 WL 209299, at *2 (quoting Moore ¶ 22.16(2)).
Attorney's fees will not be awarded for work that was “excessive, redundant, or otherwise
unnecessary.” Fantaye, 2009 WL 482699, at *2 (citing Rode v. Dellarciprete, 892 F.2d 1177,
1183 (3d Cir. 1990).
Exercising our discretion, the Court finds that Jackson National is entitled to $10,941.80
in attorney’s fees and costs. As conceded by the parties, it is an innocent stakeholder in this
action. We have reviewed the fee petition and the attached exhibits. Jackson National does not
appear to be requesting reimbursement for any fees and costs associated directly with the
Westmoreland County disputes. Jackson National’s decision to file in federal court was
appropriate under the circumstances, and it is the target of a dispute not of its own making. We

4

note that Jackson National was not required to respond to our request for briefing on why this
action should or should not be stayed.

The hourly rates charged by counsel to Jackson National

appear to be fair and reasonable. The amount requested is reasonable in light of the effort
expended by Jackson National’s counsel and such an award does not seriously deplete the fund.
AND NOW, this 29th day of February, 2016, IT IS HEREBY ORDERED THAT
Plaintiff Jackson National Life Insurance Company’s Motion for Attorney’s Fees [ECF No. 58]
be and the same is hereby GRANTED. The Clerk of Court is hereby directed to issue payment
to Jackson National Life Insurance Company in the amount of $10,941.80, which money shall
be paid out of the interpled funds deposited in this Court’s registry, as follows:
Jackson National Life Insurance Company
c/o Matthew R. Clayberger
Thomas, Thomas & Hafer, LLP
305 N. Front Street, 6th Floor
Harrisburg, PA 17101

/s/ Robert C. Mitchell
ROBERT C. MITCHELL
United States Magistrate Judge

cc: record counsel via CM-ECF

5