Case 3:18-cv-00517-JR Document 33 Filed 08/20/18 Page 1 of 5

THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

PORTLAND DIVISION

STATE FARIVf FIRE AND CASUALTY CO., No. 3:18-cv-00517-PK ,

v. FINDINGS AND RECOMMENDATION

DANIEL SELLARS, et al.,

Defendants.

PAP AK, Magistrate Judge:

Plaintiff State Farm Fire and Casualty Co. (State Farm) brings this action, seeking a declaration on its obligation to pay proceeds under State Fann renters' insurance policy no. 37-CB-D540-6 (the Policy). State Farm alleges that a fire originated in the insured location, an apmiment in Pmiland, causing prope1iy damage to others, and that each of the named

Defendants "potentially may make a claim to the proceeds" of the Policy based on losses caused by the fire. Comp!. ~ 22, ECF No. 1.

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State Fmm now moves for an order discharging it from fmiher liability and awarding

attorney's fees and costs in an amount to be determined. ECF No. 20. Although none of the

Defendants oppose State Fmm's , Truck Insurance Exchange (Truck Insurance) has filed an answer seeking $786,132.92 "plus an amount to be dete1mined," from State Fmm.

Truck Insurance's Answer if 19, ECF No. 15.

BACKGROUND

On March 26, 2018, State Farm filed its Motion for Interpleader Deposit, seeking to deposit the amount of the Policy proceeds, $300,000. ECF No. 2. On March 28, 2018, this comi granted State Fmm's Motion for Interpleader Deposit and ordered that State Farm's tendered funds of $300,000 be deposited into this court's registry pending final . ECF No. 5.

On April 10, 2018, this court acknowledged receipt of State Farm's deposit. ECF No. 6. On

April 20, 2018, State Farm filed the motion to discharge it from fmiher liability. ECF No. 20.

As noted, no Defendant has opposed State Farm's motion.

On April 20, 2018, the same day that State Fmm filed its motion to discharge, Truck

Insurance filed its Answer (Answer). Truck Insurance alleges it insures Commons at Timber

Creek, the apartment building in Po1iland where the fire occurred, and that State Farm's insureds,

Daniel and Melana Sellars, "rented and resided in Apt. 199 within the building." Answer if 15.

Truck Insurance alleges Daniel Sellars negligently caused a fire on the deck of the apartment

"while cooking bacon on a propane barbecue." Answer if 16. Trnck Insurance alleges that under its policy, it has paid benefits of $786, 132.92 to its insured Commons at Timber Creek, and that the claim "remains open with $251,524.00 in possible future expenditures." Answer if 18. Truck

Insurance seeks "the policy proceeds of the subject State Fmm policy." Answer if 21.

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DISCUSSION

I. Legal Standards for Interpleader Actions

This court "has over this statutory interpleader action pursuant to [28 U.S.C.

§ 1335] because the proceeds at stake exceed $500 and two or more of the adverse claimants are citizens of different states." Primerica Life Ins. Co. v. Ross, No. CV 06-763-PK, 2006 WL

317044, at *2 (D. Or. Nov. 1, 2006). In an action for statut01y interpleader, "a disinterested insurance company facing multiple claims for one fund may pay the fund into the registiy of the court and be discharged from any fuither liability." Id. (citing 28 U.S.C. § 2361). "The purpose of interpleader is for the stakeholder to 'protect itself against the problems posed by multiple claimants to a single fund."' lvfackv. Kuckenmeister, 619 F.3d 1010, 1024 (9th Cir. 2010)

(quoting 1Vfinn. lvfut. Life Ins. Co. v. Ensley, 174 F.3d 977, 980 (9th Cir. 1999)). "Fu1the1more, the com1 may enjoin all claimants from instituting or prosecuting any legal action for payment or recovery of the proceeds at stake." Primerica Life Ins., 2006 WL 317044, at *2 (citing 28 U.S.C.

§ 2361).

II. State Farm's Motion for Discharge

In State Farm's motion for discharge, it notes that "the amount of claims do exceed the

$300,000 of available insurance limits." State Farm's Mot. Order 4. Although Truck

Insurance's Answer alleges more than double the amount tendered by State Farm, the

Answer seeks only "the policy proceeds of the subject State Fmm policy." Answer if 21. Neither

Truck Insurance nor any other Defendant has objected to the discharge of State Fmm. I therefore recommend granting State Farm's motion for discharge with prejudice from all claims and liability related to the Policy.

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III. Award of Attorney's Fees and Costs

This court has discretion to award attorney's fees and costs to the disinterested stakeholder in an interpleader action. Primerica Life Ins., 2006 WL 317044, at *2 (citing Abex

Corp. v. Ski's Enterprises, Inc., 748 F.2d 513, 516, (9th Cir.1984)). "The amount of fees and costs to be awarded in an interpleader action ... is limited to those fees that are incurred in filing the action and pursuing the stakeholder's discharge from liability." Id. (citing Schirmer

Stevedoring Co. v. Seaboard Stevedoring Corp., 306 F.2d 188, 194 (9th Cir. 1962)). "Fees and costs are to be paid out of the funds deposited into the registry." Id. (citing lvfass. 1Vfut. Life Ins.

Co. v. 1\Iorris, 61F.2d104, 105 (9th Cr. 1932)).

Here, State Fatm states that it will submit a separate motion for attorney's fees and costs under Federal Rule of Civil Procedure 54. I conclude that State Farm has shown that it is entitled to attorney's fees and costs, in a reasonable amount to be detennined by this court.

CONCLUSION

State Farm's Motion for Order to Discharge Plaintiff From Further Liability and Award of Attorneys' Fees and Costs, ECF No. 20, should be GRANTED. This comi should enter the proposed Order of Discharge, ECF No. 20-2.

SCHEDULING ORDER

The Findings and Recommendation will be referred to a district judge. Objections, if any, are due fourteen (14) days from service of the Findings and Recommendation. Ifno objections are filed, then the Findings and Recommendation will go under advisement on that date.

If objections are filed, then a response is due fourteen (14) days after being served with a copy of the objections. When the response is due or filed, whichever date is earlier, the Findings

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and Recommendation will go under advisement.

Dated this 20th day oM 201sn ~-1m r1-~Q_

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