United States Ninth Circuit

In a suit for breach of contract and breach of the covenant of good faith and fair dealing, arising from a dispute over a life insurance policy with a death benefit of $800,000, the district court's grant of Rule 52(c) motion is reversed and remanded, as the federal interpleader remedy does not shield a negligent stakeholder from tort liability for its creation of a conflict over entitlement to the interpleaded funds, and as such, a claimant may seek to recover all damages directly and proximately caused by the negligent stakeholder's conduct.

Appellate Information

• Decided 07/31/2012
• Published 07/31/2012

Judges

• Paez

Court

• United States Ninth Circuit

Counsel