American National Insurance Company v. Leslie Gorman

District Court, D. South Carolina·Decided December 17, 2020·No. 1:19-cv-00018·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA AIKEN DIVISION

Edward D. Jones & Co., L.P., a Missouri ) Civil Action No.: 1:19-cv-00018-JMC limited partnership, ) ) Plaintiff in Interpleader, ) ) v. ) ) American National Insurance Company, ) a Texas corporation; Transamerica Premier ) ORDER AND OPINION Life Insurance Company, an Iowa ) corporation; Leslie Gorman, a South ) Carolina individual; Teressa Gorman, a ) South Carolina individual; Chris McNally, a ) South Carolina individual; and John Does 1- ) 50, ) ) Defendants. ) American National Insurance Company, a ) Texas corporation, ) ) Cross-Claimant, ) ) v. ) ) Leslie Gorman, a South Carolina Individual, ) ) Cross-Defendant. ) Leslie Gorman, a South Carolina individual; ) Teressa Gorman, a South Carolina ) individual; ) Chris McNally, a South Carolina individual; ) ) Cross-Claimants, ) v. ) ) American National Insurance Company, a ) Texas corporation; John Does 1-50; ) Transamerica Premier Life Insurance ) Company, an Iowa corporation, ) ) Cross-Defendants. ) Leslie Gorman, a South Carolina individual; ) Teressa Gorman, a South Carolina ) individual; ) Chris McNally, a South Carolina individual; ) ) Counter-Claimants, ) ) v. ) ) Edward D. Jones & Co., L.P., a Missouri ) limited partnership, ) ) Counter-Defendant, ) ) American National Insurance Company, a ) Texas corporation; ) ) Third-Party Plaintiff. ) ) This matter is before the court on an Affidavit of Attorneys’ Fees and Costs (see ECF Nos. 83-1, 94) by Plaintiff’s Counsel requesting that the court award attorneys’ fees and costs from the $236,002.09 previously deposited into the court pursuant to an Order granting in part a motion for interpleader, directing Plaintiff to deposit the interpleaded amount, plus all accrued interest, into the registry of the Clerk of Court, and granting a motion for partial summary judgment. (ECF No. 77.) Defendant Transamerica Premier Life (“Transamerica”); Defendant American National Insurance Company (“American”); and Defendants Leslie Gorman, Teressa Gorman, and Chris McNally (collectively, “Gorman Defendants”) filed timely Objections to the Amount of Attorneys’ Fees Requested by Interpleader Plaintiff (“Objection”). (ECF Nos. 85, 87, 90.) For the reasons set forth below, the court GRANTS Plaintiff’s Counsel’s Request for Attorneys’ Fees and Costs in the amount of twenty-two thousand, seven hundred and fifty-nine dollars, and seventy- five cents ($22,759.75). (ECF Nos. 83-1, 94.) I. BACKGROUND On January 2, 2019, Plaintiff filed a Complaint for Interpleader pursuant to 28 U.S.C. §§ 1335 and 2361 naming American, Transamerica, the Gorman Defendants, and John Does 1- 50 as Defendants. (ECF No. 1 at 6.) Transamerica filed an Answer to the Complaint on March 7, 2019. (ECF No. 11.) Between March 8, 2019, and May 7, 2019, there were several Answers, Crossclaims, and Replies filed by the parties. (ECF Nos. 15–32.) On July 22, 2019, Plaintiff filed a Motion to Dismiss and Compel Arbitration as to the Gorman Defendants’ Counterclaims

(ECF No. 33), which was granted by the court on December 10, 2019. (ECF No. 67.) On February 3, 2020, the Gorman Defendants filed a Motion for Partial Summary Judgment. (ECF No. 71.) On March 19, 2020, Plaintiff filed a Motion for Interpleader to deposit funds into the registry of the Clerk of Court. (ECF No. 74.) On April 28, 2020, the court issued an Order granting the Motion for Partial Summary Judgment and granting in part the Motion for Interpleader. (ECF No. 77.) In May 2020, Plaintiff’s Counsel filed an Affidavit of Attorneys’ Fees and Costs, seeking reimbursement of “Thirty-Five Thousand and No/100 ($35,000) from the interpleaded funds.” (ECF No. 83 at 3.) On the same day, Transamerica filed an Objection to the Amount of

Attorneys’ Fees Requested by Interpleader Plaintiff. (ECF No. 85.) On June 2, 2020, American filed an Objection to the Amount of Attorneys’ Fees Requested by Interpleader Plaintiff. (ECF No. 87.) On June 17, 2020, the Gorman Defendants filed an Objection to the Amount of Attorneys’ Fees Requested by Interpleader Plaintiff. (ECF No. 90.) Ultimately, the court denied Plaintiff’s Counsel’s request for attorney’s fees and costs without prejudice because the request lacked specific evidence to demonstrate the hourly rates sought were appropriate and reasonable. (See ECF No. 92.) Thereafter, Plaintiff’s Counsel again filed a request for attorney’s fees and included affidavits from two local attorneys who claim the requested rates “are within the range of rates charged by lawyers and paralegals in Columbia, South Carolina[,] with similar experience, skills[,] and reputation for the type of work this matter involves.” (ECF Nos. 94, 94-1, 94-2.) II. JURISDICTION This court has jurisdiction over Plaintiff’s claims pursuant to 28 U.S.C. § 1335 because the Complaint (ECF No. 1) is in the nature of an interpleader. 28 U.S.C. § 1335 provides that:

The district courts shall have original jurisdiction of any civil action of interpleader or in the nature of interpleader filed by any person, firm, or corporation . . . having in his or its custody or possession money or property of the value of $500 or more, or having issued a note, bond, certificate, policy of insurance, or other instrument of value or amount of $500 or more[.]

28 U.S.C. § 1335(a).

III. LEGAL STANDARD “A district court has the discretionary authority to award attorneys’ fees to a plaintiff in an interpleader action.” 7 Charles A. Wright and Arthur R. Miller, Federal Practice and Procedure, §1719 at 476-488 (1st ed. 1972); see also Tr. of the Dir. Guild of Am.- Producer Pension Benefits Plans v. Tise, 234 F. 3d 415, 426-28 (9th Cir. 2000); Septembertide Pub., B.V. v. Stein & Day, Inc., 884 F.2d 675, 683 (2nd Cir. 1989). The burden is on the plaintiff to “establish[] [their] entitlement to an [attorney’s fee] award.” Dusseldorp v. Ho, 4 F. Supp. 3d 1069, 1070 (S.D. Iowa 2014) (citing Hensley v. Eckerhart, 461 U.S. 424, 427 (1983)). There is a limited scope to compensable expenses, confining the attorney fees recoverable to “attorney fees billed to prepare the complaint, obtain service of process on the claimants to the fund, and secure the plaintiff’s discharge from liability and dismissal from the lawsuit.” Dusseldorp, 4 F. Supp. 3d at 1071 (citing Tr. of the Dir. Guild, 234 F. 3d at 426-27). The rationale for allowing an award in an interpleader action is that, “’[b]ecause the stakeholder is considered to be helping multiple parties to an efficient resolution of the dispute in a single court,’ granting attorneys’ fees to the stakeholder is often justified.” Manufacturers & Traders Tr. Co. v. Del Conca USA, Inc., No. GJH-16-3346, 2017 WL 3175567, at *4 (D. Md. July 25, 2017) (citing Stonebridge Life Ins. Co. v. Kissinger, 89 F. Supp. 3d 622, 627 (D.N.J. 2015)). Such an award is only proper “when the interpleader plaintiff acts as a mere stakeholder, which means that the party has admitted liability, has deposited the fund in court, and has asked to be

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