Great-West Life Assurance Co. v. Superior Court of Los Angeles County

271 Cal. App. 2d 124, 76 Cal. Rptr. 284, 1969 Cal. App. LEXIS 2362
CourtCalifornia Court of Appeal
DecidedMarch 26, 1969
DocketCiv. 33848
StatusPublished
Cited by1 cases

This text of 271 Cal. App. 2d 124 (Great-West Life Assurance Co. v. Superior Court of Los Angeles County) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great-West Life Assurance Co. v. Superior Court of Los Angeles County, 271 Cal. App. 2d 124, 76 Cal. Rptr. 284, 1969 Cal. App. LEXIS 2362 (Cal. Ct. App. 1969).

Opinion

FILES, P. J.

On June 5, 1964, plaintiff filed a complaint in interpleader in the municipal court, naming as defendants Harold S. Jones, Carol Jones, Dale Lee, and Pendler, Gershon & Warner, *125 a partnership. This complaint alleged that plaintiff had made contracts with defendant Harold Jones whereby the latter was entitled to commissions on the renewal of insurance business submitted by him, that as of that date $327.97 was due and owing to him under the contract, “and that additional sums may become due and owing from plaintiff to said defendant under said contracts. ...” The complaint further alleged that each of the defendants claimed to be entitled to all or some of the proceeds. The complaint prayed that the defendants be compelled to interplead their claims, and that the court adjudge that upon payment of the proceeds into court, plaintiff be discharged of any liability to any of the parties.

On September 30, 1964, Carol Jones filed a disclaimer. The answer of Harold Jones claimed all the proceeds of the contracts. The answer of the Fendler firm claimed that it had a lien entitling it to receive all of the proceeds of the contract until it has been paid $2,725 plus interest and costs, including attorney fees. The answer of Dale Lee alleged that by assignment from Jones he was entitled to receive $1,500 plus interest and costs from the proceeds of the contract.

From time to time during the pendency of the action as additional amounts came due under the contract, plaintiff deposited the money with the court.

On March 5, 1968, plaintiff made a motion for a judgment discharging it from liability for the amounts deposited, dismissing it from the action and awarding it costs and attorney fees payable out of the fund on deposit. Accompanying the notice of motion was a declaration stating that the sum then on deposit with the court was $4,343.86.

The order of the municipal court, filed March 11, 1968, provides:

(1) that this is a proper case for interpleader;
(2) that plaintiff is discharged from further liability to certain named defendants “to the amount of said deposit”;
(3) that as further sums accrue on the contracts plaintiff is ordered to deposit them with the clerk of the court;
(4) plaintiff will receive out of the money on deposit its costs and reasonable attorney fees “to be set by the Court at the trial of this matter. ’ ’

On May 16, 1968, plaintiff’s attorney filed a declaration that - additional amounts had been deposited with the court, bringing the total on deposit to more than $5,000. Thereupon, *126 at plaintiff’s request, the municipal court made an ex parte order transferring the'action to the superior court.

On October 16, 1968, the master calendar department of the superior court transferred the case to a trial department for trial. The trial judge conferred with counsel in chambers, and then announced that he did not believe the superior court had any jurisdiction, and for that reason he would not try the ease. Plaintiff thereupon petitioned this court for a writ of mandate.

The California Constitution, article VI, section 10, provides "Superior Courts have original jurisdiction in all causes except those given by statute to other trial courts. ’ ’

Code of Civil Procedure section 89, subdivision (b), gives to the municipal courts original jurisdiction “in actions of interpleader, where the amount of money, or the value of the property involved, does not exceed five thousand dollars ($5,000).”

As a background for applying that statute to the instant ease it is helpful to review some of the principles governing interpleader.

Code of Civil Procedure section 386 provides that when conflicting claims are made upon a person, he may bring an action against the conflicting claimants to compel them to interplead and litigate their claims. The statute further provides that the amount which the interpleading party admits to be due may be deposited with the clerk of the court at the time of the filing of the complaint without first obtaining an order of the court therefor; and that the interpleading party may be discharged from liability to all of the claimants. The procedure for discharging an interpleading plaintiff is not spelled out in the statute, 1 but has developed through the case law.

An action in interpleader has been described as “. . . a twofold contest: First, as to the right of the plaintiff to bring the suit and to force the defendants to interplead; and, if such right is maintained, the litigation among the defendants . . . Whether the plaintiff shall be permitted to maintain such an action is first determined, and, if his right is sustained, an interlocutory decree is entered, requiring the defendants to litigate their claims inter sese.” (San Francisco Sav. Union v. Long (1898) 123 Cal. 107, 109 [55 P. 708].)

*127 Following the entry of the interlocutory decree the plaintiff ceases to be a party to the litigation. (San Francisco Sav. Union v. Long, supra, at p. 110; San Francisco Sav. Union v. Long (1902) 137 Cal. 68 [69 P. 687]; Woodmen of the World v. Rutledge (1901) 133 Cal. 640, 643 [65 P. 1105]; Van Orden v. Anderson (1932) 122 Cal.App. 132, 140 [9 P.2d 572]; see 2 Witkin, Cal. Procedure (1954) Pleading, § 129, p. 1111; 28 Cal.Jur.2d, Interpleader, § 22, p. 465.)

An examination of the proceedings in this case in the light of the foregoing rules explains the jurisdictional doubt which has developed. The complaint filed in 1964 alleged that only the sum of $327.97 was owing under the contracts, and that “additional sums may become due” in the future. As of that time the only “amount involved,” so far as could be ascertained from the pleading was an amount within the jurisdiction of the municipal court. When additional amounts came due under the contracts and were deposited in court, plaintiff made no change in its pleading.

When the amount on deposit reached $4,343.86 plaintiff applied for a judgment in interpleader dismissing it from the case. That application, if granted, would have terminated the first part of the twofold contest. But the order made by the municipal court on March 11, 1968, was not the interlocutory judgment referred to in the eases cited above. The order made differs from the typical interlocutory judgment in interpleader in these respects:

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Cite This Page — Counsel Stack

Bluebook (online)
271 Cal. App. 2d 124, 76 Cal. Rptr. 284, 1969 Cal. App. LEXIS 2362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-west-life-assurance-co-v-superior-court-of-los-angeles-county-calctapp-1969.