1 2 3 4 5 6 7 10 11 JACKSON NATIONAL LIFE Case No. 1:23-cv-00442-CDB INSURANCE COMPANY, 12 ORDER RE: DEFENDANT CELESTINE Plaintiff, LIM’S MOTION FOR SUBSTITUTION 13
14 v. (Doc. 61)
15 BI BI LIM. et al., 14-Day Deadline
16 Defendants. 17 18 Pending before the Court is Defendant Celestine Lim’s motion for substitution of 19 Defendant Winston Lim. (Doc. 61). No party filed an opposition to the motion and the time to 20 do so has expired. See Local Rule 230(c). The Court deems the motion for substitution noticed 21 for hearing on August 23, 2024, suitable for decision without argument pursuant to Local Rule 22 230(g). As such, the August 23, 2024, hearing will be vacated. 23 Background 24 On March 23, 2023, Plaintiff Jackson National Life Insurance Company (“Plaintiff”) 25 initiated this action with the filing of a complaint in interpleader against Defendants Bi Bi Lim, 26 Winston Lim, Celestine Lim, Venancio Lim, Peterson Lim, Willie Lim, Tiffany Aung, Crystal 27 Aung, and Kyi Aung individually and as personal representative of the Estate of Caroline Lim 1 (“Defendants”). (Doc. 1).1 Plaintiff filed a suggestion of death upon the record as to Defendant 2 Winston Lim on June 16, 2023. (Doc. 17). On February 21, 2024, the Court noted it was unclear 3 whether the suggestion of death was served on the parties and non-parties in accordance with the 4 applicable rules and whether Rule 25(a)(1)’s 90-day period was triggered. (Doc. 46). The Court 5 directed the parties to file any notice of suggestion of Defendant Winston Lim’s death with the 6 proper service of notice pursuant to Federal Rule of Civil Procedure 25(a). Id. 7 On May 8, 2024, Plaintiff filed a renewed notice of suggestion of death as to Defendant 8 Winston Lim. (Doc. 58). On May 10, 2024, the Court issued an order notifying the parties that 9 the 90-day period for substitution of Defendant Winston Lim pursuant to Rule 25(a)(1) had 10 commenced by Plaintiff’s filing and service of a notice of suggestion of death. (Doc. 60). On 11 July 16, 2024, Defendant Celestine Lim filed the instant motion for substitution of parties. (Doc. 12 61). In support of her motion, Defendant Celestine Lim has filed a declaration and a copy of a 13 Macomb County, Michigan probate court order appointing her as a personal representative for the 14 Estate of Winston Lim. (Docs. 61-1; 61-2). 15 Legal Standard 16 Federal Rule of Civil Procedure 25(a)(1) provides: if a party dies and the claim is not 17 extinguished, the court may order substitution of the proper party. Fed. R. Civ. P. 25(a)(1). A 18 motion for substitution may be made by any party or by the decedent’s successor or 19 representative. Id. If any such motion for substitution is made more than 90 days after service of 20 a statement noting the death, the action by or against the decedent must be dismissed. Id. 21 In evaluating a Rule 25(a)(1) motion, the Court must consider whether: (1) the motion is 22 timely; (2) the claims pled are extinguished; and (3) the person being substituted is the proper 23 party. Maseda v. Saul, No. 1:20-cv-01657-JLT, 2021 WL 2268871, at *1 (E.D. Cal. June 3, 24 2021). If the requirements of Rule 25(a)(1) are met, “[t]he substituted party steps into the same 25 position as [the] original party.” Id. (quoting Hilao v. Estate of Marcos, 103 F.3d 762, 766 (9th 26 Cir. 1996)). “Rule 25(a) should be applied flexibly and liberally to permit substitution of the 27
1 On May 10, 2024, Plaintiff Jackson National Life Insurance Company was dismissed 1 party or parties who…would adequately represent [the decedent’s] interests.” Id. (quoting In re 2 Baycol Prods. Litig., 616 F.3d 778, 789 (8th Cir. 2010)). 3 Discussion 4 Defendant Winston Lim died on April 23, 2023. (Doc. 17-1). A suggestion of death was 5 filed on the record and the suggesting party served the notice on Defendant Celestine Lim, the 6 appointed personal representative of the Estate of Winston Lim, on April 25, 2024. (Doc. 58); 7 See Gilmore v. Lockard, 936 F.3d 857, 865 (9th Cir. 2019) (Rule 25 requires a party must 8 formally suggest the death of the party upon the record and the suggesting party must serve other 9 parties and non-party successors or representatives of the deceased). Defendant Celestine Lim 10 filed the instant motion on July 16, 2024. (Doc. 61). Thus, the 90-day period required by Rule 11 25 has not expired and the motion is timely. 12 Substitution under Rule 25 requires that the underlying claims survive the death of the 13 party who passed away. Fed. R. Civ. P. 25(a)(1). A motion for substitution can be granted only 14 for claims not extinguished by death. Id. The Court must examine each claim independently. 15 Bailey v. Macfarland, No. 2:15-cv-01725-TLN-DB, 2020 WL 5763825, at *2 (E.D. Cal. Sep. 28, 16 2020) (citing Hawkins v. Eads, 135 B.R. 380, 384-85 (E.D. Cal. 1991)). 17 To determine whether a cause of action survives a party’s death, the court must look to the 18 law, state or federal, under which the cause arose. Bailey, 2020 WL 5763825, at *3. In 19 interpleader actions, the district court applies the substantive law of the forum state, California in 20 this case. Jackson Nat’l Life Ins. Co. v. Cabrera, 48 Fed. Appx. 618, 619 (9th Cir. 2002) (citing 21 Equitable Life Assurance Soc'y v. McKay, 837 F.2d 904, 905 (9th Cir. 1988)). Under California 22 law, a cause of action for or against a person is not lost by reason of the person’s death but 23 survives subject to the applicable limitations period. Cal. Code Civ. Proc. § 377.20(a). Also 24 under federal common law, “claims that are remedial in nature survive the claimant’s death…” 25 EEOC v. Timeless Invs., Inc., 734 F. Supp. 2d 1035, 1057 (E.D. Cal. 2010); United States v. 26 Oberlin, 718 F.2d 894, 896 (9th Cir. 1983). As Defendant Winston Lim’s claim, as a beneficiary, 27 is remedial in nature and was made within the applicable limitations period, his claim survived 1 Lastly, the Court must determine whether Defendant Celestine Lim is the proper party. In 2 California, an action that survives the death of a party entitled to bring the action passes to the 3 decedent's successor in interest, subject to Cal. Code Civ. Proc. § 377.30. An action may be 4 initiated by a decedent's personal representative or, if there is no personal representative, by the 5 decedent’s successor in interest. Id. A decedent’s “‘personal representative’ is the person or firm 6 appointed by the probate court to administer the probate of a decedent’s estate.” Cotta v. County 7 of Kings, 79 F. Supp. 3d 1148, 1158 (E.D. Cal. 2015) (quoting Miller v. Campbell, Warburton, 8 Fitzsimmons, Smith, Mendel & Pastore, 162 Cal. App.4th 1331, 1340 (2008)). 9 In addition, California’s Code of Civil Procedure provides that:
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1 2 3 4 5 6 7 10 11 JACKSON NATIONAL LIFE Case No. 1:23-cv-00442-CDB INSURANCE COMPANY, 12 ORDER RE: DEFENDANT CELESTINE Plaintiff, LIM’S MOTION FOR SUBSTITUTION 13
14 v. (Doc. 61)
15 BI BI LIM. et al., 14-Day Deadline
16 Defendants. 17 18 Pending before the Court is Defendant Celestine Lim’s motion for substitution of 19 Defendant Winston Lim. (Doc. 61). No party filed an opposition to the motion and the time to 20 do so has expired. See Local Rule 230(c). The Court deems the motion for substitution noticed 21 for hearing on August 23, 2024, suitable for decision without argument pursuant to Local Rule 22 230(g). As such, the August 23, 2024, hearing will be vacated. 23 Background 24 On March 23, 2023, Plaintiff Jackson National Life Insurance Company (“Plaintiff”) 25 initiated this action with the filing of a complaint in interpleader against Defendants Bi Bi Lim, 26 Winston Lim, Celestine Lim, Venancio Lim, Peterson Lim, Willie Lim, Tiffany Aung, Crystal 27 Aung, and Kyi Aung individually and as personal representative of the Estate of Caroline Lim 1 (“Defendants”). (Doc. 1).1 Plaintiff filed a suggestion of death upon the record as to Defendant 2 Winston Lim on June 16, 2023. (Doc. 17). On February 21, 2024, the Court noted it was unclear 3 whether the suggestion of death was served on the parties and non-parties in accordance with the 4 applicable rules and whether Rule 25(a)(1)’s 90-day period was triggered. (Doc. 46). The Court 5 directed the parties to file any notice of suggestion of Defendant Winston Lim’s death with the 6 proper service of notice pursuant to Federal Rule of Civil Procedure 25(a). Id. 7 On May 8, 2024, Plaintiff filed a renewed notice of suggestion of death as to Defendant 8 Winston Lim. (Doc. 58). On May 10, 2024, the Court issued an order notifying the parties that 9 the 90-day period for substitution of Defendant Winston Lim pursuant to Rule 25(a)(1) had 10 commenced by Plaintiff’s filing and service of a notice of suggestion of death. (Doc. 60). On 11 July 16, 2024, Defendant Celestine Lim filed the instant motion for substitution of parties. (Doc. 12 61). In support of her motion, Defendant Celestine Lim has filed a declaration and a copy of a 13 Macomb County, Michigan probate court order appointing her as a personal representative for the 14 Estate of Winston Lim. (Docs. 61-1; 61-2). 15 Legal Standard 16 Federal Rule of Civil Procedure 25(a)(1) provides: if a party dies and the claim is not 17 extinguished, the court may order substitution of the proper party. Fed. R. Civ. P. 25(a)(1). A 18 motion for substitution may be made by any party or by the decedent’s successor or 19 representative. Id. If any such motion for substitution is made more than 90 days after service of 20 a statement noting the death, the action by or against the decedent must be dismissed. Id. 21 In evaluating a Rule 25(a)(1) motion, the Court must consider whether: (1) the motion is 22 timely; (2) the claims pled are extinguished; and (3) the person being substituted is the proper 23 party. Maseda v. Saul, No. 1:20-cv-01657-JLT, 2021 WL 2268871, at *1 (E.D. Cal. June 3, 24 2021). If the requirements of Rule 25(a)(1) are met, “[t]he substituted party steps into the same 25 position as [the] original party.” Id. (quoting Hilao v. Estate of Marcos, 103 F.3d 762, 766 (9th 26 Cir. 1996)). “Rule 25(a) should be applied flexibly and liberally to permit substitution of the 27
1 On May 10, 2024, Plaintiff Jackson National Life Insurance Company was dismissed 1 party or parties who…would adequately represent [the decedent’s] interests.” Id. (quoting In re 2 Baycol Prods. Litig., 616 F.3d 778, 789 (8th Cir. 2010)). 3 Discussion 4 Defendant Winston Lim died on April 23, 2023. (Doc. 17-1). A suggestion of death was 5 filed on the record and the suggesting party served the notice on Defendant Celestine Lim, the 6 appointed personal representative of the Estate of Winston Lim, on April 25, 2024. (Doc. 58); 7 See Gilmore v. Lockard, 936 F.3d 857, 865 (9th Cir. 2019) (Rule 25 requires a party must 8 formally suggest the death of the party upon the record and the suggesting party must serve other 9 parties and non-party successors or representatives of the deceased). Defendant Celestine Lim 10 filed the instant motion on July 16, 2024. (Doc. 61). Thus, the 90-day period required by Rule 11 25 has not expired and the motion is timely. 12 Substitution under Rule 25 requires that the underlying claims survive the death of the 13 party who passed away. Fed. R. Civ. P. 25(a)(1). A motion for substitution can be granted only 14 for claims not extinguished by death. Id. The Court must examine each claim independently. 15 Bailey v. Macfarland, No. 2:15-cv-01725-TLN-DB, 2020 WL 5763825, at *2 (E.D. Cal. Sep. 28, 16 2020) (citing Hawkins v. Eads, 135 B.R. 380, 384-85 (E.D. Cal. 1991)). 17 To determine whether a cause of action survives a party’s death, the court must look to the 18 law, state or federal, under which the cause arose. Bailey, 2020 WL 5763825, at *3. In 19 interpleader actions, the district court applies the substantive law of the forum state, California in 20 this case. Jackson Nat’l Life Ins. Co. v. Cabrera, 48 Fed. Appx. 618, 619 (9th Cir. 2002) (citing 21 Equitable Life Assurance Soc'y v. McKay, 837 F.2d 904, 905 (9th Cir. 1988)). Under California 22 law, a cause of action for or against a person is not lost by reason of the person’s death but 23 survives subject to the applicable limitations period. Cal. Code Civ. Proc. § 377.20(a). Also 24 under federal common law, “claims that are remedial in nature survive the claimant’s death…” 25 EEOC v. Timeless Invs., Inc., 734 F. Supp. 2d 1035, 1057 (E.D. Cal. 2010); United States v. 26 Oberlin, 718 F.2d 894, 896 (9th Cir. 1983). As Defendant Winston Lim’s claim, as a beneficiary, 27 is remedial in nature and was made within the applicable limitations period, his claim survived 1 Lastly, the Court must determine whether Defendant Celestine Lim is the proper party. In 2 California, an action that survives the death of a party entitled to bring the action passes to the 3 decedent's successor in interest, subject to Cal. Code Civ. Proc. § 377.30. An action may be 4 initiated by a decedent's personal representative or, if there is no personal representative, by the 5 decedent’s successor in interest. Id. A decedent’s “‘personal representative’ is the person or firm 6 appointed by the probate court to administer the probate of a decedent’s estate.” Cotta v. County 7 of Kings, 79 F. Supp. 3d 1148, 1158 (E.D. Cal. 2015) (quoting Miller v. Campbell, Warburton, 8 Fitzsimmons, Smith, Mendel & Pastore, 162 Cal. App.4th 1331, 1340 (2008)). 9 In addition, California’s Code of Civil Procedure provides that:
10 (a) The person who seeks to commence an action or proceeding or to continue a pending 11 action or proceeding as the decedent's successor in interest under this article, shall execute and file an affidavit or a declaration under penalty of perjury under the laws of 12 this state stating all of the following:
13 (1) The decedent’s name.
14 (2) The date and place of the decedent’s death. 15 (3) “No proceeding is now pending in California for administration of the decedent’s 16 estate.”
17 (4) If the decedent’s estate was administered, a copy of the final order showing the distribution of the decedent’s cause of action to the successor in interest. 18
19 (5) Either of the following, as appropriate, with facts in support thereof:
20 (A) “The affiant or declarant is the decedent’s successor in interest (as defined in Section 377.11 of the California Code of Civil Procedure) and succeeds to the 21 decedent's interest in the action or proceeding.”
22 (B) “The affiant or declarant is authorized to act on behalf of the decedent’s 23 successor in interest (as defined in Section 377.11 of the California Code of Civil Procedure) with respect to the decedent's interest in the action or 24 proceeding.”
25 (6) “No other person has a superior right to commence the action or proceeding or to be substituted for the decedent in the pending action or proceeding.” 26
27 (7) “The affiant or declarant affirms or declares under penalty of perjury under the laws of the State of California that the foregoing is true and correct.” 1 (b) Where more than one person executes the affidavit or declaration under this section, > ents required by subdivision (a) shall be modified as appropriate to reflect
3 (c) Acertified copy of the decedent’s death certificate shall be attached to the affidavit or 4 declaration. 5 || Cal. Civ. Proc. Code § 377.32 (emphasis added). 6 As discussed above, Defendant Celestine Lim submitted a declaration in support of her 7 | motion. (Doc. 61-2). Defendant Celestine Lim declares her brother, Winston Lim, passed away 8 | on April 23, 2023, in Macomb County, Michigan. (Doc. 61-2 at §] 1). Defendant Celestine Lim 9 | asserts she is Winston Lim’s successor in interest and has been designated as the personal 10 || representative of the estate. Id. at 2-3. Defendant Celestine Lim states no proceeding is now 11 | pending in California for the administration of the decedent’s estate and no other person has a 12 || superior right to commence the action or proceed or to be substituted for the decedent in the 13 | pending action or proceeding. Jd. at 4-5. Defendant Celestine Lim attached to her declaration 14 | a letter of authority for personal representative. (Doc. 61-1 at 1-2). Defendant Celestine Lim also 15 | attached an order regarding inventories and accounts, an order on formal proceedings, and an 16 | order determining that the case/matter is not suited for the use of videoconferencing. Id. at 3-6. 17 Defendant Celestine Lim did not attach a certified copy of Plaintiff's death certificate as 18 || required under Cal. Civ. Proc. Code § 377.32(c). Once the Court receives this document, a ruling 19 | will be issued on the motion for substitution. 20 | Conclusion and Order 21 Accordingly, IT IS HEREBY ORDERED, that within 14 days from the date of this order, 22 || Defendant Celestine Lim shall file the appropriate declaration and a certified copy of the death 23 | certificate attached. 24 | IT IS SO ORDERED. | Dated: _ August 6, 2024 | Wr bo 26 UNITED STATES MAGISTRATE JUDGE 27 28 «