MacPherson-Pomeroy v. North American Company for Life and Health Insurance

CourtDistrict Court, E.D. California
DecidedAugust 25, 2023
Docket1:20-cv-00092
StatusUnknown

This text of MacPherson-Pomeroy v. North American Company for Life and Health Insurance (MacPherson-Pomeroy v. North American Company for Life and Health Insurance) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MacPherson-Pomeroy v. North American Company for Life and Health Insurance, (E.D. Cal. 2023).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 BARBARA MACPHERSON-POMEROY, No. 1:20-cv-00092-ADA-BAM 12 Plaintiff, 13 v. ORDER AWARDING ATTORNEY’S FEES AND COSTS TO DEFENDANT NORTH 14 NORTH AMERICAN COMPANY FOR AMERICAN COMPANY FOR LIFE AND LIFE AND HEALTH INSURANCE, an HEALTH INSURANCE FOR CERTAIN 15 Iowa corporation; and Does 1 through 100, EXPENSES INCURRED IN INSTITUTING THE INTERPLEADER ACTION 16 Defendant. (ECF No. 120) 17 NORTH AMERICAN COMPANY FOR LIFE AND HEALTH INSURANCE, 18 Counterclaim Plaintiff, 19 v. 20 BARBARA MACPHERSON-POMEROY,

21 Counterclaim Defendant.

22 NORTH AMERICAN COMPANY FOR LIFE AND HEALTH INSURANCE, 23 Third-Party Plaintiff, 24 v. 25 MELANIE RODRIGUEZ and DEBANEE UDALL, 26 Third-Party Defendant. 27 28 1 I. 2 Factual and Procedural Background 3 This case stems from Barbara MacPherson-Pomeroy’s efforts to claim a life insurance 4 policy that Defendant North American Company for Life and Health Insurance issued on the life 5 of her husband, Casey MacPherson-Pomeroy. On December 16, 2019, Plaintiff filed a complaint 6 in California state court alleging breach of contract and breach of the covenant of good faith and 7 fair dealing against Defendant. (ECF No. 1 at 17–28.) Defendant removed the action to federal 8 court on January 17, 2020. (ECF No. 1.) On February 21, 2020, Defendant filed an answer to the 9 complaint as well as a counterclaim and third-party complaint for interpleader against Melanie 10 Rodriguez and Debanee Udall, secondary beneficiaries of the policy. (ECF Nos. 13, 14.) In 11 March 2020, Defendant deposited its admitted liability of $1,504,346.75 – the amount of the 12 policy plus accrued interest – with the Register of the Court, pending a determination as to 13 whether Plaintiff or the secondary beneficiaries were entitled to the proceeds. (See ECF No. 16.) 14 On March 31, 2021, Plaintiff moved for summary judgment on the third-party complaint 15 for interpleader, or, in the alternative, to summarily adjudicate the adverse claims of Ms. Udall, 16 the only remaining claimant to the interpleader funds. (ECF No. 76.) The Court granted 17 Plaintiff’s motion on April 8, 2022, and the Clerk of Court entered judgment in favor of Plaintiff 18 that same day. (ECF Nos. 100, 101.) 19 On June 20, 2022, Plaintiff filed a motion for disbursement of the interpleader funds 20 minus a reasonable amount of attorney’s fees for Defendant. (ECF No. 115.) Defendant did not 21 oppose the release of funds to Plaintiff, but it did file an opposition requesting (1) that the Court 22 award attorney’s fees and costs and discharge Defendant prior to releasing funds to Plaintiff, and 23 (2) that the Court make a finding under Federal Rule of Procedure 54(b) prior to disbursing the 24 interpleader funds. (ECF No. 125.) On June 21, 2022, Defendant filed its motion for final 25 judgment in interpleader, seeking attorney’s fees and costs in the amount of $20,480.26. (ECF 26 No. 120, 121.) Plaintiff filed an opposition, objecting to the amount that Defendant requested in 27 fees and objecting to Defendant’s proposed language stating that Defendant acted in good faith by 28 interpleading the funds. (ECF No. 124.) 1 To expedite the release of undisputed funds to Plaintiff, the parties filed a stipulation on 2 September 13, 2022. (ECF No. 142.) Pursuant to that stipulation, the Court amended its April 8, 3 2022 order to include an express finding of finality pursuant to Rule 54(b). (ECF No. 147.) It 4 also entered judgment in favor of Defendant on its counterclaim and third-party complaint for 5 interpleader, terminating Defendant’s prior motion for judgment in interpleader as moot. (ECF 6 No. 148.) Finally, it ordered disbursement of all interpleaded funds on deposit with the Court 7 except for $20,480.26 – the amount Defendant seeks in attorney’s fees and costs – rendering 8 Plaintiff’s motion for interpleader disbursement moot. (ECF No. 149.) The Court deferred the 9 issue of Defendant’s entitlement to attorney’s fees and takes up that question now. 10 II. 11 Legal Standard 12 A disinterested stakeholder’s entitlement to attorney’s fees in an interpleader action “is 13 committed to the sound discretion of the district court.” Tr. of Dirs. Guild of Am.-Producer 14 Pension Benefits Plans v. Tise, 234 F.3d 415, 426 (9th Cir. 2000), as amended on denial of reh’g, 15 255 F.3d 661 (9th Cir. 2000) (citing Schirmer Stevedoring Co. v. Seaboard Stevedoring Corp., 16 306 F.2d 188, 194 (9th Cir. 1962)). Courts typically award such fees in recognition of the fact 17 that “by bringing the action, the plaintiff benefits all parties by ‘promoting early litigation on the 18 ownership of the fund, thus preventing dissipation.’” Id. (quoting Schirmer Stevedoring, 306 19 F.2d at 194)). “Such awards generally are charged against the interpleaded funds.” Chase Inv. 20 Servs. Corp. v. Law Offices of Jon Divens & Assocs., LLC, No. CV 09-9152 SVW (MANx), 2010 21 WL 11597568, at *4 (C.D. Cal. Jun. 10, 2010). “The party claiming attorneys’ fees bears the 22 burden of establishing its entitlement to the award.” Fidelity Nat’l Title Co. v. U.S. Small Bus. 23 Admin., No. 2:13-CV-02030-KJM-AC, 2014 WL 6390275, at *4 (E.D. Cal. Nov. 13, 2014) 24 (citing Tise, 234 F.3d at 427). In order to avoid depleting the funds in question, attorney’s fees in 25 interpleader actions are typically modest. Tise, 234 F.3d at 427. 26 /// 27 /// 28 /// 1 III. 2 Discussion 3 Defendant requests attorney’s fees in the amount of $20,344.50 for attorney’s fees it 4 incurred through June 17, 2022. (ECF No. 120 at 7.) It categorizes those expenses as follows: 5 6 Description Fees 7 A. Preliminary investigation regarding facts and law $5,132.50 8 B. Drafting, filing, and serving counterclaim and third-party complaint for $3,984.00 9 interpleader, motion to deposit, and related documents 10 C. Communications with counterclaim and third-party defendants’ counsel $675.00 11 regarding responsive pleadings, disclaiming interest, and review of 12 responsive pleadings 13 D. Communications regarding, and drafting of, joint status report $2,988.00 14 E. Drafting and filing motion for final judgment order in interpleader and award $3,532.00 15 of attorney’s fees and costs 16 F. Client communications $1,376.00 17 G. Internal communications $2,657.00 18 Total $20,344.50 19 20 (Id. at 7–8.) Defendant asserts that an associate with ten years of experience, Kaitlyn Luther, 21 performed most of the work on this matter at an hourly rate of $250. (Id. at 8.) Another associate 22 with twenty-one years of experience, Stuart Primack, performed work at an hourly rate of $275. 23 (Id.) Two Members of Defendant’s firm, Donald Murday and David Novotny, also worked on 24 the matter at hourly rates of $345 each. (Id.) Finally, paralegals incurred fees at an hourly rate of 25 $105. (Id. at 9.) Defendant argues that these hourly rates are reasonable based on the experience 26 of each attorney and paralegal as well as the fact that they are comparable to the rates of other 27 practitioners in the Chicago area, where Defendant’s firm is based.1 (Id. at 8–9.) At the Court’s

28 1 Defendant’s burden is to establish that its attorney’s rates are reasonable in the Fresno area, not in the area where it 1 request, Defendant provided, for in camera review, annotated copies of invoices associated with 2 the requested attorney’s fees along with a summary of the number of hours each attorney billed 3 for each category of expenses.

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MacPherson-Pomeroy v. North American Company for Life and Health Insurance, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macpherson-pomeroy-v-north-american-company-for-life-and-health-insurance-caed-2023.