Reconstruction Finance Corp. v. Aquadro

7 F.R.D. 406, 1947 U.S. Dist. LEXIS 1688
CourtDistrict Court, W.D. Pennsylvania
DecidedJuly 31, 1947
DocketCiv. No. 4453
StatusPublished
Cited by8 cases

This text of 7 F.R.D. 406 (Reconstruction Finance Corp. v. Aquadro) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reconstruction Finance Corp. v. Aquadro, 7 F.R.D. 406, 1947 U.S. Dist. LEXIS 1688 (W.D. Pa. 1947).

Opinion

GOURLEY, District Judge.

This proceeding comes before the Court on a motion for summary judgment and arises out of an interpleader action.

Jurisdiction of an action of interpleader is based upon the Act of Jan. 20, 1936, Chapter 13, § 1, 28 U.S.C.A. § 41 Subdivision (26). The complainant is a corporation created and organized under the “Reconstruction Finance Corporation Act” of Jan. 22, 1932, and the amendments thereof, U.S.C.A. Title 15, Section 603 et seq. All ■of its capital stock is owned by the United States Government. The defendants, Matilda Aquadro, Administratrix of the Estate ■of Harry W. Nethken, deceased, and John F. Edmonds, are citizens of the Common-wealth of Pennsylvania, and reside in the ■County of Allegheny. The defendant, Martha Jane Burke, is a citizen and resident ■of the State of California.

On or about June 30, 1925, Aetna Life Insurance Company, of Hartford, Connecticut, issued and delivered to Harry W. Nethken its life insurance Policy No. P--561737, dated June 30, 1925, insuring his life in the face amount of $10,000.

The beneficiary named in said policy of life insurance was Martha Jane Nethken, now Martha Jane Burke, daughter of the insured, who resides in Los Angeles, Cali-fornia, as primary beneficiary, and Charles E. Nethken, brother of the insured, who -resides in Charleston, West Virginia, as contingent beneficiary.

On September 11, 1940, the said Harry W. Nethken caused the beneficiary to be •changed to the estate of the insured and assigned the policy under absolute assignment to Reconstruction Finance Corporation, the complainant.

On March 11, 1943, the said Harry W. Nethken again assigned the policy under -absolute assignment to Recontruction Finance Corporation, the complainant, the ■purposes for which the first assignment was •made having been discharged.

On December 10, 1943, the said Harry W. Nethken died. At the time of his death he was a resident of Fayette County, Pennsylvania. Harry W. Nethken died intestate survived by his wife, Matilda Aquadro, formerly Matilda Marie Nethken, and a daughter, Martha Jane Burke, wife of Joseph T Burke, who, as above set forth, was originally named as the primary beneficiary of said policy. Letters of administration of the Estate of Harry W. Nethken, deceased, were issued on June 5, 1945 by the Register of Wills of Fayette County to Matilda Aquadro.

On March 9, 1944, by virtue of the last mentioned absolute assignment, the proceeds of said policy, amounting to $6,401. 89, were paid by the insurance company to the complainant.

The second assignment of said policy was made by said Harry W. Nethken to secure the performance by him and his assigns of the terms and conditions of certain contracts between him and the complainant. On March 18, 1943, said Harry W. Nethken assigned said contracts to John F. Edmonds, one of the defendants, who undertook to perform the same.

The said John F. Edmonds has notified the complainant that he claims to be entitled to the whole of the proceeds of said insurance in the complainant’s hands, and that he claims the same by virtue of a contract or agreement between him and said Harry W. Nethken under the terms whereof he, the said John F. Edmonds, paid a premium or premiums of said policy. The Aetna Life Insurance Company has no record of the interest of said John F. Edmonds in said policy. The said Matilda Aquadro, Administratrix of the Estate of Harry W. Nethken, deceased, has notified the complainant that said estate claims to be entitled to the whole of said proceeds.

The obligations to secure which said insurance was assigned have since been discharged and the complainant, therefore, disclaims any further interest whatsoever in the proceeds of said insurance paid to it as hereinbefore set forth, except to pay the same to the person or persons lawfully entitled thereto. The complainant has paid the said sum, to wit, $6,401.89, into the Registry of this Court to abide the judgment of the Court.

On June 22, 1945, the Reconstruction Finance Corporation presented its complaint to the Court in the nature of an interpleader action, in which it was prayed that the Court adjudge:

[408]*408“(1) That each of the defendants be summoned to answer the complaint for interpleader and to join issue as between themselves in order that this Court may hold and decide- who is entitled to the said money.
“(2) That the said defendants, Matilda Aquadro, administratrix of the estate of Harry W. Nethken, deceased, Martha Jane Burke and John F. Edmonds be required to interplead and settle between themselves their rights to the said money, and that the complainant be discharged from all liability in the premises.
“(3) That a reasonable counsel fee be allowed to the complainant and taxed as costs herein, and that the costs be paid out of the fund which has been paid into the Registry of this Court by the complainant.
“(4) That the complainant have all such other relief not herein specifically prayed for as may seem meet to this Court.”

On June 22, 1945, after consideration being given to the complaint for inter-pleader, another member of this Court ordered that the Reconstruction Finance Corporation be given leave to pay into the Registry of this Court the sum of $6,401.89 admitted to be due to one of the parties named as defendants in said interpleader action.

The record in this case is in a somewhat utter state of confusion since it does not appear that any motion was ever made to the Court by the Reconstruction Finance Corporation, or any of the defendants named in the complaint, to complete the interpleader action in accordance with the procedure to be followed in actions of this nature.

Rule 22 of the Federal Rules of Civil Procedure, 28 U.S.C.A. following 723c, and the Act of March 3, 1911, c. 231, § 24(26), as amended Jan. 20, 1936, c. 13, § 1, 49 Stat. 1096, 28 U.S.C.A. § 41(26) sets forth the procedure to be followed in an interpleader action. It is set forth, inter alia, that the Court shall hear and determine the cause and shall discharge the complainant from further liability; and shall make the injunction permanent and make all such other orders and decrees as may be necessary or convenient to carry out and enforce the same.

It appears that the Court considered the matter on June 22, 1945, but the only order made in connection therewith was to grant leave to the Reconstruction Finance Corporation to pay into the Registry of this Court the sum of $6,401.89. No order was made enjoining any of the defendants named in the interpleader action from prosecuting any action, suit or proceeding, in law or in equity, in any Court whatsoever against the complainant which would be based upon any claim to the proceeds of the fund realized from the insurance policy issued by the Aetna Life Insurance Company. The interpleader action was not awarded by any order of this Court, and no issue was directed to be framed between any of the parties named in the complaint filed. No order was made releasing or discharging the Reconstruction Finance Corporation from any liability on account of the funds paid to it by the Aetna Life Insurance Company.

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Bluebook (online)
7 F.R.D. 406, 1947 U.S. Dist. LEXIS 1688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reconstruction-finance-corp-v-aquadro-pawd-1947.