Robert Joe McBride v. Marcus McMillian

679 F. App'x 869
CourtCourt of Appeals for the Eleventh Circuit
DecidedFebruary 13, 2017
Docket15-15779 Non-Argument Calendar
StatusUnpublished
Cited by6 cases

This text of 679 F. App'x 869 (Robert Joe McBride v. Marcus McMillian) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robert Joe McBride v. Marcus McMillian, 679 F. App'x 869 (11th Cir. 2017).

Opinion

PER CURIAM:

Defendant challenges the district court’s discharge of interpleader Plaintiffs from action and entry of a permanent injunction in Plaintiffs’ favor. Concluding that Plaintiffs deposited the proper amount of money with the court and that the district court did not abuse its discretion in granting Plaintiffs’ request for a permanent injunction, we AFFIRM.

I. BACKGROUND

Defendant Marcus McMillian (“McMilli-an”) was awarded a $264,600 judgment against Plaintiffs Robert McBride and Western Express (“Plaintiffs”) on March 4, 2015, following a jury trial. Claiming that lawyers, medical providers, and others have liens on or competing claims to the judgment, Plaintiffs brought an interpleader complaint against McMillian and those who assert, or who could assert, claims to the judgment funds. Plaintiffs brought the claim under both 28 U.S.C. § 1835 and Federal Rule of Civil Procedure 22. They also sought a permanent injunction under 28 U.S.C. § 2361 and Federal Rule of Civil Procedure 65 to restrain future proceedings against the judgment funds outside of the interpleader action.

The district court granted Plaintiffs’ motion to deposit the judgment funds with the court. The district court also issued a temporary restraining order against McMillian preventing him from executing on the judgment, and later a preliminary injunction to preserve the status quo while the court decided how to allocate the funds. In support of their motion for a preliminary injunction, Plaintiffs submitted a supplemental brief, which included a chart with the amount of money claimed against the judgment by each individual or entity, which amount totaled $531,970.88. As this was over twice the judgment amount, Plaintiffs argued they were exposed to multiple liability to those who claimed an interest in the judgment.

In his answer to the complaint, McMilli-an—acting pro se in this case—admitted that the complaint arose from a tort judgment of $264,600, and asked the court to award him the full judgment amount and all accrued interest. Plaintiffs moved to permanently enjoin proceedings against them concerning the judgment funds and to be dismissed from the action, arguing that they had deposited the required amount with the court and had otherwise satisfied the statutory requirements of an interpleader action.

McMillian subsequently amended his answer, adding a defense that stated he rejected Plaintiffs’ claims “in the amount of liability exposed and coverage relative to its policy,” as well as changing his prayer for relief to cover the “entire proceeds apparent and inherent from the judgment.” McMillian also responded to Plaintiffs’ motion for a permanent injunction and discharge, arguing that Plaintiffs could not be discharged from the action because they did not post the correct amount with the court. McMillian claimed the proper deposit amount is the full limit available under Plaintiffs relevant insurance policy, which McMillian claims is $4,500,000, rather than simply the judgment amount.

On November 4, 2015, the district court found that Plaintiffs had met the statutory requirements for an interpleader action and were entitled to be dismissed. The court stated that McMillian had no legitimate claim to any amount of money beyond the amount of the judgment entered—which was all that McMillian had initially claimed—so no higher deposit amount was required. The court also granted a permanent injunction against *871 McMillian and the other claimants, preventing them from bringing any actions against Plaintiffs concerning the judgment funds.

McMillian filed a motion to reconsider on November 30, arguing that the dismissal and injunction were improper because Plaintiffs did not deposit the correct amount with the court. The district court rejected McMillian’s motion. The court explained that because this was not a case in which an insurance company was seeking to determine who was entitled to insurance policy proceeds, the limits of any insurance policy held by Plaintiffs was irrelevant. The court further noted that the only pool of money at issue was the judgment, and that the amount of the judgment was not disputed, so McMillian failed to show why he was entitled to anything else.

McMillian appealed the November 4 order on December 29, 2015. Plaintiffs moved to dismiss the appeal as untimely, but a panel of this Court denied that motion and noted as well that diversity-based subject matter jurisdiction existed in this case. On appeal, McMillian addresses only Plaintiffs’ action under statutory inter-pleader. See 28 U.S.C. §§ 1335, 2361.

II. DISCUSSION

A. Standard of Review

We review the district court’s decision to grant relief to an interpleader plaintiff for an abuse of discretion. See Zelaya/Capital Int’l Judgment, LLC v. Zelaya, 769 F.3d 1296, 1300 (11th Cir. 2014) (reviewing under an abuse-of-discretion standard the district court’s order allowing judgment debtor to deposit disputed funds into the court’s registry); Auto Parts Mfg. Mississippi, Inc. v. King Const. of Houston, L.L.C., 782 F.3d 186, 192 (5th Cir. 2015), cert. denied sub nom. Noatex Corp. v. Auto Parts Mfg. Mississippi Inc., — U.S. -, 136 S.Ct. 330, 193 L.Ed.2d 230 (2015) (“We review the district court’s grant of injunctive relief in an interpleader action for abuse of discretion.”).

B. McMillian’s Challenge to Discharge and Permanent Injunction

Interpleader allows a party who holds money claimed by multiple adverse claimants “[to] avoid[ ] multiple liability by asking the court to determine the asset’s rightful owner.” In re Mandalay Shores Co-op. Hous. Ass’n, Inc., 21 F.3d 380, 383 (11th Cir. 1994). The party holding the funds “typically claims no interest in [the] asset and does not know the asset’s rightful owner.” Id. A plaintiff can initiate a statutory interpleader action when two or more adverse claimants of diverse citizenship assert claims to funds worth $500 or more, and the plaintiff deposits the funds with the court. 28 U.S.C. § 1335. The court can entertain a interpleader action even if the plaintiff does not deposit the full amount claimed, so long as “the full amount of the specific ‘fund’ ” in dispute is deposited with the court. Murphy v. Travelers Ins. Co., 534 F.2d 1155

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
679 F. App'x 869, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-joe-mcbride-v-marcus-mcmillian-ca11-2017.