State Farm Life Ins. Co. v. Jonas

Federal 7th Circuit Court
Civil Court
Jurisdiction
Citation
Case Number: 
No. 14-1464
Decision Date: 
December 31, 2014
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Vacated and remanded
Dist. Ct. lacked jurisdiction to resolve plaintiff-insurance company’s interpleader action to determine ownership of insurance policy proceeds that were claimed by ex-husband of deceased insured. Plaintiff could not rely on 18 USC section 1335(a)(2) to supply jurisdictional basis of instant lawsuit, since plaintiff failed to deposit policy proceeds with Dist. Ct. upon filing of case. Moreover, although parties satisfied provisions of general diversity statute under Section 1332, where all parties were diverse and stakes of lawsuit exceeded $75,000, there was no justiciable controversy at time of lawsuit’s filing, where: (1) defendant-ex-husband was only claimant to said proceeds; and (2) at time of lawsuit's filing, Texas statute eliminated any risk of plaintiff being forced to pay proceeds to anyone other than ex-husband.