ACCREDITED SURETY AND CASUALTY COMPANY, INC. VS HOUSHANG POURBEMANI, ET AL.

Tentative Rulings

Case Number: 19STLC09552    Hearing Date: March 05, 2020    Dept: 25

MOTION TO DEPOSIT BY STAKEHOLDER, FOR DISCHARGE, AND FOR ATTORNEY’S FEES

(CCP §§ 386, 386.5)

TENTATIVE RULING:

Plaintiff Accredited Surety and Casualty Company, Inc.’s Motion to Deposit by Stakeholder and for Discharge is GRANTED. Plaintiff’s request for attorney’s fees and costs is also GRANTED in the amount of $2,000.00. Interpleader funds of $13,000.00 are to be deposited within ten (10) days of receipt of this order.

Trial date remains scheduled for April 13, 2021 at 8:30 a.m. in Department 25.

ANALYSIS:

1. Background

On October 15, 2019, Plaintiff Accredited Surety and Casualty Company, Inc. (“Plaintiff”) filed an action for indemnity, reimbursement, and interpleader against Defendants Houshang Pourbemani individually and dba Dream Dwell (“Pourbemani”), Best Cheer Stone, Inc. (“Best Stone”), Payman Soltani (“Soltani”), Raz Khavari (“Khavari”), and Ardeshir Bourbour (“Bourbour”) (collectively, “Defendants”). Defendants Soltani and Bourbour filed an Answer on November 19, 2019, and November 27, 2019, respectively. Defendant Best Cheer was dismissed on October 29, 2019, and Defendant Khavari was dismissed on November 19, 2019. Default was entered as to Defendant Pourbemani on December 10, 2019.

On January 22, 2020, Plaintiff filed the instant Motion to Deposit by Stakeholder, for Discharge, and for Attorney’s Fees (the “Motion”). To date, no opposition briefs have been filed.

1. Legal Standard

Interpleader is a procedure whereby a person holding money or personal property to which conflicting claims are being made by others, can join the adverse claimants and force them to litigate their claims among themselves. (For example, an escrow-holder who receives conflicting demands from the parties to the escrow regarding the funds or documents he or she holds.) (Hancock Oil Co. v. Hopkins (1944) 24 C2d 497, 508; City of Morgan Hill v. Brown (1999) 71 Cal.App.4th 1114, 1122.)

Once the stakeholder’s right to interplead is established, and he or she deposits the money or personal property in court, he or she may be discharged from liability to any of the claimants. This enables the stakeholder to avoid a multiplicity of actions, and the risk of inconsistent results if each of the claimants were to sue him or her separately. (Cantu v. Resolution Trust Corp. (1992) 4 Cal.App.4th 857, 874; City of Morgan Hill v. Brown, supra, 71 Cal.App.4th at 1122.)

“An interpleader action is traditionally viewed as two suits: one between the stakeholder and the claimants to determine the stakeholder's right to interplead, and the other among the claimants to determine who shall receive the funds interpleaded ... As against the stakeholder, claimants may raise only matters which go to whether the suit is properly one for interpleader; i.e., whether the elements of an interpleader action are present.” (State Farm Fire & Cas. Co. v. Pietak (2001) 90 Cal.App.4th 600, 612.)

If the defendant-stakeholder claims no interest in the funds or property held, he or she need not file an interpleader cross-complaint. He or she may simply apply to the court for permission to deposit the money or property with the court clerk, and for an order discharging him or her from further liability to the adverse claimants. Such order will also substitute the adverse claimants as parties to the action; or, if only money is involved, simply dismiss the stakeholder. (Code Civ. Proc., §§ 386, subd. (a), 386.5.) The motion must be supported by an affidavit by the stakeholder establishing the ground for interpleader. (Code Civ. Proc., § 386, Subd. (a).) The supporting affidavit must also state that the moving party is “a mere stakeholder with no interest in the amount or any portion thereof and that conflicting demands have been made upon him for the amount by parties to the action…” (Code Civ. Proc., § 386.5.) Notice of the motion must be served on each of the adverse claimants to the funds or property. (Code Civ. Proc., §§ 386, subd. (a), 386.5.) “Where a deposit has been made pursuant to Section 386, the court shall, upon the application of any party to the action, order such deposit to be invested in an insured interest-bearing account.” (Code Civ. Proc., § 386.1.)

The stakeholder may seek reimbursement for its costs and reasonable attorneys’ fees incurred. (UAP-Columbus JV 326132 v. Nesbitt (1991) 234 Cal.App.3d 1028, 1036.) The court may order payment thereof out of the funds deposited by the stakeholder. (Code Civ. Proc., § 386.6.)

1. Discussion

Here, all claimants have been served with the Summons and Complaint, and have either filed an answer, been dismissed, or have defaulted. The subject matter of this action is a $15,000.00 contractor’s bond. (Mot., Sosa Decl., ¶ 2.) Plaintiff states it has no interest in the proceeds and that it cannot determine the validity of the conflicting demands that have been made as to the funds. (Id. at ¶ 8.) Thus, upon deposit of the funds with the Court, Plaintiff is discharged from further liability. In addition, the Court enters a restraining order to prevent the prosecution of other actions affecting the rights and obligations as between the parties in the interpleader. (Code Civ. Proc., §§ 386, 386.5.)

Furthermore, the fees and costs sought by Plaintiff are proper. Plaintiff’s counsel has expended substantial attorney’s fees and costs brining this action and protecting itself from liability. Specifically, Plaintiff’s counsel filed the instant action and Motion, served all Defendants, will deposit the bond, and sought to preserve the surplus funds. (Mot., Sosa Decl., ¶ 6, 7, 10, Exh. 1.) Therefore, fees and costs are awarded in the amount of $2,000.00. (Id. at ¶ 10.) Plaintiff is to deposit funds of $13,000.00 within ten (10) days of receipt of this order.

1. Conclusion & Order

For the foregoing reasons, Plaintiff Accredited Surety and Casualty Company, Inc.’s Motion to Deposit by Stakeholder and for Discharge is GRANTED. Plaintiff’s request for attorney’s fees and costs is also GRANTED in the amount of $2,000.00. Interpleader funds of $13,000.00 are to be deposited within ten (10) days of receipt of this order.

Trial date remains scheduled for April 13, 2021 at 8:30 a.m. in Department 25.

Moving party is ordered to give notice.