WESCO INSURANCE COMPANY, A CORPORATION VS KYLE KAPLAN, ET AL.

Tentative Rulings

Case Number: 18STLC14796    Hearing Date: March 04, 2020    Dept: 26

Wesco Ins. Co. v. Kaplan, et al.

HEARING ON DISBURSEMENT OF FUNDS

(CCP §§ 386, 386.5)

TENTATIVE RULING:

Hearing on disbursement of funds is PLACED OFF CALENDAR. THE MATTER REMAINS SET FOR TRIAL ON JUNE 2, 2020 AT 8:30 AM IN DEPARTMENT 26 IN THE SPRING STREET COURTHOUSE.

ANALYSIS:

On December 4, 2018, Plaintiff Wesco Insurance Company (“Plaintiff”) filed this action for interpleader and indemnity against Defendants American International Alliance, Inc. dba Star Construction 1 (“Star Construction”), Sardor Umrdibov (“Umrdibov”), Stephanie O’Neal (“O’Neal”), and Kyle Kaplan (“Kaplan”). Plaintiff then filed two Amendments to the Complaint naming Doe 21 and 22 as Brian Weitman and Amy Weitman (collectively, the “Weitmans”), respectively.

This action arose from a dispute over Bond No. 04WB082074 (the “Bond”) in the penal sum of $15,000 for homeowner claimants or $7,500 for non-homeowner claimants. (Compl. ¶¶ 6, 24.) Pursuant to the Application and Indemnity Agreement, Star Construction and Umrdibov agreed to indemnify Plaintiff in exchange for the issuance of the Bond. (Id. ¶ 5.) The Complaint alleges that O’Neal, Kaplan, and the Weitmans (collectively, “Claimants”) have conflicting claims for the bond funds. (Id. ¶ 20.)

On May 24, 2019, Plaintiff filed a Motion to Deposit by Stakeholder, for Discharge of Stakeholder, and for Attorney’s Fees (the “Motion”). On September 4, 2019, the Court granted Plaintiff’s motion to deposit by stakeholder. (See Order, filed 9/4/19.) The court ordered Plaintiff discharged from all liability to defendants in this action and to any other claim with respect to the subject bond. Plaintiff was ordered to deposit the amount of the subject bond ($15,000) less costs awarded to Plaintiff ($2,000) with the clerk of this court. Plaintiff gave notice of the order and disbursement hearing on September 10, 2019. The funds of $13,000.00 were deposited with the Court on October 1, 2019. The Court also the hearing on disbursement of the funds for December 11, 2019. Due to the Court’s unavailability, however, the hearing was continued to March 4, 2020.

Defendants O’Neal and the Weitmans filed written claims to the interpleader funds on October 4, 2019. The Court finds that Defendants O’Neal and the Weitmans, having filed Answers and claims to the interpleader funds, their conflicting claims are issues triable by the court. Code of Civil Procedure section 386, subdivision (e) states in relevant part:

Except in cases where by the law a right to a jury trial is now given, conflicting claims to funds or property or the value thereof so deposited or delivered shall be deemed issues triable by the court, and such issues may be first tried. In the event the amount deposited shall be less than the amount claimed to be due by one or more of the conflicting claimants thereto, or in the event the property or the value thereof delivered is less than all of the property or the value thereof claimed by one or more of such conflicting claimants, any issues of fact involved in determining whether there is a deficiency in such deposit or delivery shall be tried by the court or a jury as provided in Title 8 (commencing with Section 577) of Part 2 of this code.

(Code Civ. Proc., § 386, subd. (e).) Here, Defendants O’Neal and the Weitmans each claim the full amount of the deposited funds. The hearing on disbursement of funds is therefore PLACED OFF CALENDAR. THE MATTER REMAINS SET FOR TRIAL ON JUNE 2, 2020 AT 8:30 AM IN DEPARTMENT 26 IN THE SPRING STREET COURTHOUSE.

Court clerk to give notice.