ILNews

Court rules on bank interpleader case

Michael W. Hoskins
January 1, 2007
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The Indiana Supreme Court has issued a decision on how a state statute governs recovery when a financial institution interpleads and pays into court-deposited funds that are subject to an adverse claim.

A unanimous opinion came Wednesday in Porter Development, LLC v. First National Bank of Valparaiso, No.64S04-0606-CV-236, stemming from a Porter Superior case involving the bank and the development company.

First National initiated the action as an interpleader, alleging it was the holder of a $100,000 certificate of deposit owned by Porter Development and eventually assigned to another party, Eagle Services Corp., which refused to consent for withdrawing the funds as the development company wanted. Both asserted their rights to the deposit and filed suits.

The trial court determined the assignment to Eagle Services was invalid and Porter Development was the true owner, but it granted summary judgment to the bank on the interpleader action and partial summary judgment to Porter on a request to recover attorney fees and costs. The Court of Appeals affirmed that decision, and now the justices have done the same.

"We conclude that Indiana's Adverse Claim Interpleader statute is mandatory and establishes the right of a depository financial institution that pays funds subject to an adverse claim into a court 'to recover and collect the costs and expenses, including attorney's fees, incurred by the depository financial institution'...."Justice Brent Dickson wrote. "We hold, however, that such a right to recovery only includes those costs and expenses that are extended in bringing a proper interpleader, or successfully defending its use of interpleader."

Justices reversed the trial court's partial summary judgment denying the bank attorney fees, remanding it to determine reasonable expenses and how Eagle Services - if at all - should be involved in the payment.
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  1. Uh oh, someone is really going to get their panti ... uh, um ... I mean get upset now: http://www.theguardian.com/us-news/2015/mar/31/arkansas-passes-indiana-style-religious-freedom-bill

  2. Bryan, stop insulting the Swedes by comparing them to the American oligarchs. Otherwise your point is well taken.

  3. Sociologist of religion Peter Berger once said that the US is a “nation of Indians ruled by Swedes.” He meant an irreligious elite ruling a religious people, as that Sweden is the world’s least religious country and India the most religious. The idea is that American social elites tend to be much less religious than just about everyone else in the country. If this is true, it helps explain the controversy raking Indiana over Hollywood, San Fran, NYC, academia and downtown Indy hot coals. Nevermind logic, nevermind it is just the 1993 fed bill did, forget the Founders, abandon of historic dedication to religious liberty. The Swedes rule. You cannot argue with elitists. They have the power, they will use the power, sit down and shut up or feel the power. I know firsthand, having been dealt blows from the elite's high and mighty hands often as a mere religious plebe.

  4. I need helping gaining custody of my 5 and 1 year old from my alcoholic girlfriend. This should be an easy case for any lawyer to win... I've just never had the courage to take her that far. She has a record of public intox and other things. She has no job and no where to live othe than with me. But after 5 years of trying to help her with her bad habit, she has put our kids in danger by driving after drinking with them... She got detained yesterday and the police chief released my kids to me from the police station. I live paycheck to paycheck and Im under alot of stress dealing with this situation. Can anyone please help?

  5. The more a state tries to force people to associate, who don't like each other and simply want to lead separate lives, the more that state invalidates itself....... This conflict has shown clearly that the advocates of "tolerance" are themselves intolerant, the advocates of "diversity" intend to inflict themselves on an unwilling majority by force if necessary, until that people complies and relents and allows itself to be made homogenous with the politically correct preferences of the diversity-lobbies. Let's clearly understand, this is force versus force and democracy has nothing to do with this. Democracy is a false god in the first place, even if it is a valid ideal for politics, but it is becoming ever more just an empty slogan that just suckers a bunch of cattle into paying their taxes and volunteering for stupid wars.

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