ILNews

Court rules on bank interpleader case

Michael W. Hoskins
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
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.
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. why is the State trying to play GOD? Automatic sealing of a record is immoral. People should have the right to decide how to handle a record. the state is playing GOD. I have searched for decades, then you want me to pay someone a huge price to contact my son. THIS is extortion and gestapo control. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW.

  2. I haven't made some of the best choices in the last two years I have been to marion county jail 1 and two on three different occasions each time of release dates I've spent 48 to 72 hours after date of release losing a job being denied my freedom after ordered please help

  3. Out here in Kansas, where I now work as a government attorney, we are nearing the end of a process that could have relevance in this matter: "Senate Bill 45 would allow any adult otherwise able to possess a handgun under state and federal laws to carry that gun concealed as a matter of course without a permit. This move, commonly called constitutional carry, would elevate the state to the same club that Vermont, Arizona, Alaska and Wyoming have joined in the past generation." More reading here: http://www.guns.com/2015/03/18/kansas-house-panel-goes-all-in-on-constitutional-carry-measure/ Time to man up, Hoosiers. (And I do not mean that in a sexist way.)

  4. This is why it is important to consider Long term care insurance. For you and for your loved ones

  5. I am terrified to see Fracking going on not only in Indiana but in Knox county. Water is the most important resource we have any where. It will be the new gold, and we can't live without it and we can live without gold. How ignorant are people?

ADVERTISEMENT