Equitable Advisors, LLC v. Gordon

Background

Equitable Advisors, LLC asked the court for an order permitting it to deposit $31,026.12 in death-benefit proceeds, plus any applicable interest, with the court clerk. The proceeds came from a Strategic Asset Management Account and were payable because of Linda Khan’s death. The account also included securities, but the opinion states that their treatment would be addressed in a separate motion.

Equitable relied on statutory interpleader under 28 U.S.C. § 1335, as well as Federal Rules of Civil Procedure 22 and 67. Interpleader is a procedure that allows a party holding disputed money or property to place it with the court while competing claimants resolve their rights to it. Equitable also requested an order under 28 U.S.C. § 2361 preventing the claimants from bringing or continuing other proceedings affecting the property.

Court’s analysis

The opinion explains that statutory interpleader jurisdiction generally requires a fund exceeding $500, a reasonable fear of conflicting claims by claimants with diverse citizenship, and deposit of the disputed fund with the court. The court stated that the first two requirements were satisfied because the amount was $31,026.12 and the defendants were identified as citizens of New York, Colorado, Virginia, Washington, D.C., and Israel. Equitable sought to satisfy the third requirement by making the requested deposit.

Ruling

The court denied the application without prejudice. The order states that Equitable may renew the motion after all defendants have been served. The supplied case information identifies Denise Cote as the judge, although the scanned order’s signature block appears to identify a different judge; the opinion text is unclear on that point.