Royal Trust Co. v. Gardiner
Opinion of the Court
delivered the opinion of the Court:
It is apparent that this controversy involves the proceeds of the two insurance policies, and that, but for the failure of service on the trust company, it might have been determined under Mrs. Tiffany’s bill, the only question then being whether she or the trust company was entitled to those proceeds. Under such conditions, a bill in equity will lie, since thereby circuity, of action is avoided. Pease v. Supreme Assembly Royal Soc. G. F. 176 Mass. 506, 57 N. E. 1003. Before service as to the trust company had been quashed, the insurance company, complying with an order of the court, deposited the proceeds of the two policies in the registry of the court. No one questions that this deposit was made in good faith. After the dismissal of the trust company, the interlocutory order was passed directing payment of the fund to Mr. Gardiner, as attorney for Mrs. Tiffany. By the passage of that order the court did not determine, nor pretend to determine, the merits of the controversy. The order amounted to nothing more than a substitution of Mr. Gardiner as the custodian of the fund. Certain it is that it did not amount to an adjudication that Mrs. Tiffany was entitled thereto. Her bill disclosed that the trust company was a material party, and, in addition, the order was passed without notice to the insurance company. It was at this juncture that the trust company voluntarily came within the jurisdiction and instituted a suit on the law side of the supreme court against the insurance company for the proceeds of the policies, although, as we have seen, it theretofore had refused to have its rights determined in the equity suit. Under such conditions, if the facts warrant, the equity court has ample jurisdiction to restrain or regulate a suit at law without reference to the resi
We come now to the question whether a case has been made for equitable relief. It is not questioned that, had the fund deposited by the insurance company remained in the registry of the court, the company would now be in a position to file a bill of interpleader. To be sure, when it made the deposit the validity of service upon the trust company had not been passed upon, but no negligence can be attributed to the insurance company because of that fact. The fund was not deposited with an attorney for one of the contesting claimants, but with the court; and the depositor might well have assumed that unless the litigation should proceed it would be notified. Certainly it had no reason to suppose that either of the claimants would be permitted to take possession of the fund before his right thereto had been determined. The good faith of this company is still further apparent when its answer is examined. Realizing that, although it may not have been negligent in the strict sense of the term, its failure to watch the proceedings after the deposit of the proceeds may have contributed to the partial dissipation of that deposit, and realizing that the trust company ought not to be prejudiced by reason thereof, it tenders itself ready, able, and willing to respond to any claim the trust company may establish herein. And yet, notwithstanding that it has acted in good faith and notwithstanding that it has restored and reproduced, so far as the trust company is concerned, the situation existing at the time the original deposit was made, the insurance company, unless a court of equity intervenes, must defend the
The parties are all before the court. A substantial part of the fund has been redeposited, and, in the event of a decree in favor of the trust company for a sum in excess of that part, it necessarily would follow that Mrs. Tiffany should return that excess. In case of her inability to respond to the order of the
To the contention of the trust company that it was error for the court to enter the decree prior to the expiration of the time allowed to file its answer, little need be said, for the matter should have been brought to the attention of. the court below. It would be trifling with justice to permit an advantage to be taken of such an obvious inadvertence. Moreover, it is apparent that the question which the trust company desired to raise was that of jurisdiction, which was made the subject of its special plea.
The decree, as modified by this opinion, is affirmed, with costs. Affirmed.
Dissenting Opinion
dissenting :
I am compelled to dissent from the opinion of my brothers in this case.
The two appeals, which have been heard together, are from a decree sustaining a bill in the nature of a bill of interpleader filed by W. Gwynn Gardiner against the Pittsburgh Life & Trust Company, the Royal Trust Company, executor, and Anna B. Tiffany.
The decree against the Royal Trust Company is in the nature of an interlocutory order, and appeal was granted on application.
The second appeal was taken by Anna B. Tiffany from the saíne decree.
The bill of W. Gwynn Gardiner recites that the defendant Pittsburgh Life & Trust Company issued two policies of insurance, insuring the life of one Harry Tiffany for the sum of five hundred ($500) dollars and one thousand ($1,000) dollars, respectively, which policies were made payable to the said Anna
Thereafter the defendant Royal Trust Company of Montreal, as executor of the estate of the said Try Davies, filed its suit in this court through its duly constituted attorneys Ralston & Richardson against the defendant the Pittsburgh Life & Trust Company, wherein it sought to recover the said sum of $1,526.-73, proceeds of said policies, though it had refused to litigate its rights in said equity cause filed by defendant Anna B. Tiffany as aforesaid, and the defendant Pittsburgh Life & Trust Company has pleaded thereto, and the said cause is now pending in this court.
Plaintiff received said sum from the registry of this court as aforesaid, and of the proceeds thereof paid the sum of $600 to said Anna B. Tiffany, with the understanding and agreement that she should repay the same to plaintiff, or to said defendant Pittsburgh Life & Trust Company, in the event it was found that she was not entitled thereto, and thereafter he deposited with the attorneys for the said Pittsburgh Life & Trust Company the sum of seven hundred and seventy-one dollars ($771), which is now under the control of plaintiff, in that the said defendant has expressed its willingness that the full amount so received by plaintiff as aforesaid shall be redeposited in the registry of this court by it; the balance being in the hands pf plaintiff, which he desires to deposit in the registry of this court subject to its disposition.
Plaintiff is advised that the situation has now been created which entitles him to the aid and protection of this court by the institution of this suit in the nature of a bill of interpleader,,
Plaintiff is without interest in the proceeds of said policies, and, without co-operation with any of the defendants, files this bill and avers that he is entitled to be allowed to pay into the registry of this court the said sum of nine hundred dollars ($900), and, upon said payment being made, to be fully released and discharged from all further liability to any of the parties to this cause, and that the said defendants should be required to appropriately interplead among themselves and maintain their respective rights in such manner as the court will require. He prays that he may be allowed to pay into the registry of this court the said sum of $926.73, less poundage, now under his control; that upon making said payment the plaintiff may be relieved from all further liability to any of the parties to this cause with respect to any part of the said sum of $1,526.73 received by plaintiff under the aforesaid order in
Rule to show cause was served upon the attorneys for the Royal Trust Company in the action at law, and on the Pittsburgh Life & Trust Company, and on Anna B. Tiffany.
The Royal Trust Company objected to the jurisdiction of the court. The Pittsburgh Life & Trust Company filed an answer in which it admitted generally the allegations of the bill. It alleged specially that at the time of the bill of Anna B. Tiffany both she and the Royal Trust Company, as executor, were claiming the proceeds of said policies, and it had no means of ascertaining who was entitled thereto; that after the beginning of the suit by Anna B. Tiffany it was advised by the attorney for said Anna B. Tiffany, who is the plaintiff herein, to pay the money into court, that the claimants might litigate and ascertain to whom the money was belonging; that it was informed by said attorney that he had obtained an order directing it to pay said money into the registry of the court, and that such payment would relieve it from any further liability; and acting upon the information so given, it paid into court the amount of said policies under the belief that it was relief of further liability. Subsequently it learned that an order had been passed dismissing the bill as to the Royal Trust Company, and that plaintiff herein had obtained an order directing the clerk of the court to pay over to him the said sum so deposited; that the order to pay the money over to plaintiff as attorney was obtained without notice to the Pittsburgh Life & Trust Company and was improvidently passed; that it admitted that the sum
Anna B. Tiffany answered admitting the general facts con
May 26, 1915, the court rendered a decree as follows:
1. That the plaintiff pay into the registry of this court the sum of $128.22, the amount now in his hands, less the costs of filing the original bill herein.
2. That the defendant Pittsburgh Life & Trust Company cause to be paid into the registry of this court the sum of $771.04 heretofore deposited with it by said plaintiff, as shown by its answer filed herein.
3. That the defendant Anna B. Tiffany pay into the registry of this court the sum of $600, the amount received by her from plaintiff, as set forth in said bill.
4. That, in accordance with the original bill and with the affirmative relief prayed by the defendant, Pittsburgh Life & Trust Company, the defendant Royal Trust Company of Montreal, as executor of the estate of J. Try Davies, deceased, its agents and attorneys, are hereby restrained, during the pendency of this suit, from in any manner prosecuting its action
5. That the defendants Anna 33. Tiffany and the Royal Trust Company of Montreal, as executor of the estate of J. Try Davies, deceased, interplead to determine the owner of the said funds so ordered to be paid into court as aforesaid, and that the defendant Royal Trust Company of Montreal, executor of the estate of J. Try Davies, deceased, be plaintiff in such inter-pleader, and the said Anna 33. Tiffany be defendant.
I am unable to perceive what right the plaintiff has to maintain this so-called bill in the nature of an interpleaderit has none of the elements of interpleader.
The parties interpleaded did not claim the same debts or duty from the plaintiff. The Royal Trust Company had no elqim against him or the fund in his hands; its claim is against the Pittsburgh Life & Trust Company on the policies. If the Pittsburgh Life & Trust Company had any claim against the plaintiff it was for money deposited by it in the court and drawn by plaintiff, as attorney for the complainant, under an interlocutory order. There had been no final decree awarding the money to plaintiff’s client. The payment by the Pittsburgh Life & Trust Company into the registry of the -court was ill-advised, and an act of gross negligence. The plaintiff, acting as attorney for Mrs. Tiffany, obtained an order from the court permitting the money to be paid to him. lie then knew that the service on the Royal Trust Company had been quashed, and that no decree had been, or would be, rendered settling the rights to the proceeds of the policies. He was an intermeddler and has himself only to blame for the situation. He has no equity against any of the parties unless it be his former client, Mrs. Tiffany. None of the cases cited in the opinion of the court is authority for the position taken. In every one'of them there was an equitable situation growing out of the conditions of the case and produced by no negligence of the parties. The situation called for equitable interference. The case chiefly relied on is Pease v. Supreme Assembly Royal Soc. G. F. 176 Mass. 506, 57 N. E. 1003. A certificate of insurance had been reg
Evidently that case gives no support to this bill. The question of the right of the Royal Trust Company to be dismissed from the former suit is not involved, and it is not necessary to consider whether it was a proper party to the first bill. Had the Pittsburgh Life & Trust Company held its money until the Royal Trust Company filed its action at law upon the policies, it would have been entitled to the bill of interpleader, and could have discharged itself from further liability by depositing the money in court. Instead it recklessly, and with undue haste, deposited the money in the suit of Anna B. Tiffany, without inquiring into the jurisdiction of the court over its co-defendant, the Royal Trust Company. The Royal Trust Company, as it had the right to do, brought its action against the Pittsburgh Life & Trust Company on the policies as assignee and holder thereof. It has a prima facie right to recover the face value thereof with interest. If Anna B. Tiffany has an equitable right to a part of that recovery, she has her remedy for a settlement. By the decree which has been formed its right is reduced to a recovery of the amount of the money withdrawn by plaintiff from the court less poundage fees, costs, and expenses; and for $600 of this amount it is remitted to the decree against Anna B. Tiffany, who is confessedly insolvent. I consider it a great injustice to stay his action at law. If any
In my opinion the decree should be reversed with costs, and 'the bill dismissed.
Reference
- Full Case Name
- ROYAL TRUST COMPANY OF MONTREAL v. GARDINER TIFFANY v. GARDINER
- Status
- Published
- Syllabus
- Equity; Interpleader; Liee Insurance. 1. Equity has jurisdiction to entertain a suit to determine which of two rival claimants are entitled to the proceeds of a life insurance policy, as thereby circuity of action is avoided. 2. The regulation of a pending suit, where jurisdiction has attached, and to which a foreign corporation is a party, is merely an ancillary proceeding, and not an attempt to give jurisdiction over such party against its will. 3. The fact that a comprehensive and adequate decree may be entered covering the whole controversy between the parties, and a multiplicity of suits thereby avoided, will justify a court of equity taking jurisdiction of the controversy. 4. No principle of equity jurisprudence is violated by permitting a party in interest to file a bill in the nature of a bill of inter-pleader, to ascertain and establish his own rights, where there are conflicting rights between third parties. 5. An insurance company liable on a policy of life insurance filed a bill of interpleader against the beneficiary named in the policy and a foreign executor, whose testator, it was claimed, had made advances to the insured on account of premiums and had received an assignment of the policy. On motion of the executor, who specially appeared, the bill was dismissed against it for want of jurisdiction. Thereupon, the insurance company paid the proceeds of the policy into the registry of the court, and the attorney for the beneficiary, without notice to the insurance company, procured an order of the court directing the payment of the proceeds to himself, received them, and paid a- portion of them to the beneficiary. Thereafter, the executor instituted an action at law on the policy against the insurance company, and the attorney filed a bill in equity praying that he be permitted to pay the proceeds remaining in his hands, or under his control, into the registry of the court; that the beneficiary, his former client, be required to do likewise with the portion of the proceeds he had paid her, that the insurance company, the executor, and the beneficiary be required to interplead, and that the action at law be restrained pendente lite. The insurance company filed an answer, which it asked be taken as a cross bill, praying for the same relief and also seeking discovery from the executor and the beneficiary. A plea by the executor to the jurisdiction was overruled, and, through an inadvertence, not brought to the attention of the court, a decree granting the relief asked by the plaintiff and the insurance company was passed before an answer was filed by the executor. On appeals by the executor and the beneficiary, this court affirmed the decree on the grounds that the bill was maintainable as a bill in the nature of a bill of interpleader, and because in the single suit the rights of all of the parties could be determined. (Mr. Chief Justice Shepabd dissenting.)