Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-alsd-2_06-cv-00466/USCOURTS-alsd-2_06-cv-00466-0/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:1335 Interpleader Action

---

IN THE UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF ALABAMA

NORTHERN DIVISION

HARLEYSVILLE LIFE :

INSURANCE COMPANY,

:

Plaintiff,

vs. : CA 06-0466-C

BARRY WRIGHT, et al., :

Defendants.

MEMORANDUM OPINION AND ORDER

This cause is before the Court on the settlement agreement executed by

the defendants (Doc. 39). The parties in this case have consented to the

exercise of jurisdiction by the Magistrate Judge, pursuant to 28 U.S.C. §

636(c), for all proceedings. (Doc. 37 (“In accordance with provisions of 28

U.S.C. § 636(c) and Fed.R.Civ.P. 73, the parties in this case consent to have

a United States magistrate judge conduct any and all proceedings in this case,

including the trial, order the entry of a final judgment, and conduct all postjudgment proceedings.”)) Through this order the Court APPROVES the

settlement reached by the defendants, two of whom are minor children, and

DISCHARGES plaintiff from any further liability in this matter.

Case 2:06-cv-00466-C Document 40 Filed 03/08/07 Page 1 of 10
1 Percy Wright, Jr. died on March 14, 2005. (Doc. 21, COMPLAINT FOR

INTERPLEADER AND DECLARATORY RELIEF)

2

FINDINGS OF FACT

1. On November 22, 2005, plaintiff, Harleysville Life Insurance

Company, filed a complaint for interpleader and declaratory relief in the

United States District Court for the Northern District of Alabama against Barry

Wright and Dorothy Louise Wright with respect to proceeds ($68,000.00) from

a life insurance policy purchased by Percy Wright, Jr.1

 and issued by

Harleysville to Alabama Farmers Cooperative, Inc., the policyholder. (See

Doc. 21, COMPLAINT FOR INTERPLEADER AND DECLARATORY

RELIEF) Harleysville paid into the registry of the United States District Court

for the Northern District of Alabama death benefits totaling $68,704.22. (Id.

at 3)

WHEREFORE, Harleysville, having paid the Death

Benefits into the registry of this Court, and having, thereby,

fulfilled its duties to tender the Death Benefits upon receiving a

claim thereto, respectfully requests that the Court (1) adjudge

that the defendants and any other claimants be required to

interplead and settle between themselves who is rightfully

entitled to receive the Death Benefits from the Policy[,] (2) that

Harleysville be discharged from all liability in the premises

arising out of the Policy, and any processing of any claim to

Death Benefits, [and] (3) that all parties and claimants be

enjoined from pursuing any claim against Harleysville arising

out of the Policy, and any processing of any claim to Death

Benefits[.]

Case 2:06-cv-00466-C Document 40 Filed 03/08/07 Page 2 of 10
3

(Id. at 3-4)

2. On June 29, 2006, plaintiff filed an amended complaint in the

Northern District of Alabama and therein added as a party defendant Sophonia

Surles, as the mother and next friend of Shundreka Vera Surles, a minor, and

Amber Marie Surles, a minor. (See Doc. 21, FIRST AMENDED

COMPLAINT FOR INTERPLEADER AND DECLARATORY RELIEF)

3. On August 10, 2006, this case was transferred to this Court from

the Northern District of Alabama. (See Doc. 21) The funds transferred to the

registry of this Court on that date totaled $69,593.81.

4. On August 22, 2006, Zachary Timothy Collins, Esquire, filed a

notice of appearance on behalf of Sophonia Surles (Docs. 24 & 25) and, on

December 15, 2006, J. Patrick Cheshire, Esquire, filed a notice of appearance

on behalf of Dorothy Louise Wright (Doc. 32).

5. On January 18, 2007, plaintiff filed a second motion to amend

the complaint to add as a party defendant Dorothy Louise Wright as mother

and next friend of Breanna Ennis, a minor. (Doc. 33, SECOND AMENDED

COMPLAINT FOR INTERPLEADER AND DECLARATORY RELIEF)

Concurrently therewith, plaintiff filed a motion to appoint Joseph H. Hagood,

III, Esquire, as guardian ad litem for Breanna Ennis. (Doc. 34) This Court

Case 2:06-cv-00466-C Document 40 Filed 03/08/07 Page 3 of 10
4

granted both motions by order dated January 23, 2007. (Doc. 36)

6. The Court conducted a status conference in this case in Selma,

Alabama on January 26, 2007. The defendants advised the Court at that

hearing that a settlement had been reached in this matter. The guardian ad

litem for Breanna Ennis, Joseph Hagood, III, advised the Court that under the

terms of the death policy Ennis was not a qualifying beneficiary.

7. On March 6, 2007, the settlement agreement reached by the

defendants was docketed by the Clerk’s Office. (Doc. 39)

This Agreement is made and entered into between

Dorothy Louise Wright, Breanna Ennis, by her court

appointed Guardian Ad Litem, Joseph Hagood, III, Amber

and Shundreka Surles, by and through their mother and next

friend Sophonia Surles and Barry Wright.

WHEREAS, the above styled case is an action in the

United States District Court, Southern District of Alabama,

Southern Division involving accidental death benefits in the

amount of $68,704.22 interplead into this Court by Harleysville

Life Insurance Company as a result of the death of Percy

Wright, Jr., and pending in aforementioned federal court.

NOW THEREFORE, in consideration of the premises,

mutual covenants and agreements hereinafter made, the

sufficiency of which is hereby acknowledged by the parties, the

parties hereto agree as follows:

SETTLEMENT INFORMATION:

1. EFFECTIVE DATE: This agreement shall be effective

as of the date it is signed by all parties subject thereto.

Case 2:06-cv-00466-C Document 40 Filed 03/08/07 Page 4 of 10
5

2. SETTLEMENT OF DISPUTED CLAIMS: All the

parties agree that in settlement of these claims that the court is

to distribute the proceeds paid into this Court as follows:

A. Three Hundred and Fifty dollars ($350.00) to

Joseph Hagood, III, as payment for his services as Guardian Ad

Litem.

B. Three thousand three-hundred twenty-one dollars

and fifty-five cents ($3,321.55) to Dorothy Wright.

C. Twenty-one thousand six hundred seventy-seven

dollars and fifty-five cents ([$]21,677.55) payable to Barry

Wright and his attorney J. Matthew Williams with the check

sent to The Anderson Law Firm, LLC 7515 Halcyon Pointe

Drive, Montgomery, AL 36117.

D. Twenty-one thousand six hundred seventy-seven

dollars and fifty-six cents ([$]21,677.56) payable to Sophonia

Surles as mother and next friend to Shundreka Surles and her

attorney Zachary T. Collins with the check sent to Zack Collins

207 Montgomery Street, Suite 215 Montgomery, AL 36104.

E. Twenty-one thousand six hundred seventy-seven

dollars and fifty-six cents ([$]21,677.56) payable to Sophonia

Surles as mother and next friend to Amber Surles and her

attorney Zachary T. Collins with the check sent to Zack Collins

207 Montgomery Street, Suite 215 [Montgomery, AL 36104.]

F. Any interest earned on this money while it has

been in the possession of the Clerk’s Office shall be divided as

follows less the ten percent administrative assessment:

1/3 Barry Wright.

1/3 Sophonia Surles as mother and next friend

of Amber Surles.

1/3 Sophonia Surles as mother and next friend

of Shundreka Surles.

Case 2:06-cv-00466-C Document 40 Filed 03/08/07 Page 5 of 10
2 The settlement agreement was executed by the following individuals: Barry

Wright, Dorothy Louise Wright, Sophonia Surles, as mother and next friend to Amber and

6

3. GUARDIAN AD LITEM’S OPINION AND FEES:

The Guardian Ad Litem has agreed to accept $350.00 for legal

services provided in this case. This fee shall be disbursed as

stated in paragraph 2(A) above. The Guardian Ad Litem has

relayed to this Court that under his reading of the life insurance

policy that is the subject matter of this case that his client,

Breanna Ennis, is not entitled to any of the proceeds from this

policy and her mother Dorothy Louise Wright agrees with this

conclusion and evidences this by her signature on this

document.

4. ATTORNEY’S FEES: Counsel for Barry Wright, J.

Matthew Williams, has entered into a contingency fee

agreement with his client regarding the payment of legal fees for

representing his interest in this matter. Zachary T. Collins,

counsel for Sophonia Surles, individually and as mother and

next friend of Amber and Shundreka Surles, has entered into a

contingency fee agreement with his clients regarding the

payment of legal fees for representing his interest in this matter.

5. WITHDRAWAL OF CLAIMS: Dorothy Louise

Wright, personally, and on behalf of Breanna Ennis, agrees to

withdraw any claims to the accidental death benefits subject to

the litigation in the United States District Court, Southern

District of Alabama, Southern Division, case number 2:06-cv0466.

6. WAIVER OF APPEAL/CONSIDERATION FOR

SAME: Dorothy Wright agrees to forever waive any rights to

appeal any matter or issue subject to this litigation and assents

that payment of the settlement amount in ¶2 above constitutes

sufficient consideration to waive any rights to appeal for her and

on behalf of Breanna Ennis.

(Id.)2

Case 2:06-cv-00466-C Document 40 Filed 03/08/07 Page 6 of 10
Shundreka Surles, J. Patrick Cheshire, attorney for Dorothy Wright, Zachary T. Collins, attorney

for Sophonia Surles, J. Matthew William, attorney for Barry Wright, and Joseph Hagood, III,

guardian ad litem for Breanna Ennis. (Id.)

7

8. Attached to the settlement agreement is the affidavit of Sophonia

Surles, mother and next friend to Amber and Shundreka Surles. (Doc. 39,

Affidavit of Sophonia Surles)

Amber and Shundreka are the biological children of

Percy Wright, Jr. As mother and next friend of the minor

children, I am solely responsible for the care, maintenance, and

support of Amber and Shundreka. I am aware that the proceeds

from the accidental death insurance policy underwritten by

Harleysville Life Insurance Company are the property of the

children. I will protect this money by placing it in a sufficient

investment account such as a certificate of deposit, money

market, or annuity so that the children will have access to the

funds in the future. I also intend on using some of the funds to

provide for their immediate support and maintenance. I also

inform the Court that there are other funds from another

settlement arising out of the death of Percy Wright, Jr. that will

be held in annuities for the minor children’s future benefit.

(Id.)

9. As of February 28, 2007, the amount on deposit in this Court had

grown to $69,998.44.

10. Based on the evidence presented at the hearing in this cause on

January 26, 2007, as well as all pertinent pleadings contained in the file, it is

determined that the proposed settlement is in the best interest of the minor

children of the decedent, Amber and Shundreka Surles (as well as the other

Case 2:06-cv-00466-C Document 40 Filed 03/08/07 Page 7 of 10
3 Mr. Hagood’s reading of the insurance policy at issue in this case, consistent with

the Court’s own reading, establishes that Breanna Ennis, the minor child of Dorothy Wright, is

not a beneficiary under the terms of the policy. Accordingly, Breanna Ennis is not entitled to any

of the death benefits under that policy.

4 The Clerk’s Office is directed to issue a check jointly to Barry Wright and his

attorney, J. Matthew Williams, in the amount of $21,677.55 plus 1/3 of the distributable accrued

interest, and mail same in care of Mr. Williams to the following address: The Anderson Law

Firm, LLC, 7515 Halcyon Pointe Drive, Montgomery, Alabama 36617.

8

parties), and is a just, fair, and equitable conservation of their individual

interests. The settlement is hereby ratified and expressly approved by the

Court.

NOW, THEREFORE, IT IS ORDERED, ADJUDGED AND

DECREED as follows:

1. That the money transferred into this Court and now deposited

into the registry of this Court shall be divided in the following manner: (1) the

court-appointed guardian ad litem for Breanna Ennis, a minor, Joseph Hagood,

III, shall be paid a fee of $350.00;3

 (2) defendant Dorothy Wright shall be paid

$3,321.55; (3) defendant Barry Wright shall have $21,677.55, with his fair

distribution being paid jointly to Mr. Wright and his attorney, J. Matthew

Williams;4

 (4) defendant Amber Surles shall have $21,677.56, with her fair

distribution being paid to her mother and next friend, Sophonia Surles and Ms.

Case 2:06-cv-00466-C Document 40 Filed 03/08/07 Page 8 of 10
5 The Clerk’s Office is directed to issue a check jointly to Sophonia Surles, as

mother and next friend of Amber Surles, and her attorney, Zachary T. Collins, in the amount of

$21,677.56 plus 1/3 of the distributable accrued interest, and mail same in care of Mr. Collins to

the following address: 207 Montgomery Street, Suite 215, Montgomery, Alabama 36104. In

addition, the Clerk’s Office is directed to issue a separate check jointly to Sophonia Surles, as

mother and next friend of Shundreka Surles, and her attorney, Zachary T. Collins, in the amount

of $21,677.56 plus 1/3 of the distributable accrued interest, and mail same in care of Mr. Collins

to the aforementioned address.

6 These amounts come to a total of $68,704.22, which is the amount initially paid

into the registry of the United States District Court for the Northern District of Alabama by

plaintiff Harleysville on November 22, 2005.

9

Surles’ attorney Zachary T. Collins;5 and (5) defendant Shundreka Surles shall

have $21,677.56, with her fair distribution being paid to her mother and next

friend, Sophonia Surles and Ms. Surles’ attorney Zachary T. Collins.6

 In

addition, the interest that has accrued on the monies paid into the registry of

the Court shall be divided among Barry Wright, Amber Surles, and Shundreka

Surles, less the Court’s 10% managing assessment, as follows: (1) defendant

Barry Wright shall have 1/3 of the accrued interest, with distribution made

jointly to Barry Wright and his attorney, J. Matthew Williams; (2) defendant

Amber Surles shall have 1/3 of the accrued interest, with distribution being

made to her mother and next friend Sophonia Surles and Ms. Surles’ attorney

Zachary T. Collins; and (3) defendant Shundreka Surles shall have 1/3 of the

accrued interest, with distribution being made to her mother and next friend

Sophonia Surles and Ms. Surles’ attorney Zachary T. Collins.

Case 2:06-cv-00466-C Document 40 Filed 03/08/07 Page 9 of 10
10

2. That the plaintiff’s motion for discharge of further liability and

dismissal with prejudice contained in its initial complaint and all subsequent

amendments (Doc. 21, COMPLAINT FOR INTERPLEADER AND

DECLARATORY RELIEF; see also Doc. 21, FIRST AMENDED

COMPLAINT FOR INTERPLEADER AND DECLARATORY RELIEF;

Doc. 33, SECOND AMENDED COMPLAINT FOR INTERPLEADER AND

DECLARATORY RELIEF) be and the same hereby is GRANTED. The

Court ENJOINS all defendants in this action from instituting or pursuing any

suit or proceedings in any state or federal court for the recovery of the

proceeds of Group Term Life Insurance Policy No. G-4277 or relating in any

way to the defendants’ actions with respect to the handling of this claim and

DISCHARGES the plaintiff, Harleysville Life Insurance Company, from all

further liability under or relating to the proceeds of Group Term Life Insurance

Policy No. G-4277.

DONE and ORDERED this the 8th day of March, 2007.

s/WILLIAM E. CASSADY 

UNITED STATES MAGISTRATE JUDGE

Case 2:06-cv-00466-C Document 40 Filed 03/08/07 Page 10 of 10