Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_16-cv-02460/USCOURTS-caed-2_16-cv-02460-0/pdf.json

Parties Involved:
American General Life Insurance Company
Plaintiff
Bank of Stockton Trust & Investment Group
Defendant
Molly Hill Gray
Defendant
Kevyn Morgareidge
Defendant
Joceline Stickney
Defendant

Document Text:

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Order to Show Cause With Respect to the Parties’ Joint Stipulation for AGLIC to Retain the Annuity Benefit Subject to a Legal Hold 

 1659070v.1

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UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

SACRAMENTO DIVISION 

AMERICAN GENERAL LIFE INSURANCE 

COMPANY, 

Plaintiff, 

 

 v. 

JOCELINE STICKNEY, MOLLY HILL 

GRAY, KEVYN MORGAREIDGE, BANK 

OF STOCKTON TRUST & INVESTMENT 

GROUP AS ADMINISTRATOR OF THE 

ESTATE OF MICHAEL NORMAN HILL, 

Interpleader Defendants. 

Case No.: 2:16-cv-02460-KJM-KJN 

ORDER TO SHOW CAUSE RE: PARTIES’ 

JOINT STIPULATION FOR AMERICAN 

GENERAL LIFE INSURANCE COMPANY 

TO RETAIN ANNUITY BENEFIT SUBJECT 

TO LEGAL HOLD 

On October 14, 2016, plaintiff American General Life Insurance Company (“AGLIC”) 

filed a Complaint in Interpleader. The Complaint asserts the court’s jurisdiction based, inter 

alia, on 28 U.S.C. § 1335 as well as Federal Rule of Civil Procedure 22. On December 12, 

2016, the parties filed a Joint Stipulation for AGLIC to retain the annuity benefit subject to a 

legal hold. The value of the Annuity equaled $391,476.67 (the “Annuity benefit”), when the 

complaint was filed on October 14. This sum represents the benefit payable under American 

General Portfolio Plus Fixed & Variable Annuity contract number 5953228 (the “Annuity”). 

AGLIC cannot determine to whom the Annuity benefit is payable due to the defendants’ 

conflicting claims. 

Case 2:16-cv-02460-KJM-KJN Document 16 Filed 01/13/17 Page 1 of 2
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Order to Show Cause With Respect to the Parties’ Joint Stipulation for AGLIC to Retain the Annuity Benefit Subject to a Legal Hold 

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The court having considered the Joint Stipulation is considering the parties’ proposal 

that AGLIC retain control and possession of the Annuity benefit subject to a “legal hold,” and 

does not rule out approving a proposed order that allows the avoidance of adverse tax 

consequences. The court does require additional information from the parties prior to making a 

final decision whether to approve the proposed order in the form submitted. Accordingly, good 

cause appearing, the court directs the parties to file a supplemental joint statement addressing 

the following questions with citation to authority: 

1. What authority supports the conclusion that the proposed “legal hold” satisfies 

28 U.S.C. § 1335(a)(2), assuming that statutory subsection applies here, which 

subsection provides in relevant part that if plaintiff does not deposit the funds at issue 

here with the court, it shall provide a “bond payable to the clerk of the court in such 

amount and with such surety as the court or judge may deem proper, conditioned upon 

the compliance by the plaintiff with the future order or judgment of the court with 

respect to the subject matter of the controversy”? 

2. Is there any reason the court should not clarify the parties’ proposal, if it 

approves that proposal in substance, to reflect that plaintiff should be prepared to pay 

interest on any funds it retains for the duration of this action, if the court awards interest 

in light of equitable considerations? See Gelfgren v. Republic National Life Ins. Co.,

680 F.2d 79, 82 (9th Cir. 1982) (citations omitted). 

The supplemental joint statement shall be filed within fourteen (14) days. 

SO ORDERED. 

Dated: January 12, 2017. 

Case 2:16-cv-02460-KJM-KJN Document 16 Filed 01/13/17 Page 2 of 2