Opinion ID: 3032226
Heading Depth: 3
Heading Rank: 2

Heading: the safeco/interstate carriers dispute

Text: In this dispute, Safeco proposed to interplead money into the bankruptcy court so that the bankruptcy court could resolve the claims of various creditors to this finite pool. It sought a declaration that doing so would relieve it of any further liability to the claimants. The facts of the Safeco/Interstate Carriers Dispute strongly suggest the existence of a core proceeding, but it is certainly “related to” the bankruptcy case and it is upon the same grounds as discussed above that we also reverse the FHA order. Although the interpleader action does not, in and of itself, create a property interest 22 of Debtor or the estate, it “will resolve conflicting claims and distribute the fund among the claimants” that might otherwise have a claim against the estate. Lovett v. Honeywell, Inc. (In re Transportation Systems Intern., Inc.), 110 B.R. 888, 895 (D. Minn. 1990) aff’d, 930 F.2d 625 (8th Cir. 1991). Payment of the interpled amount to Debtors’ creditors could alter Debtor’s liabilities and impact upon the handling and administration of the bankrupt estate. Pacor, 743 F.2d at 994. The dispute is, therefore, related to the bankruptcy case and meets the test established by Pacor.