Opinion ID: 2274583
Heading Depth: 2
Heading Rank: 2

Heading: The Current Interpleader Action

Text: [¶ 9] Following the court's set off of the Bank's deficiency judgment against Steamship's jury award, the Bank filed this interpleader action. It requested that the court allow it to pay its net obligation through the court, which would halt the accrual of interest, and determine the priority of Steamship's creditors, including Lilley and the State. In August 2007, the court ( Wheeler, J. ) (1) denied Steamship's motion to dismiss the interpleader action; (2) authorized the Bank to make payment to the court; and (3) determined that the Bank should pay $638,290.66 plus the post-judgment interest that had accrued on the full amount of the $1,500,000 judgment. The Bank subsequently paid $739,000.38 to the court (the interpleader fund). [2] [¶ 10] Following a trial on the interpleader action, the court determined that (1) Lilley had established a valid attorney lien as to 35% of the gross Steamship recovery, (2) attorney fees in that amount would be reasonable, and (3) the attorney lien had first priority. Also, the court denied Steamship's motion for judgment as a matter of law against the State, which claimed that the State had not perfected its lien against Steamship. The State's appeal and Steamship's cross-appeal followed.