- Amount
- $396,000 (SGLI benefits awarded to our client)
- Counsel
- Interpleader Law
- Result for
- The servicemember's mother, the secondary beneficiary, our client
- Case
- Prudential Insurance Co. of America v. Iturbide
- Court
- U.S. District Court, Central District of California
- Docket
- No. 8:18-cv-01325-JLS-ADS
- Decided
- April 24, 2019
- Issue
- Whether the remaining claimant takes Servicemembers' Group Life Insurance benefits when the primary beneficiary defaults
A servicemember insured under Servicemembers’ Group Life Insurance named his spouse as primary beneficiary and his mother as secondary beneficiary. The insurer’s complaint said the spouse had been charged in connection with his death and might be disqualified, and it interpleaded both claimants. A charge is an accusation, not a finding.
We represented the mother. The spouse was served but did not answer, and the clerk entered her default. On our application, the court weighed the Ninth Circuit’s default-judgment factors, found the default was not excusable neglect even though the spouse was incarcerated, and held that once she defaulted there was no other claimant to the proceeds. It entered default judgment, and the final judgment directed the benefits paid to our client.
What it shows. A claimant who does not answer an interpleader can lose the benefit by default, and the remaining claimant does not have to try a slayer question to collect.
Read the court's order
For a detailed legal summary of this decision, see interpleader.com's decisions library.
Past results do not guarantee a similar outcome. This summary describes the court's ruling; it is not legal advice about any other case.
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