New York Life Insurance Company, a Corporation v. Arthur L. Lee and Florence Grusenmeyer, Formerly Florence Lee

This case arose upon a complaint in interpleader brought by appellant New York Life Insurance Company against alleged adverse claimants to insurance policy proceeds.

In 1915 that company issued an insurance policy upon the life of the appellee, Arthur L. Lee. On December 1, 1952, the policy was still in effect and had a cash surrender value of $1711.25. Lee then demanded payment of that sum and offered to surrender the policy. The company refused payment unless one Florence Grusenmeyer, with whom Lee had gone through a marriage ceremony in Nevada, and who was formerly named beneficiary of the policy, consented to the payment of the demanded surrender value. Five months later, on May 1, 1953, Lee brought action in the Circuit Court of Oregon against the insurance company to recover the cash surrender value, $1711.25, together with interest thereon from December 18, 1952, and $1750, alleged to be reasonable attorney’s fees. On July 14, 1953, the present suit in interpleader was instituted by the insurance company in the court below against Lee, a resident of Oregon, and Florence Grusenmeyer, a resident of California. Jurisdiction was claimed and asserted under the provisions of…