Maude E. Schlemmer v. Provident Life & Accident Insurance Company and County of Los Angeles, Dept. Of Charities

In the court below, Provident Life and Accident Insurance Company filed a Complaint for Interpleader, praying for a determination as to which of two opposing claimants was entitled to the proceeds for which it was obligated under a life insurance contract. The Complaint was filed under the authority of the Federal Interpleader Act, 28 U.S.C. § 1335 . The plaintiff insurance company is a Tennessee corporation and the contesting claimants are Maude Schlemmer, an Ohio citizen, and the Department of Charities of Los Angeles County, California. Since the requisite diversity of citizenship existed, and since the amount in controversy exceeded $500, the district court properly entertained jurisdiction. Judgment was entered in favor of the Department of Charities, and Schlem-mer’s appeal' to this court is taken under the authority of 28 U.S.C. § 1291 .

The proceeds of the life insurance policy became payable upon the death of Charles R. Aker, an employee of the Los Angeles Metropolitan Transit Authority. From time to time, this employer had entered into group life insurance contracts under which its employees were the insureds. In 1954, its contract was with Aetna Insurance Company, and…