New York Life Ins. Co. v. Dunlevy

Facts

Plaintiff, Effie Dunlevy, brought suit in California state court against her father and New York Life Ins. Co., Defendants, for the proceeds on her father’s insurance policy she claims were assigned to her. The action was removed to federal court. The judge found the policy had been assigned to Plaintiff and rendered judgment in her favor. Defendant answered that the policy had already been determined to belong to Plaintiff’s father, Gould. A judgment by a third party, Boggs & Buhl (“Boggs”) had been entered against Plaintiff, her father, and the insurance company in Pennsylvania. Plaintiff then moved to California. After Plaintiff filed the suit in question, Boggs executed judgment on the policy and Gould denied assigning the policy to Plaintiff and claimed rights to the proceeds. New York Life filed an interpleader action to determine the rights to the proceeds. Plaintiff was sent notice of the interpleader action but did not answer or appear. A jury found no assignment of t he policy and paid the proceeds to Gould. Defendant argued that Plaintiff was bound by the disposition in the previous interpleader action.