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Firm Profile

Interpleader

The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.

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Further Commentary on Placer Foreclosure v. Afalo

This California case is at the intersection of interpleader and foreclosure litigation. A foreclosure trustee interpleaded surplus funds following a foreclosure sale that was challenged by the borrower in a wrongful foreclosure action.  It shouldn’t have.  An interpleader lies only where the holder of third-party funds may face multiple liabilities, but Civil Code section 2924k sets forth exactly how surplus… Read More

Placer Foreclosure, Inc. v. Aflalo

by Jan T. Chilton |

Interpleader cross-complaint filed by the trustee of a deed of trust was correctly dismissed because there was no question that surplus proceeds from a foreclosure sale belonged to the trustor, notwithstanding the trustor’s ongoing wrongful foreclosure lawsuit. Read More

Southern California Gas Co. v. Flannery

A general denial to an interpleader complaint is insufficient to raise any issue for trial as to defendant's claimed interest in the interpleaded funds; rather, a factually pleaded cross-complaint is required instead.  Read More