Hanford v. E.H. et al

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Chief Judge Philip A. Brimmer
Civil Action No. 23-cv-01002-PAB-MDB
LYNDA J. HANFORD,
Plaintiff,
v.
E.H., a minor child, and
M.H., a minor child,
Defendants.
ORDER
This matter comes before the Court on Defendant Lynda Hanford’s Motion
Requesting Approval of the Stipulation of June 7, 2024 [Docket No. 54], 1 Plaintiff’s
Unopposed Motion to Disburse Funds [Docket No. 56], Joint Motion for Status
Conference and Disbursement of Interpleader Funds [Docket No. 57], Renewed Joint
Motion for Status Conference and Disbursement of Interpleader Funds [Docket No. 58],
and Genworth Life Insurance Company’s Renewed Motion to Disburse Funds [Docket
No. 59]. The Court has jurisdiction pursuant to 28 U.S.C. § 1332. 2
1 Lynda Hanford was originally named as a defendant in this interpleader action.
See Docket No. 1 at 1. After the Court dismissed the original plaintiff, Genworth Life
Insurance Company, from this case, the Court realigned the parties, making Ms.
Hanford the plaintiff and her minor children the defendants. See Docket No. 55 at 2.
2 The Court treats this action as a “rule interpleader” brought under diversity
jurisdiction and governed by Federal Rule of Civil Procedure 22 rather than a “statutory
interpleader” brought pursuant to 28 U.S.C. § 1335. See Docket No. 53 at 3-4.
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The underlying issue in this action was whether the proceeds of a decedent’s life
insurance policy (the “Death Benefit”) should be disbursed to the decedent’s wife or to
the decedent’s minor children. Docket No. 1 at 2-4, ¶¶ 9-20. Genworth Life Insurance
Company (“Genworth”), the issuer of the life insurance policy, brought this interpleader
action asking the Court to determine the appropriate recipient of the Death Benefit. Id.
at 4. Genworth deposited the Death Benefit and applicable interest, totaling
$790,551.03, into the registry of the Clerk of the Court. Docket No. 33. The assigned
magistrate judge appointed Richard J. Banta as guardian ad litem to represent the
interests of the minor children. Docket No. 35 at 1-2.
The magistrate judge recommended that Genworth be reimbursed $15,000 from
the corpus of the Death Benefit for the attorneys’ fees Genworth incurred in bringing this
action. Docket No. 53 at 9. The magistrate judge also recommended that Genworth be
dismissed with prejudice and that the parties be realigned, with the decedent’s wife as
the plaintiff and the decedent’s minor children as the defendants. Id. No party objected
to the recommendation, and the Court accepted it. Docket No. 55 at 1-2.
The decedent’s wife and minor children have reached an agreement regarding
the distribution of the Death Benefit. See Docket No. 48 at 1-2, ¶¶ 1, 4-5. The parties
now move for the Court to disburse the funds from the registry in accordance with their
agreement. Docket No. 54 at 2-3. Specifically, the parties ask that the entirety of the
interpleader funds in the registry be delivered to Kelly B. Campbell P.C. and that the
Court order counsel for plaintiff, Kelly B. Campbell, to pay from the interpleader funds 1)
$15,000 owed to Genworth for attorneys’ fees directly to Genworth’s counsel, 2) $5,000
owed to Richard J. Banta, the guardian ad litem, directly to him, and 3) the remainder of
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the funds to the Hanford Family Irrevocable Trust, with said funds to be strictly
administered in accordance with the terms of the Trust document attached to the
motion. Id. at 2-3. The Court will grant the motion and order that the Clerk of the Court
disburse the interpleader funds to Kelly B. Campbell P.C. and will order Kelly B.
Campbell to distribute those funds in the manner described in the motion filed by
plaintiff, the decedent’s wife, on September 17, 2024. See Docket No. 54 at 2-3.
It is therefore
ORDERED that Defendant Lynda Hanford’s Motion Requesting Approval of the
Stipulation of June 7, 2024 [Docket No. 54] is GRANTED. It is further
ORDERED that the Clerk of the Court shall disburse all funds currently held in
the Court registry in connection with this case, including all interest accrued, less the
registry fee assessment, to Kelly B. Campbell P.C., c/o Kelly B. Campbell, 5105 S. DTC
Pkwy., Suite 300, Greenwood Village, CO 80111. It is further
ORDERED that Kelly B. Campbell shall, upon receiving the funds from the Clerk
of the Court, pay $15,000 owed to Genworth Life Insurance Company for attorneys’
fees to Genworth’s counsel. It is further
ORDERED that Kelly B. Campbell shall, upon receiving the funds from the Clerk
of the Court, pay $5,000 owed to Richard J. Banta, the guardian ad litem, to Mr. Banta.
It is further
ORDERED that Kelly B. Campbell shall, upon receiving the funds from the Clerk
of the Court and having made the requisite payments to Genworth’s counsel and to
Richard J. Banta, pay the remainder of the funds to the Hanford Family Irrevocable
Trust by and through Lynda Hanford. It is further
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ORDERED that Lynda Hanford, as the trustee of the Hanford Family Irrevocable
Trust, shall deposit and manage the funds paid to the trust in strict accordance with the
terms of the trust document submitted to the Court at Docket No. 54-2. It is further
ORDERED that Docket Nos. 56, 57, 58, and 59 are DENIED as moot. It is
further
ORDERED that this case is closed.
DATED April 15, 2025.
BY THE COURT:
___________________________
PHILIP A. BRIMMER
Chief United States District Judge
____________________________
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