Principal Life Insurance Company v. Jones et al

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF TEXAS
GALVESTON DIVISION
PRINCIPAL 	LIFE 	INSURANCE
COMPANY,
Plaintiff.
V.
KATHLEEN ANNE JONES, et al.,
Defendants.
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CIVIL ACTION NO. 3:25-cv-00221
ORDER
Pending before me is a motion for disbursement of funds filed by Defendant
Katelyn A. Mathis, Independent Administrator with Will Annexed of the Estate of
Kenneth N. Ellis, Deceased. See Dkt. 35.
This is an interpleader dispute regarding the proceeds of a life insurance
policy. On May 27, 2026, I issued a memorandum and recommendation finding
that, pursuant to a settlement agreement between Ellis and Defendant Kathleen
Anne Jones, Mathis is entitled to the policy’s proceeds provided Mathis pays
$30,000 to Jones to finalize Ellis’s performance of the settlement agreement. See
Dkt. 31. Judge Brown adopted my memorandum and recommendation on June 17,
2026. See Dkt. 33. On July 2, 2026, Jones appealed that decision to the Fifth
Circuit. See Dkt. 34.
On July 10, 2026, Mathis filed a motion for disbursement of funds. See
Dkt. 35. Jones opposes disbursement. Jones contends that her appeal “prevents
this Court from additional adjudication of facts on the matter” and “divests the
district court of jurisdiction over those aspects of the case on appeal.” Dkt. 37 at 4.
“The filing of a notice of appeal is an event of jurisdictional significance—it
confers jurisdiction on the court of appeals and divests the district court of its
control over those aspects of the case involved in the appeal.” Griggs v. Provident
Consumer Discount Co., 459 U.S. 56, 58 (1982). The district court retains only the
United States District Court
Southern District of Texas
ENTERED
July 23, 2026
Nathan Ochsner, Clerk
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power, in limited circumstances, to act “in aid of the appeal or to correct clerical
errors.” Nicol v. Gulf Fleet Supply Vessels, Inc., 743 F.2d 298, 299 (5th Cir. 1984).
Because Jones filed an appeal on July 2, 2026, the Fifth Circuit now has
jurisdiction over this case. This court’s “power in aid of the appeal does not extend
to approving disbursement of the funds in accordance with the very order being
appealed.” Garrick v. Weaver, 888 F.2d 687, 695 (10th Cir. 1989). Accordingly,
this court is without jurisdiction to order disbursement of funds in the registry of
the court until this case is returned from the Fifth Circuit.
SIGNED this 	day of July 2026.
______________________________
ANDREW M. EDISON
UNITED STATES MAGISTRATE JUDGE
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