9th Circ. Says Interpleader Remedy Doesn't Shield Insurers

Law360, New York (July 31, 2012, 9:58 PM EDT) -- The Ninth Circuit on Tuesday reversed a lower-court decision finding an insurer can escape tort liability in an interpleader action, ruling that West Coast Insurance Co. claimants can pursue negligence claims against the company beyond the amount at stake in their policy dispute.

Robert Lee and Stevens had been named full beneficiaries of an $800,000 West Coast life insurance policy in 2008, but when they attempted to claim the benefits, the company told them they had no interest in the policy because an earlier change in...
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