Equitable Life Assurance Society v. Jacobson

CONREY, P. J.

This is an action in interpleader. Plaintiff paid

into

court the sum of fifteen thousand dollars due on an insurance policy on the life of William P. Jacobson, deceased, and thereupon by order of court was discharged from further liability under the policy. This left the controversy for determination upon the adverse claims of the

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interpleading parties, to wit, respondent Cora M. Jacobson, executrix, and appellant Brunswig Drug Company. Judgment was entered in favor of the executrix. The appeal is taken from that judgment.

In March, 1912, William F. Jacobson was engaged in the retail drug business in the city of Los Angeles and was indebted to the Brunswig Drug Company, a wholesale dealer in drug supplies. For the purpose of securing this creditor, Jacobson took out the said policy of life insurance payable to his executors, administrators or assigns as beneficiary. On March 27, 1912, Jacobson assigned the policy to Brunswig Drug Company. The assignment, however, was limited as follows: “Provided, however, and it is understood and agreed, that this assignment is to secure the repayment of the sum of fifteen thousand dollars or such amount as may be due to the said Brunswig Drug Co.”

On the thirteenth day of June, 1913, Jacobson, being indebted to a large number of creditors, executed a deed of assignment, in which his wife joined him, to L. N. Brunswig. This instrument transferred the assets of Jacobson’s said retail drug business and also certain described real property in the state of Utah. It was provided in said instrument that the assignee, out of the proceeds of said property, should pay to such of the creditors as should consent to the assignment and the terms thereof,

pro rata

according to the several indebtednesses due to them from said William F. Jacobson, “after deducting all moneys which said second party may at his option pay for a discharge of any lien on any of said property and any and all preferred indebtedness and all expenses incurred hereunder, including a reasonable compensation to be allowed said second party for his services rendered hereunder. ... It is understood that the creditors of said William F. Jacobson consenting to this assignment and the terms hereof, shall, by such consent, release said William F. Jacobson from all claims and demands that they now have against said William F. Jacobson, and by said consent shall be deemed and held to agree to accept in full payment of their several indebtednesses said