Free Motion to Dismiss - District Court of California - California

Case 3:08-cv-00119-JLS-WMC

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1 Martin E. Rosen (108998), [email protected] Jenny H. Wang (191643), [email protected] 2 BARGER & WOLEN LLP 19800 MacArthur Boulevard, 8th Floor 3 Irvine, California 92612 Telephone: (949) 757-2800 4 Facsimile: (949) 752-6313 5 Attorneys for Plaintiff-in-Interpleader Reassure America Life Insurance Company 6 Simon Mikhael (147196), [email protected] 7 Law Offices of Simon Mikhael 3150 El Camino Real, Suite #D 8 Carlsbad, California 92008 Telephone: (760) 720-2555 / Fax: (760) 720-2562 9 Attorney for Claimants-in-Interpleader 10 Sal Akel Silva, Maria A. Silva, Beda Sanchez, Layali M. Akel, Taghrid Suad M. Akel and 11 Mohammad M. Akel 12 Stanley Joseph Riney (120735), [email protected] 8811 Grossmont Boulevard 13 La Mesa, California 91941 Telephone: (619) 460-6054 / Fax: (619) 464-3824 14 Attorney for Claimant-in-Interpleader 15 Saleh M. Zahran 16 17 18 19 REASSURE AMERICA LIFE INSURANCE COMPANY, 20 Plaintiff-in-Interpleader, 21 vs. 22 23 24 25 26 27 28
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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

) ) ) ) ) ) ) ) SALEH M. ZAHRAN, SAL AKEL ) SILVA, MARIA A. SILVA, BEDA ) SANCHEZ, LAYALI M. AKEL, ) TAGHRID SUAD M. AKEL and ) MOHAMMAD M. AKEL, and DOES 1 ) through 10, Inclusive ) ) Claimants-in-Interpleader. ) )

CASE NO.: 08 CV 0119 JLS WMC STIPULATION OF THE PARTIES FOR: 1. DISMISSAL OF REASSURE AMERICA LIFE INSURANCE COMPANY WITH PREJUDICE; AND 2. AWARD OF REASONABLE ATTORNEYS' FEES AND COSTS TO REASSURE AMERICA LIFE INSURANCE COMPANY [Filed concurrently with: - [Proposed] Order For Dismissal.]

Case 3:08-cv-00119-JLS-WMC

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WHEREAS, on July 18, 1996, The Midland Life Insurance Company, now

2 known as Reassure America Life Insurance Company ("Reassure") issued to 3 Decedent Zeinb M. Akel ("Decedent") a flexible premium life insurance policy, 4 number B12962 (the "Policy"), in the face amount of $250,000.00; 5 6 WHEREAS, on or about May 16, 1996, at the time the Decedent applied for

7 the Policy, she designated her son Saleh Zahran ("Zahran") as the 100% primary 8 beneficiary of the Policy; 9 10 WHERAS, on or about June 15, 2004, Simon Mikhael, Esq. ("Mikhael"), as a

11 representative of the Decedent, submitted to Reassure a written request signed by the 12 Decedent on June 7, 2004 to change the Policy beneficiary to the following 13 individuals (who are the children or in-laws of the Decedent) as equal, primary 14 beneficiaries: Saleh M. Zahran, Sal Akel Silva, Maria A. Silva, Beda Sanchez, 15 Layali M. Akel, Taghrid Suad M. Akel and Mohammad M. Akel (hereinafter, along 16 with Saleh Zahran collectively refereed to as the "Claimants"). As a result, Reassure 17 made the change in Policy beneficiaries effective June 7, 2004; 18 19 WHEREAS, on or about August 5, 2005, Saleh Zahran submitted to Reassure a

20 Request for Change of Ownership of the Policy, signed by the Decedent, changing 21 the primary owner of the Policy from the Decedent to himself; 22 23 WHEREAS, shortly thereafter, in or around September 2005, Saleh Zahran

24 also submitted a request for change of beneficiary of the Policy, designating himself 25 as the 100% primary beneficiary and Maysa Zahran as the 100% contingent 26 beneficiary; 27 28
BARGER & WOLEN LLP
19800 MACARTHUR BLVD. EIGHTH FLOOR IRVINE, CA 92612 (949) 757-2800

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WHEREAS, pursuant to the Request of Change of Ownership as described

2 above, effective August 29, 2005, Reassure transferred ownership of the Policy to 3 Saleh Zahran; 4 5 WHEREAS, pursuant to the request for change of beneficiary as described

6 above, effective September 2005, Reassure changed the primary beneficiary of the 7 Policy to Saleh Zahran and the contingent beneficiary of the Policy to Maysa Zahran; 8 9 10 11 WHEREAS, at the time of Decedent's death, the face value of the Policy was WHEREAS, Decedent died on December 18, 2006;

12 $250,000.00; 13 14 WHEREAS, since the Decedent's death, each of the Claimants named in this

15 action has made conflicting claims to the Policy proceeds, each asserting that they are 16 the Policy's beneficiaries of record. Specifically, Sal Akel Silva, Maria A. Silva, 17 Beda Sanchez, Layali M. Akel, Taghrid Suad M. Akel and Mohammad M. Akel each 18 assert a one-seventh right to the Policy proceeds, and Zahran asserts a 100% right to 19 the same; 20 21 WHEREAS, on or about September 7, 2007, Mikhael, on behalf of his clients,

22 Sal Akel Silva, Maria A. Silva, Beda Sanchez, Layali M. Akel, Taghrid Suad M. 23 Akel and Mohammad M. Akel, wrote to Reassure asserting that Saleh Zahran 24 fraudulently changed the Policy beneficiaries to benefit himself and that his clients 25 were in the process of investigating the matter. Mikhael asserted that Saleh Zahran 26 was under federal indictment for multiple fraud crimes, including tax evasion, Social 27 Security fraud, Medi-Cal fraud and identity theft. He also asserted that Saleh 28 Zahran's wife, Maysa Zahran, was also indicted and arraigned in federal court in San
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19800 MACARTHUR BLVD. EIGHTH FLOOR IRVINE, CA 92612 (949) 757-2800

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1 Diego. Mikhael provided Reassure with what he represented was a news release 2 purporting to detail the criminal accusations against Saleh Zahran. Mikhael asked 3 Reassure not to make any payment of the Policy proceeds to Saleh Zahran; 4 5 WHEREAS, on September 17, 2007, Reassure wrote to Mikhael and Saleh

6 Zahran advising each of them that if the Claimants could not reach an agreement 7 within 21 days regarding the distribution of the Policy proceeds, then Reassure would 8 file an interpleader action with respect to the same; 9 10 WHEREAS, in or around October 2007, Mikhael and Saleh Zahran each

11 informed Reassure that the Claimants were unable to resolve their competing claims, 12 and they specifically asked Reassure to initiate the instant interpleader action; 13 14 WHEREAS, Reassure, as a disinterested stakeholder that was faced with

15 competing claims to the Policy proceeds, filed the interpleader Complaint in this 16 action and shortly thereafter deposited the funds at issue with the Clerk of the Court 17 in the amount of $261,753.42 (the "Interpled Funds"), representing policy benefits 18 due plus applicable interest; 19 20 WHEREAS, each of the Claimants and Reassure (the "parties") agree that

21 Reassure should be dismissed with prejudice from this action and discharged with 22 prejudice from any and all liability with respect to all rights and obligations arising 23 under or relating to the Policy; 24 25 WHEREAS, upon the dismissal of Reassure from this case, the Claimants will

26 litigate their adverse claims in this action; 27 28
BARGER & WOLEN LLP
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WHEREAS, the parties agree that Reassure is entitled to reimbursement of

2 reasonable attorneys' fees and costs incurred to bring this interpleader action; 3 4 WHEREAS, Reassure has incurred $6,078.17 in attorneys' fees and costs to

5 date to bring and maintain this interpleader action, which amount the parties agree 6 should be paid to Reassure from the Interpled Funds currently on deposit with the 7 Court; 8 9 WHEREAS, Reassure waives and releases all of its rights with regard to the

10 Interpled Funds, other than its right to the attorneys' fees and costs as set forth in this 11 stipulation: 12 13 14 15 NOW, THEREFORE, the parties to this action hereby stipulate and agree, STIPULATION

16 subject to the Court's approval, as follows: 17 18 1. That Reassure be discharged with prejudice from all liability with

19 respect to all rights and obligations arising under or relating to the Policy; 20 21 22 23 3. That Reassure be awarded its reasonable attorneys' fees and costs of 2. That Reassure be dismissed with prejudice from this action;

24 $6,078.17, to be paid from the Interpled Funds currently on deposit with the Court; 25 26 4. That Reassure has no further rights or entitlement to the Interpled

27 Funds, other than its right to the attorneys' fees and costs, as set forth herein; and 28
BARGER & WOLEN LLP
19800 MACARTHUR BLVD. EIGHTH FLOOR IRVINE, CA 92612 (949) 757-2800

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