The opinion of the court was delivered by: Perry, District Judge.
Great American Insurance Company and seven other insurance
companies filed in the Superior Court of Cook County,
Illinois, a complaint for interpleader. The cause was removed
to this court on the petition of the United States of America
which, on its motion, was dismissed by this court as a party
defendant. Subsequently, it filed its complaint in
It appears that on May 27, 1958, a fire damaged the premises
occupied by defendant Villa La-Maine, Inc., insured by
On May 25, 1959, Villa La-Maine, Inc., instituted suit in
the United States District Court for the Northern District of
Illinois, Eastern Division, against all of the plaintiffs
except The Western Fire Insurance Company, and on May 26, 1959
started suit against that company in the Municipal Court of
Chicago, Illinois, seeking in each of the suits to recover for
losses occasioned by the fire.
Each of the suits was dismissed by order of court — the suit
in the United States District Court for lack of jurisdiction on
June 26, 1961 and the suit in the Municipal Court on June 29,
It was agreed that plaintiff companies would pay Villa
La-Maine, Inc. the sum of $6500.00 in consideration of its
foregoing its right to appeal the order of dismissal entered
by the United States District Court and in further
consideration of the compromise settlement of all claims which
said Villa La-Maine, Inc. had against the plaintiff companies
under the insurance policies issued by them. No appeal was
The plaintiff insurance companies filed this complaint for
interpleader asking the court to decide the rights of
claimants to the $6500.00 fund. Pursuant to an order entered
by this court on April 30, 1963, the $6500.00 has been
deposited with the Clerk of this court.
The United States of America, Devon-North Town State Bank,
Eardley & Ward, Gus Kitsos, Edward Don & Company, Inc., and
Matthew Blondell have proved their claims. Other parties to
this interpleader suit were defaulted by order of this court
entered on August 13, 1963.
The following sets forth the sequence of events to which
reference must be had in a determination of the priority of
the claims involved here:
May 27 — Fire occurred on premises of Villa La-Maine, Inc.
June 2 — Villa La-Maine, Inc. assigned to MATTHEW F. BLONDELL
the proceeds due it for fire loss under policy issued
by Royal Insurance Company. Matthew F. Blondell agreed
to assist in adjustment of the loss and for services
was to receive 10% of amount recovered.
June 3 — DEVON-NORTH TOWN STATE BANK perfected a judgment
against Villa La-Maine, Inc. in the amount of $3188.09
together with interest at the rate of 5% per annum and
June 6 — The UNITED STATES OF AMERICA made assessment of taxes
due from Villa La-Maine, Inc. in amount of $1116.48.
June 19 — EARDLEY & WARD served on insurance companies notice of
attorneys' lien for ...