Paragon Molding, Ltd. v. Safeco Insurance Company

2010 WL 2386355 (S.D. Ohio 2010)

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Nature of the Case

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Facts

Paragon (P) filed suit against American (D) claiming that D wrongfully withheld proceeds from a fire insurance policy. D deposited with the Court fire insurance proceeds in the sum of $1,334,813. P earlier received fire insurance proceeds in the amount of $793,405. A number of parties have intervened in the suit. Miller, owner of the real estate, claims entitlement to that portion of the insurance proceeds that corresponds to the value of the damage to the real property, in the sum of $650,041. Miller is an interpleader defendant. D and Miller assert a right to 15% of the insurance proceeds for attorney fees. Alex N. Sill Company agreed to assist in the preparation of the fire insurance claim and P assigned and conveyed to Sill 7.5% of the total proceeds related to that claim. Sill claims that it is entitled to 7.5% of the additional amount deposited with the Court, to make it whole, in accordance with both the original and settlement agreements. P purchased a business from Roy Rhodes and pursuant to the purchase agreement, Roy Rhodes maintained an interest in “35% of the value of the Roy Rhodes Championship Calls division” of P. Roy Rhodes is in possession of a state court judgment against D for $258,125, as a result of a jury verdict in his favor, regarding a breach of employment contract claim, and also claims entitlement to such sum from the insurance proceeds. Jimmie Rhodes claims to be entitled to $50,000 plus 6% interest pursuant to a promissory note previously executed in his favor, in connection with the purchase by P of Roy Rhodes Championship Calls. JP Morgan Chase Bank presents state court judgments for $234,811, plus interest at 8.75%, attorney's fees and other charges, pursuant to a promissory note/mortgage executed by Miller and guaranteed by P; (2) $205,333, plus interest at prime + 3%, attorney's fees and other charges, pursuant to a non-mortgage promissory note executed by P; (3) $89,528, plus interest at 10.24%, attorney's fees and other charges, pursuant to a non-mortgage promissory note executed by non-party Captiva Holdings, LLC (“Captiva”) and guaranteed by P. All parties have agreed that this case should proceed in the nature of interpleader, as to the $1,334,813 sum originally deposited with the Court.