Country Casualty Insurance Co. v. Villa-Chavez

Defendants--Villa-Chavez and three passengers in a car he was driving--were injured in an automobile accident that was caused by an underinsured motorist. After a dispute arose between Villa-Chavez and Country Casualty Insurance Company (Country), Villa-Chavezs underinsured motorist (UIM) carrier, Villa-Chavez brought an action--not this one--against Country. Country, acknowledging liability to defendants, then brought this action under the interpleader statute, ORCP 31, set out below. It deposited $50,000 with the court, the amount that it believed to be the limits of its liability for the accident, and asked to be discharged of further liability to all four defendants. It also asked the court to enjoin Villa-Chavezs earlier breach of contract action. The court granted Country the relief it sought and, in a supplemental judgment, awarded it $5,649 in costs, disbursements, and attorney fees. Defendants appeal.