Grigsby v. Russell

John Burchard, needing money for surgery and behind on an insurance premium, sold his own life-insurance policy to Dr. Grigsby (defendant, as the party the interpleader sought to resolve against) for $100 plus Grigsby's promise to keep paying the premiums; after Burchard's death, the insurance company (plaintiff, via interpleader) sought a determination of whether the policy proceeds belonged to Burchard's estate administrators or to Grigsby, and the circuit court of appeals held the assignment valid only up to the amount Grigsby had actually paid toward the policy and its premiums.