Interpleader shitInterpleader is an action brought by a stakeholder () against multiple claimants (s) to obtain a binding judgment on all claimants. Stakeholder holds something of value (stake) that creates multiple liability to claimants. Prevents a stakeholder from being subjected to multiple liability or inconsistent obligations Stakeholder may initiate the interpleader action against adverse claimants if there is no action pending If stakeholder is first sued by one of the claimants, the stakeholder may file a defensive interpleader counterclaim If one party cannot be reached by an interpleader service of process, action does not go throughJurisdictionVenueServiceInjunctions

Rule Interpleader**FRCP 22

28 USC 1332: > $75,000 Complete diversity* between stakeholder and all s (unless claim arises under federal question)

28 USC 1391: district where any resides, if all s are residents of the State in which the district is located a substantial part of the events or omissions giving rise to claim occurred, or a substantial part of property that is the subject of the action is situatedFRCP 4:Customary geographical restrictions28 USC 2283:federal courts only allowed to enjoin other suits when it is necessary in aid of courts jurisdiction

Statutory Interpleader28 USC 1335

28 USC 1335: > $500 Minimal diversity* between any two or more adverse s has deposited stake into registry of court28 USC 1397: Any civil action of interpleader or in the nature of interpleader under28 USC 1335 may be brought in the judicial district in which one or more of the s resides28 USC 2361:More lenient nationwide service of process

28 USC 2361:restraining s from starting or prosecuting any proceeding in any fed/state court re: stake until further court order

see next page for: * diversity distinction, ** when rule interpleader > statutory interpleader

State Farm v. Tashire, SCOTUS (1967)

Injunction is given to the stake only, protection not extended to other parties Interpleader device is meant to prevent unfairness for race to judgment, but not meant as bill of peace does not have to wait until claims against Clark (insured) have received judgments before federal interpleader

wanted to compel everyone to bring merits litigation to Oregon to prevent liability of paying for Clark (insured)s lawsuits in various jurisdictions

Complete v. Minimal DiversityUse rule interpleader over statutory interpleader when: amount in controversy > $75,000 dont want to deposit stake with court 28 USC 1332 complete diversity satisfied all of the claimants (s) are in the same state, but still diverse from the stakeholder ()