CHAPTER 917

INTERPLEADER

Table of Contents

Sec. 52-484. Action in nature of interpleader.


Sec. 52-484. Action in nature of interpleader. Whenever any person has, or is alleged to have, any money or other property in his possession which is claimed by two or more persons, either he, or any of the persons claiming the same, may bring a complaint in equity, in the nature of a bill of interpleader, to any court which by law has equitable jurisdiction of the parties and amount in controversy, making all persons parties who claim to be entitled to or interested in such money or other property. Such court shall hear and determine all questions which may arise in the case, may tax costs at its discretion and, under the rules applicable to an action of interpleader, may allow to one or more of the parties a reasonable sum or sums for counsel fees and disbursements, payable out of such fund or property; but no such allowance shall be made unless it has been claimed by the party in his complaint or answer.

(1949 Rev., S. 8220.)

Is a remedial statute and to be favorably construed; its purpose is to secure a determination of every right, title or interest that can by possibility be set up. 72 C. 93. Trustee whose title is attached may throw his outlay in defending it directly on the fund. Id., 92. Judgment to interplead properly entered after issues found for plaintiff. 73 C. 568. Defendant, sued as maker of note by endorsee, cannot compel plaintiff to interplead with one who has garnisheed original debt. 74 C. 234. So far as statute affirms common law right, action under it is not proper to go to jury. 79 C. 263. Gives broader remedy than common law; 103 C. 343; lies by depositor in bank against it and adverse claimant to deposit. 80 C. 422. Allowance to stakeholder of counsel fees and expenses upheld. 72 C. 322; 80 C. 431. Action cannot be maintained in common pleas court by judgment debtor against assignee of judgment and one who has garnisheed it in action in superior court. Id., 593. Proper remedy of claimant to money paid into hands of clerk of court in such action. Id., 603. Action not proper where sole question is was plaintiff’s decedent a member of fraternal benefit society at time of his death; 84 C. 363; nor to determine whether trustee in trust deed should pay part of principal to grantor; Id., 497; nor by garnishee, against attaching creditor and other claimant of fund; 85 C. 575; 74 C. 234; nor to determine ownership of several deposits in different banks; 88 C. 161; nor where controversy can have but two sides; 90 C. 63; nor by administrator to determine who are entitled to legacies, though certain of them have been garnisheed; 84 C. 323; 91 C. 446. Lies by railroad to determine rights to money due for destruction of building by fire. 83 C. 690. Judgment where court finds neither claimant entitled to fund. 87 C. 644. Fraternal benefit society, by bringing interpleader against claimants of fund, does not waive noncompliance with its bylaws. 91 C. 121. Where personal liability of plaintiff is involved, counsel fees should not be allowed to him. 92 C. 477. Decree that one defendant has no right does not establish right of other. 93 C. 308. Judgment debtor who is garnisheed cannot interplead garnisheeing plaintiffs. 94 C. 193. Under a cross complaint claiming an interpleader, all claims, legal and equitable, to the bank deposit in suit are to be considered. 96 C. 333. Plaintiff may make claim in his own behalf in statutory action; otherwise at common law. 103 C. 347. By carrier to determine to whom delivery should be made. 104 C. 347. Interpleader is governed by equitable principles. 115 C. 199. Cited. 118 C. 526. In absence of evidence of conflicting claims no basis for interpleader action exists. 120 C. 279. Court may in its discretion tax costs against prevailing party. 125 C. 583. Allowance to an interested party not a stakeholder proper. 139 C. 346. Proceeds from death action attached by creditor of estate; interpleader possible remedy. 147 C. 233. Two of three claimants to escrow fund failed, after judgment, to perfect their garnishment of fund and therefore had only status of unsecured judgment creditors. Third claimant which did garnish fund, obtained judgment for greater amount than it contained, and did perfect its garnishment pursuant to section 52-328, was the only secured creditor and is entitled to balance of fund to exclusion of other claimants. 159 C. 368. Cited. 188 C. 69. Cited. 211 C. 648. Cited. 240 C. 287.

Cited. 10 CA 22. Cited. 11 CA 308. Cited. 38 CA 134. Cited. 43 CA 471. Statute allows an action by an interested nonpossessor in which all claimants, including an interested possessor, as defendants, seek all or a portion of the amount being held by one of the defendants. 55 CA 238.

Matters which may be settled by interpleader. Statute creates no new grounds of interpleader and is governed by the rules of equitable interpleader. 5 CS 441. Cited. 6 CS 285. Suit of interpleader is not only for those who claim to be entitled to property but those who claim to be interested in it. 9 CS 368. A judgment debtor against whom suit has been brought by an assignee of the judgment, and who has been garnisheed in actions against the original judgment creditor, may not resort to interpleader to safeguard himself in making payment. Id., 480. Cited. 12 CS 158. What conditions are necessary to entitle a stakeholder to maintain a bill of interpleader. Id., 210. Cited. Id., 213. Where plaintiff union sued in its own name, defendant bank was not entitled to an interpleader between union officers to determine which was legally authorized to handle union funds. 15 CS 321. Once rights of parties are determined in an interpleader action under this section, court must release funds. 31 CS 529. Federal tax lien takes precedence over counsel fees provided for by this section. 35 CS 79. Cited. 39 CS 470. Statutory requisite to interpleader is that plaintiff have money or other property in his possession which is claimed by two or more persons. Because plaintiff is not a stakeholder but a contract debtor and its liability is not limited to the stake that it identifies but is, theoretically, unlimited, interpleader is inappropriate under these circumstances. 45 CS 235.