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24-32]
Facts: Greyhound bus got into accident with a truck. 2 bus passenger were killed
and 33 injured, + bus driver, truck driver & passenger of the other car also
injured. 11 were Canadian citizens and the rest were citizens of 5 states. 4 of
the injured brought an action against Greyhound (CA corp), bus driver, truck
driver & its passenger, who owned the truck, who were all citizens of Oregon.
Before this and any other cases could come to trial, petitioner, State Farm (an
Illinois corp), brought this action of interpleader (per 1335 - the statute)
against all injured and dead passenger of the bus, greyhound, the bus driver,
truck driver & passenger. State farm says that at the time of the accident, the
amount of their insurance policy covering the truck driver was up to $10k/person,
and $20k/ occurrence. Since the injured passengers (and only 4 of them) sought
well in excess of this amount, ($1million), State Farm paid the court $20k and
asked to be dismissed from any further liability, and that all possible claimants
to come forth in this single proceeding and no other . Alternatively, they
requested this deposit back since coverage excluded accidents where the truck was
being used by someone else other than the owner.
The lower court granted State farm the injunction they sought (to make all
claimants put their claim now or never).
Issue: Whether it was appropriate for State Farm to bring the action of
interpleader.
Reasoning: Although the court held that the interpleader statute permitted an
injunction to consolidate the claims against petitioner (State Farm), it also held
that lower court erred in extending it to the other defendants who were not
related to the fund of insurance proceeds.
Notes
• The re-written injunction will say sue greyhound, sue Clark, but any claims
against Clark has to be centralized
• Court of appeals reversed the injunction, b/c no judgments yet against Clark,
and so State farm doesn’t owe anything yet