§ 12.6 Interpleader

• Library: Guide to South Carolina Liability and Property Insurance Law (SCBar) (2019 Ed.)

§ 12.6 Interpleader

"Interpleader is a procedural device that allows a disinterested stakeholder to bring a single action joining two or more adverse claimants to a single fund."⁶⁵ Further, "[i]nterpleader is an equitable remedy designed to protect the stakeholder from multiple, inconsistent judgments and to relieve it of the obligation of determining which claimant is entitled to the fund."⁶⁶ "'The entire purpose of the interpleader action is to shield the uninterested stakeholder from the costs of unnecessary, multiple litigation.'"⁶⁷ "'The propriety of interpleader depends on whether the stakeholder 'legitimately fears' multiple litigation over a single fund.'"⁶⁸ The federal court has acknowledged that "'[a]bsent the presence of bad faith on the part of the stakeholder or the possibility that the stakeholder is independently liable, discharge should be readily granted.'"⁶⁹

South Carolina Rule of Civil Procedure 22 states:

(a) Interpleader May Be Required. Persons having claims against the plaintiff may be joined as defendants and required to interplead when their claims are such that the plaintiff is or may be exposed to double or multiple liability. It is not ground for objection to the joinder that the claims of the several claimants or the titles on which their claims depend do not have a common origin or are not identical but are adverse to and independent of one another, or that the plaintiff avers that he is not liable in whole or in part to any or all of the claimants. A defendant exposed to similar liability may obtain such interpleader by way of cross-claim or counter-claim. The provisions of this rule supplement and do not in any way limit the joinder of parties permitted in Rule 20.
(b) Release From Liability, Deposit, Delivery, or Bond. Any party seeking interpleader, as provided in subdivision (a) of this rule, may deposit with the court the amount claimed, or deliver to the court or as otherwise directed by the court the property claimed, or give bond payable to the clerk of the court in such amount and with such surety as the court may deem proper, conditioned upon the compliance by the plaintiff with the further order of judgment of the court with respect to the subject matter of the controversy. The court may thereupon order such party discharged from liability as to such claims, and the action continued as between claimants of such money or property.

Per the Notes to the rule, "Rule 22(a) is the same as the Federal Rule." However, "Rule 22(b) is new, and not in the Federal Rule" and was "added to provide expressly for payment into court and discharge from liability as is now provided by Code § 15-5-200." South Carolina courts have explained that "[w]hen claims are such that a plaintiff is or may be exposed to double or multiple liability, the claimants may be joined as defendants and required to interplead."⁷⁰ Further, "'[t]he historical and still the primary purpose of interpleader is to enable a neutral stakeholder, usually an insurance company or a bank, to shield itself from liability for paying over the stake to the wrong party.'"⁷¹ "Only the potential for multiple claims is needed."⁷²

Federal Rule of Civil Procedure 22 provides:

(a) Grounds.

(1) By a Plaintiff. Persons with claims that may expose a plaintiff to double or multiple liability may be joined as defendants and required to interplead. Joinder for interpleader is proper even though:

(A) the claims of the several claimants, or the titles on which their claims depend, lack a common origin or are adverse and independent rather than identical; or
(B) the plaintiff denies liability in whole or in part to any or all of the claimants.

(2) By a

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