Star Insurance Co. v. Cedar Valley Express, LLC
United States District Court for the District of Columbia
273 F. Supp. 2d 38 (D.D.C. 2002)
Relevant factsFree
Star Insurance (plaintiff) issued a $10,000 surety bond to Cedar Valley Express, and 35 corporations from 13 states (defendants) asserted claims to the bond exceeding its penal sum; fearing exposure to multiple inconsistent lawsuits, Star filed an interpleader action under the Federal Interpleader Act and sought a preliminary injunction barring the claimants from pursuing bond-related litigation elsewhere.
IssueFree
Whether a party facing multiple or inconsistent claims against a single obligation may file an interpleader action to have all claimants' rights determined in one proceeding.
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