State Farm Fire & Casualty Co. v. Tashire
United States Supreme Court
386 U.S. 523 (1967)
After a Greyhound bus collided with a pickup truck, killing two and injuring 33 people including the truck's driver Clark and his passenger, State Farm (plaintiff), which insured Clark for up to $20,000 total liability, filed an interpleader action depositing that policy amount with the court and seeking to require all claimants to litigate their claims against State Farm in one proceeding; the district court went further, enjoining all suits against Clark, State Farm, Greyhound, and the bus driver to proceed only within the interpleader action. The court of appeals reversed the injunction entirely on interlocutory appeal, finding interpleader improper, and State Farm appealed.
Whether the use of interpleader to confine litigation to a single forum and proceeding is appropriate if there are multiple claimants to the same fund and a stakeholder must acknowledge liability to either of the claimants.