Opinion ID: 8704060
Heading Depth: 2
Heading Rank: 2

Heading: legal standard and discussion

Text: Plaintiffs bring this action pursuant to the Federal Interpleader Statute, 28 U.S.C. § 1335, which permits a party who is exposed to multiple claims on a single obligation, and who wants to obtain adjudication of the claims in a single proceeding, to bring an action in interpleader. See Comm’l Union Ins. Co. v. United States, 999 F.2d 581, 583 (D.C.Cir.1993). A court may exercise jurisdiction over an inter-pleader action if: (1) the plaintiff has custody of the disputed property, which exceeds $500; (2) the plaintiff deposits the disputed property into the registry of the court; and (3) two or more adverse claimants of diverse citizenship claim or may claim an interest in the disputed property. 28 U.S.C. § 1335; Star Ins. Co. v. Cedar Valley Express, LLC, 273 F.Supp.2d 38, 41 (D.D.C.2002). The Court has jurisdiction over this interpleader action under the provisions of 28 U.S.C. § 1335(a) because, as alleged in the pleadings, there exists diversity of citizenship between at least two of the Defendants, Am. Compl. ¶ 2, and the penal sum of the Bond against which all Defendants assert adverse claims is $10,000, a sum in excess of $500, Am. Compl. ¶ 3. Furthermore, Plaintiff, at the time of filing its Complaint, filed a motion for leave to deposit $10,000 into the Registry of this Court. See Pl.’s Mot. for Leave to Deposit Funds into the Registry of the Court, ECF No. [2]. 1 A Court has broad discretion to order interpleader relief as an equitable remedy designed to achieve an orderly distribution of a limited fund. See Star Ins. Co., 273 F.Supp.2d at 40. Where a court grants interpleader relief, the plaintiff may be discharged from further court proceedings, provided the plaintiff does not assert an interest in the distribution of the disputed property. 28 U.S.C. § 2361. Normally, an interpleader action is concluded in two stages, the first determining that the statutory requirements are met and relieving the plaintiff from liability, and the second adjudicating the adverse claims of the defendant claimants to the disputed property. However, this bifurcation is not mandatory. New York Life Ins. Co. v. Connecticut Dev. Auth., 700 F.2d 91, 95 (2d Cir.1983). Where, as here, no defendant enters an appearance in the action, their subsequent defaults “d[o] not make the interpleader action inappropriate but merely expedite its conclusion by obviating the normal second stage.” Id. at 95. See also Gulf Coast Galvanizing, Inc. v. Steel Sales, Co., Inc., 826 F.Supp. 197, 203 (S.D.Miss.1993) (“The failure of a named interpleader defendant to answer the interpleader complaint and assert a claim to the res can be viewed as forfeiting any claim of entitlement that might have been asserted.”) (citation omitted). Federal Rule of Civil Procedure 55 provides that the Clerk of the Court must enter a party’s default “[w]hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise.” Fed. R.CivP. 55(a). Upon entry of a default by the clerk, the well-pleaded allegations in the complaint are deemed admitted. City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114, 137 (2d Cir.2011). Thereafter, unless the claim is for a sum certain, the plaintiff must apply to the court for a default judgment. FED. R. CIV. P. 55(b). “The determination of whether default judgment is appropriate is committed to the discretion of the trial court.” Int’l Painters & Allied Trades Indus. Pension Fund v. Auxier Drywall, LLC, 531 F.Supp.2d 56, 57 (D.D.C.2008) (citing Jackson v. Beech, 636 F.2d 831, 836 (D.C.Cir. 1980)). Where, as here, there is a complete “absence of any request to set aside the default or suggestion by the defendant that it has a meritorious defense, it is clear that the standard for default judgment has been satisfied.” Auxier Drywall, 531 F.Supp.2d at 57 (internal quotation marks omitted). The Clerk of the Court entered default for each Defendant in this action, and the factual allegations in the Complaint are therefore taken as true. See Int’l Painters & Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co., Inc., 239 F.Supp.2d 26, 30 (D.D.C.2002). Further, the Court finds that Plaintiffs Amended Complaint sufficiently alleges facts to support its claims. Accordingly, Plaintiff is entitled to a default judgment discharging it of all liability to the Defendants under the Bond. See Jenkens & Gilchrist v. Groia & Co., 542 F.3d 114, 119-24 (5th Cir.2008) (default judgment is available in interpleader actions), cert. denied sub nom. Felderhof v. Jenkens & Gilchrist, — U.S. -, 129 S.Ct. 1585, 173 L.Ed.2d 676 (2009).