Document: 386 U.S. 523 87 S.Ct. 1199 18 L.Ed.2d 270 STATE FARM FIRE & CASUALTY CO. et al., Petitioners,v.Kathryn TASHIRE al. No. 391. Argued Feb. 14 and 15, 1967. Decided April 10, [Syllabus from pages 523-524 intentionally omitted] Otto R. Skopil, Jr., Salem, Or., John Gordon Gearin, Portland, for petitioners. Nick Chaivoe James Griswold, Portland respondents. Mr. Justice FORTAS delivered the opinion of Court. 1 Early one September morning in 1964, a Greyhound bus proceeding northward through Shasta County, California, collided with southbound pickup truck. Two passengers aboard were killed. Thirty-three others injured, as driver, driver truck its lone passenger. One dead 10 injured Canadians; rest individuals involved citizens five American States. The ensuing litigation led to present case, which raises important questions concerning administration interpleader remedy federal courts. 2 began when four filed suit California state courts, seeking damages excess $1,000,000. Named defendants Lines, Inc., corporation; Theron Nauta, driver; Ellis Clark, who drove truck; Kenneth Glasgow, passenger was apparently owner well. Each individual citizen resident Oregon. Before these cases could come trial before other suits or elsewhere, petitioner State Farm Fire Casualty Company, an Illinois corporation, brought this action nature United States District Court 3 In complaint asserted that at time County collision it had force insurance policy respect truck, providing bodily injury liability up $10,000 per person $20,000 occurrence legal representation Clark actions covered by policy. It already anticipated would be far exceeded aggregate sought amount maximum under Accordingly, paid into court sum asked (1) require all claimants establish their claims against his insurer single no other, (2) discharge further obligations policy—including duty defend lawsuits arising accident. Alternatively, expressed conviction issued excluded coverage accidents resulting operation belonged another being used business another. complaint, therefore, requested decree owed not liable on policy, refund deposit. 4 Joined each prospective claimants. Jurisdiction predicated upon 28 U.S.C. § 1335, statute,1 general diversity, citizenship, there diversity between two more fund named defendants. 5 An order issued, requiring show cause why they should restrained filing prosecuting 'any any affecting property obligation action, specifically plaintiff defendant D. Clark.' Personal service effected defendants, registered mail employed reach 11 Canadian Defendants Greyhound, several responded, contending did cover accident advancing various arguments position either impermissible inappropriate circumstances. however, soon switched sides moved broaden injunction include Nauta among those sued except within confines proceeding. 6 When temporary along lines Oregon, respondents dismiss and, alternative, change venue—to Northern district occurred. After hearing, declined dissolve injunction, but continued motion venue. later broadened protection modified permit filing—although prosecution—of suits. provided Farm, prosecuted 7 On interlocutory appeal,2 Appeals Ninth Circuit reversed. 363 F.2d 7. found unnecessary respondents' contentions relating process scope concluded available circumstances case. held like Oregon do 'direct action' companies until judgments are obtained insured, may invoke alleged tortfeasor, have been reduced judgment. Until is done, said court, unliquidated tort 'claimants' meaning nor '(p) ersons having plaintiff' Rule 22 Federal Rules Civil Procedure.3 Id., 10. accord view, directed dissolution dismissal action. Because Appeals' decision point conflicts courts,4 concerns matter significance interpleader, we granted certiorari. 385 811, 90, 17 52 (1966). Although reverse jurisdictional question, direct substantial modification Court's reasons will appear. I. 8 considering issues presented petition certiorari, find necessary dispose question neither raised parties passed courts below. Since our jurisdiction, raise own motion. Treinies v. Sunshine Mining Co., 308 66, 70, 60 44, 47, 84 L.Ed. 85 (1939). statute, applies where 'Two adverse claimants, diverse citizenship * *.' This provision has uniformly construed only 'minimal diversity,' is, without regard circumstance rival co-citizens.5 language legislative purpose broadly problems posed multiple fund, consistent judicial interpretation tacitly accepted Congress, persuade us statute requires more. There remains, whether such statutory construction Article III Constitution, extends power 'Controversies different State, Citizens thereof, foreign States, Subjects.' Strawbridge Curtiss, Cranch 267, 435 (1806), required 'complete diversity': co-citizens appeared both dispute, jurisdiction lost. But Chief Marshall purported construe 'The words act congress,' Constitution itself.6 And variety contexts lower poses obstacle extension founded so long co-citizens.7 conclude case properly II. 9 We agree that, absence law contractual company, company must wait persons asserting insured judgment benefits interpleader. That tenable 19268 1936 statutes.9 These statutes carry forward 1917 Act authorizing 'may claim' well 'are claiming' them.10 1948, revision Judicial Code, restored.11 below, every confronted 1948 removed whatever requirement might previously least judgments.12 commentators accord.13 Considerations demonstrate soundness view which, event, seems compelled remedial liberally construed. Were await reduction judgment, first claimant obtain negotiate settlement appropriate disproportionate slice fellow able claims. difficulties race pose insurer,14 unfairness result some principal evils device intended remedy.15 III. fact invoked 1335 not, entitle enjoining prosecution outside also extending tortfeasor. Still less Lines entitled expanded protect itself tortfeasors, Here, litigation, terms claims, vastly extensive than 'fund,' deposited proceeds circumstances, mere existence cannot, use accomplish purposes exceed needs orderly contest fund. 12 situations, type here, effect confine total forum stakeholder, faced itself, acknowledges—or denies claimants.16 situation, target marks outer limits controversy. reasonable sensible office stakeholder vexatious litigation. context, enjoined squarely 2361, provides part: 13 'In civil section title, issue enter restraining them instituting property, instrument (Emphasis added.) matter. happened. Thirty-five representatives wish press defendants: driver. happens fortuitous event shape For example, owned corporation forced sue anywhere simply because carried whose interest cannot asserts all, allowed determine dozens plaintiffs claims—even satisfied out meager fund—in company's choosing. nothing scheme, very little academic commentary tail wag dog fashion. 15 Farm's fulcrum procedure, confined receives full vindication restrains enforce itself. To extent control claimants' powers scheme. 16 recognize, course, means solve vexing multiparty mass tort. never perform function, all-purpose 'bill peace.'17 Had intended, careful necessarily made insure party outcome complex controversy strip truly interested rights—such right choose subject generally applicable rules venue, process, removal, None sponsors modern viewed accomplishment peace,' capable sweeping reported instances underlying tortfeasors opposed allocation successful plaintiffs. See Commercial Union Insurance Co. New York Adams, 231 F.Supp. 860 (D.C.S.D.Ind.1964) (where virtually objection basic state), Pan Revere, 188 474 (D.C.E.D.La.1960). Another hand, recently lacked authority enjoin tortfeasor proceedings Travelers Indemnity 260 530 (D.C.W.D.La.1966). light evidence serve function peace' context tort, anomalous give thrust serve, hold authorize entered Upon remand, consistently opinion.18 IV. reversed, remanded opinion. 19 ordered. 20 Judgment reversed 21 DOUGLAS, dissenting. While I diversity' if granted, run insurer, feel today allow deference, unwarranted. How litigants sense indeed mystery. If fund,2 category it. 23 'pay behalf sums shall become legally obligated pay.' date 'legally obligated' pay litigant. fail see how litigant can 'claimant' company. doubtful doubt resolved conditions: 24 states '(n)o lie insured's finally determined after actual written agreement company.' 25 Under happened contract made, allowable final insured.3 26 Thus enforced consensual litigant, insured. Neither events happened.4 27 word borne out, noted, 22(1) Procedure.5 Rule, based differs points out.6 illuminates '(p)ersons (insurer) joined interplead.' 'Persons interplead exposed double liability.' 29 Can kinds choose: permits ('persons plaintiff') benefit even though insurer? believe Congress launched irrational 30 rests heavily contains phrase claim,' while 1926 contained claiming.' From infers direct-action statute. inference drawn despite Reviser's Note reference wording purpose; omission dismissed 'inadvertent.' strains credulity suggest mention drastic change, make And, wording, 'adverse (who) claiming claim money *, virtue Absent victims Understandably, wants best worlds. does want But, same time, course confer benefit. grant dispensations effects scheme erected. 31 normal affirm Appeals. 1335(a) provides: original person, firm, association, society custody possession value $500 more, '(1) defined 1332 *; due registry abide 1292(a)(1). need pass conclusions 22, Persons *' First, indicate today, 1335. Second, purport 22. Third, venue limitations. Whereas resides (28 1397), reside 1391(a)). whereas enables employ nationwide 2361), 4. Moore, Practice 22.04. With views seem shared Brother compare Underwriters Lloyd's Nichols, 357 (C.A.8th Cir. 1966), A/S Krediit Pank Chase Manhattan Bank, 155 (D.C.S.D.N.Y.1957), aff'd, 303 648 (C.A.2d 1962), National North America, 230 617 (D.C.N.D.Ohio 1964), Hale, 71 529 (D.C.W.D.Mo.1947). 22.04, 3008 n. See, e.g., (D.C.W.D.La.1966); (D.C.S.D.Ind.1964); (D.C.E.D.La.1960); Onyx Refining Evans Production Corp., 182 253 (D.C.N.D.Tex.1959). Revere Louisiana, authorizes companies, relied (see F.Supp., 533, 3), furnished alternative ground 482—483). post-1948 respondents, turns assistance since denied solely Ohio hence citizenship. 619. Haynes Felder, 239 868, 872—875 (C.A.5th 1957); Holcomb Aetna Life 255 577, 582 (C.A.10th Cir.), cert. sub nom. Fleming 358 879, 79 118, 110 (1958); Cramer Phoenix Mut.Life Ins. 91 141, 146—147 denied, 302 739, 58 82 571 (1937); 860, 863 22.09, 3033. Subsequent decisions given expansive reading. Louisville C. Railroad Letson, How. 497, 554—556, 353 (1844), expressing 1839 acted 'rid Curtis.' 556. Cas. Finn, 341 6, 3, 534, 538, 95 702 (1951), Barney Latham, 103 205, 213, 514 (1881), construing removal now 1441(c); Supreme Tribe Ben-Hur Cauble, 356, 41 338, 65 673 (1921), class actions; Wichita R.R. Light Public Util. Comm., 48, 43 51, 67 124 (1922), dealing intervention co-citizens. Fulldress constitutionality situations rehearsed set Judge Tuttle's F.2d, 875—876; Weinfeld's Twentieth Century-Fox Film Corp. Taylor, 913, 918—921 (D.C.S.D.N.Y.1965); ALI, Study Division Between Courts 180—190 (Official Draft, Pt. 1, 1965); 3033—3037; Chafee, Interpleader 1936, 49 Yale L.J. 377, 393—406 (1940); Courts, 1134, 1165 1169 (1932). note Law Institute's proposals Code deal problem multiparty, multijurisdiction permissibility basis. 44 Stat. 416 (1926), added casualty enumerated categories bring 1096 (1936), authorized 'bill(s) interpleader,' wholly disinterested he court. 1936: I, 45 963 (1936). 39 929 (1917). Klaber Maryland 69 934, 938—939, 106 A.L.R. 1934), earlier statute's denial face (alternative holding). refer purpose, good rather inadvertent. 22.08, 3025 3026, 13. widely assumed restoration overruling holding Klaber, supra, L.J., 1163—1167; 418—420 (1940). these, worked substantive changes. Ex parte Collett, 337 55, 944, 93 1207 (1949). listed 3024—3025; Keeton, Preferential Settlement Liability-Insurance Claims, 70 Harv.L.Rev. 27, 41—42 (1956). op. cit. envisioned conflicting mutually exclusive allocating independent S.Rep. 558, 74th Cong., 1st Sess., 2—3, 7, (1935); Modernizing Interpleader, 814, 818—819 (1921). classic situation supra. history suggesting purpose. Sess. (1935). Professor work depended, thought 'second stage' just what adjudicated Broadening Second Stage 56 929, 944—945 (1943). Chafee's study bill peace fails Some Problems Equity 149—198 (1950). writing Chafee allocate 'among get II, 1161, 420—421. contention, below Appeals, 'indispensable parties' served. argument 2361 mode effecting 2361—which 'issue subsequently refers 'such process' marshals 'for respective districts found'—does beyond Nation's borders. reconsideration appears necessity time. intimate exclusivity lands, limitations imposed court's injunctive render themselves amenable rights 4.20, 1091—1105. '(a) note, bond, certificate, insurance, instrument, obligation; promises '(t)o (A) sustained caused ownership, maintenance use, including loading unloading, automobile 'become pay' fault accident, victim's settled terms. thus contingent finding settlement. unlike workmen's compensation insures fault. Calif.Ins.Code 11580(b)(2); Ore.Rev.Stat. 23.230. allowing prior absent gives status insurer. 474, 482—483.

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