REVIEWER: Rule 62 Interpleader
RULE 62
INTERPLEADER
SECTION 1. WHEN INTERPLEADER PROPER.
Whenever conflicting claims upon the same subject matter are or may be made against a person who claims no interest whatever in the subject matter, or an interest which in whole or in part is not disputed by the claimants, he may bring an action against the conflicting claimants to compel them to interplead and litigate their claims among themselves.
WHAT IS AN INTERPLEADER (MEANING)?
The action of interpleader is a remedy whereby a person who has a personal property in his possession, or an obligation to render wholly or partially, without claiming any right in both, comes to the court and asks that the persons who claim the said personal property or who consider themselves entitled to demand compliance with the obligation, be required to litigate among themselves, in order to determine finally who is entitled to one thing or the other thing. (Alvarez v. Commonwealth.) Notes:
1. The remedy is afforded to protect the plaintiffinterpleader against a double vexation in respect in one liability.
2. Complaint of interpleader – the pleading which initiates the action.
HOW AN INTERPLEADER BE INITIATED?
By filing a complaint for interpleader before the court of competent jurisdiction.
WHO ARE THE PARTIES TO THE COMPLAINT FOR INTERPLEADER?
The parties to an interpleader are the following:
a. Plaintiff-in-interpleader – the party initiating the litigation.
b. Claimants-in-interpleader – they are the defendants having a possible interest in the subject matter of the case.
Note: They are plaintiffs and defendants against each other as they are compelled to litigate their several claims among themselves.
WHAT IS THE JURISDICTION AND VENUE OF THE COMPLAINT FOR INTERPLEADER?
As to Jurisdiction: Depending on the assessed value of the property, personal and real, involved, jurisdiction lies with the:
1. Regional Trial Court;
a. Where the value of the claim or personal property exceeds 300,000 outside Metro
Manila;
b. Where the value of the claim or personal property exceeds 400,000 in Metro Manila;
c. Where the value of real property exceeds
20,000 outside Metro Manila;
d. Where the value of real property exceeds
50,000 in Metro Manila; and
e. If the subject matter is incapable of
pecuniary estimation. (Exclusive Original Jurisdiction of RTC)
2. Municipal Trial Court; and
a. Where the value of the claim or personal
property does not exceed 300,000 outside
Metro Manila; and
b. Where the value of real property does not
exceed 20,000 outside Metro Manila
3. Metropolitan Trial Court
a. Where the value of the claim or personal
property does not exceed 400,000 in Metro
Manila; and
b. Where the value of real property does not exceeds 50,000 in Metro Manila As to Venue:
GR. Governed by the general rules on venue. (Rule 4 of 1997 Rules on Civil Procedure)
ETR. Unless otherwise provided.
Rules on venue
1. Where the subject matter is a real property: In court which has jurisdiction over the area wherein the real property involved, or a portion thereof, is situated.
(Rule 4, Section 1)
2. Where the subject matter is a personal property:
At the option of the plaintiff,
a. where the plaintiff or any of the principal plaintiff resides; or
b. where the defendant or any of the principal
defendants resides.
(Rule 4, Section 2)
WHEN AN INTERPLEADER IS PROPER?
WHAT ARE THE INDESPENSABLE ELELMENTS OR REQUIREMENTS OF AN INTERPLEADER?
1. There is a conflicting claims
2. The conflicting claims are upon the same subject matter
3. Such conflicting claims are made or may be made against a person
4. Such person has no interest whatever in the subject matter or an interest which in whole or in part is not disputed by the claimants.
Rule 62 Section 1 means that there is a party, against whom a conflicting claims are asserted, who claims:
a. no interest whatsoever in whole or in part upon the same subject matter; or
b. an interest which in whole or in part is not disputed by the claimants.
AGAINST WHOM AN ACTION TO BE FILED AND BY WHOM?
1. Filed by the party against whom a conflicting claims are asserted.
2. Filed against the conflicting claimants.
WHAT IS THE PRUPOSE OF FILING THE ACTION AGAINST CONFLICTING CLAIMANTS?
1. To compel the conflicting claimants to interplead and litigate their several claims among themselves.
2. To protect a person against double vexation in respect of one liability and not against double liability.
WHAT ARE THE CASES WHEN INTERPLEADER IS PROPER?
Interpleader is proper in the following cases:
1. When the lessee does not know to whom, payment of rentals should be made due to conflicting claims on the property. (or on the right to collect)
2. Whereby a person who has a property whether personal or real, in his possession, or an obligation to render wholly or partially, without claiming any right in both, or claims an interest which in whole or in part is not disputed by the conflicting claimants, comes to the court and ask that that the persons who claim the said property or who consider themselves entitled to demand compliance with the obligation, be required to litigate among themselves, in order to determine finally who is entitled to one or the other thing.
3. Where a personal property is seized under a search warrant and it appears that the seizure will not be followed by the filing of any criminal action, but there are conflicting claims asserted over the seized property.
4. The interpleader suit filed by a bank on the claims on the check.
5. In case a sheriff who finds himself puzzled by conflicting claims to a property seized by him
6. Interpleader of adverse claimants under Section 17 of The Warehouse Receipts Law (Act No. 2137).
- If more than one person claims title or possession of the goods, the warehouseman may, either as a defense to an action brought against him for nondelivery of the goods or as an original suit, whichever is appropriate, require all know claimants to interplead.
7. In case of a life insurance where the insured dies and there is a dispute over who should receive the proceeds. The insurance company can file an interpleader action.
WHAT ARE THE CASES WHEN INTERPLEADER IS PROPER?
Interpleader was not proper in the following cases:
1. Where the conflicting claims are not against the plaintiff i.e. the conflicting claims are between the defendants
2. Where the conflicting claims are not upon the same subject matter.
WHEN TO FILE AN ACTION IN INTERPLEADER?
"Within reasonable time”
A stakeholder should use reasonable diligence to hale the contending claimants to the court. He need not await actual institution of independent suits against him before filing a bill of interpleader. He should file an action of interpleader within reasonable after the dispute has arisen without awaiting to be sued by either of the contending claimants.
What is the effect of non-filing of action of interpleader within reasonable time?
GR. He may be barred by laches or undue delay.
ETR. But where he acts with reasonable diligence in view of the environmental circumstances, the remedy is not barred.
NOTE: The rule prevails that the action cannot be resorted to after an unsuccessful trial against one of the claimants.
WHAT ARE THE DISTINCTIONS BETWEEN INTERPLEADER AND INTERVENTION?
| INTERPLEAD ER | INJTERVENTION |
NATURE AND COMMENCEME NT OF THE ACTION | It is an original action. It is commenced by filing a complaint. | it is an ancillary action. It is commenced by filing a motion to intervene at any time before rendition of judgment by the trial court. |
WHO CAN FILE? | The plaintif-ininterpleader who claims no interest whatever in the subject matter or an interest which in whole or in part is not disputed by the claimants. | Those who can intervene are as follows who has: a. a legal interest in the matter of litigation; b. interest in the success of either of the parties; c. an interest against both; or d. is so situated as to adversely affected by the distribution or disposition of property in the custody of the court or of an offer thereof. |
THE ACTION IS FILED AGAINST WHOM? | The defendants (claimants-ininterpleader or conflicting claimants) are being sued to compel them to interplead and litigate their several claims among themselves. | The defendants are original parties to the pending suits. |
WHAT ARE THE PLEADINGS FILED? | 1. Complaint- in- interpleader; 2. Answer; 3. Counterclai ms; 4. crossclaims; | 1. Complaint-inintervention – if the intervenor asserts a claim against either or all of the original parties; or 2. Answer-inintervention – if |
5. third-party complaints; and 6. responsive pleadings thereto. | he unites with defending party in resisting claim | |
PERID TO FILE AN ANSWER | 15 days from the service of summons | GR. 15 days form the notice of the order admitting the intervention ETR. unless a different period is fixed by the court. |
TO WHOM THE ANSWER IS SERVED? | The answer is served to the: 1. plaintiffininterplead er; and 2. each of the conflictin g claimants | Answer to the complaint-in- intervention is served to the intervenor who filed the complaintin-intervention. |
JURISDICTION | Depending on the nature of the property and its assessed value filed at the first instance with: 1. Regional Trial Court; 2. Metropolita n Trial Court; or 3. Municipal nTrial Coaurt | Filed where the original action is pending. |
WHAT IS THE REMEDY IN CASE OF DENIAL? | Appeal the judgment | 1. Appeal the denial being a final order; or 2. File a separate action |
WHAT IS THE RULE IN CASE OF DEFAULT? | The court may, on motion declare the claimants in default and thereafter render judgment barring him from any claim in respect of the subject matter. | The court shall, upon motion of the claiming party with notice an dproof of such failure declare the party with notice and proof of such failure declare the party against whom the complaint in intervention was filed in default and thereafter render judgment granting the relief as the pleaing may warrant unless the court in its discretion requires the claimant to submit evidence |
SECTION 2. ORDER. Upon the filing of the complaint the court shall issue an order requiring the conflicting claimants to interplead with one another. If the interests of justice so require, the court may direct in such order that the subject matter be paid or delivered to the court.
WHAT IS THE COURT ACTION UPON FILING OF THE COMPLAINT FOR INTERPLEADER?
The court shall issue an order requiring the conflicting claimants:
1. To interplead with one another;
2. If the interests of justice so require, the court may direct in such order that the subject matter be paid or delivered to the court.
SECTION 3. SUMMONS. Summons shall be served upon the conflicting claimants. Together with a copy of the complaint and order.
TO WHOM SUMMONS SHALL BE SERVED AND WHAJT ARE THE ACCOMPANYING DOCUMENTS?
The summons shall be served upon the upon the conflicting claimants with a copy of the complaint and order.
NOTES:
1. The purposes of the service of the summons to the conflicting claimants is for the court to acquire jurisdiction over their persons.
2. The rules on summons under Rule 14 is applicable.
SECTION 4. MOTION TO DISMISS. Within the time of filing of an answer, each of the conflicting claimant may file a motion to dismiss on the ground of impropriety of the interpleader action or on other appropriate grounds specified in Rule 16. The period to answer shall be tolled and if the motion is denied, the movant may file his answer within the remaining period, but which shall not be less than five days in any event, reckoned from the notice of denial.
MOTION TO DISMISS IS FILED BY WHOM AND WHEN TO FILE THE SAME?
Each of the claimants may file a motion to dismiss and within the time for filing an answer.
WHAT ARE THE GROUNDS FOR MOTION TO
DISMISS?
1. Impropriety of the interpleader action; or 2. Other appropriate ground specified in Rule 16.
WHAT IS THE EFFECT OF FILING MOTION TO DISMISS?
The period to file an answer shall be tolled.
WHAT IS THE EFFECT IF THE MOTION TO DISMISS IS DENIED?
The movant may file his answer within the remaining period but which shall not be less than five (5) days in any event, reckoned from notice of denial.
SECTION 5. ANSWER AND OTHER PLEADINGS. Each claimant shall file his answer setting forth his claim within fifteen (15) days from service of the summons upon him serving a copy thereof upon each of the other conflicting claimants who may file their reply thereto as provided by these Rules. If any claimant fails to plead within the time herein fixed, the court ma y, on motion declare him in default and thereafter render judgment barring him from any claim in respect to the subject matter.
The parties in an interpleader action may file counterclaims, cross-claims, third party complaints and responsive pleadings thereto, as provided by these Rules.
WHAT PLEADING TO BE FILED?
Each claimant shall file his answer setting forth his claim.
WHEN TO FILE AN ANSWER?
Within fifteen (15) days from service of the summons upon him.
TO WHOM ANSWER SHALL BE SERVED?
Answer shall be served to the:
1. plaintiff-in-interpleader; and
2. upon each of the conflicting claimants
- who may file their reply to the answer as provided by these rules.
WHAT IS THE EFFECT OF FAILURE TO PLEAD WITHIN THE REQUIRED PERIOD?
If any claimant fails to plead within the time herein fixed, the court may, on motion:
1. declare him in default; and
2. thereafter render judgment barring him from any claim in respect to the subject matter.
WHAT ARE THE OTHER PLEADINGS ALLOWED TO BE FILED?
The parties in an interpleader action may file:
1. counterclaim;
2. cross-claims
3. third party complaints; and
4. responsive pleadings thereto as provided by these rules.
NOTE: In special civil action of interpleader, each of the conflicting claimants are being served with the answer.
Reason: The conflicting claimants are actually the parties litigating the conflicting claimants.
WHAT IS THE EFFECT OF FAILURE TO FILE A COMPULSORY COUNTERCLAIM?
GR. The defendant having failed to set up such alternative defenses bars a subsequent action based upon an unpleaded defense, or any cause of action.
ETRs.
1. that of failure of the complaint to state cause of action; and
2. lack of jurisdiction of the court.
NOTES:
1. The determination of the issue joined by the parties constitutes res judicata.
2. The failure to set up a compulsory counterclaim bars the right to braise it in a subsequent litigation.
3. ROC, Rule 9 Section 2 provides that compulsory counterclaim not set up is barred.
SECTION 6. DETERMINATION. After the pleadings of the conflicting claimants have been filed, and pre-trial has been conducted in accordance with the Rules, the court shall proceed to determine their respective rights and adjudicate their several claims.
WHEN WILL THE COURT DETERMINE AND ADJUDICATE THE RIGHTS OF THE CONFLICTING CLAIMANTS?
1. After the pleadings of the conflicting claimants have been filed,
2. Pre-trial has been conducted in accordance with the Rules,
3. Then the court shall proceed to determine the respective rights and adjudicate the several claims of the conflicting claimants.
SECTION 7. DOCKET AND OTHER LAWFUL FEES, COSTS AND LITIGATION EXPENSES AS LIENS. The docket and lawful fees paid by the party who filed a complaint under this Rule, as well as the costs and litigation expenses, shall constitute a lien or charge upon the subject matter of the action, unless the court shall order otherwise.
WHAT IS THE PURPOSE OF THE DOCKET FEE, COSTS, AND LITIGATION EXPENSES?
GR. They shall constitute as lien and charge upon the subject matter of the action.
ETR. unless the court shall order otherwise.
NOTES:
1. Section 7 only aims to actually compensate the complainant-in-interpleader.
2. Since, the defendants-in-interpleader are actually the ones who make a claim, then to them devolves the duty to pay the docket fees prescribed under Rule 141.
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