79 F.R.D. 374 | D.D.C. | 1978
ORDER
This matter comes before the court on the motion of defendant Epoch Producing Corp. for judgment on the pleadings. Plaintiff, the United States Library of Con
Defendant Epoch has moved for judgment on the pleadings on the grounds that this is not a proper interpleader action. Epoch advances two justifications for this position. First, Epoch contends that since the dispute does not involve actual property rights, but only the rights to access to the film materials, which were created by separate instruments of gift, then interpleader is improper. Second, Epoch insists that even if interpleader is otherwise proper here, since the Library accepted title to the film with the knowledge that it was subject to conflicting claims, then the Library should be barred from suing in interpleader. The other two defendants have expressed no position with regard to this motion although they will be bound by the determination of the propriety of the interpleader action in this case. Each of the justifications advanced by Epoch will be analyzed separately.
I. Absence of property rights in dispute.
The United States has filed this suit pursuant to 28 U.S.C. § 1345 (district court jurisdiction of suits filed by the United States), and Federal Rule of Civil Procedure 22. Plaintiff has, therefore, chosen not to invoke the statutory interpleader provision in 28 U.S.C. § 1335. Rule 22 states in pertinent part:
Persons having claims against the plaintiff may be joined as defendants and required to interplead when their claims are such that plaintiff is or may be exposed to double or multiple liability. It is not ground for objection to the joinder that the claims of the several claimants or the titles on which their claims depend do not have a common origin or are not identical but are adverse to and independent of one another, or that the plaintiff avers that he is not liable in whole or part to any or all of the claimants.
This rule is to be construed liberally. Dakota Livestock Co. v. Keim, 552 F.2d 1302, 1306 (8th Cir. 1977); Underwriters at Lloyd’s v. Nichols, 363 F.2d 357, 365-66 (8th Cir. 1966); Travelers Indem. Co. v. Greyhound Lines, Inc., 260 F.Supp. 530, 532-33 (W.D.La.1966), aff'd 377 F.2d 325 (5th Cir.), cert. denied, 389 U.S. 832, 88 S.Ct. 101, 19
Defendant Epoch, however, contends that an interpleader action may properly involve only property rights. It is undisputed that the instant suit does not involve such rights, but rather concerns rights to access and use of certain materials. A reading of Rule 22, however, indicates that the rule is not limited to property rights, but to multiple, adverse claims such as exist here. Indeed, cases involving interpleader have not been solely limited to the vindication of property rights. See Elliot v. Federal Home Loan Bank Board, 233 F.Supp. 578 (S.D.Cal.1964) (Bank Board a proper defendant in inter-pleader even though it had no property interest in the res but only an interest in seeing to the proper distribution of the res), reversed on other grounds, 386 F.2d 42 (9th Cir. 1967); Xerox Corp. v. Nashua Corp., 314 F.Supp. 1187, 1189 (S.D.N.Y. 1970) (Rule 22 requires no specific stake or fund, but only the threat of multiple liability on a single obligation). The present ease would appear to be of the type contemplated by Rule 22 despite the absence of conflicting property claims. Indeed, the conflicting interests advanced by the defendants in this case are closely akin to property interests, involving as they do the full beneficial use of the materials in question. In any event, the action in interpleader is not as limited as Epoch would have this court believe, and, therefore, the complaint may not be dismissed nor judgment granted to defendant on this basis.
Similarly, Epoch contends that the various rights asserted by the defendants in this case arose from separate instruments of gift, and that, therefore, interpleader is improper since the Library owes separate and distinct duties under each instrument. However, contrary to Epoch’s assertion, it does not appear that the deeds of gift created any new or conditional rights. Rather, the Library received only bare legal title to the film. The beneficial use, as if this were some type of trust, remains with the donors. The rights retained by the donors are mutually exclusive, and, therefore, the requirements of Rule 22 have been met.
II. Prior Knowledge of Disputed Claim.
Defendant’s second claim is that, even if interpleader is proper here, this suit should be barred since plaintiff knew when it took possession and later title to these materials that they were subject to disputed claims. It is true that interpleader is an equitable action, and thus the defense of “unclean hands” could operate to prevent resolution of the lawsuit. However, Epoch’s primary support for this proposition is the opinion in Kent v. Northern Calif. Regional Office of Am. Friends Service Comm., 497 F.2d 1325 (9th Cir. 1974). In that case, plaintiff voluntarily took money from individuals which would otherwise have been used to pay federal taxes. Plaintiff accepted these payments in trust as part of a plan by which plaintiff would then file a suit in interpleader against the trustors and the United States government, thereby hoping to make the United States justify its use of tax monies to support the war in Viet Nam. The court in Kent found numerous reasons for finding this tactic deficient, including the equitable considerations invoked by Epoch in the present case. However, it does not appear that plaintiff in this case has so misused the interpleader procedure that it should be dismissed as a result. Plaintiff apparently took possession of the film materials before any dispute arose. Plaintiff requested and received legal title to the print from A. F. I. and Killiam at a time when a separate pending lawsuit was on the verge of settling the dispute. When title was transferred from A. F. I. and Killiam to plaintiff, Epoch
For these reasons, and upon consideration of the motion of defendant Epoch Producing Corp. for judgment on the pleadings, the memoranda submitted in support thereof and in opposition thereto, oral argument thereon, and the entire record before the court, it is, by this court, this 30th day of June, 1978,
ORDERED that the motion of defendant Epoch Producing Corp. for judgment on the pleadings be, and the same hereby is, denied.