Federal Interpleader Act of 1936


The Federal Interpleader Act of 1936 was United States federal legislation enacted by the 74th United States Congress approved January 20, 1936.

History

The Act repealed and replaced the existing federal interpleader act approved May 8, 1926 and codified it as United States Judicial Code §41, and established the modern statutory interpleader. The act was drafted by Zechariah Chafee, who considered this his foremost professional accomplishment.
The Federal Interpleader Act was enacted to overcome the ruling of the United States Supreme Court in New York Life v. Dunlevy, that for a party to be bound by an interpleader that party must be served process in a way that obtains personal jurisdiction by enabling nationwide service of process. The original act Federal Interpleader Act of 1917 allowed an insurance company, or fraternal benefit society subject to multiple claims on the same policy to file a suit in equity by a bill of interpleader in United States District Courts and providing nationwide service of process. The policy must have a value of at least $500 is claimed or may be claimed by adverse claimants; which is less than the amount in controversy of $3,000 in Judicial Code §48 then required for general diversity jurisdiction. Two or more of the beneficiaries must live in different states.
The 1917 act was amended in 1925 by approved February 25, 1925. This element of civil procedure was subsequently in 1926 was repealed and replaced by, approved May 8, 1926, which added to those who can bring suit casualty company and surety company, empowered the court to enjoin claimant from proceeding in any state or other federal court on the same liability, adding provisions as to the proper venue for the interpleader in certain cases but required that there must be actual claims by eliminating the words "may claim" that were in the 1917 act.
When the United States Judicial Code was enacted into United States Code as positive law in 1948, approved June 25, 1948, it was reconstituted as,, and.

The Act

Section one of the act codified as United States Judicial Code §41 the following:
Section 2 repeals the existing Federal Interpleader Act 28 USC 41.