Johnston v. All State Roofing & Paving Co., Inc.

557 P.2d 770, 1976 Alas. LEXIS 418
CourtAlaska Supreme Court
DecidedDecember 22, 1976
Docket2757
StatusPublished
Cited by2 cases

This text of 557 P.2d 770 (Johnston v. All State Roofing & Paving Co., Inc.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnston v. All State Roofing & Paving Co., Inc., 557 P.2d 770, 1976 Alas. LEXIS 418 (Ala. 1976).

Opinion

OPINION

RABINOWITZ, Justice.

This appeal presents one of the few occasions on which this court has been afforded the opportunity to explicate upon Alaska’s Rule of Civil Procedure providing for interpleader.

Appellant Johnston, a developer and general contractor, entered into a contract with appellee All State for certain asphalt and paving work on the former’s Woodside Village Project. All State subsequently contracted with several subcontractors and material suppliers to assist it in meeting its contract obligations. Approximately 10 days after it commenced work, All State received $44,564.36 in partial payment. Upon completion of the contract on October 18, 1974, All State notified Johnston that it claimed $157,655.43 was due under the terms of their agreement. Johnston disputed this amount, asserting that only $92,689 was due under the contract.

All State then instituted an action in the superior court against Johnston and its surety, U.S.F. & G. 1 The latter were also sued in separate actions by two of All State’s unpaid subcontractors. While the three suits were pending, Johnston filed a separate interpleader action in which All State and all its creditors were named, and deposited the sum of $92,960 in the registry of the superior court. 2 In this inter-pleader action, Johnston explicity admitted that $92,689 was owed to All State. Johnston then moved to consolidate the inter-pleader action with the three related but separate pending superior court cases. Before a ruling was had on the consolidation motion, the Internal Revenue Service caused the interpleader action to be removed to federal court. 3

After Johnston’s motion to consolidate had been filed, All State moved for partial summary judgment in the case it originally filed against Johnston (No. 75-1956). The motion was grounded on Johnston’s admission in the interpleader action that he owed All State $92,689. At this point in the procedural history of the matter, it appears that Superior Court Judge James Singleton granted Johnston’s motion to consolidate the separate suits. 4 Four days later Superior Court Judge Justin Ripley *772 granted partial summary judgment in the amount of $100,662.93. 5

Johnston thereafter brought the instant appeal, claiming he had previously paid the amount owed All State into the superior court registry in the interpleader action. Johnston further asserts that as the matter now stands the superior court’s entry of a partial summary judgment renders it liable to All State for an additional $92,689, or a grand total of approximately $208,460. 6 Thus, the crux of Johnston’s complaint here is that the effect of the superior court’s entry of judgment for $92,689 is to permit All State to seek execution over and above the amount of $92,689, which Johnston deposited in the registry of the superior court, without affording Johnston the opportunity to litigate the question of whether or not he is indebted to All State for any part of the $64,966.43 the latter contends is still due. and owing. In addition to asserting that the granting of the motion for partial summary judgment exposes him to multiple liability on the same claim, Johnston also advanced the separate specification of error that the trial court abused its discretion in awarding All State $2,500 in attorney’s fees in conjunction with its entry of partial summary judgment.

We now turn to Johnston’s first specification of error and Rule 22, Rules of Civil Procedure. This interpleader rule parallels the federal rule of procedure governing in-terpleader. It provides:

Persons having claims against the plaintiff may be joined as. defendants and required to interplead when their claims are such that the 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 lia *773 ble in whole or in part to any or all of the claimants. A defendant exposed to similar liability may obtain such inter-pleader by way of cross-claim or counterclaim. The provisions of this rule supplement and do not in any way limit the joinder of parties permitted in Rule 20. 7

Professors Wright and Miller point out that the “admirable remedy” of inter-pleader has been in existence for over 600 years. Its origins are found in the practice of common law courts which allowed a defendant, in a limited number of circumstances, to protect himself from double vexation upon a single liability. 8 This procedural development by the common law courts is reflective of the underlying purpose of interpleader, which is to prevent the interpleading party or stakeholder, from being exposed to multiple liability and vexatious litigation. 9 To this end the interpleader rule is to be liberally construed. 10

Interpleader relieves the stakeholder from the obligation of determining at his peril which claimant may ultimately prevail, as well as preventing multiple liability which could flow from adverse rulings in different courts. 11 Thus, Professors Wright and Miller conclude that “. . . interpleader can be employed to reach an early and effective determination of disputed questions with a consequent saving of trouble and expense for the parties,” 12 not to mention the resultant conservation of judicial resources.

The fact that Johnston contests his alleged obligation to pay any amounts to All State over and above the $92,689 he deposited in the court registry does not make interpleader relief unavailable. For it has been held that the stakeholder may make a deposit or post a bond without waiving his contentions that he is not liable to any of the claimants, or that he is not liable for the full amount of the deposit. 13

With these general principles of in-terpleader in mind, we return to the somewhat confused procedural context which is presented in the case at bar. We are of the view that the superior court’s grant of partial summary judgment, apparently without recognition of the fact that All State’s suit against Johnston had been consolidated with Johnston’s interpleader action, as well as with the two actions instituted by creditors of All State, had the effect of undercutting the salutary remedial goals of interpleader and joinder of parties. There has been a consistent judicial trend encouraging the use of interpleader and joinder of parties.

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Cite This Page — Counsel Stack

Bluebook (online)
557 P.2d 770, 1976 Alas. LEXIS 418, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnston-v-all-state-roofing-paving-co-inc-alaska-1976.