Spahn & Rose Lumber Co. v. Iowa Steel & Construction Co.

131 N.W.2d 791, 257 Iowa 168, 1964 Iowa Sup. LEXIS 832
CourtSupreme Court of Iowa
DecidedDecember 15, 1964
DocketNo. 51439
StatusPublished
Cited by1 cases

This text of 131 N.W.2d 791 (Spahn & Rose Lumber Co. v. Iowa Steel & Construction Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spahn & Rose Lumber Co. v. Iowa Steel & Construction Co., 131 N.W.2d 791, 257 Iowa 168, 1964 Iowa Sup. LEXIS 832 (iowa 1964).

Opinion

ThorNtON, J.

— This is an interlocutory appeal. The question presented is, may a landowner interplead mechanic’s lien-holders ?

The question arises thus, plaintiff started the action to foreclose its mechanic’s lien for materials furnished defendants’ general contractors for the erection of a building for defendants Lynn Q. Knoll and Donna Y. Knoll on land owned by them. Plaintiff made junior lienholders parties defendant to determine priority, asks personal judgment against the general contractors, its lien be confirmed against the real estate, its superiority, that special execution issue, and for general equitable relief. The defendants Knoll moved the court to interplead nine other suppliers all of whom had filed liens. They alleged the liens are of like kind, a result of the same building contract, on the same property, are disputed, and they are subject to multiple liability. Defendants rely on rule 36, Rules of Civil Procedure. The trial court denied interpleader. Because of the importance of the question we granted this appeal.

Rule 35, Rules of Civil Procedure, is as follows:

, “A person who is or may be exposed to multiple liability or vexatious litigation because of several claims against him for the same thing, may bring an equitable action of interpleader against all such claimants. Their claims or titles need not have a common origin, nor be identical, and may be adverse to, or inde[170]*170pendent of each other. Sncb person may dispute Ms liability, wholly or in part.”

Rule 36, Rules of Civil Procedure, is as follows:

“A defendant to an action which exposes him to similar liability or litigation may obtain such interpleader by counterclaim or cross-petition. Any claimant not already before the court may be brought in to maintain or relinquish his claim to the subject of the action, and on his default after due service, the court may decree him barred of such claim.”

Rule 22, Federal Rules of Civil Procedure, is, in part, as follows:

“(1) 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 join-der 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 in part to any or all of the claimants. A defendant exposed to similar liability may obtain such interpleader 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.”

The advisory committee comment to rule 35, 1 Cook, Iowa Rules, Revised Ed., page 251, states:

“The common-law equity interpleader does exist in Iowa, although probably not widely used. There was also a very limited interpleader procedure provided by section 11002 of the Code 1939, et sequitur superseded by these rules. These rules on interpleader should result in its wider use and also liberalize the common-law procedure in keeping with modern tendencies.”

The author’s comment to rule 35, 1 Cook, Iowa Rules, Revised Ed., page 251, is as follows:

“The Rules on Interpleader are new, and greatly broaden the prior statutes. Those allowed interpleader only to defendant who had been sued by one claimant, and then only in two rare cases. The Rules should permit interpleader in any situation where it would be of service.”

[171]*171In the commentaries on the Iowa Rules, 29 Iowa Law Review 14, Dan C. Dutcher, member of the advisory committee, said:

“The Rules attempt, from the standpoint of the statute, to broaden its application and from the standpoint of common law equitable interpleader, to suggest its use to the lawyers by bringing it out in the open and charting its procedure. The essentials of the procedure are that the party initiating or commencing the interpleader tenders the fund, or property, or security, for it into court, serves his notice on the parties claiming the fund or property, and from that point on lets the claimants litigate the rights to it. Meanwhile, the initiating party can be protected by injunction from separate suits by the claimants.”

Appellants’ contention is rules 35 and 36, Rules of Civil Procedure, should be liberally construed and include the situation here.

The rules eertainly include more than the superseded statutes. They also liberalize the rules limiting common-law inter-pleader and those governing a bill in the nature of a bill of interpleader. The essentials of common-law interpleader are:

“1. The same thing, debt, or duty must be claimed by both or all the parties against whom relief is demanded. 2. All their adverse titles or claims must be dependent on, or be derived from, a common source. 3. The person asking the relief, that is, plaintiff, must neither have nor claim any interest in the subject matter. 4. He must have incurred no independent liability to either of the claimants, that is, he must stand perfectly indifferent between them, in the position merely of a stakeholder.” 48 C. J. S., Interpleader, section 12, page 49.

See also Hoyt v. Gouge, 125 Iowa 603, 604, 101 N.W. 464; 2 Barron & Holtzoff, Federal Practice and Procedure, section 551, pages 227, 228; Builders and Developers Corp. v. Manassas Iron and Steel Co., 208 F. Supp. 485, 489 (Md., 1962); and Kelly, Shuttleworth & McManus v. Central National Bank & Trust Co. of Des Moines, 217 Iowa 725, 739, 248 N.W. 9.

A reading of rule 35 shows 2 and 3 above are no longer required. The rule still requires one seeking interpleader to be a stakeholder and the claims must be for the same thing, debt or duty.

[172]*172In the comment in 29 Iowa Law Beview 14, there is no indication the intention was to dispense with the requirement the one seeking relief be a stakeholder. Buie 35 states, “A'person * * * exposed to multiple liability * * * may bring an equitable action of interpleader * * *.” The next two sentences delete part of the former essentials, but the action that may be brought is, “an equitable action of interpleader.” It is not a new action, only liberalized as indicated. And in its same form made available to defendants by rule 36.

The first sentence also states, “* * * because of several claims against him for the same thing, * # This is the same language used in 48 C. J. S., Interpleader, section 12, page 49; 2 Barron & Holtzoff, section 551, pages 227, 228; Builders and Developers Corp. v. Manassas Iron and Steel Co., 208 F. Supp. 485, 489 (Md., 1962); and Kelly, Shuttleworth & McManus v. Central National Bank & Trust Co. of Des Moines, 217 Iowa 725, 739, 248 N.W. 9. In Hoyt v. Gouge, 125 Iowa 603, 604, 101 N.W. 464, we used the phrase, “the same debt or duty.” Rule 22, Federal Buies of Civil Procedure, does not use this language. Buie 22 provides, “when their claims are such that the. plaintiff is or may be exposed to double or multiple liability.”

In Hoyt v.

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Bluebook (online)
131 N.W.2d 791, 257 Iowa 168, 1964 Iowa Sup. LEXIS 832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spahn-rose-lumber-co-v-iowa-steel-construction-co-iowa-1964.