RULE 62 INTERPLEADER WHAT IS THE JURISDICTION AND VENUE OF THE COMPLAINT FOR INTERPLEADER?

SECTION 1. WHEN INTERPLEADER PROPER. Whenever conflicting claims upon the As to Jurisdiction: Depending on the assessed value of the property, personal and
same subject matter are or may be made against a person who claims no interest real, involved, jurisdiction lies with the:
whatever in the subject matter, or an interest which in whole or in part is not disputed
1. Regional Trial Court;
by the claimants, he may bring an action against the conflicting claimants to compel
a. Where the value of the claim or personal property exceeds 300,000
them to interplead and litigate their claims among themselves.
outside Metro Manila;
WHAT IS AN INTERPLEADER (MEANING)? b. Where the value of the claim or personal property exceeds 400,000 in
Metro Manila;
The action of interpleader is a remedy whereby a person who has a personal property
c. Where the value of real property exceeds 20,000 outside Metro Manila;
in his possession, or an obligation to render wholly or partially, without claiming any
d. Where the value of real property exceeds 50,000 in Metro Manila; and
right in both, comes to the court and asks that the persons who claim the said
e. If the subject matter is incapable of pecuniary estimation. (Exclusive
personal property or who consider themselves entitled to demand compliance with
Original Jurisdiction of RTC)
the obligation, be required to litigate among themselves, in order to determine finally
2. Municipal Trial Court; and
who is entitled to one thing or the other thing. (Alvarez v. Commonwealth.)
a. Where the value of the claim or personal property does not exceed
Notes: 300,000 outside Metro Manila; and
b. Where the value of real property does not exceed 20,000 outside Metro
1. The remedy is afforded to protect the plaintiff-interpleader against a double Manila
vexation in respect in one liability. 3. Metropolitan Trial Court
2. Complaint of interpleader – the pleading which initiates the action. a. Where the value of the claim or personal property does not exceed
HOW AN INTERPLEADER BE INITIATED? 400,000 in Metro Manila; and
b. Where the value of real property does not exceeds 50,000 in Metro
By filing a complaint for interpleader before the court of competent jurisdiction. Manila
WHO ARE THE PARTIES TO THE COMPLAINT FOR INTERPLEADER? As to Venue:
The parties to an interpleader are the following: GR. Governed by the general rules on venue. (Rule 4 of 1997 Rules on Civil Procedure)
a. Plaintiff-in-interpleader – the party initiating the litigation. ETR. Unless otherwise provided.
b. Claimants-in-interpleader – they are the defendants having a possible
interest in the subject matter of the case. Rules on venue
Note: They are plaintiffs and defendants against each other as they are 1. Where the subject matter is a real property:
compelled to litigate their several claims among themselves.
 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 non-delivery 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? WHO CAN FILE? The plaintif-in- Those who can intervene are
interpleader who claims no as follows who has:
Interpleader was not proper in the following cases: interest whatever in the a. a legal interest in the
1. Where the conflicting claims are not against the plaintiff i.e. the conflicting subject matter or an matter of litigation;
claims are between the defendants interest which in whole or b. interest in the success of
in part is not disputed by either of the parties;
2. Where the conflicting claims are not upon the same subject matter.
the claimants. c. an interest against both;
WHEN TO FILE AN ACTION IN INTERPLEADER? or
d. is so situated as to
"Within reasonable time” adversely affected by the
distribution or disposition
A stakeholder should use reasonable diligence to hale the contending claimants
of property in the custody
to the court. He need not await actual institution of independent suits against him
of the court or of an offer
before filing a bill of interpleader. He should file an action of interpleader within thereof.
reasonable after the dispute has arisen without awaiting to be sued by either of THE ACTION IS The defendants (claimants- The defendants are original
the contending claimants. FILED AGAINST in-interpleader or parties to the pending suits.
WHOM? conflicting claimants) are
What is the effect of non-filing of action of interpleader within reasonable time?
being sued to compel them
GR. He may be barred by laches or undue delay. to interplead and litigate
their several claims among
ETR. But where he acts with reasonable diligence in view of the environmental themselves.
circumstances, the remedy is not barred. WHAT ARE THE 1. Complaint-in- 1. Complaint-in-intervention
PLEADINGS FILED? interpleader; – if the intervenor asserts
NOTE: The rule prevails that the action cannot be resorted to after an unsuccessful
2. Answer; a claim against either or all
trial against one of the claimants. 3. Counterclaims; of the original parties; or
WHAT ARE THE DISTINCTIONS BETWEEN INTERPLEADER AND INTERVENTION? 4. cross-claims; 2. Answer-in-intervention –
5. third-party complaints; if he unites with defending
INTERPLEADER INJTERVENTION and party in resisting claim
NATURE AND It is an original action. it is an ancillary action. 6. responsive pleadings
COMMENCEMENT thereto.
OF THE ACTION It is commenced by filing a It is commenced by filing a PERID TO FILE AN 15 days from the service of GR. 15 days form the notice of
complaint. motion to intervene at any ANSWER summons the order admitting the
time before rendition of intervention
judgment by the trial court.
 ETR. unless a different period SECTION 2. ORDER. Upon the filing of the complaint the court shall issue an order
is fixed by the court. requiring the conflicting claimants to interplead with one another. If the interests of
TO WHOM THE The answer is served to Answer to the complaint-in- justice so require, the court may direct in such order that the subject matter be paid
ANSWER IS the: intervention is served to the or delivered to the court.
SERVED? 1. plaintiff-in- intervenor who filed the
interpleader; and complaint-in-intervention. WHAT IS THE COURT ACTION UPON FILING OF THE COMPLAINT FOR
2. each of the conflicting INTERPLEADER?
claimants
The court shall issue an order requiring the conflicting claimants:
JURISDICTION Depending on the nature of Filed where the original
the property and its action is pending. 1. To interplead with one another;
assessed value filed at the 2. If the interests of justice so require, the court may direct in such order that
first instance with: the subject matter be paid or delivered to the court.
1. Regional Trial Court;
2. Metropolitan Trial SECTION 3. SUMMONS. Summons shall be served upon the conflicting claimants.
Court; or Together with a copy of the complaint and order.
3. Municipal nTrial Coaurt
WHAT IS THE Appeal the judgment 1. Appeal the denial being a TO WHOM SUMMONS SHALL BE SERVED AND WHAJT ARE THE ACCOMPANYING
REMEDY IN CASE final order; or DOCUMENTS?
OF DENIAL? 2. File a separate action
The summons shall be served upon the upon the conflicting claimants with a copy of
WHAT IS THE RULE The court may, on motion The court shall, upon motion
the complaint and order.
IN CASE OF declare the claimants in of the claiming party with
DEFAULT? default and thereafter notice an dproof of such NOTES:
render judgment barring failure declare the party with
him from any claim in notice and proof of such 1. The purposes of the service of the summons to the conflicting claimants is for
respect of the subject failure declare the party the court to acquire jurisdiction over their persons.
matter. against whom the complaint 2. The rules on summons under Rule 14 is applicable.
in intervention was filed in
default and thereafter render SECTION 4. MOTION TO DISMISS. Within the time of filing of an answer, each of the
judgment granting the relief conflicting claimant may file a motion to dismiss on the ground of impropriety of the
as the pleaing may warrant interpleader action or on other appropriate grounds specified in Rule 16. The period
unless the court in its to answer shall be tolled and if the motion is denied, the movant may file his answer
discretion requires the within the remaining period, but which shall not be less than five days in any event,
claimant to submit evidence reckoned from the notice of denial.
MOTION TO DISMISS IS FILED BY WHOM AND WHEN TO FILE THE SAME? Answer shall be served to the:

Each of the claimants may file a motion to dismiss and within the time for filing an 1. plaintiff-in-interpleader; and
answer. 2. upon each of the conflicting claimants
- who may file their reply to the answer as provided by these rules.
WHAT ARE THE GROUNDS FOR MOTION TO DISMISS?
WHAT IS THE EFFECT OF FAILURE TO PLEAD WITHIN THE REQUIRED PERIOD?
1. Impropriety of the interpleader action; or
2. Other appropriate ground specified in Rule 16. If any claimant fails to plead within the time herein fixed, the court may, on motion:

WHAT IS THE EFFECT OF FILING MOTION TO DISMISS? 1. declare him in default; and
2. thereafter render judgment barring him from any claim in respect to the
The period to file an answer shall be tolled.
subject matter.
WHAT IS THE EFFECT IF THE MOTION TO DISMISS IS DENIED?
WHAT ARE THE OTHER PLEADINGS ALLOWED TO BE FILED?
The movant may file his answer within the remaining period but which shall not be
The parties in an interpleader action may file:
less than five (5) days in any event, reckoned from notice of denial.
1. counterclaim;
SECTION 5. ANSWER AND OTHER PLEADINGS. Each claimant shall file his answer
2. cross-claims
setting forth his claim within fifteen (15) days from service of the summons upon him
3. third party complaints; and
serving a copy thereof upon each of the other conflicting claimants who may file their
4. responsive pleadings thereto as provided by these rules.
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 NOTE: In special civil action of interpleader, each of the conflicting claimants are being
judgment barring him from any claim in respect to the subject matter. served with the answer.

The parties in an interpleader action may file counterclaims, cross-claims, third party Reason: The conflicting claimants are actually the parties litigating the conflicting
complaints and responsive pleadings thereto, as provided by these Rules. claimants.

WHAT PLEADING TO BE FILED? WHAT IS THE EFFECT OF FAILURE TO FILE A COMPULSORY COUNTERCLAIM?

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?
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: 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
1. The determination of the issue joined by the parties constitutes res judicata.
under Rule 141.
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.