RULE 62 - INTERPLEADER 1.
There must be two or more claimants with adverse or conflicting interests
What is the purpose of interpleader?
The remedy is afforded not to protect a person against a double liability but
to protect him against a double vexation in respect of one liability. (Beltran
vs. PHHC)
1. A classic example is that of a warehouseman who has custody of goods
claimed to be owned by two or more persons who do not have the same
interests. He may file an action for interpleader for the court to determine
the rightful owner. The basis of the need to file an interpleader in the case
of a warehouseman is actually the substantive law provisions of the
Warehouse Receipts Law. Under said law, where a warehouseman delivers
the goods to one who is not in fact entitled to possession, the
warehouseman shall be liable for conversion (Sec. 10, Warehouse Receipts
Law). He may also be sued for damages for non-delivery if he refuses to
deliver the goods. Hence, Sec. 17 of the same law authorizes the
warehouseman to require all known claimants to interplead to shield him
from liability. (Dean Riano)
2. Another usual example is the case of a lessee who may commence a
complaint for interpleader when he is confronted with adverse claimants on
the rentals due and he is in doubt as to which of them should be the rightful
recipient.
Recall that under the Civil Code of the Philippines, a cardinal principle to be
observed for the validity of payment or performance is that payment must
be made "to the person in whose favor the obligation was constituted" (Art.
1240, Civil Code of the Philippines). This means that as a rule, payment to
the wrong person is not a valid payment and does not extinguish the
obligation. Where two or more persons who do not represent the same
interests claim the right to collect, the debtor will have to file an action for
interpleader to effect the extinguishment of his obligation. (Dean Riano)
What are the requisites of interpleader?
to a property in the custody or possession of the plaintiff.
2. The plaintiff has NO CLAIM upon the subject matter of the adverse claims,
or if he has an interest at all, such interest is NOT DISPUTED by the claimants.
3. The subject matter of the adverse claims must be one and the same.
What court has jurisdiction over an interpleader case?
1. MTC - If the subject matter of the action is personal property, valued at
not more than P300,000.00 outside Metro Manila, and in Metro Manila, at
not more than P400,000.00, the Municipal Trial Court has jurisdiction.
2. RTC - If the subject matter is real property with an assessed value at not
more than P20,000.00 outside Metro Manila, and in Metro Manila, at not
more than P50,000.00, the Regional Trial Court has jurisdiction.
When should the interpleader be filed?
An action for interpleader should be filed within a reasonable time after a
dispute has arisen without waiting to be sued by either of the contending
claimants. Otherwise, he may be barred by laches or undue delay. (Wack-
Wack Golf and Country Club vs. Won, G.R. No. L-23851, March 26, 1976)
If the the allegations of the complaint do not show conflicting claims
between or among the persons required to interplead, what would be the
ground for the dismissal of the complaint for interpleader?
It is believed that where the allegations of the complaint do not show
conflicting claims between or among the persons required to interplead, the
complaint for interpleader is subject to dismissal on the ground of
impropriety of the interpleader, not a failure to state a cause of action under
Rule 16 because the meaning of a cause of action in ordinary civil actions
cannot apply to an interpleader. Besides, for an interpleader to be proper
such conflicting claims must exist (Sec. 1, Rule 62, Rules of Court).
Conversely, there is impropriety where no such adverse claims can be found
from the reading of the complaint. (Dean Riano)
Procedure:
1. Filing: A complaint for interpleader is filed by the person against whom
the conflicting claims are made. The docket, other lawful fees, costs and
other litigation expenses shall be paid by the complainant; but these will
constitute a lien or charge upon the subject matter of the action, unless the
court hold otherwise.
2. Court Order: Upon filing of the complaint, the court shall issue an order
requiring the conflicting claimants to interplead with one another. If the
interests of justice so require, the court may direct that the subject matter
be paid or delivered to the court.
3. Summons: Summons shall be served upon the conflicting claimants,
together with a copy of the complaint and order.
4. Motion to Dismiss: Within the time for filing an answer (15 days), each
claimant may file a motion to dismiss on the grounds specified in Rule 16
and on the ground of impropriety of the action for interpleader.
The period to file an answer is interrupted or tolled by the filing of the
motion to dismiss. If the motion is denied, the movant may file his answer
within the remaining period to answer, but which shall NOT BE LESS THAN 5
days in any event from the notice of denial of the motion.
5. Answer: Each claimant shall file his answer within 15 days from service of
the summons, serving a copy thereof upon each of the other conflicting
claimants, who may file their reply thereto.
If claimant fails to plead within the time herein fixed, the court may, on
motion, declare him in default and render judgment barring him from any
claim in respect to the subject matter.
6. Other pleadings: The parties may file counterclaims, crossclaims, third-
party complaints and responsive pleadings thereto.
7. Pre-trial: A pre‐trial will be conducted in accordance with the Rules of
Court.
8. Determination: Court shall determine conflicting claimants’ respective
rights and adjudicate their several claims.
Bar Questions:
Q: LTA, Inc. is the lessee of a building owned by Mr. Tenorio paying rental
of P10,000.00 a month. The owner died on May 10, 1988 and since then,
LTA has not paid the monthly rentals, now amounting to P40,000.00
because two women are both claiming to be widows of Tenorio and are
demanding rental payments. What legal action may LTA's counsel take,
before what court and against whom to protect LTA's interest? (Bar 1996)
SA: LTAs counsel should file an action for interpleader against the two
women and pray that the court resolve their conflicting claims. The action
should be filed in the Municipal Trial Court because the subject of the action
is an amount within the jurisdiction of said court. Note: When the question
was asked, jurisdiction was with the Regional Trial Court. At that time the
jurisdictional amount for the RTC was an amount exceeding P10,000.00.
Q: A lost the cashier's check she purchased from XYZ Bank. Upon being
notified of the loss, XYZ Bank immediately issued a "STOP PAYMENT"
order. Here comes B trying to encash the same cashier's check but XYZ
Bank refused payment. As precautionary measure what remedy may XYZ
Bank avail of with respect to the conflicting claims of A and B over the
cashier's check? Explain. (Bar 1996)
SA: XYX Bank should file a complaint for interpleader and leave unto the
court the resolution of the conflicting claims of A and B. Note: The examiner
made reference to "conflicting claims." This is a clue as to what the examiner
desires as an answer. The examinee should therefore, refrain from making
assumptions or unnecessary analysis.

Q: H insured his life with X Insurance Co. and designated W as beneficiary.

The policy provided that the beneficiary could be changed by a written
notice designating the new beneficiary sent by the insured and received
by X Insurance Co. before the death of the insured. After the death of H, Q
demanded from X Insurance Co. the proceeds of the policy, claiming that
she had been designated as the beneficiary by H as may be seen from a
copy of a written notice signed by H and allegedly received by X Insurance
Co. before X's death. W who is also demanding from X Insurance Co. the
proceeds of the policy, claims that the signature of H appearing on the
written notice is forged. As counsel for X Insurance Co., what advice would
you give to your client and why? (Bar 1978)

SA: I would advice my client not to pay either of the claimants in the
meantime and instead file a complaint for interpleader against them and let
the court resolve their conflicting claims (Sec. 1, Rule 63, Rules of Court).

Q: What courts have jurisdiction over the following cases filed in Metro
Manila?
xxx
(d) An action for interpleader to determine who between the defendants
is entitled to receive the amount of P190, 000.00 from the plaintiff.

SA: (d) The action shall be filed in the Metropolitan Court in Metro Manila.
The amount of P190, 000.00 not being in excess of P400, 000.00, is within
the jurisdiction of said court. (Bar 1997)