Interpleaders, Interventions, and Compulsory Joinders

California’s Code of Civil Procedure, in Part 2, Title 3, contains a number of important procedural items for parties to civil actions. Chapter 6 deals with interpleaders.

Section 386 provides that a defendant, against whom an action is pending upon a contract, or for specific personal property, may, at any time before filing an answer, upon affidavit that a person not a party to the action makes against him, and without any collusion with him, a demand upon the contract, or for the property, upon notice to the person and the adverse party, apply to the court for an order to substitute the person in his place, and discharge him from liability to either party, on his depositing in court the amount claimed on the contract, or delivering the property or its value to the person as the court may direct.

In addition, the court may make the order; or the defendant may file a verified cross-complaint in interpleader, admitting that he has no interest in such amount or such property claimed, or in a portion of such amount or such property and alleging that all or such portion of the amount or property is demanded by parties to such action or cross-action and apply to the court upon notice to such parties for an order to deliver such property or portion thereof or its value to such person as the court shall direct. 

Any amount which a plaintiff or cross-complainant admits to be payable may be deposited by him with the clerk of the court at the time of the filing of the complaint or cross-complaint in interpleader without first obtaining an order of the court. Any interest on amounts deposited and any right to damages for detention of property so delivered, or its value, must cease to accrue after the date of such deposit or delivery.

A defendant named in a complaint to compel conflicting claimants to interplead and litigate their claims, or a defendant named in a cross-complaint in interpleader, may, in lieu of or in addition to any other pleading, file an answer to the complaint or cross-complaint which must be served upon all other parties to the action and which shall contain allegations of fact as to his ownership of or other interest in the amount or property and any affirmative defenses and the relief requested.

After any complaint or cross-complaint in interpleader has been filed, the court in which it is filed may enter its order restraining all parties to the action from instituting or further prosecuting any other proceeding in any court in this state affecting the rights and obligations as between the parties to the interpleader until further order of the court.

Section 386.1 provides that, where a deposit has been made, the court must, upon the application of any party to the action, order the deposit to be invested in an insured interest-bearing account. Interest on such amount is to be allocated to the parties in the same proportion as the original funds are allocated.

Section 386.5 states that, where the only relief sought against one of the defendants is the payment of a stated amount of money alleged to be wrongfully withheld, the defendant may, upon affidavit that he is a mere stakeholder with no interest in the amount or any portion and that conflicting demands have been made upon him for the amount by parties to the action, upon notice to such parties, apply to the court for an order discharging them from liability and dismissing then from the action on his depositing with the clerk of the court the amount in dispute and the court may make the order.

Section 386.6 specifies that a party to an action who follows the specified procedure may insert in the motion, petition, complaint, or cross complaint a request for allowance of costs and reasonable attorney fees incurred in such action. In ordering the discharge of the party, the court may award such party his costs and reasonable attorney fees from the amount in dispute which has been deposited with the court. At the time of final judgment in the action the court may make further provision for assumption of such costs and attorney fees by one or more of the adverse claimants as may appear proper.

Chapter 7 deals with interventions in civil actions. Section 387 provides definitions for the terms “defendant” and “plaintiff.” An intervention takes place when a nonparty, deemed an intervenor, becomes a party to an action or proceeding between other persons by joining a plaintiff in claiming what is sought by the complaint; uniting with a defendant in resisting the claims of a plaintiff; or demanding anything adverse to both a plaintiff and a defendant.

A nonparty must petition the court for leave to intervene by noticed motion or ex parte application. The petition must include a copy of the proposed complaint in intervention or answer in intervention and set forth the grounds upon which intervention rests. The courts is required to permit a nonparty to intervene in the action or proceeding if either of the specified conditions is satisfied.

Section 388 provides, in an action brought by a party for relief of any nature other than solely for money damages where a pleading alleges facts or issues concerning alleged pollution or adverse environmental effects which could affect the public generally, the party filing the pleading is required to furnish a copy to the Attorney General, which must be furnished by the party filing the pleading within 10 days after filing.

Chapter 8 deals with compulsory joinder in civil actions. Section 389 provides that a person who is subject to service of process and whose joinder will not deprive the court of jurisdiction over the subject matter of the action must be joined as a party in the action if one of two circumstances are met.

Section 389.5 provides that, when in an action for the recovery of real or personal property, or to determine conflicting claims, a person not a party to the action but having an interest in the subject makes application to the court to be made a party, the court may order that person to be brought in by the proper amendment.