James Clark McReynolds

“ The applicant for interpleader often has a choice of forum, and he cannot at his will subject the rights of the contesting claimants to one set of laws rather than another. The purpose of the interpleader statute was to give the stakeholder protection, but in nowise to change the rights of the claimants by its operation. The interpleader is a suit in equity, and equitable principles and procedure are the same throughout the federal jurisdiction. ”

“ What has been written does not go beyond the law as declared in Illinois. The fact is not ignored that there are other jurisdictions in which the process of garnishment receives a different meaning. Sometimes the service of the writ is held to impose upon the debt a fixed and present lien which will have recognition and enforcement everywhere. ”

“ Each is claiming the proceeds of the policies to the exclusion of the other. Armour claims by virtue of its Illinois judgment against Sanders and the attachment, and Sanders, while not disputing his obligation to Armour, claims the proceeds, notwithstanding, by virtue of the exemption under the laws of Texas. ”

“ It had secured a lien upon the claims against the Insurance Companies. There is no ground for any claim of fraud. True, no final judgment had gone against the garnishees; but as between Sanders and the Fertilizer Works judgment stood against him; also, sequestration of the debts. The precise effect which would be given this preliminary judgment, as against the garnishees, in proceedings involving their rights may be doubtful, but opinions by the Supreme Court of Illinois clearly indicate that Armour Fertilizer Works secured a lien upon the Sanders claims ”

“ The Armour Fertilizer Works asks nothing under any Texas law. Brought into the District Court against its will, it was held there against its protest and enjoined from proceeding further in Illinois. It now claims priority of right and only asks what it would have secured but for the injunction. Under such circumstances, to hold that the statutes of Texas control would destroy rights duly obtained in Illinois; would permit the Insurance Companies by interpleader proceedings to change the positions of defendants ”

“ Sometimes the Illinois rule is accepted, and there is said to be no lien, or one that does no more than restrain the garnishee from making voluntary payments. See e.g., Commercial State Bank v. Pierce, [5] 176 Iowa, 722, 158 N.W. 481; McGarry v. Lewis Coal Co., 93 Mo. 237, 6 S.W. 81, 3 Am.St.Rep. 522; Parker v. Farr, 2 Browne (Pa.) 331. Little is to be gained by dilating upon these and like decisions, for they are rooted in local laws or customs. Garnishment and attachment today are statutory remedies. They are what the state creating them declares that they shall be. ”

“ Some other attaching creditor, suing the same defendant, may garnish the same debt in another jurisdiction. The Illinois plaintiff, though the first to have recourse to garnishment, will be postponed to the other plaintiff who is first with execution. Lancashire Insurance Co. v. Corbetts, 165 Ill. 592, 46 N.E. 631, 36 L.R.A. 640, 56 Am.St.Rep. 275. Indeed, the primary creditor, i.e., the debtor of the attaching plaintiff, may bring suit against the garnishee in another jurisdiction, and collect the indebtedness if he wins the race to judgment. Becker v. Illinois Central R. Co., 250 Ill. ”

“ Sanders v. Armour Fertilizer Works
Argued: Feb. 5, 1934. --- Decided: April 30, 1934
New York Life Insurance Company v. Dunlevy (1916) 241 U.S. 518, 36 S.Ct. 613, 60 L.Ed. 1140, exhibited the serious problems encountered by insurance companies when conflicting demands are made by residents of different States. There two individuals, residents of California and Pennsylvania, claimed the surrender value of a life policy. The insurer unsuccessfully sought through interpleader proceedings in Pennsylvania to secure release from all liability. ”

“ Pickrell, 109 U.S. 608, 610, 611, 3 S.Ct. 407, 27 L.Ed. 1049; Ohio v. Chattanooga Boiler Co., 289 U.S. 439, 443, 53 S.Ct. 663, 77 L.Ed. 1307. The duty is fulfilled if the force and efficacy are the same. ”