First Union National Bank v. FCVS Communications

Howell, Chief Judge,

dissenting:

I respectfully dissent. Interpleader is appropriate when the party seeking it “is or may be exposed to double or multiple liability.” Rule 22(a), SCRCP. In this case, I agree with the appellant the bank was protected by S.C. Code Ann. § 34-11-110 (1987), thus there was no possibility of multiple liability, and interpleader was inappropriate. Section 34-11-110 permits the bank to disregard an adverse claim unless the claimant furnishes some assurance either through legal process or other surety indemnifying the bank. If the depositor is a fiduciary to the adverse claimant, as may be the case here between partners and the partnership, this section does not apply if the claimant submits an affidavit delineating the facts of the fiduciary relationship and the facts showing reasonable cause of belief of misappropriation by the depositor. The adverse claimants in this case, represented by Attorney Warmflash, did not furnish the assurance or affidavit necessary to require the bank to consider the adverse claim.

The majority concludes section 34-11-110 does not apply because the bank could not recognize who had an adverse claim. I disagree. The bank account was set up to permit Michaels and Flynn to transact business on behalf of the partnership. I conclude notification to the bank by Warmflash that the authority of Michaels and Flynn should be restricted represented an adverse claim sufficient to protect the bank under section 34-11-110.