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The Federal Interpleader Act of 1917 39 Stat. 929 was enacted by the 64th United States Congress approved February 22, 1917 to overcome the problem with an interpleader when the claimants live in different states raised in New York Life v.
The Act allowed an insurance company, or fraternal benefit society subject to multiple claims on the same policy to file a suit in equity by a bill of interpleader in United States district courts and providing nationwide service of process. It was introduced to overcome the ruling of the United States Supreme Court in New York Life v.
The Federal Interpleader Act was enacted to overcome the ruling of the United States Supreme Court in New York Life v. Dunlevy 241 U.S. 518, that for a party to be bound by an interpleader that party must be served process in a way that obtains personal jurisdiction by enabling nationwide service of process. [2]
Impleader in the Federal Courts derives from Rule 14 ("Third Party Practice") of the Federal Rules of Civil Procedure: [2]. Rule 14(a)(1): The nonparty must be served with the third party complaint as well as a summons.
New York Life Ins. Co. v. Dunlevy, 241 U.S. 518 (1916), was a decision by the Supreme Court of the United States in which the Court held that a court can exert personal jurisdiction over a nonresident party in an interpleader if that party is served with process while physically present within the state.
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