Civil Procedure – Interstate Interpleader Compact

Five states have passed the Interstate Interpleader Compact, but Senate bills aimed at obtaining the necessary congressional consent have not been reported out of committee. The compact, designed to eliminate the problem of obtaining jurisdiction over an out-of-state claimant in a state interpleader action, would remedy situations in which the stakeholder may be subject to multiple vexation or possible double liability. The most important section of the compact provides: “Service of process sufficient to acquire personal jurisdiction may be made within a state party to this compact, by a person who institutes an interpleader proceeding or interpleader part of a proceeding in another state, party to this compact.”