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Bus Accident – Interpleader
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In January, a vehicle owned and driven by Adams (a citizen of Massachusetts) collided with a school bus in Boston. The school bus had 25 children as passengers, all from Massachusetts. The bus was bringing students to visit UMASS. Five students were seriously injured, and the other 20 had bruises and had been emotionally upset. The bus driver, from New Hampshire, broke his arm.
Adams has $60,000 worth of liability insurance with Go Figure Insurance (a citizen of New York). After its investigation Go Figure concluded that Adams was probably driving negligently. Consequently Go Figure has brought an interpleader action in federal court for the Western District of Massachusetts, has deposited its $60,000, and has asked the court to enjoin any defendants/claimants (the 25 passengers and the bus driver) from bringing any lawsuits elsewhere against Go Figure or Adams. Each of the 26 defendants has been personally notified of the lawsuit.
If you represent two students, what is the best argument you can make that the interpleader lawsuit is improper and should be dropped?
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Consider whether there is complete diversity to satisfy subject matter jurisdiction. Next, consider whether the amount in controversy meets the federal requirement.
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