Arnold Zimmerman v. Cade Enterprises, Inc. – Rule 1.240

Cade Enterprises, Inc. is a corporation established by the inventor of Gatorade for estate planning purposes.  In 2008 the company was set to issue dividends, but two of its shareholders were in a dispute over their interest in the company.  Both shareholders made demand for payment of the dividends. Rather than choose sides between the warring shareholders, Cade Enterprises filed an action in Interpleader pursuant to Rule 1.240, Fla. R. Civ. Pro., and sought to deposit the disputed dividends into the registry of the court, leaving the shareholders to fight over the funds.

Reiterating that Interpleader is an equitable remedy, the Court found that Rule 1.240 abolished the four part test to maintain an Interpleader action at common law and substituted a single requirement: whether the party seeking Interpleader “‘is or may be exposed to double or multiple liability’ for competing claims to a single fund.”  Finding that the shareholder’s dispute over the dividends met the requirement, the First DCA upheld the trial court’s decision allowing Cade Enterprises to proceed with its Complaint in Interpleader.

Arnold Zimmerman v. Cade Enterprises, Inc., 35 Fla. L. Wkly. D1030 (Fla. 1st DCA May 7, 2010)