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A large tractor-trailer collided with a bus carrying schoolchildren. Four people on the bus were killed, and 23 were injured. In addition, two cars that were following the bus were involved in the accident. Pan American (P) was the liability insurer for the tractor-trailer. P filed a suit to interplead all present and potential claimant and asked that all parties be enjoined from initiating legal proceedings elsewhere even for actions that had already been filed. P deposited a bond in the full amount of its policy limits of $100,000 and claimed that it had no further interest in the insurance proceeds and that it was merely a disinterested stakeholder. P denied all liability toward any and all the claimants because it could not technically admit 'liability' since that would amount to a concession that its assured was negligent and expose him to a deficiency judgment. The claimants brought an action to dismiss the interpleader action.

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