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Another example is that an escrow holder in a real estate transaction holds a deposit and the parties are arguing about whether one or the other should receive the deposit back. In such cases, the escrow holder will often file an interpleader action.
Definition and Examples of Interpleader Let's say a person dies and three surviving family members claim to be the rightful beneficiary of the deceased person's life insurance death benefit. In such a case, the insurer could face three separate lawsuits from the individual claimants.
An interpleader is a way for a party who holds property (a stakeholder) to initiate a suit between all claimants, who are parties claiming a right to that property. An interpleader allows the stakeholder to bring all claimants into the same action, instead of litigating against claimants in separate actions.
There are two specific types of interpleader actions in the United States federal courts. Statutory Interpleader governed by 28 U.S.C. § 1335, and Rule Interpleader established by Federal Rules of Civil Procedure 22.