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By bringing an interpleader action, a stakeholder can have claimants litigate among themselves, determine which claimants have a rightful claim to the property, and avoid multiple liability.
In an interpleader action, a party who knows two or more other parties are making a claim on some asset controlled by the party can ask the court to decide who has what rights to the asset, deposit the asset into the custody of the court or a third party and remove itself from the litigation.
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.
Rule 31 - Interpleader (A) Parties. Persons having claims against the plaintiff may be joined as defendants and required to interplead when their claims are such that the plaintiff is or may be exposed to double or multiple liability.
Alternatively, interpleader actions can be brought pursuant to Rule 22 of the Federal Rules of Civil Procedure. Because the Rules do not on their own confer jurisdiction on the federal courts, any action brought under Rule 22 must be brought under one of Congress's general jurisdictional statutes, such as 28 U.S.C.
Pros and Cons of Interpleader Actions Court rules on ownership: The process relieves the stakeholder of the burden of deciding which claimant should receive the money or property. Since the law allows the plaintiff to file a claim for attorney and court fees, the stakeholder can also recoup costs caused by the dispute.
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.
The name of a bill in equity to obtain a settlement of a question of right to money or other property adversely claimed, in which the party filing the bill has no interest, although it may be in his hands, by compelling such adverse claimants to litigate the right or title between themselves, and relieve him from ...
What is interpleader? A legal proceeding that enables a person holding money or property to compel the claimants to litigate the matter among themselves. 1 / 11.