Interpleader is a form of action originally developed under
equity jurisprudence. It allows a
plaintiff to initiate a
lawsuit in order to compel two or more other parties to
litigate a dispute. An interpleader action originates when the plaintiff holds property on behalf of another, but doesn't know to whom the property should be transferred. It is often used to resolve disputes arising under
insurance contracts.
Usage
In an interpleader action, the party initiating the litigation, normally the plaintiff, is termed the
stakeholder. The money or other property in controversy is called the
res. All defendants having a possible interest in the subject matter of the case are called
claimants.
Application
For example, suppose a person dies with a
life insurance policy. However, the insurance company knows there will be a dispute over who should receive the proceeds. The insurance company can file an interpleader action. The insurance company is the stakeholder, the claimants are the persons who might be beneficiaries under the policy, and the cash value of the policy benefit is the
res. Under the proceeding as originally developed, the stakeholder would deposit the
res with the court, and then the defendants would have their claims adjudicated by the court. Statutory modifications to the procedure (varying, of course, by jurisdiction) sometimes allow the stakeholder to retain the
res pending final disposition of the case.
History
Formerly a plaintiff had to disavow any claim to the
res in order to avail himself of the interpleader remedy, but this requirement has also been relaxed or abolished in most jurisdictions. A plaintiff may now argue that neither of the claimants has a right to the property at issue. For example, a person dies with a life insurance policy that excludes coverage for suicide. Two people come forward claiming to be the beneficiary named in the policy. The insurance company believes that the deceased committed suicide, but the claimants believe the death was by accident. The insurance company could interplead the two claimants and simultaneously deny the claims.
Different types of interpleader in U.S. practice
Interpleader actions in the
United States district courts are authorized by
28 U.S.C. 1335. This is known as statutory interpleader. Statutory interpleader is different from rule interpleader. Statutory interpleader allows for a stakeholder to have broader federal jurisdiction.
Interpleader is also allowed by the Federal Rules of Civil Procedure Rule 22. Rule 22 is known as rule interpleader. Rule interpleader is allowed where there is complete
diversity and the amount in controversy exceeds 75,000 dollars. These requirements satisfy
28 U.S.C. 1332. Rule interpleader gives fewer rights to a stakeholder than statutory interpleader.
See
[1] for the Federal Rules of Civil Procedure.
Rule 22. Interpleader
(1) 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. It is not ground for objection to the joinder that the claims of the several claimants or the titles on which their claims depend do not have a common origin or are not identical but are adverse to and independent of one another, or that the plaintiff avers that the plaintiff is not liable in whole or in part to any or all of the claimants. A defendant exposed to similar liability may obtain such interpleader by way of cross-claim or counterclaim. The provisions of this rule supplement and do not in any way limit the joinder of parties permitted in Rule 20.
(2) The remedy herein provided is in addition to and in no way supersedes or limits the remedy provided by Title 28, U.S.C. §§ 1335, 1397, and 2361. Actions under those provisions shall be conducted in accordance with these rules.
Civil procedure is the body of law that sets out the process that courts will follow when hearing cases of a civil nature (a "civil action", as opposed to a criminal action).
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The Federal Rules of Civil Procedure (FRCP) are rules governing civil procedure in United States district (federal) courts, that is, court procedures for civil suits. The FRCP are promulgated by the United States Supreme Court pursuant to the Rules Enabling Act, and then approved
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The Civil Procedure Rules 1998 (CPR) are the rules of Court governing civil cases in the Court of Appeal, High Court and County Court in England and Wales. They apply to all cases commenced after 26 April 1999, and largely replace the Rules of the Supreme Court and the County Court
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Civil procedure doctrines are rules developed by case law as opposed to being set down in codes or legislation, which, together with court rules and codes, define the steps that a person involved in a civil lawsuit can (or can not) take.
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jurisdiction (from the Latin ius, iuris meaning "law" and dicere meaning "to speak") is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to
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In civil procedure, the subject-matter jurisdiction of a court determines the kinds of claims or disputes over which it has jurisdiction, or the power to render a decision.
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In United States law, diversity jurisdiction is a concept used in civil procedure to refer to the situation in which a U.S. (federal) district court has subject matter jurisdiction to hear a civil case due to the parties being "diverse" in citizenship, generally indicating that
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Personal jurisdiction in United States law refers to a court's power over a particular defendant (in personam jurisdiction) or an item of property (in rem jurisdiction).
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In the United States, removal jurisdiction refers to the power of a defendant to move a lawsuit filed in state court to the Federal district court of the original court's district.
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Venue is the location where a case is heard. In the United States, the venue is either a county (for cases in state court) or a district or division (for cases in federal court). Each case can only be brought in certain venues.
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A change of venue is the legal term for moving a trial to a new location. In high-profile matters, a change of venue may occur to move a jury trial away from a location where a fair and impartial jury may not be possible due to widespread publicity about a crime and/or defendant(s)
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Forum non conveniens (Latin for "inconvenient forum" or "inappropriate forum") is a discretionary power of mostly common law courts to refuse to hear a proceeding that has been brought before it.
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highly specialized aspect of its associated subject.
Please help [ improve this article] by adding more general information.
In law, a
pleading is one of the papers filed with a court in a civil action, such as a complaint, a demurrer, or an answer.
..... Click the link for more information. A legal motion is a procedural device in law to bring a limited, contested matter before a court for decision. A motion may be thought of as a request to the judge (or judges) to make a decision about the case.
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Service of process is the procedure employed to give legal notice to a person (defendant etc.) of a court or administrative body's exercise of its jurisdiction over that person so as to enable that person to respond to the proceeding before the court, body or other tribunal.
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In general use, a complaint is an expression of displeasure, such as poor service at a store, or from a local government, etc. Under common law, a complaint is a formal legal document that sets out the basic facts and legal reasons (see: cause of action) that the filing party (the
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In the law, a cause of action (sometimes called a claim) is a set of facts sufficient to justify a right to sue. The phrase is also used to reference the legal theory upon which a plaintiff brings suit (such as breach of contract, battery, or false imprisonment).
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The title
Class Action refers to multiple works (see
class action for the legal term):
- Class Action, a 1991 film starring Gene Hackman and Mary Elizabeth Mastrantonio
- Class Action
..... Click the link for more information. The U.S. Class Action Fairness Act of 2005, 28 U.S.C. Sections 1332(d), 1453, and 1711-1715, expanded federal jurisdiction over many large class-action lawsuits and mass actions.
The bill was the first major legislation in the second term for the Bush Administration.
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In common law civil procedure, a demurrer is a pleading by the defendant that contests the legal sufficiency of the complaint without admitting or denying the allegations therein. Demurs are usually filed at the beginning of a case.
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answer (derived from and, against, and the same root as swear) was originally a solemn assertion in opposition to some one or something, and thus generally any counter-statement or defence, a reply to a question or objection, or a correct solution of a problem.
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Criminal law
Part of the common law series
Elements of crimes
Actus reus · Causation · Concurrence
Mens rea · Intention (general)
Intention in English law · Recklessness
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The reply is a response by plaintiff to defendant's answer. A reply occurs only when defendant has asserted a counterclaim or the court has ordered a reply.
It is important to keep in mind that "plaintiff" in this context may also refer to an impleaded party.
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A Counterclaim is made by the defendant to a civil proceeding, in a main actions against the plaintiff or against the plaintiff and other people. This claim may be an attempt to offset or reduce the amount/implications of the plaintiff's original claim against the defendant, or it
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A cross-claim is a claim brought against a co-party in the same side of a lawsuit. That is, a plaintiff brings a claim against another plaintiff, or a defendant brings a claim against another defendant.
U.S.
..... Click the link for more information. Joinder is a legal term which refers to the inclusion of additional counts or additional defendants on an indictment. In English law, charges for any offence may be joined in the same indictment if those charges are founded on the same facts, or form or are a part of a series of
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Impleader is a procedural device before trial in which one party joins a third party into a lawsuit because that third party is liable to an original defendant: for example, in a case where a driver rear-ended another car due to faulty brakes, and is sued by the accident victim,
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In law, intervention is a procedure to allow nonparties to join ongoing litigation, either as a matter of right or at the discretion of the court, without the permission of the original litigants.
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trial is an event in which parties to a dispute present information (in the form of evidence) in a formal setting, usually a court, before a judge, jury, or other designated finder of fact, in order to achieve a resolution to their dispute.
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worldwide view.
In law,
discovery is the pre-trial phase in a lawsuit in which each party through the law of civil procedure can request documents and other evidence from other parties or can compel the production of evidence by using a subpoena or through
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