Also known as:interpleader · interpleaders · interplead · interpleaded · interpleading · interpleader action · statutory interpleader
Written by attorneys · grounded in primary & secondary sources — see below
A procedural mechanism by which a stakeholder holding funds or property subject to competing claims may join all claimants as defendants in a single action. The claimants are then required to litigate their respective rights among themselves. This device protects the stakeholder from the risk of double or multiple liability arising from inconsistent obligations.
Sources & Authorities
How it applies
Common Examples
2
Auction House Resolves Competing Title Claims
Iris Energy holds auction proceeds from a painting sale. The consignor gallery, an heir of the original owner, and a restitution foundation each demand the entire sum based on conflicting title assertions. Iris Energy joins all three as defendants in one federal action and deposits the funds with the court. The claimants must then litigate entitlement among themselves, discharging Iris Energy from further liability once the court determines the proper recipient.
Insurer Consolidates Policy Limit Demands
Imperial Motors faces multiple demands on a single liability policy after a multi-vehicle accident. Several injured parties and estates assert adverse claims exceeding the policy limits based on bodily injury and wrongful death theories. Imperial Motors files an action naming all claimants as defendants and deposits the limits with the court. The claimants litigate priority and shares among themselves, shielding Imperial Motors from separate inconsistent judgments.
Put it into practice
Test Yourself
10
Practice Questions5
· 11 primary sources
Select any source to read its text and confirm it supports the definition.
Statutes
Federal Rules
Uniform Acts
Restatements
Hornbooks
Common questions
Frequently Asked
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Does interpleader require that all competing claims share a common origin or identical legal title?+
No. The rule expressly permits joinder even when the claims lack a common origin or are adverse and independent rather than identical. A stakeholder may still join the claimants and require them to interplead as long as the claims may expose it to double or multiple liability on the same fund or property.
Supporting sources
Can a stakeholder use interpleader when it denies liability in whole or in part to one or more claimants?+
Yes. The rule allows interpleader even though the plaintiff denies liability in whole or in part to any or all of the claimants. The focus remains on the risk of multiple liability rather than an admission of full obligation to every claimant.
Supporting sources
What protection does a stakeholder obtain by depositing the disputed fund with the court in an interpleader action?+
The stakeholder may be discharged from further liability once the court determines the rightful claimant or claimants. This prevents the stakeholder from facing separate suits that could result in inconsistent judgments requiring payment of the same fund more than once.
Supporting sources
May a defendant exposed to similar multiple-liability risk seek interpleader through a crossclaim or counterclaim?+
Yes. A defendant facing comparable exposure may initiate interpleader by crossclaim or counterclaim against the adverse claimants. This extends the same protective mechanism to parties already in litigation who hold disputed property or funds.
Supporting sources
Civil ProcedurePretrial procedures · Joinder of parties and claims (including class actions)UBEFoundational