Asked by: Dr. Christ Schmidt DDS
Score: 4.4/5 (40 votes)
A way for a holder of property to initiate a suit between two or more claimants to the property. If, for example, A holds property that he knows he does not own, but that both B and C are claiming, A can sue both B and C in an interpleader action, where B and C could litigate who actually owns the property.
Who can file interpleader suit?
Interpleader suit in C.P.C is defined in section 88 with order no XXXV. An interpleader suit means if any person claims any property of her husband or her parents and in case the owner of the property is dead without transferring the property, then the second owner has to claim the property from the bank or authority.
What does it mean to Interplead funds?
Interpleader is defined as an equitable remedy now governed by statute, whereby a holder of money such as an escrow deposits funds or property with the Court.
What happens in an interpleader?
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.
What is an interpleader agreement?
Interpleader is a civil procedure device that allows a plaintiff or a defendant to initiate a lawsuit in order to compel two or more other parties to litigate a dispute.
29 related questions found
What is the purpose of interpleader?
A way for a holder of property to initiate a suit between two or more claimants to the property. If, for example, A holds property that he knows he does not own, but that both B and C are claiming, A can sue both B and C in an interpleader action, where B and C could litigate who actually owns the property.
How do you do an interpleader?
To initiate an interpleader action, the stakeholder must file a complaint alleging that it has no claim to the asset or property in dispute and does not know to which claimant the stake should be delivered. The stakeholder must also establish the possibility of multiple lawsuits.
How long does an interpleader take?
Likewise, if the real estate broker is named in the lawsuit, the appropriate pleadings must be filed with the court enabling the broker to interplead the funds. Ordinarily, it should take two or three months for the broker's portion of the interpleader action to be completed.
What is the difference between interpleader and Impleader?
Impleader: ... The third party becomes a participant in the lawsuit and is known as a third party defendant. Interpleader: Interpleader occurs when a third party enters into a lawsuit, usually to determine that party's rights with regard to property at issue in the lawsuit.
What is an Impleader action?
A procedural device used in a civil action whereby a defendant brings into the lawsuit a third party who is not already a party to the action but may ultimately be liable for the plaintiff's claim against the defendant.
What is an originating summons?
From Longman Business DictionaryRelated topics: Law oˈriginating ˌsummons British English a document which formally begins a legal case where people agree on the facts, but need a judge to decide on the meaning of a law, contract, or other documentThe Crown struck out the originating summons on the grounds that the ...
What is interpleader action in real estate?
An interpleader action aims to determine the party who is entitled to receive money or property when a neutral third party is holding funds or property and is confronted with two or more claimants to the same money or property.
Who can not file an interpleader suit?
Who cannot file Interpleader Suit? : Order XXXV, Rule 5 of the Code of Civil Procedure, 1908 states that, an agent cannot sue his principal, and similarly, a tenant cannot sue his landlord for the purpose of compelling such principals/landlords to interplead with persons other than the ones claiming through them.
What are the conditions to be satisfied for filing an interpleader suit?
For an interpleader suit to be filed there must be a property or a sum of money that is in dispute over ownership and possession. The person currently in possession should not claim any right over the property in dispute and should rather be ready to deliver it to the respective owner once decided by the court.
How an interpleader suit is different from an ordinary suit?
Generally, ordinary suits that are filed before the Hon'ble court are between two parties, the plaintiff and the defendant. But the interpleader suit is unlike the ordinary suits between the two defendants who fight for a claim over a particular good, debt, or chattel.
What are interpleader proceedings?
Interpleader is a kind of procedure whereby a person in possession of property not being his own, and being claimed from such person (possession) by two or more other persons (so called claimants), by which the matter can be brought to court for adjudication over ostensibly valid and enforceable competing claims over ...
Can Impleader destroy diversity?
Thus even if insurance company and plaintiff are both from State A, you are allowed to destroy diversity for purposes of subject-matter jurisdiction. Cause otherwise it doesn't make sense if a defendant can't implead his insurance company simply because the plaintiff and the company are domiciled in the same state.
Are Impleader claims compulsory?
Impleading occurs when a third party—against whom the defendant may himself have a claim—is brought into the original suit in the interests of time and efficiency. ... A similar procedure is available for defendants, as compulsory counterclaims also must be raised in such a case.
What is an interpleader in Texas?
An interpleader lawsuit allows someone holding disputed funds (like an insurance company) to file a lawsuit and let a court decide the proper owner. The interpleader prevents the life insurance company from being obliged to determine - at its peril - which person has the better claim.
What is a cross claim in court?
A cross-claim is a claim by one party against a co-party (e.g., a defendant claiming against another defendant, or a plaintiff claiming against another plaintiff, arising out of the original complaint.)
What is interpleader proceedings Malaysia?
Interpleader is a procedure by which a person, faced with competing claims in respect of personal property (which he does not claim as his own), can protect himself from the uncertainty and expense of separate legal proceedings with each claimant by applying to the court to compel the claimants to settle, between ...
What is a Rule 12 motion?
Effect of a Rule 12 Motion - Absent a court order setting a different time, a Rule 12 motion extends the time to file a responsive pleading until 14 days after the court's denial of the motion or deferral to trial or, if more definite statement ordered, 14 days after service of the more definite statement. FED. R. CIV.
What is a summary suit?
Summary suit or summary procedure is provided under order XXXVII of the Code of Civil Procedure, 1908. The summary suit is a unique legal procedure used for enforcing a right in an efficacious manner as the courts pass judgement without hearing the defence.
What is a motion to intervene?
What is a Motion to Intervene? Intervention is the procedure whereby someone not named as a party to an action (or ordered joined as a party) may nevertheless become a party. (Code of Civ.
Who may sue under Section 92?
Section 92 of the Code confers right on a person in case of any alleged breach of any express or constructive trust created for a public purpose of a charitable or religious nature. Since the Trust itself was the plaintiff, the finding of the High Court is clearly erroneous and not sustainable.
FAQs
What does the legal term interpleader mean? ›
A way for a holder of property to initiate a suit between two or more claimants to the property. If, for example, A holds property that he knows he does not own, but that both B and C are claiming, A can sue both B and C in an interpleader action, where B and C could litigate who actually owns the property.
What is an interpleader for dummies? ›Introduction: 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.
What does an interpleader do? ›An interpleader is a legal procedure that helps settle disputes over ownership of money or property. The person or entity that holds the money or property under dispute can file for an interpleader to allow a court to decide which claimant is the rightful owner.
What is the meaning of interplead? ›intransitive verb. : to go to trial with each other in order to determine a right on which the action of a third party depends.
What are the different types of interpleader? ›Statutory interpleader and rule interpleader are the two types of interpleader actions that can be filed. A statutory interpleader is governed by 28 U.S.C (United States Code) § 1335.
In what situations would an interpleader procedure be used? ›An interpleader action is created when a plaintiff is in possession of property because of the other individuals or stakeholders involved in the case, but does not know who the property or res belongs to/should be in ownership of. The res is the property in question that the defendants are seeking ownership of.
What is interpleader suit with example? ›An interpleader suit is a suit in which the real dispute is between the defendants only and the defendants interplead (plead against each other) instead of pleading against the plaintiff in an ordinary suit.
Who brings an interpleader? ›The 3rd party uses this procedure to request the court to decide which claimant is entitled to that property or money. The 3rd party start the proceedings by serving an interpleader notice on the contesting claimants. Once the interpleader notice has been issued, proceedings are then stayed pending the outcome.
What are the essentials of an interpleader suit? ›The below mentioned essentials must be met in order to file an interpleader suit: Firstly, there has to be some liability, amount of the money, or other movable or immovable property in conflict; Secondly, two or more individuals must be trying to claim it detrimentally to one another; Thirdly, the plaintiff doesn't ...
What is interpleader vs Impleader? ›Impleader is available only to defendants, not plaintiffs, unlike the similar interpleader action. Plaintiffs may however implead when a defendant counterclaims, because the plaintiffs is then the counter defendant.
Who Cannot file an interpleader suit? ›
Who can not file the suit ? Defendant can not file the interpleader suit defendants claims the property from the plaintiff. No agent can sue their principle and no tenants can sue there land lord. 1-) that the plaintiff claim no interest in the subject matter he only pay the cost of the court.