Interpleader is a legal tool that lets someone holding disputed property bring all potential claimants into one lawsuit. It protects the property holder from multiple lawsuits and resolves competing claims efficiently. This connects to joinder by combining related claims.

There are two types: rule interpleader and statutory interpleader. They differ in jurisdiction requirements and procedures. Understanding these differences is crucial for properly initiating an interpleader action and navigating the complexities of multi-party disputes.

Interpleader: Definition and Purpose

Legal Procedure and Protection

• Interpleader allows a party holding property or funds with multiple competing claims to join all potential claimants in a single action
• Protects the stakeholder from multiple liability and expense of defending multiple lawsuits
• Promotes judicial economy by resolving all competing claims in a single proceeding
• Typically results in stakeholder dismissal after depositing disputed property with the court

Practical Applications

• Used in various contexts where multiple parties claim entitlement to the same property or funds
• Insurance disputes (multiple beneficiaries claiming life insurance proceeds)
• Banking matters (competing claims to a bank account)
• Estate distributions (multiple heirs claiming the same inheritance)

Rule vs Statutory Interpleader

Governing Laws and Jurisdiction

• Rule interpleader governed by Federal Rule of Civil Procedure 22
• Statutory interpleader authorized by 28 U.S.C. § 1335
• Rule interpleader requires complete diversity between stakeholder and all claimants
• Statutory interpleader needs only minimal diversity (at least two adverse claimants of diverse citizenship)
• Amount in controversy for rule interpleader must meet general federal jurisdictional threshold ($75,000)
• Statutory interpleader requires only $500 for amount in controversy

Procedural Differences

• Rule interpleader follows normal service of process rules
• Statutory interpleader allows for nationwide service of process
• Statutory interpleader mandates stakeholder to deposit disputed property or funds with court
• Rule interpleader does not require such deposit
• Venue requirements differ between the two types
  • Rule interpleader follows general venue statutes
  • Statutory interpleader has its own specific venue provision

Requirements for Interpleader Actions

Stakeholder Obligations

• Face potential multiple liability from two or more claimants to same property or obligation
• Claims to property or obligation must be mutually exclusive
• File complaint in interpleader naming all potential claimants as defendants
• Describe nature of competing claims in complaint
• Demonstrate disinterested party status without stake in which claimant prevails
• May need to obtain restraining order to prevent separate actions against stakeholder

Jurisdictional Requirements

• Rule interpleader must meet subject matter jurisdiction requirements in federal court
  • Diversity of citizenship
  • Amount in controversy ($75,000)
• Statutory interpleader needs minimal diversity and $500 amount in controversy

Depositing Disputed Funds or Property

Deposit Procedures

• Statutory interpleader requires deposit of disputed funds or property with court at filing
• Rule interpleader deposit optional but advisable to show disinterested status
• Deposit typically made with court's registry
• File receipt with court as proof of deposit
• For property not easily deposited (real estate), stakeholder may post bond or other security
• Court may order additional funds to cover potential interest or appreciation during litigation

Legal Implications of Deposit

• Court assumes control over disputed property after deposit
• Allows distribution according to final judgment
• Protects stakeholder from further liability
• Enables stakeholder's dismissal from action, subject to court's discretion
• Deposit serves as tangible evidence of stakeholder's commitment to resolution