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What happens in an interpleader?

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.

Does interpleader require diversity?

Although the Federal Interpleader Act requires diversity between adverse claimants, many federal courts exercise jurisdiction over strict interpleader actions pursuant to Rule 22 and § 1332 merely when the stakeholder is completely diverse from the claimants.

What is the purpose of interpleader?

The interpleader action provides the disputing claimants with a forum to obtain a court determination of their respective rights to the fund and other claims that they may have against each other.

When to use rule 22.interpleader ( a )?

Rule 22. Interpleader (a) Grounds. (1) By a Plaintiff. Persons with claims that may expose a plaintiff to double or multiple liability may be joined as defendants and required to interplead. Joinder for interpleader is proper even though:

What are the different types of interpleader actions?

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 .

How does an interpleader res Holder get released from an action?

Normally, to be released from the action, the interpleader res holder must deposit the sums with the court which will hold them while the matter is litigated. In Federal interpleader actions, Federal Rules of Civil Procedure 22 applies and provides as follows:

When to use interpleader in a crossclaim?

A defendant exposed to similar liability may seek interpleader through a crossclaim or counterclaim. Note that the requirement of common origin of claims is not required under Federal Rule 22. The essence of interpleader is to remove a party who has no real stake in the outcome of a struggle for an asset held by the party.