INTERPLEADER CASES

An interpleader case is not a traditional dispute between a plaintiff and defendants. Rather, its purpose is to determine the defendants’ rights to something of value, often a monetary fund, that plaintiff is holding but does not claim.  In order to adjudicate defendants’ rights to money, the court first considers whether the interpleader action is proper based on the available evidence.  If the interpleader action is proper, the court has the plaintiff deposit the funds with the clerk of court, and usually discharges the plaintiff from the action.  Then the defendants attempt to prove their individual right to the money.

Common examples of a specific fund the plaintiff may be holding include an insurance policy or escrow account, a bank account, or something similar.

As a result, interpleader actions are a useful tool for a party holding money to which other parties are disputing claims.  The interpleader can limit its own involvement, attorney fees, court costs, and unexpected liability.

Law Office of Andrew Szocka, P.C. can be contacted online or by phone at (815) 455-8430.