INTERPLEADER COURT ACTIONS
An interpleader case is not a traditional type of lawsuit between the parties. Rather, an interpleader lawsuit’s purpose is to determine the parties’ rights to something of value, usually money, that plaintiff is holding but does not claim an interest.
Illinois courts have codified an interpleader action as parties having claims against the plaintiff that arise out of the same or related subject matter when their claims may expose plaintiff to multiple liability. 735 ILCS 5/2-409. In order to adjudicate defendants’ rights to a fund, 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 fund.
Common examples of specific money the plaintiff may be holding include an insurance policy or escrow account. As a result, interpleader actions are a useful tool for a party holding valuable property to which other parties are disputing claims. The interpleader can limit its own involvement, attorney fees, court costs, and unexpected liability.
If you need assistance with an interpleader case, contact the Law Office of Andrew Szocka, P.C. online or by phone at (815) 455-8430.