INTERPLEADER WHAT IS IT AND WHY WOULD YOU FILE FOR IT?
When a person or institution comes into a situation where they face two conflicting parties, each claiming they are entitled to an asset held by the person/institution, it, can be difficult to know what to do. Providing the asset to either party could open the holder to liability and potential lawsuits. If this is the case and the person holding on to the asset cannot determine who the proper party to hand over the assets to is, they typically must file for Interpleader.
Interpleader is a legal filing where a person or institution states to the Court that there is a situation where the holder of an asset has conflicting claims to ownership of said asset. When a party files for Interpleader, they will file their Complaint with the court of local jurisdiction over the asset, explaining the situation and asking the Court to take possession of the asset.
The Interpleader complaint requests that the person holding the asset be allowed to deposit the assets with the Court. In the Complaint the Plaintiff names all parties that are making claims towards the asset as defendants and then has them served with summons. The Plaintiff explains in the Complaint document, what the circumstances are that have resulted in the Plaintiff receiving claims from multiple parties to the same asset.
The Complaint asks the Court to take possession of the asset until the Court is able to make a determination as to who is properly entitled to said asset. The Court will first review the Complaint to determine if there is in fact a case of conflicting liability and a genuine question of ownership. If the Court determines that there is in fact a risk of the Plaintiff facing liability from two equally competing claims and they determine Plaintiff is not able to fulfill either claim without facing judicial recourse from the other, the Court will grant the Complaint for Interpleader.
Interpleader is a valuable tool for businesses, individuals and holding institutions that often come into possession of the money or assets of other people. It isn’t out of the ordinary for a bank to receive conflicting claims to a deceased’s money, or sometimes there may be differences of opinion as to who the intended beneficiary is of an insurance policy, all these scenarios and more are reasons that Interpleader is very often used to ensure that the person holding onto an asset is not then pressured into giving it to the wrong person or held liable by another person for giving away their property.
If you are in a situation where you are receiving claims to an asset you hold from two conflicting parties and are unsure who is the true owner, consider contacting the Law Office of Andrew Szocka P.C. at 815-455-8430 or by emailing us at info@szocka.com. We have extensive experience with interpleader cases and can help ensure you are not caught in the middle of a serious dispute or facing unnecessary liability.