What is an Interpleader Case

An interpleader case is not a traditional dispute between people.  Rather, an interpleader cases purpose is to determine a persons’ rights to something of value, often a monetary fund, that a plaintiff is holding but does not claim any interest in.

An interpleader action has 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.  It is the plaintiff that is the interpleader and also referred to as the “stakeholder”.  The court’s task is to determine the defendants’ rights as to the specific fund being held by the plaintiff/interpleader/stakeholder, and that is the subject of the interpleader action.  Amalgamated Trust & Savings Bank, 121 Ill.App.3d at 1041.

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.  The defendants then 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.

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.

For additional information on interpleader actions, contact the Law Office of Andrew Szocka, P.C. at (815) 455-8430.