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Any person, firm, corporation, association or other entity against whom double or multiple claims are made, or may be made, by two or more persons which are such that they may give rise to double or multiple liability, may bring an action against the claimants to compel them to interplead and litigate their several
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.
Interpleader is a procedure whereby a person holding money or personal property to which conflicting claims are being made by others, can join the adverse claimants and force them to litigate their claims among themselves. (Hancock Oil Co. v. Hopkins (1944) 24 Cal. 2d 497, 508; City of Morgan Hill v.
Interpleader Action Under 28 U.S.C. 1335 In order for this court to have jurisdiction over this action, at least two defendants must be citizens of different States as defined in 28 U.S.C. 1332(a) or (c), and the value of the property in controversy must be at least $500.
Interpleader is a remedy that invokes the courts equitable power to dispose of a fund or property (the property or the res) to which there are conflicting claims.
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Types of Interpleaders Statutory Interpleader: This action is governed by 28 U.S.C. 1335, which originated from the Federal Interpleader Act of 1936 and is based on law. Rule Interpleader: This action is established by the Federal Rules of Civic Procedure 22 and deals with the rule of the case.