New York Sample Letter for Interpleader Action
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How to fill out Sample Letter For Interpleader Action?
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FAQ
An original bill, like a complaint, filed by a party against two or more people who claim a right to the party's same debt or duty. The filing party asks the court to compel the claimants to litigate and establish their rights to this debt or the duty.
By bringing an interpleader action, a stakeholder can have claimants litigate among themselves, determine which claimants have a rightful claim to the property, and avoid multiple liability. For example, A holds one million dollars. B and C each claim to be the sole owner of the money that A possesses.
There are two specific types of interpleader actions in the United States federal courts. Statutory Interpleader governed by 28 U.S.C. § 1335, and Rule Interpleader established by Federal Rules of Civil Procedure 22.
An interpleader proceeding has two stages. The first stage determines if the stakeholder is entitled to an interpleader and if he, she or it should be discharged from liability. The second stage is like an action at law to determine which of the claimants is entitled to the res.
(1) By a Plaintiff. Persons with claims that may expose a plaintiff to double or multiple liability may be joined as defendants and required to interplead.
By bringing an interpleader action, a stakeholder can have claimants litigate among themselves, determine which claimants have a rightful claim to the property, and avoid multiple liability. For example, A holds one million dollars. B and C each claim to be the sole owner of the money that A possesses.
Pros and Cons of Interpleader Actions Court rules on ownership: The process relieves the stakeholder of the burden of deciding which claimant should receive the money or property. Since the law allows the plaintiff to file a claim for attorney and court fees, the stakeholder can also recoup costs caused by the dispute.
Verb (used without object),in·ter·plead·ed, in·ter·plead·ing. Law. to litigate with each other in order to determine which of two parties is the rightful claimant against a third party. to bring two or more claimants before a court to determine which of them is entitled to a claim that a third party recognizes.