How to File an Interpleader

Drafting Your Complaint

Search for forms or templates. An interpleader starts with a complaint, which is in many ways similar to a complaint that would be filed in any other civil lawsuit. Some courts offer forms or templates you can use specifically for an interpleader. For example, the federal district courts have a copy of a fillable document that you can download and complete to file an interpleader without an attorney. Even if you're filing in state court, you can use this document as a guide for the information that will be required. However, keep in mind that the jurisdictional issues will differ in state court. You also can review your state's rules of civil procedure to find a general outline of the information that must be included in an interpleader complaint.

Consult an attorney. Given the complexity of an interpleader and the issues at stake, it typically is in your best interests to hire an attorney to represent you. Under federal law and the law of most states, you are entitled to reasonable attorney's fees and court costs if you are successful. Search for an attorney who has experience filing interpleader complaints on behalf of clients in situations similar to yours. You also want to make sure any attorney you hire has experience dealing with cases that involve the underlying dispute over the money or property at stake. For example, if you're holding property in trust for several individuals who all claim they have a complete right to it, you want an attorney with experience in property law as well. Generally, when you file an interpleader you're saying that you fear several parties will come after you for the money or property, and since you don't have any underlying interest in it yourself, you shouldn't be involved in the dispute. An attorney with experience in that type of dispute can evaluate your interests and position and advise you on the risk of suit you face and the liability issues for you personally.

Gather information. Your complaint must include facts about the adverse claims to the money or property you have in your possession, and you must include all parties who are claiming the money or property or have an interest in it. You need to have sufficient information for each of the individuals or businesses that hold a claim to the money or property in your possession that they can be properly named as defendants and served with your complaint. Since by the act of filing an interpleader you are asserting that you fear multiple liability because of these conflicting claims against the property or money in your possession, you must present facts that indicate at least two of the defendants you name have come after you in some way or made a demand for the money or property. If any of the defendants you name have filed a lawsuit seeking the money or property you hold, you should get copies of the complaint and other pleadings in that lawsuit so you can include those facts in your interpleader complaint.

Formulate your documents. Either on your own or with your attorney, you must create a complaint and all other documents required by the court to initiate a civil lawsuit, such as summons, notice and service forms. In some courts, you must file a complaint as well as a motion for interlocutory judgement. The motion asks the judge to make an initial ruling on whether the interpleader is rightfully with the court. Ask the clerk for some samples of interpleader documents from other cases and read the court's rules carefully to find out which procedure is followed by the court you need to use. At a minimum, your interpleader complaint should describe the money or property you're holding on behalf of others, state facts indicating there is are multiple adverse claims to the same money or property, and that you have no personal interest in that money or property. You also should include a request for reasonable attorney's fees and reimbursement of any court costs incurred in pursuing the interpleader action.

Filing Your Complaint

Sign your documents. Once you've finalized your documents, contact the clerk to find out if any special procedures are required for signing. In some courts, if you don't have an attorney you must sign your court documents at the clerk's office or in the presence of a notary public. Some courts require witnesses or verification of identification if you're signing court documents yourself and don't have an attorney, because a private person's signature doesn't carry the same oath and authority that an attorney's does. After you've signed your documents, make one copy for your own records and one copy for each of the people or businesses you've named as a defendant.

Take your documents to the clerk's office. You typically must initiate your interpleader action by filing your complaint with the clerk of the court in the county where the money or property at issue is located. Depending on the defendants and the amount of money at stake, federal court may be proper. Expect to pay a filing fee of several hundred dollars to file your complaint. You may want to call the clerk ahead of time and find out what methods of payment are accepted. After you've paid your filing fee and assuming all your documents are in order, the clerk will stamp them "filed" with the date, assign a case number, and return the copies to you. Make note of the case number because you will have to use it on all other documents you file in the case. You also will need it if you call the clerk's office to schedule or confirm a hearing date, or to check on the status of any court orders or other filings related to your interpleader.

Have the other parties served. Everyone you listed in your complaint as defendants – any person or business entity that has an adverse claim to the money or property in your possession – must be provided with a copy of the complaint and summons so they have official legal notice of your interpleader action and the opportunity to respond. You typically can choose between personal service and mail service. Personal service involves having someone not involved in the case, typically a sheriff's deputy or private process server, hand-deliver the documents to each of the defendants. Mail service tends to be cheaper and easier for you. Simply use certified mail with returned receipt requested to deliver the documents to each defendant you named. If you use mail service, you'll get a green card in the mail when the documents have been successfully delivered.

File your proof of service. Most courts have a specific form that must be completed by the individual that completes service once your complaint has been delivered. This certificate or proof of service form must then be filed with the clerk. If you hired a sheriff's deputy or private process-serving company to personally serve the defendants, they typically will fill out the certificate or proof of service form. They may file it directly with the court or return those forms to you to file. If you use certified mail, it's your responsibility to complete the forms and file them after you get the green card back for each defendant. Attach the green card or a photocopy to your court form. There typically isn't a fee to file the proof of service forms.

Evaluate any responses. There are a number of different responses that may be appropriate to a complaint for interpleader, depending on the party and the interests involved. A defendant may file an answer, just as they would in response to a complaint in a regular civil action. Responses may include waivers of any claim to the money or property, statements of claim over others, or defenses against your ability to file an interpleader. For example, a defendant may argue that you aren't entitled to interpleader because you aren't truly disinterested in the money or property you're holding, or that you can't disclaim liability. The defendants also may argue that you aren't truly in doubt as to which of them has a valid claim to the money or property you're holding, or that you aren't at risk of multiple liability because the defendants' claims aren't truly adverse.

Attending Your Hearings

Organize your documents and supporting information. Before your hearing, review the documents you've filed with the court and create an outline of the facts that support your interpleader, including any evidence you wish to submit to the court. In this regard, you also want to carefully review any responses filed by the defendants. Any issues or facts they've raised will be discussed at the hearing. Make sure you have a copy of all documents filed to take with you to the hearing. These documents may be referenced by any of the parties or by the judge, and you want to be able to follow along. You also should have copies of any statutes or rules that you're relying on to support your interpleader action.

Appear in court on the date of your hearing. Your interpleader hearing may be scheduled at a specific date and time, or it may be scheduled on the judge's general motion day during which motions on numerous cases are heard. If the court holds two hearings, the first being a hearing on an interlocutory motion, it's more likely your first hearing will be scheduled on a motion day. Even if you're represented by an attorney, you typically must show up for any hearings regarding your interpleader complaint. Although your attorney will present your case, you may be called upon as a witness. This is especially true given that the court must establish your disinterest in the money or property you are holding in order to find that interpleader is proper.

Argue your position. Using your outline and your interpleader complaint to guide you, explain to the judge why you've filed an interpleader and detail the facts that support interpleader being granted in your situation. If you're representing yourself, remember to speak only to the judge, not to the defendants directly. Since interpleader is an equitable remedy, there won't be a jury, nor is there any right to one. Interpleader is a legal matter that only a judge can decide. At the same time, you still must present facts to make a case that interpleader is proper. These facts may relate to the validity of the adverse claims to the money or property you hold, or to your disinterest in that money or property. For example, if you are holding funds in an escrow account, your status as an escrow agent can be used to show your disinterest and lack of liability for those funds. You typically would need to present documentation to the court regarding the creation of the escrow account or establishing you as an escrow agent. After you've finished your arguments, anyone you named as a defendant has the right to appear and argue that interpleader isn't proper in the situation. If they bring up facts or evidence that you didn't mention in your argument, you may have an additional opportunity to respond.

Receive the judge's decision. After the judge has heard from all sides regarding the disputed claims over the money or property you have in your possession, he or she will either issue an order granting or denying your interpleader or schedule another hearing. Often interpleader actions are the subject of two hearings: one to determine whether the interpleader is rightfully before the court, and a second to determine the rights of the various defendants who have competing claims to the money or property in your possession. If a second hearing is called, typically you will deposit the money or property in the court's registry before the second hearing, subject to the judge's decision that the interpleader is rightfully before the court. This type of ruling is called an interlocutory order because it is not a final order and does not dispose of all the issues raised in your complaint. Additionally, the judge may opt to take the matter under advisement, meaning he or she will take some time to look at the complaint and responsive pleadings again before making a final ruling. Typically courts don't require you to place the funds or property in dispute in the court's registry until after a decision is made that interpleader is proper. Some courts don't require you to deposit the funds or property at all, simply identify the location where the funds or deeds are stored. However, judges in those jurisdictions retain the right to order that those funds or property be formally turned over to the court's registry.