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Civil procedure

interpleader

When there is a dispute over money (funds) or property, and the money or property is held by a person or entity who is not a party to the dispute—such as an insurance company in possession of insurance proceeds or a payment due a business under a contract in which a former employee or business partner claims an ownership interest—the party holding the disputed funds or property may place it in the registry of the court (by filing an interpleader action) and allowing the court to safeguard the funds or property until it determines the rightful owner.

In Illinois, when there is a dispute over funds or property held by a third party not involved in the dispute, the third party can use an interpleader action to deposit the disputed assets with the court. This legal process allows the court to hold the funds or property securely while the dispute is resolved. The interpleader action relieves the stakeholder from liability and prevents multiple claims against the same property or funds. The court will then determine the rightful owner or beneficiary of the assets in question. This process is governed by the Illinois Code of Civil Procedure, and parties considering an interpleader action should consult with an attorney to navigate the legal requirements and ensure proper filing of the action.

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Civil procedure

interpleader

Individual & Family Legal Plan

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Illinois State Code

Illinois State Code

Civil procedure

interpleader

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