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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 Tennessee, when there is a dispute over funds or property that is held by a third party not involved in the dispute, the third party can use a legal process called 'interpleader' to avoid liability and have the court determine the rightful owner. This is often used by insurance companies, banks, or other entities that hold assets which are claimed by multiple parties. By filing an interpleader action in the appropriate court, the entity deposits the disputed funds or property with the court, effectively removing themselves from the dispute. The court then holds the funds or property in its registry and adjudicates the matter, ensuring that the assets are distributed to the rightful claimant(s) after resolving the dispute. This process helps protect the stakeholder from multiple liabilities and lawsuits over the same property or funds.

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Civil procedure

interpleader

Individual & Family Legal Plan

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Tennessee State Code

Tennessee State Code

Civil procedure

interpleader

Articles