Definition - What does Interpleader mean?

An interpleader is a third party that is called a stakeholder, which seeks legal interpretation and a legal release over a dispute in which they hold an asset that is being fought over by one or more parties. In this way, the stakeholder releases to the court the requirement to decide between the stakeholders and place ownership of the disputed item with one party or the other.

Justipedia explains Interpleader

This is a type of court case in which there is no money being requested by either party, only the release of some asset.

An example would be a race horse that was born of two different parties' horses; in theory, those parties could argue over the ownership of any issue of their respective horses. The stakeholder could be the stable that holds the horses. In this sense, the stable owner would not have to be the one to decide, but could hand the question over to the court for a legal decision that all parties would abide by.

Share this:

Connect with us

Find a Lawyer