Posts tagged Interpleader Action.
In my last blog post on interpleader actions, we explored the benefits a financial services firm can obtain from filing an interpleader action. An interpleader action protects the holder of assets (such as a bank account, brokerage account or life insurance policy proceeds) when there is a dispute between two or more parties claiming ownership. The holder, or stakeholder, can file an interpleader action to deposit the assets (the "res") into court to allow the competing claimants to litigate over the ownership of the property, allowing the stakeholder to be discharged from further ...
Financial services firms oftentimes can find themselves in the unenviable position of being in the middle of a dispute over money or property held by their clients. If two or more parties assert competing claims to the ownership of assets held at a financial institution, the institution with custody of the account-the "stakeholder"-can initiate a complaint in interpleader to allow a court to determine the rightful owner of the assets and obtain a discharge from further liability. Here is how an interpleader action operates and how it can protect the stakeholder: When a ...
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