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Civil Litigation

Dec. 29, 2012

Interpleader: not a get-out-of-jail-free card

When it comes to insurance companies, interpleader actions are not an all-purpose get-out-of-jail-free card to avoid liability for multiple claims to the same stake.

J. Benjamin Blakeman

Blakeman Law

Phone: (213) 629-9922

Email: ben@lifeinsurance-law.com

Burton Mark Senkfor

The federal interpleader remedy was designed as a type of safe harbor. The purpose of these statutes (Federal Rule of Civil Procedure 22 and 28 U.S.C. Section 1335) is to permit a stakeholder to avoid the risk of liability for multiple claims for the same stake, where the stakeholder claims no interest in the stake and does not want to determine at its peril which of the claimants has the better claim. The remedy not only permits stakeholders to recover costs and attorney fees in filing ...

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