interpleading
/ˌɪntərˈpliːdɪŋ/
noun
- A legal process in which a third party (such as a bank or insurance company) asks a court to decide who among multiple claimants is entitled to money or property that the third party holds.
- The bank filed an interpleading to let the court decide which relative should receive the deceased customer's savings.
- The lawyer explained that interpleading protects the holder from being sued by multiple people claiming the same asset.
- In an interpleading, the insurance company deposited the disputed funds with the court and asked the judge to determine the rightful beneficiary.
verb
- To initiate or participate in a legal interpleading action; to ask a court to resolve conflicting claims to property held by a neutral party.
- If you hold funds that multiple people demand, you may interplead to avoid paying the wrong person.
- The escrow agent decided to interplead when two buyers both claimed the earnest money deposit.
- The company chose to interplead rather than risk being sued twice over the same payment.