Interpleader Legal Meaning and Definition

Here is a simplified definition of the legal term Interpleader.

Interpleader (noun)

An interpleader is a legal procedure in which a party who owes money or property (like a third party in dispute) asks the court to decide who amongst two or more claimants they should pay or deliver the property to. This is done to avoid the risk of multiple liability or loss of the property/money. The third party typically deposits the disputed funds or property with the court and is then exempt from future litigation regarding the disputed item. The court then determines the rightful claimant through the process of interpleader.