§ 1006 — Interpleader

New York § 1006

• Jurisdiction: New York
• Law CVP: Civil Practice Law & Rules
• Art. 10: Parties Generally

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§ 1006. Interpleader. (a) Stakeholder; claimant; action of\ninterpleader. A stakeholder is a person who is or may be exposed to\nmultiple liability as the result of adverse claims. A claimant is a\nperson who has made or may be expected to make such a claim. A\nstakeholder may commence an action of interpleader against two or more\nclaimants.\n (b) Defensive interpleader. A defendant stakeholder may bring in a\nclaimant who is not a party by filing a summons and interpleader\ncomplaint. Service of process upon such a claimant shall be by serving\nupon such claimant a summons and interpleader complaint and all prior\npleadings served in the action.\n (c) Effect of pendency of another action against stakeholder. If a\nstakeholder seeks to bring in a claimant pursuant to subdivision (b) and\nthere is pending in a court of the state an action between the claimant\nand the stakeholder based upon the same claim, the appropriate court, on\nmotion, upon such terms as may be just, may dismiss the interpleader\ncomplaint and order consolidation or joint trial of the actions, or may\nmake the claimant a party and stay the pending action until final\ndisposition of the action in which interpleader is so granted, and may\nmake such further order as may be just.\n (d) Abolition of former grounds for objection. It is not ground for\nobjection to interpleader that the claims of the several claimants or\nthe titles on which their claims depend do not have a common origin or\nare not identical but are adverse to and independent of one another, or\nthat the stakeholder avers that he is not liable in whole or in part to\nany or all of the claimants.\n (e) Issue of independent liability. Where the issue of an independent\nliability of the stakeholder to a claimant is raised by the pleadings or\nupon motion, the court may dismiss the claim of the appropriate\nclaimant, order severance or separate trials, or require the issue to be\ntried in the action.\n (f) Discharge of stakeholder. After the time for all parties to plead\nhas expired, the stakeholder may move for an order discharging him from\nliability in whole or in part to any party. The stakeholder shall submit\nproof by affidavit or otherwise of the allegations in his pleading. The\ncourt may grant the motion and require payment into court, delivery to a\nperson designated by the court or retention to the credit of the action,\nof the subject matter of the action to be disposed of in accordance with\nfurther order or the judgment. An order under subdivision (g) shall not\ndischarge the stakeholder from liability to any claimant until an order\ngranted under this subdivision is complied with. The court shall impose\nsuch terms relating to payment of expenses, costs and disbursements as\nmay be just and which may be charged against the subject matter of the\naction. If the court shall determine that a party is entitled to\ninterest, in the absence of an agreement by the stakeholder as to the\nrate of interest, he shall be liable to such party for interest to the\ndate of discharge at a rate no greater than the lowest discount rate of\nthe Federal Reserve Bank of New York for discounts for, and advances to,\nmember banks in effect from time to time during the period for which, as\nfound by the court, interest should be paid.\n (g) Deposit of money as basis for jurisdiction. Where a stakeholder is\notherwise entitled to proceed under this section for the determination\nof a right to, interest in or lien upon a sum of money, whether or not\nliquidated in amount, payable in the state pursuant to a contract or\nclaimed as damages for unlawful retention of specific real or personal\nproperty in the state, he may move, either before or after an action has\nbeen commenced against him, for an order permitting him to pay the sum\nof money or part of it into court or to a designated person or to retain\nit to the credit of the action. Upon compliance with a court order\npermitting such deposit or retention, the sum of money shall be deemed\nspecific property within the state within the meaning of paragraph two\nof section 314.\n