MBE Rules · Civil Procedure
Statutory Interpleader Details
Statutory interpleader details
The rule
Statutory interpleader needs only two diverse claimants and a $500 stake deposited into court, with nationwide service and venue where any claimant resides — rule interpleader requires normal diversity and venue.
In plain English
Statutory interpleader allows a party holding property to initiate a lawsuit to determine who among two or more claimants is entitled to it. It requires only two claimants from different states and a minimum amount of $500 deposited with the court, and it provides for nationwide service of process and venue based on where any claimant resides.
Worked example
A bank holds a $1,000 deposit that two individuals, Alice and Bob, are claiming. Alice lives in California and Bob lives in New York, creating diversity. The bank deposits the $1,000 into the court and files for statutory interpleader. The court can hear the case since there are two diverse claimants and the amount exceeds $500.
Memory hook
Statutory interpleader: two claimants, $500, nationwide reach!
The trap
Exams may confuse students by mixing statutory interpleader with rule interpleader, which has stricter requirements for diversity and venue. Students might overlook the lower threshold for the amount in controversy.
How examiners test it
Questions often present a scenario with multiple claimants to a single fund or property and ask whether statutory interpleader is appropriate, focusing on diversity and the deposit requirement.
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