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Interpleader is civil procedure that allows a plaintiff to initiate a lawsuit in order to compel two or more other parties to litigate a dispute. An interpleader action originates when the plaintiff holds property on behalf of another, but does not know to whom the property should be transferred.
Convenient, Affordable Legal Help - Because We Care! Interpleader Law and Legal Definition. Interpleader is the procedure when two parties are involved in a lawsuit over the right to collect a debt from a third party, who admits the money is owed but does not know which person to pay. The debtor deposits the funds with the court (interpleads), asks the court to dismiss him/her/it from the lawsuit and lets the claimants settle their dispute in court.