When you don’t want to hold money that doesn’t belong to you
Sometimes a person or company can be in possession of property or money that should go to other people but the other people won’t or can’t accept the property or money… or might even disagree who should get the property or money. For example, if both the buyer and seller of a car ask you to hold a down payment deposit until the sale of the car takes place, but the sale then falls through and the buyer and seller can’t agree who gets the deposit, what do you do?
Nevada law allows a type of court filing that is called an “Interpleader.” Specifically, Nevada Rule of Civil Procedure 22 states: Interpleader: (a) Grounds. (1) By a Plaintiff. Persons with claims that may expose a plaintiff to double or multiple liability may be joined as defendants and required to interplead. Joinder for interpleader is proper even though: (A) the claims of the several claimants, or the titles on which their claims depend, lack a common origin or are adverse and independent rather than identical; or (B) the plaintiff denies liability in whole or in part to any or all of the claimants. (2) By a Defendant. A defendant exposed to similar liability may seek interpleader through a crossclaim or counterclaim. (b) Relation to Other Rules and Statutes. This rule supplements–and does not limit–the joinder of parties allowed by Rule 20. The remedy this rule provides is in addition to —-and does not supersede or limit–the remedy provided by any Nevada statute authorizing interpleader. These rules apply to any action brought under statutory interpleader provisions, except as otherwise provided by Rule 81. (There is also a similar Federal Rule.)
Such legal actions are fairly common in Nevada and always involve someone who has property belonging to another. That someone who is in possession of the property is referred to as a “stakeholder.” The stakeholder may have artwork, jewels, death proceeds or insurance proceeds from a life insurance policy. The purpose of such an action is to have the stakeholder properly deposit ( i.e. get rid of) the property that is in their hands by depositing the property or money with the Court. Then, those making claims for the property or money can fight over who gets the property or money without further involving the stakeholder. The Court ultimately decides who gets what. If you have a question about what to do when you don’t want to hold money that doesn’t belong to you, the attorneys at Lemons, Grundy & Eisenberg may be able to answer questions about such a matter.