An interpleader suit is for someone who’s stuck in the middle of a dispute they didn’t create. Imagine a warehouse owner holding goods while two different people claim to be the real owner. The warehouse doesn’t want to decide who is right – it just wants to safely hand over the goods and move on.

In such cases, the neutral party can file an interpleader suit. The message to the court is: “I’m ready to hand over the property or money, but I don’t know to whom. Please decide and protect me from future claims.”

Conditions usually are:

• The plaintiff (neutral party) has no interest in the subject matter except charges or costs,
  
• Two or more defendants are making adverse claims,
  
• The plaintiff is genuinely willing to deliver the property to whoever the court declares as entitled.
  

Once the suit is filed, the court can freeze the property, direct deposit of money, and then let the rival claimants fight it out between themselves. The neutral party often gets discharged early from the case.

For banks, warehouses, brokers, and sometimes even tenants, interpleader is a useful tool to avoid double liability. Instead of guessing and risking being sued by the other side, they take the issue straight to court and ask for a clear ruling.