2023 New York Laws › CVP - Civil Practice Law and Rules › Article 10 - Parties Generally › 1006 - Interpleader.

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