Complaint in Interpleader in Texas

What Is a Complaint in Interpleader?

Background

In circumstances of multiple liability, a party may elect to protect itself by interpleading the property that is subject to the competing claims. (Tex. R. Civ. P. 43.)

An “[i]nterpleader requires the rival claimants to litigate the ownership issue among themselves, rather than with a stakeholder who has no claim to the fund and simply seeks to pay the proper claimant.” (Clayton v. Mony Life Ins. Co. of Am., 284 S.W.3d 398, 402 [Tex. App. 2009].)

“The very purpose of interpleader is to allow an innocent stakeholder facing rival claims to let the courts decide who is entitled to the fund and thus avoid the peril of acting as judge and jury itself.” (Olmos v. Pecan Grove Mun. Util. Dist., 857 S.W.2d 734, 741-42 [Tex. App. 1993].)

How to Structure the Motion

A party is entitled to relief by interpleader if the party is subject to or has reasonable grounds to anticipate rival claims to the same funds or property. (Tri-State Pipe & Equip., Inc. v. Southern Cty. Mut. Ins. Co., 8 S.W.2d 394, 402 [Tex. App. 1999]; Olmos v. Pecan Grove Mun. Util. Dist., 857 S.W.2d 374, 741 [Tex. App. 1993]; State Farm Life Ins. Co. v. Martinez, 216 S.W.3d 799, 807 [Tex. 2007].)

Interpleader requires that there be multiple claimants, separate from the party seeking interpleader, that are disputing entitlement to funds. (Heggy v. Am. Trading Employee Ret. Account Plan, 123 S.W.3d 770, 775 [Tex. App. 2003].) This allows the party in possession of disputed funds to obtain “a discharge of liability to the competing claimants.” (Id.)

A petitioner in interpleader must prove:

That he is subject to, or has reasonable grounds to anticipate, rival claims to the same fund or property;
That he has not unreasonably delayed in filing the interpleader action; and
That he has unconditionally tendered the funds into the court.

(Tri-State Pipe & Equip., Inc. v. Southern Cty. Mut. Ins. Co., 8 S.W.2d 394, 402 [Tex. App. 1999].)

The Court’s Decision

Granting a party the right to interplead is within the sound discretion of the trial court. (Bryant v. United Shoreline Inc. Assurance Servs., 972 S.W.2d 26, 31 [Tex. 1998].)

The Supreme Court of Texas has held that “[e]very reasonable doubt should be resolved in favor of the stakeholder’s right to interplead.” (State Farm Life Ins. Co.v. Martinez, 216 S.W.3d 799, 807 [Tex. 2007].)

Once the interpleading party has brought the proper parties before the court and demonstrated the elements of interpleader, the court may then adjudicate the conflicting claims for the fund at issue. (Northshore Bank v. Commercial Credit Corp., 668 S.W.2d 787, 789 [Tex. App. 1984].) At that point, each claimant is responsible for demonstrating a superior right to the interpleaded funds. (Branch v. Monumental Life Ins. Co., 422 S.W.3d 919, 923 [Tex. App. 2014].)

Monetary Awards

When an interpleader is a disinterested stakeholder with no interest of its own in the property, the interpleader can recover its costs and attorney’s fees from the interpleaded funds. (U.S. v. Ray Thomas Gravel Co., 380 S.W.2d 576, 581 [Tex. 1964].)

Failure to award attorney’s fees to an innocent stakeholder has been held to be an abuse of discretion. (Heggy v. Am. Trading Employees Ret. Account Plan, 123 S.W.3d 770, 780 [Tex. App. 2003].) However, a stakeholder may not be entitled to recover its attorney’s fees from the deposited funds if “the interpleader was unreasonably delayed.” (State Farm Life Ins. Co. v. Martinez, 216 S.W.3d 799, 803 [Tex. 2007].)

Documents for Complaint in Interpleader in Texas

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Knights of Columbus vs Kasey Gremminger, Lois Gremminger, Larry Gremminger document preview

Citation - Kasey Gremminger - Issuance Index # 3

4 pages

THE STATE OF TEXAS CITATION TO: KASEY GREMMINGER 3702 AVENUE O ROSENBERG TX 77471 NOTICE: You have been sued. You may employ an attorney. If you or your attorney do not file a written answer with the clerk who issued this citation by 10:00 a.m. on Monday next following the expiration of twenty days after you were served this citation and PLAINTIFF'S ORIGINAL PETITION IN INTE…

Case Name Knights of Columbus vs Kasey Gremminger, Lois Gremminger, Larry Gremminger