Mastering Interpleader Summons: A Bar Finals Guide

Introduction

Hello Class. Welcome back to our Bar Finals Study Series. Today, we are dissecting one of the most technical yet rewarding topics in Civil Litigation: Interpleader Summons.

An Interpleader is a legal proceeding where a person (the "Applicant") who is in possession of property or money, but is faced with competing claims from two or more persons, asks the court to decide who the rightful owner is. The goal is to protect the Applicant from being sued by multiple parties for the same property.

Stakeholder vs. Sheriff Interpleader

There are two primary scenarios where an interpleader arise:

• Stakeholder Interpleader: This occurs when a person (the stakeholder) is under a liability for any debt, money, or goods for which they are, or expect to be, sued by two or more parties making adverse claims. Example: An auctioneer holding proceeds of a sale claimed by both the seller and a third party.
• Sheriff's Interpleader: This occurs where a claim is made to any money, goods, or chattels taken or intended to be taken in execution by a Sheriff, and the execution creditor disputes the claim.

The Three Mandatory Conditions

For an Interpleader application to succeed, the Applicant must satisfy the court via affidavit of three things:

1. No Interest: The applicant claims no interest in the subject matter in dispute, other than for charges or costs.
2. No Collusion: The applicant does not collude with any of the claimants.
3. Willingness to Transfer: The applicant is willing to pay or transfer the subject matter into court or to dispose of it as the court may direct.

Procedural Steps & Timelines

In the High Court of Lagos (Order 43) and Abuja (Order 26), the application is made by way of Summons. If the applicant is already a defendant in a pending suit, the application can be made by Motion on Notice in that suit.

Wait! Did you know that if a claimant/defendant in an interpleader fails to appear after being served, the court may make an order forever barring their claim? This is a frequent exam point!

Ready to test your knowledge?

Try this quick 3-question Joust on Interpleader proceedings.