28 USC 1335 allows a stakeholder facing competing claims to money or property to bring a federal statutory interpleader action when its requirements are met. It can help avoid paying the same obligation twice. The statute requires more than simply preferring a federal forum.
The core jurisdiction requirements
The disputed money, property, or obligation must have a value of at least $500. There must be at least two adverse claimants of the required diverse citizenship who claim or may claim entitlement. The stakeholder must deposit the disputed value into the court registry or provide the required bond. [1]
This is often described as minimal diversity between claimants, rather than the complete-diversity rule familiar in ordinary diversity litigation. Citizenship means the legal jurisdictional concept, not merely where someone is currently staying.
Why the deposit matters
The stakeholder cannot assume that attaching a description of the fund satisfies the deposit or bond requirement. Determine what property or amount is genuinely in dispute and follow the court’s registry procedures. Interest, policy limits, competing claims, or retained interests can complicate the calculation.
For example, an insurer receiving incompatible beneficiary claims may seek one proceeding to decide entitlement. Whether it can obtain discharge, recover fees, or retain a disputed portion requires separate analysis.
Special procedures are available
Section 2361 authorizes specified nationwide process and permits injunctions addressing proceedings affecting the property, instrument, or obligation involved. It also supports discharge and appropriate orders after the dispute is resolved. Those powers are tied to a proper statutory interpleader case and do not authorize unlimited control over every related lawsuit. [2]
Do not confuse it with Rule 22
Rule interpleader and statutory interpleader are distinct routes. Rule 22 does not itself supply subject-matter jurisdiction, and its jurisdictional, service, and venue analysis can differ. Choose the route before drafting jurisdictional allegations.
- Identify every known adverse claimant and citizenship.
- Document the fund and competing obligations.
- Arrange the required deposit or bond.
- Separate stakeholder discharge from the claimants’ entitlement dispute.
Compare federal question jurisdiction and consolidating related federal civil actions. Consolidation can coordinate existing cases, but it does not replace section 1335’s requirements or create an interpleader fund by itself.
Primary sources
Sources checked: October 31, 2026.