The What's What Of Legalese: "Impleader vs. Interpleader"

In litigation, two legal processes — impleader and interpleader — involve bringing third parties into a case. And while they do share some similarities, each has distinct purposes and serves different functions.

To this end, knowing how the two work can make a significant difference in how a case is handled. For a detailed analysis, please continue reading. Alternatively, you can call Schwartzapfel Lawyers at 516-342-2200 or schedule your free consultation with our award-winning team online now.

Impleader: "Shifting Liability To A Third Party"

Impleader is a process where a defendant adds a third party to the lawsuit. This is done not to bring in new claims against the defendant, but to shift some or all of the liability to that third party. Consider:

  • Third-Party Defendant: The third party brought into the lawsuit is known as the "third-party defendant."
  • Shifting Liability: Impleader is often used when the defendant believes that someone else is actually responsible for the plaintiff’s claim. For example, a business might bring in a supplier or contractor that it thinks should bear the cost of a legal judgment.
  • Indemnification: It’s commonly used for indemnification purposes. For instance, if a company is sued for negligence, it might implead its insurance company or a subcontractor to cover the costs.

Interpleader: "Settling Disputed Ownership of Property"

Interpleader comes into play when a third party holds property or money that multiple parties claim to own. Instead of deciding who should get it, the third party deposits the property with the court and lets the court figure out the rightful owner. Here, consider:

  • Multiple Claims: The third party is caught in the middle, unsure who has the legitimate claim to the property or funds.
  • Depositing with the Court: The third party deposits the disputed money or property with the court, and the court decides who is entitled to it.
  • Clearing Up Confusion: This is often used in situations like insurance claims, where the insurer is uncertain about who should receive a payout.

How Are They Governed?

Soup To Nuts

While impleader is about shifting responsibility, interpleader is about resolving competing claims over disputed property. And while both tools streamline the process when third parties have a stake in the outcome, they do so in different ways. As such, knowing when to use each can help litigants succeed in more complex multi-party cases.

To learn more now, don't wait until it's too late. Instead, call Schwartzapfel Lawyers at 516-342-2200 and have us fight for you!