Federal Court Interpleader– will you get the insurance money?

Did you get served with a federal court interpleader suit? Somebody, most probably a financial company, wants to put money into the court registry. Insurance proceeds? Annuity? Bank account? Whether you inherit or can make a claim may depend on how you act and handle this unique type of lawsuit. To understand what this is all about, keep reading. For free Florida legal commentary on interpleader law in general, check it out by CLICKING HERE.

What is Federal Court Interpleader?

Interpleader is an action where someone with property wants to get rid of it. And avoid any liability. Or avoid spending more time or money dealing with “who gets it.” Interpleader actions are filed in both Florida state courts and also Federal Courts.

In Florida, literally millions and millions of dollars are subject of interpleader actions. Insurance policy proceeds, IRAs, bank accounts, annuities, financial accounts. You name it. It’s common that a life insurance or annuity company or bank is holding a lot of money. And there may be competing claims. In other words, there’s a question of who inherits it. And potential litigation. What does the “stakeholder” do?

State and federal law permit the life insurance death proceeds or the annuity to be deposited into the federal court registry. The stakeholder wants to be discharged or relieved of liability. The money is left there to be resolved by those who make a claim to it.

But your claim needs to be based upon the law and filed properly with the federal court. Most experienced interpleader trial lawyers will tell you that the work and experience in federal court is a lot different than state court.

Understanding the Federal Courts

In Florida, the United States Federal Courts are divided into districts or regions. There is one for South Florida, called the Southern District. There is also a Middle District and a Northern District. “Each District has its own local rules” says interpleader attorney John Pankauski, who has been in all the federal court districts in Florida. (Here are the Local Rules for the Southern District.) And where the case is filed does not matter in some sense. At least within the district. “I’ve had West Palm Beach judges assigned to my Ft. Lauderdale cases” continues Pankauski. “And we had a Middle District case that was actually going to be tried in a Marion County state courthouse.” Not that that really matters, suggests Pankauski. He says that the federal courts are focused and serious, and he welcomes that professionalism. When Pankauski files a federal lawsuit or answers a federal court interpleader case for a client, a trial date soon follows. “Our firm likes the laser-like focus of the federal courts.” So, be ready if you are involved in such an action. To read about a federal court interpleader case, consider reading the opinion of Podhurst Orseck, P.A. v. Servicious Legals de Mesomerica S. de R.L. It’s a federal court opinion published at 699 F. Supp. 2d 1344 from March 22, 2010. It explains what interpleader is. The Case No. is 09-23144-CIV.