The stakeholder’s interpleader procedure, which was covered under the old RSC Order 17, is now covered by a new Civil Procedure Rule (CPR) part 86, separate to CPR Part 85.
CPR Part 86 applies where:
- a person is under a liability in respect of a debt or in respect of any money, goods or chattels; and
- competing claims are made or expected to be made against that person in respect of that debt or money or for those goods or chattels by two or more persons.
The stakeholder can apply to court, using a Part 8 claim form for new claims or by application notice in accordance with Part 23, for direction on whom he should either pay (a debt or money) or give goods to.
They must confirm that they have no interest in the disputed money, goods or chattels, other than for charges or costs, that they are not colluding with any of the claimants to the items and they are will to transfer the items (or money) into court or dispose of them as the court directs.
Notice must be served on anyone they are aware of who has a claim to the goods covered in the application and the claim will be referred to a Master or District Judge
At any hearing in a stakeholder application, the court may
- order that any stakeholder or any claimant to the subject matter of the application be made a defendant in any claim pending with respect to the subject-matter in dispute;
- order that an issue between all parties be stated and tried and may direct which of the parties is to be claimant and which defendant, and give all necessary directions for trial;
- determine the stakeholder application summarily;
- give directions for the determination of the application summarily or of any issue on the application; or
- give directions for the retention, sale or disposal of the subject matter of the application, and for the payment of any proceeds of sale.
However, this doesn’t limit the court’s powers to make any other directions that are permissible under the rules. The court may also make an order relating to costs as it thinks just.
David is an authorised High Court Enforcement Officer and our Director of Corporate Governance