Handling an Interpleader Without a Lawyer

You have the right to represent yourself

Federal law provides that “the parties may plead and conduct their own cases personally or by counsel.”¹ A person who represents himself or herself is often called a “pro se” or “self-represented” litigant.

Courts give some leeway. The Supreme Court has said it holds a pro se complaint “to less stringent standards than formal pleadings drafted by lawyers.”² But that leeway is about how your filings are read, not about the rules themselves. In a later case the Court said it has “never suggested that procedural rules in ordinary civil litigation should be interpreted so as to excuse mistakes by those who proceed without counsel.”³

Who cannot appear without a lawyer

The right belongs to people conducting their own cases.

• Businesses and other entities. Corporations and other artificial entities may “appear in federal courts only through licensed counsel.”⁴ If a business, trust company, or other entity is a claimant, it needs a lawyer.
• Estates. If you are claiming as an executor or administrator, the claim may belong to the estate and its beneficiaries rather than to you personally. Federal courts do not all treat this the same way. Ask the clerk’s office or a lawyer before filing for an estate without counsel.
• Children and incapacitated people. Claims of minors and incompetent persons are brought by a representative such as a guardian or next friend under Rule 17. Courts may have additional requirements before a non-lawyer can act for someone else.⁵

The parts that are hardest to do alone

Deadlines

You usually must answer the interpleader complaint within 21 days after being served (or 60 days after a waiver request was sent if you waived service).⁶ In interpleader cases, claimants often file crossclaims against each other, and an answer to a crossclaim is also due within 21 days after service.⁶ If you miss a deadline, a default can be entered against you.⁷ Courts have held that a default judgment against an interpleader claimant “terminates that party’s interest in the fund.”⁸ See named in an interpleader for the steps.

Proving your side

After the stakeholder is dismissed, the case is between the claimants. Usually the person challenging a beneficiary designation has to prove the grounds, such as undue influence or lack of capacity. If you are that person, you need evidence, not only a belief. If you are the named beneficiary, you need to be ready to respond to the other side’s evidence. See beneficiary disputes.

Discovery

Discovery is the process of getting information from the other side and from third parties, under Rules 26 through 37. Each party must make initial disclosures without being asked, including the names of people likely to have helpful information and copies or descriptions of documents it may use.⁹ Failing to disclose or to respond can lead to unfavorable court orders or sanctions. It can also doom your case if the court disallows any evidence you failed to gather or disclose.¹⁰ Medical records, bank records, and testimony from the insurance agent or witnesses often matter in these cases, and getting them may require subpoenas and depositions.

Summary judgment

Many interpleader cases are decided on summary judgment without a trial. A court “shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”¹¹ A party who says a fact is disputed must support that by citing particular materials in the record, such as declarations, documents, or deposition testimony.¹¹ Unsupported statements in a brief are generally not enough. Losing a summary judgment motion can end the case.

The rules of evidence

At trial, and often at summary judgment, your proof must meet the Federal Rules of Evidence. Two rules trip people up often:

• Hearsay. An out-of-court statement offered to prove what it says “is not admissible” unless a rule or statute provides otherwise.¹² What someone told you the insured said may raise hearsay issues, although there are many exceptions.
• Authentication. To use a document, you must produce “evidence sufficient to support a finding that the item is what the proponent claims it is.”¹³

Local rules and judges’ procedures

Each district court has local rules, and many judges have their own procedures on page limits, formatting, and motion practice. The Federal Rules provide that a local rule imposing a requirement of form must not be enforced in a way that causes a party to lose any right because of a nonwillful failure to comply,¹⁴ but other local rules are enforced.

Privacy in court filings

Court filings are usually public. Rule 5.2 requires that filings include only the last four digits of a Social Security or financial-account number, only the year of a person’s birth, and only a minor’s initials.¹⁵ Interpleader cases often involve exactly these details, such as policy numbers, death certificates, and children as beneficiaries.

Signing what you file

When you sign a filing, you certify, among other things, that your claims are not frivolous and that “the factual contentions have evidentiary support” or will likely have it after investigation. Rule 11 applies to unrepresented parties as well as lawyers.¹⁶

Money and fees

• The stakeholder’s fees. Courts may award the stakeholder fees out of the fund, which reduces what is left for the claimants. You may be able to object. See discharge, fees, and interest.
• Your own costs. Filing fees, service, depositions, and records requests cost money even without a lawyer. If you cannot afford fees, ask the clerk about applying to proceed without prepaying them.
• Lawyers’ fee arrangements. Some lawyers will consider an hourly, flat-fee, or contingent arrangement for a dispute over a fund. Ask about the options in a first consultation.

Where to find help

• Bar referral services. The American Bar Association’s Lawyer Referral Directory lists state and local bar referral services by location, and its FindLegalHelp.org page points to free and low-cost options.
• Court resources. Many federal district courts have a section of their website for people without lawyers, and some host clinics. Clerk’s office staff can explain procedures but cannot give legal advice.
• Limited-scope help. Some lawyers will review your papers, explain the strengths and weaknesses of your position, or handle one stage, such as a deposition or summary judgment, without taking the whole case. Whether this is available depends on the state’s ethics rules and the court.
• Legal aid. Legal aid organizations serve people who meet income limits, though they may not take cases about insurance proceeds.

A practical checklist

1. Write down the date you were served, and calendar the answer deadline.
2. Read the complaint carefully to see who the other claimants are and what the stakeholder is asking for.
3. Find your local court’s rules and any procedures for the assigned judge.
4. Gather the documents you have: the policy or account statements, beneficiary forms, letters, and anything showing what the insured intended.
5. File an answer that states why you are entitled to the money, and answer any crossclaim on time.
6. Consider a consultation with a lawyer, even if you plan to proceed on your own.

Related guides

• How one claim can freeze a payment
• Named in an interpleader: what happens next
• Frequently asked questions

Footnotes

1. 28 U.S.C. § 1654. Cornell LII. ↩

2. Haines v. Kerner, 404 U.S. 519 (1972) (per curiam). ↩

3. McNeil v. United States, 508 U.S. 106 (1993). ↩

4. Rowland v. California Men’s Colony, 506 U.S. 194 (1993). ↩

5. Fed. R. Civ. P. 17(c). Cornell LII. ↩

6. Fed. R. Civ. P. 12(a)(1)(A), (B). Cornell LII. ↩ ↩²

7. Fed. R. Civ. P. 55. Cornell LII. ↩

8. State Farm Mut. Auto. Ins. Co. v. Wagnon, 959 F.2d 245 (10th Cir. 1992). ↩

9. Fed. R. Civ. P. 26(a)(1)(A). Cornell LII. ↩

10. Fed. R. Civ. P. 37. Cornell LII. ↩

11. Fed. R. Civ. P. 56(a), (c)(1). Cornell LII. ↩ ↩²

12. Fed. R. Evid. 801–802. Cornell LII. ↩

13. Fed. R. Evid. 901(a). Cornell LII. ↩

14. Fed. R. Civ. P. 83(a)(2). Cornell LII. ↩

15. Fed. R. Civ. P. 5.2(a). Cornell LII. ↩

16. Fed. R. Civ. P. 11(b). Cornell LII. ↩