Where the only relief sought against one of the defendants is the payment of a stated amount of money alleged to be wrongfully withheld, such defendant may, upon affidavit that he is a mere stakeholder with no interest in the amount or any portion thereof and that conflicting demands have been made upon him for the amount by parties to the action, upon notice to such parties, apply to the court for an order discharging him from liability and dismissing him from the action on his depositing with the clerk of the court the amount in dispute and the court may, in its discretion, make such order.
§ 386.5.Discharge From Liability and Dismissal From Action Upon Deposit of Amount In Dispute With Clerk
Title 3. Of the Parties to Civil Actions · Chapter 6. Interpleader · Enacted 1953 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 386.5 lets a defendant who is a mere stakeholder with no interest in a disputed sum of money, facing conflicting demands for that amount from parties to the action, deposit the money with the clerk and ask the court to discharge and dismiss the defendant from the case.
Full Text of § 386.5
Plain-English Summary
Section 386.5 offers a leaner path than § 386’s full cross-complaint procedure for a narrow situation: the only relief sought against a defendant is payment of a stated sum of money, and the defendant has no stake in that money at all.
The defendant submits an affidavit stating that it is a mere stakeholder with no interest in the amount or any part of it, and that conflicting demands have been made for that amount by parties to the action. On notice to those parties, the defendant applies to the court for an order discharging it from liability and dismissing it from the case, upon depositing the disputed amount with the clerk of the court. The court may grant that order in its discretion.
Once discharged, the defendant steps out of the case entirely, leaving the remaining parties to litigate who is entitled to the deposited funds — the same underlying goal as § 386, reached through a simpler procedure suited to a pure money dispute.
Frequently Asked Questions
How is § 386.5 different from the interpleader procedure in § 386?
§ 386.5 is a narrower, simpler mechanism for a defendant who owes only a stated sum of money and has no interest in it at all, letting that defendant deposit the money and exit the case rather than filing a full cross-complaint in interpleader.
What does a defendant have to show to use this procedure?
By affidavit, the defendant must show it is a mere stakeholder with no interest in the disputed amount, and that conflicting demands for that stated amount have been made by parties to the action.
Is the court required to discharge the defendant once the money is deposited?
No. The statute gives the court discretion to make the discharge and dismissal order; it is not automatic upon deposit.
What happens to the money once the defendant is dismissed?
It stays on deposit with the clerk while the remaining parties litigate their competing claims to it.
Amendment History
Added by Stats. 1953, Ch. 328.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: ccp 386.5 stakeholder dischargemere stakeholder interpleader californiadepositing disputed money with the court californiasimplified interpleader california