(a) A defendant, against whom an action is pending upon a contract, or for specific personal property, may, at any time before answer, upon affidavit that a person not a party to the action makes against him, and without any collusion with him, a demand upon such contract, or for such property, upon notice to such person and the adverse party, apply to the court for an order to substitute such person in his place, and discharge him from liability to either party, on his depositing in court the amount claimed on the contract, or delivering the property or its value to such person as the court may direct; and the court may, in its discretion, make the order; or such defendant may file a verified cross-complaint in interpleader, admitting that he has no interest in such amount or such property claimed, or in a portion of such amount or such property and alleging that all or such portion of the amount or property is demanded by parties to such action or cross-action and apply to the court upon notice to such parties for an order to deliver such property or portion thereof or its value to such person as the court shall direct. And whenever conflicting claims are or may be made upon a person for or relating to personal property, or the performance of an obligation, or any portion thereof, such person may bring an action against the conflicting claimants to compel them to interplead and litigate their several claims. The order of substitution may be made and the action of interpleader may be maintained, and the applicant or interpleading party be discharged from liability to all or any of the conflicting claimants, although their titles or claims have not a common origin, or are not identical but are adverse to and independent of one another.
§ 386.Cross-Complaint In Interpleader
Title 3. Of the Parties to Civil Actions · Chapter 6. Interpleader · Last amended 1975 · Last verified July 28, 2026
In one sentenceSection 386 lets a defendant facing conflicting claims to the same contract, property, or obligation deposit the disputed amount with the court and be discharged from liability, either before answering or by a verified cross-complaint in interpleader, and lets any stakeholder facing double or multiple claims bring an interpleader action.
Full Text of § 386
(b) Any person, firm, corporation, association or other entity against whom double or multiple claims are made, or may be made, by two or more persons which are such that they may give rise to double or multiple liability, may bring an action against the claimants to compel them to interplead and litigate their several claims. When the person, firm, corporation, association or other entity against whom such claims are made, or may be made, is a defendant in an action brought upon one or more of such claims, it may either file a verified cross-complaint in interpleader, admitting that it has no interest in the money or property claimed, or in only a portion thereof, and alleging that all or such portion is demanded by parties to such action, and apply to the court upon notice to such parties for an order to deliver such money or property or such portion thereof to such person as the court shall direct; or may bring a separate action against the claimants to compel them to interplead and litigate their several claims. The action of interpleader may be maintained although the claims have not a common origin, are not identical but are adverse to and independent of one another, or the claims are unliquidated and no liability on the part of the party bringing the action or filing the cross-complaint has arisen. The applicant or interpleading party may deny liability in whole or in part to any or all of the claimants. The applicant or interpleading party may join as a defendant in such action any other party against whom claims are made by one or more of the claimants or such other party may interplead by cross-complaint; provided, however, that such claims arise out of the same transaction or occurrence.
(c) Any amount which a plaintiff or cross-complainant admits to be payable may be deposited by him with the clerk of the court at the time of the filing of the complaint or cross-complaint in interpleader without first obtaining an order of the court therefor. Any interest on amounts deposited and any right to damages for detention of property so delivered, or its value, shall cease to accrue after the date of such deposit or delivery.
(d) A defendant named in a complaint to compel conflicting claimants to interplead and litigate their claims, or a defendant named in a cross-complaint in interpleader, may, in lieu of or in addition to any other pleading, file an answer to the complaint or cross-complaint which shall be served upon all other parties to the action and which shall contain allegations of fact as to his ownership of or other interest in the amount or property and any affirmative defenses and the relief requested. The allegations in such answer shall be deemed denied by all other parties to the action, unless otherwise admitted in the pleadings.
(e) Except in cases where by the law a right to a jury trial is now given, conflicting claims to funds or property or the value thereof so deposited or delivered shall be deemed issues triable by the court, and such issues may be first tried. In the event the amount deposited shall be less than the amount claimed to be due by one or more of the conflicting claimants thereto, or in the event the property or the value thereof delivered is less than all of the property or the value thereof claimed by one or more of such conflicting claimants, any issues of fact involved in determining whether there is a deficiency in such deposit or delivery shall be tried by the court or a jury as provided in Title 8 (commencing with Section 577) of Part 2 of this code.
(f) After any such complaint or cross-complaint in interpleader has been filed, the court in which it is filed may enter its order restraining all parties to the action from instituting or further prosecuting any other proceeding in any court in this state affecting the rights and obligations as between the parties to the interpleader until further order of the court.
Plain-English Summary
Interpleader solves a problem that has nothing to do with whether the stakeholder did anything wrong: two or more people each claim the same money or property, and the stakeholder cannot safely pay one without risking a second lawsuit from the other. Section 386 gives that stakeholder a way out.
Subdivision (a) covers a defendant already sued on a contract or for specific property. Before answering, on affidavit that a nonparty — without collusion — is making a competing demand on the same contract or property, the defendant may ask the court for an order substituting that claimant in the defendant’s place and discharging the defendant from liability, by depositing the amount or property in court. Alternatively, the defendant may file a verified cross-complaint in interpleader, admitting no interest in the disputed amount or property (or admitting only a partial interest) and asking the court to sort out the competing claims. The same subdivision lets anyone facing conflicting claims over property or an obligation bring an original interpleader action to force the claimants to litigate against each other, even if their claims share no common origin or are entirely independent of one another.
Subdivision (b) extends the same idea to double or multiple claims more broadly, letting any person, business, or entity facing conflicting demands compel the claimants to interplead, whether by cross-complaint in a pending action or by a separate suit, and letting the stakeholder join a related defendant so long as the claims share a common transaction or occurrence. The remaining subdivisions round out the procedure: subdivision (c) lets an admitted amount be deposited with the clerk at the time of filing, without waiting for a court order; subdivision (d) lets a claimant named as a defendant answer, asserting an ownership interest and any defenses; subdivision (e) sends the competing claims to the court rather than a jury unless a jury right independently applies, with any deficiency in the deposit tried under Title 8 of Part 2; and subdivision (f) lets the court restrain the parties from pursuing other proceedings over the same dispute while the interpleader is pending.
Frequently Asked Questions
What is interpleader, and how is it different from an ordinary lawsuit?
Interpleader lets a stakeholder holding money or property that two or more people each claim force those claimants to litigate against each other, rather than the stakeholder defending separate suits from each one and risking paying twice.
Can a defendant already being sued use interpleader?
Yes. Under § 386(a), a defendant sued on a contract or for specific property may, before answering, ask the court to substitute the competing claimant and discharge the defendant, or file a verified cross-complaint in interpleader admitting no interest in the disputed property.
Do the competing claims have to arise from the same transaction to use interpleader?
No. Subdivision (a) allows interpleader even where the claimants’ titles or claims share no common origin and are independent of one another, so long as each is adverse to the property or obligation at issue.
Who decides the competing claims once interpleader is filed?
Subdivision (e) sends those issues to the court rather than a jury, except where a right to a jury trial independently applies, and any deficiency in the deposited amount is tried under Title 8 of Part 2.
Can the court stop the claimants from suing elsewhere while interpleader is pending?
Yes. Subdivision (f) lets the court restrain all parties from starting or continuing any other proceeding affecting the same rights and obligations until the interpleader case is resolved.
Amendment History
Amended by Stats. 1975, Ch. 670.
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
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