California Code of Civil Procedure Section 386 authorizes the private right of action known as Interpleader. Section 386 authorizes Escrow to initiate an interpleader action where the parties (often times buyer and sellers disputing amounts owed) have competing claims over property (usually money).
Escrow as the Interpleader, whether initiating the action or later interpleading may deposit any amount which a plaintiff or cross-complainant admits to be payable 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. See Section 386(c).
Escrow seeking interpleader is not required to show that any claimant has a good claim, but only that the claimants make claims for the same thing, that their respective claims are adverse to each other, and that the party seeking interpleader cannot safely determine for himself or herself which claim is right and lawful. See Fidelity Sav. & Loan Ass’n v. Rodgers, (1919) 180 Cal. 683.
Once the property in dispute is deposited with the clerk of court, the Escrow may apply for its costs and fees and be asked to be discharged from the action leaving the adverse parties to litigate over the property or money deposited with the Court.