Kim v. Parcel K-Tudor Hall Farm - Interpleader Finality of Judgment
Summary
The Court of Special Appeals of Maryland dismissed an appeal in Kim v. Parcel K-Tudor Hall Farm, ruling that an interpleader judgment is not final until all claimant claims are resolved. The court found the appeal premature as the circuit court had not yet completed the second step of the interpleader process.
What changed
The Court of Special Appeals of Maryland, in the case of Kim v. Parcel K-Tudor Hall Farm (Docket No. 2483/23), dismissed an appeal concerning an interpleader action. The court held that an interpleader judgment is not considered final, and thus appealable, until the circuit court has resolved the last claimant's claim to the property or funds in dispute. The appellants sought to appeal an order of interpleader entered on January 31, 2024, but the appellate court determined that the judgment was not yet final because the second step of the interpleader process, where claimants litigate their claims, had not been completed.
This ruling clarifies that parties involved in interpleader actions must await the resolution of all claims before an appeal can be considered. For legal professionals and courts, this means that any appeal filed before the circuit court has fully adjudicated all competing claims to the interpleaded funds or property will be deemed premature and dismissed. The case underscores the two-step nature of interpleader actions: first, the deposit of the disputed property or funds with the court, and second, the litigation of claims among the parties. Compliance with this finality requirement is crucial for the proper progression of appellate review in such cases.
What to do next
- Review internal procedures for handling interpleader actions to ensure compliance with finality requirements.
- Advise clients on the timing of appeals in interpleader cases, emphasizing the need for full resolution of all claims.
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March 5, 2026 Get Citation Alerts Download PDF Add Note
Kim v. Parcel K-Tudor Hall Farm
Court of Special Appeals of Maryland
- Citations: None known
- Docket Number: 2483/23
Judges: Nazarian
Combined Opinion
Eun O. Kim, et al., v. Parcel K-Tudor Hall Farm, LLC, No. 2483, September Term, 2023.
Opinion by Nazarian, J.
INTERPLEADER – FINALITY OF JUDGMENT
Interpleader does not become a final judgment until the circuit court has resolved the last
claimant’s claim to the property or funds at stake.
Circuit Court for St. Mary’s County
Case No. C-18-CV-22-000196
REPORTED
IN THE APPELLATE COURT
OF MARYLAND
No. 2483
September Term, 2023
EUN O. KIM, ET AL.,
v.
PARCEL K-TUDOR HALL FARM, LLC
Nazarian,
Reed,
Wright, Alexander, Jr.
(Senior Judge, Specially Assigned),
JJ.
Opinion by Nazarian, J.
Filed: March 5, 2026
- Judge Rosalyn Tang did not participate in the decision to report this opinion pursuant to Md. Pursuant to the Maryland Uniform Electronic Legal Rule 8-605.1. Materials Act (§§ 10-1601 et seq. of the State Government Article) this document is authentic.
2026.03.05
15:28:24 -05'00'
Gregory Hilton, Clerk
Eun O. Kim, an investor, and a group of his fellow investors seek to appeal from an
order of interpleader of the Circuit Court for St. Mary’s County entered on January 31,
- Unfortunately, they can’t, because the judgment is not yet final. Interpleader happens
in two steps: first, the court orders the property at stake be given over to the court’s registry,
and second, the claimants to the property litigate their claims. Until that second step is
complete, an interpleader case is not final and any appeal is premature. That is the case
here. The order appealed from is not a final judgment, this appeal is premature, and we
dismiss it.
I. BACKGROUND
Although the underlying disputes have begotten numerous proceedings and appeals
in a variety of courts, only a narrow slice of that history is relevant to this appeal.
Parcel K-Tudor Hall Farm, LLC (“PKTHF”) filed an initial complaint against the
investors in the circuit court on June 17, 2022. It ultimately superseded that complaint with
a Third Amended Complaint on August 7, 2023. In the operative complaint, PKTHF
included two counts: one for declaratory judgment and another for interpleader. PKTHF
owned a piece of land, called Parcel K. The investors held a Subordinated Deed of Trust
on Parcel K (the “Deed”), that PKTHF wanted released. Due to a long and colorful history
between the parties regarding that particular parcel, PKTHF was unclear how much, to
whom, and in what proportion it had to pay to get the lien released. It sought, then, to
exercise its right of redemption through an interpleader action.
PKTHF asked the circuit court to declare the parties’ rights and obligations under
the Deed, including how much PKTHF owed; to order that interpleader was an appropriate
remedy; to order PKTHF to pay the correct amount into the court’s registry; to interplead
the Deed holders; and then to release the Deed from Parcel K. After motions and hearings,
the circuit court entered an Order and Opinion of the Court on January 31, 2024 that
ordered the interim relief PKTHF sought.
Mr. Kim and the other investors noted an appeal from that order within thirty days.
In the meantime, some of the claimants started filing new pleadings to assert their claims
to the funds paid by PKTHF. In response, the circuit court ordered all further proceedings
stayed and open filings held in abeyance pending resolution of this appeal. The claimants’
claims to that money remain unresolved.
II. DISCUSSION
The parties seek to raise a host of questions in their briefs. Unfortunately, none of
those questions is before us properly because the decision appealed from isn’t a final
judgment.
The right to appeal arises by statute. Mayor & City Council of Balt. v. ProVen
Mgmt., Inc., 472 Md. 642, 665 (2021) (in most cases, “appellate jurisdiction is ‘determined
entirely by statute,’ and therefore, a right of appeal only exists to the extent it has been
‘legislatively granted’” (quoting Gisriel v. Ocean City Bd. of Supervisors of Elections, 345
Md. 477, 485 (1997))). In general, a party can appeal only from a final judgment, save for
certain narrow exceptions. Md. Code (1974, 2020 Repl. Vol.), § 12-301 of the Courts &
Judicial Proceedings Article. A final judgment is one that “disposes of all claims against
all parties,” Silbersack v. ACandS, Inc., 402 Md. 673, 678 (2008), and if even one claim
from one party against another remains unresolved, the judgment isn’t final and an appeal
2
is premature. See id. (citing Md. Rule 2-602(a)).
A. The Interpleader here is not Final until the Claimants’ Claims on
the Funds are all Resolved.
Interpleader is an ancient procedure to resolve disputes over the ownership of assets.
But an interpleader is not final until all the claimants’ claims to the asset against each other
are resolved, and that’s the status of the interpleader in this appeal.
When a party holds property that they’re sure they don’t own but don’t quite know
to whom it belongs, and in what proportion, they can file for interpleader. See generally
Md. Rule 2-221. As the original plaintiff, they file suit against everyone they believe might
have a claim to the property and the suit brings everyone to court to resolve it. Md. Rule
2-221(a), (b)(3).
This interpleader process occurs in two stages. In the first stage, the original plaintiff
files the suit against the adverse claimants, as defendants. Md. Rule 2-221(a). The court
evaluates the filing and any responses from the claimants and determines whether
interpleader is appropriate. See Md. Rule 2-221(b). If the court finds that interpleader is
appropriate, it can order the original plaintiff to deposit the property or its value with the
court, which the court holds onto until the end of the case. Md. Rule 2-221(b)(3). From
there, the court may discharge the original plaintiff from further liability for the property
and, among the interpleading claimants, designate “one or more of them as plaintiffs and
one or more of them as defendants.” Md. Rule 2-221(b)(2), (6).
In the second stage, the designated plaintiff must file a complaint against the
designated defendants. Md. Rule 2-221(d). The parties then litigate over who has a right to
3
the property, and in what proportion. Id.
It has long been established in Maryland, even if not discussed recently, that
interpleader does not become a final judgment until the last claimant’s claim to the property
or funds is resolved and step two is complete. See Hopkins v. Easton Nat. Bank of
Maryland, 171 Md. 130, 135 (1936); see also 44B Am. Jur. 2d Interpleader § 81, Westlaw
(database updated Nov. 2025) (“ . . . orders in interpleader actions that do not dispose of
the rights and liabilities of all parties to the litigation are not final and, hence, not
appealable . . . . Indeed, an order holding that interpleader is a viable remedy and
dismissing the stakeholder is not directly appealable . . . . [Plus,] a particular claim [to the
property] is generally not appealable until all claims to the fund have been adjudicated.”).
This principle flows directly from a straightforward application of the final judgment rule:
until all the claims to the property are resolved in full, at least one claim from one party
against another remains in the case. Cf. Md. Rule 2-602(a) (except for narrow exceptions,
“an order or other form of decision, however designated, that adjudicates fewer than all of
the claims in an action . . . or that adjudicates the rights and liabilities of fewer than all the
parties to the action” is not a final judgment, doesn’t terminate the action, and is still subject
to revision).
In this case, Mr. Kim and the group of investors seek to appeal from the first stage
of the proceedings, the order of interpleader dated January 31, 2024. 1 But the claimants
0F
1
For what it’s worth, the circuit court never entered a separate “Declaratory Judgment”
writing while resolving the declaratory judgment count of the Third Amended Complaint,
Continued . . .
4
haven’t yet had a chance to resolve their claims to the funds. Their claims against each
other are still alive in the circuit court and their pleadings are currently held in abeyance
pending the resolution of this (premature) appeal. The next step is for us to dismiss the
appeal and allow the circuit court to resume step two of the interpleader. Any challenges
the parties have to this interpleader process, either at step one or two, can be raised once
the judgment is final. We express no views on the merits of any of the issues raised in the
parties’ briefs.
APPEAL DISMISSED. APPELLANTS TO
PAY COSTS.
as is required. See, e.g., Union United Methodist Church, Inc. v. Burton, 404 Md. 542, 549–
50 (2008).
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