STAKEHOLDER. A third person chosen by two or more persons to keep in deposit property the right or possession of which is contested between them, and to be delivered to the one who shall establish his right to it. Thus, each of them is considered as deposit ing the whole thing. This distinguishes this contract from that which takes place when two or more tenants in common deposit a thing with a bailee. Domat, Lois Civ. liv. 1, t. 7, s. 4.
A person having in his hands money or other property claimed by several-others is considered in equity as a stakeholder. 1 Vern. 144. A mere depositary for both par ties of the money advanced by them respec tively with a naked authority to deliver it over upon the proposed contingency. He is not regarded as a party to the illegal con tract. Fisher v. Hildreth, 117 Mass. 562.
The duties of a stakeholder are to deliver the thing holden by him to the person enti tled to it on demand. It is frequently ques tionable who is entitled to it. In case of an unlawful wager, although he may be justified in delivering the thing to the winner, by the express or implied consent of the loser ; Mc Cullum v. Gourley, 8 Johns. (N. Y.) 147 ; yet
if before the event has happened he has been required by either party to give up the thing deposited with him by such party; he is bound so to deliver it ; 3 Taunt. 377; 4 id. 492 ; or if, after the event has happened, the losing party give notice to the stakeholder not to pay the winner, a payment made to him afterwards will be made in his own wrong, and the party who deposited the mon ey or thing may recover it from the stake holder ; McAllister v. Hoffman, 16 S: & R. (Pa.) 147, 16 556 ; 7 Term 536; 2 Marsh. 542. See Brush v. Keeler, 5 Wend (N. Y.) 250; Corley v. Berry, 1 Bail. (S. C.) 593; WAGER; HORSE RACE.
A deposit of stakes by one of the parties in a match may be recovered back on de mand from the stakeholder, as upon a void coutract on notice given at any time before payment to the winner ; 1 Q. B. D. 189 ; 5 App. Ca. 342, overruling 5 C. B. 818; [1900] 2 Q. B. 497.