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Civil litigation

funds in registry of court

When there is a dispute over money (funds) or property, and the money or property is held by a person or entity who is not a party to the dispute—such as an insurance company in possession of insurance proceeds or a payment due a business under a contract in which a former employee or business partner claims an ownership interest—the party holding the disputed funds or property may place it in the registry of the court (by filing an interpleader action) and allowing the court to safeguard the funds or property until it determines the rightful owner.

In California, when there is a dispute over funds or property held by a third party not involved in the dispute, the third party can use an interpleader action to deposit the disputed assets with the court. This legal process allows the court to hold the funds or property in its registry while the dispute is resolved. The interpleader action protects the stakeholder from multiple liabilities and lawsuits by having the court determine the rightful owner or beneficiary of the assets in question. The stakeholder initiates the process by filing a complaint in interpleader and depositing the disputed amount with the court, which then releases the stakeholder from the dispute and adjudicates the claims of the contesting parties. California's Code of Civil Procedure outlines the specific procedures and requirements for filing an interpleader action.

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Civil litigation

funds in registry of court

Legal Services for Less than 99¢ a Day

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California State Code

Civil litigation

funds in registry of court

California State Code

Articles