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 Louisiana, when there is a dispute over funds or property that is held by a third party not involved in the dispute, the third party can use a legal procedure known as 'interpleader' to avoid liability and to have the court determine the rightful owner. This is often seen in cases where an insurance company holds proceeds that are claimed by multiple parties or when a payment to a business is contested by individuals such as former employees or business partners. The party holding the disputed assets can file an interpleader action in the appropriate Louisiana court, depositing the funds or property with the court. The court then holds the assets in its registry and releases the third party from the dispute, proceeding to resolve the matter and distribute the assets to the rightful claimant(s) as determined by the court. This process ensures that the third party is protected from multiple liabilities and that the dispute is resolved in a fair and legal manner.