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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 Delaware, 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 an interpleader action to deposit the disputed assets with the court. This legal process allows the court to hold the funds or property securely while the dispute is resolved. The interpleader action protects the stakeholder from multiple liabilities and litigation by having the court determine the rightful owner or beneficiary of the assets in question. The Delaware court system provides a mechanism for these actions, typically through the Court of Chancery, which handles a wide range of disputes involving equity, including interpleader actions. The process involves filing a complaint, serving all claimants, and then the court will manage the distribution of the assets based on its determination of the parties' rights.

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Civil litigation

funds in registry of court

Individual & Family Legal Plan

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Delaware State Code

Delaware State Code

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Civil litigation

funds in registry of court