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 Minnesota, 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 is a remedy provided under both Minnesota state law and federal law, depending on the jurisdiction and the specifics of the case. The party initiating the interpleader, typically an insurance company or business entity, files a lawsuit asking the court to determine the rightful owner of the assets in question. The court then notifies all claimants, who are given the opportunity to present their claims. After considering the evidence, the court will make a decision on the rightful ownership and distribute the assets accordingly. This process ensures that the party holding the disputed assets can avoid multiple liabilities and that the assets are distributed fairly.