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 North Carolina, 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 process called 'interpleader' to avoid liability and have the court determine the rightful owner. This is often used by insurance companies, banks, or other entities that hold assets which are claimed by two or more parties. By filing an interpleader action in the appropriate North Carolina court, the entity can deposit the disputed funds or property with the court, effectively removing themselves from the dispute. The court then holds the funds or property in its registry and will make a determination on the rightful owner after considering the claims of all parties involved. This process ensures that the funds or property are distributed according to the court's judgment, thereby resolving the dispute in a legal and orderly manner.