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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 North Dakota, 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 seen in cases where an insurance company holds proceeds that multiple parties claim, or a business has a contract payment that is claimed by a former employee or partner. The party holding the disputed assets can file an interpleader action with the court, depositing the funds or property with the court's registry. The court then holds the assets safely while the dispute is resolved. This process ensures that the third party is protected from multiple liabilities and the assets are distributed according to the court's determination of rightful ownership.

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Civil litigation

funds in registry of court

Individual & Family Legal Plan

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North-Dakota State Code

North-Dakota State Code

Civil litigation

funds in registry of court

Articles