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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 Tennessee, 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 to have the court determine the rightful owner. This is often seen when 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 files an interpleader action in the appropriate court and deposits the funds or property with the court. The court then holds the assets in its registry, providing a neutral ground until it can adjudicate the matter and decide who is legally entitled to them. This process ensures that the holder of the disputed assets is protected from multiple liabilities and that the dispute is resolved fairly and legally.

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Civil litigation

funds in registry of court

Individual & Family Legal Plan

Articles

Tennessee State Code

Civil litigation

funds in registry of court

Tennessee State Code

Articles