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 Utah, when there is a dispute over funds or property 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 in its registry while the dispute is resolved. The interpleader action protects the stakeholder from multiple liabilities and lawsuits by having the court determine the rightful owner or beneficiary of the assets in question. The Utah Rules of Civil Procedure, specifically Rule 22, govern interpleader actions in state courts. This rule outlines the procedure for initiating an interpleader, including the requirements for the stakeholder to file a complaint and serve all claimants. Once the assets are deposited with the court, the claimants are then responsible for litigating their claims to the property or funds. The court will ultimately decide the distribution based on the merits of the case. It is advisable for stakeholders considering an interpleader action to consult with an attorney to ensure compliance with all legal requirements and proper handling of the disputed assets.