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 Delaware, 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 allow the court to 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 Delaware court, the entity can deposit the disputed funds or property with the court, effectively removing themselves from the dispute and leaving the resolution to the judicial system. The court will then notify the claimants, who will have the opportunity to present their cases. After considering the evidence, the court will make a decision on the rightful owner of the funds or property in question. This process helps ensure that the entity holding the disputed assets is not at risk of multiple liabilities and that the dispute is resolved fairly and legally.