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 Kansas, 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 used by insurance companies, banks, or other entities that hold assets which are claimed by multiple parties. By filing an interpleader action in court, the entity deposits the disputed funds or property with the court and becomes a 'stakeholder'. The court then holds the funds or property in its registry and releases the stakeholder from the dispute, allowing the claimants to litigate or settle their claims to the funds or property in question. The court will ultimately decide the distribution of the funds or property based on the merits of the claims. Kansas statutes and rules of civil procedure outline the specific process and requirements for filing an interpleader action.