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 Massachusetts, 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 securely while the dispute is resolved. The interpleader action relieves the stakeholder from liability and places the responsibility of determining the rightful owner on the court. The Massachusetts Rules of Civil Procedure, specifically Rule 22, governs interpleader actions. This rule outlines the procedure for initiating an interpleader, including the requirements for the stakeholder to demonstrate that they possess property or money claimed by two or more other parties and that they themselves claim no interest in the property or money or that their interest is uncertain. The court then takes custody of the disputed assets and adjudicates the competing claims. This process ensures an impartial resolution to the dispute and protects the stakeholder from multiple liabilities.