paid into court

paid into court

adj. referring to money deposited with the clerk of the court by a person or entity who knows that the money is owed but does not know to whom he/she should pay it pending the outcome of a lawsuit between two other parties is decided. In short, the party handing over the money is saying: "Here is the money. You two argue over it, but spare me the trouble and cost of the suit." Example: A contractor buys supplies from a hardware store on credit. The store is owned by two people who have dissolved their partnership and are fighting over who owns accounts receivable, including the funds owed by the contractor. The contractor knows he owes the money for his supplies, wants to meet his obligations, and wants to get rid of the debt. So the contractor gives what he thinks he owes the hardware store to the court to hold while the two former partners settle their differences. (See: interpleader)

References in periodicals archive ?
But if the money is paid into court it will be held pending the determination by the Court against claims Marconi has made against RTS.
00 for security for costs of the trial was paid into court by the Company.
Mr Roache would have picked up massive damages, and the newspaper would have faced massive legal costs, if the jury had awarded him more than The Sun had already paid into court at the time as an offer of settlement for a story which had branded him "boring" and said he was disliked by most other cast members.
But the jury awarded Mr Roache just pounds 50,000 - exactly the amount as The Sun had paid into court.
But as it was he had to pay his own costs, and The Sun's costs from the day the money was paid into court - an estimated total of pounds 120,000.