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 ?
Ms Justice Mary Irvine paid tribute to Ms O'Dowd, from Lismore, Co Waterford, for ensuring the money would be paid into court for the use of Helen's daughter Clara, 14.
Michael Gordon of the Court of Appeal of the Eastern Caribbean Supreme Court acknowledged concerns about the "provenance of" the US$40 million security deposit paid into court by IPOC.
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.
Sureties totalling pounds 20,000 were paid into court.
Had I known the possibility of getting very little more and with the tremendous risks involved I most certainly would have taken the Pounds 50,000 paid into court.
Giant Bay") of Vancouver announces the Supreme Court of British Columbia has set aside a Garnishing Order Before Judgement, whereby Giant Bay's Bankers paid into court the sum of $1,646,416.
Counsel told the Circuit Court President, Mr Esmond Smyth, a without prejudice lodgment of pounds 10,000 had been paid into court by Peter Marks but she considered the amount inadequate.
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.
00 for security for costs of the trial was paid into court by the Company.
Mr Justice Frederick Morri ordered that part of the award be paid over to Mrs Clarke's family and the rest be paid into court pending an application to make her a ward of court.
It was all paid into court pending costs being sorted out, but I was not paid until September 2000.