Legal Definitions - fund in court

Definition: A sum of money or other liquid assets established for a specific purpose. In the legal context, it refers to contested money deposited with the court to pay a contingent liability or to be distributed among parties in a legal dispute.

Example: A company is facing a lawsuit from a former employee who claims wrongful termination. The company deposits a sum of money with the court as a fund in court to cover any potential damages awarded to the employee. The fund in court will be distributed among the parties according to the court's decision.

This example illustrates how a fund in court is used to ensure that there are sufficient funds to cover any potential liabilities or damages in a legal dispute. It provides a way for parties to avoid the risk of not being able to collect damages awarded by the court due to the other party's inability to pay.