Legal Definitions - payment into court

Definition: Payment into court refers to money or property that is given to the court clerk to be distributed after a lawsuit is concluded. It is typically made by a defendant who may be found liable to the plaintiff, and the payment is meant to satisfy any potential liability. If the defendant is found liable, the payment goes to the plaintiff. If the defendant is found not liable, then the defendant receives the payment back.

For example, if a person is sued for causing a car accident, they may make a payment into court to cover any damages that they may be found liable for. If they are found liable, the payment will go to the other driver. If they are found not liable, they will receive the payment back.

Payment into court can also be made by a person who owes money or property that is being disputed by parties. For instance, a customer might make payment into court for money owed to a business partnership, if the partnership has dissolved and one partner is suing the other for ownership of the business's assets.

In landlord-tenant law, payment into court can refer to rent money that a tenant deposits with a court during a dispute with the landlord, often to avoid eviction. For example, if a tenant is being evicted for not paying rent, they may make a payment into court to show that they are willing to pay the rent owed and avoid eviction.