PAYMENT INTO COURT

4 definitions found across Law Mind sources

PAYMENT INTO COURTAuthored
The Law Mind • 914 words
Definition
Payment into court is a procedural device by which a defendant deposits a sum of money with an officer of the court as a formal response to a plaintiff's monetary claim. By making the deposit, the defendant effectively concedes liability up to the amount paid in and shifts strategic pressure to the plaintiff: if the plaintiff refuses the tender and proceeds to trial but recovers no more than the deposited sum, cost consequences typically follow. The mechanism serves two related but distinct functions depending on the procedural context: 1. Tender in satisfaction of a claim. The defendant pays in the amount it admits to be due, acknowledging partial or full liability while contesting the balance or denying liability for the remainder. The deposit signals to the court—and to the opposing party—the outer bound of what the defendant voluntarily concedes. 2. Deposit pending administration or distribution. Courts of equity and statutory tribunals may require a party holding disputed funds—a trustee, stakeholder, or interpleader defendant—to pay those funds into court so the court assumes control over them pending resolution of competing claims. This function is distinct from the adversarial tender use and historically more prominent in English practice under statutes such as the Trustee Relief Act and the Lands Clauses Consolidation Act, both referenced in the Rapalje & Lawrence entry. ---
Common Confusion
Payment into court is sometimes conflated with consignation or tender. Tender is the offer to pay; payment into court is the act of actually depositing the funds with a court officer under court authority. A tender that is refused extinguishes the debtor's liability for subsequent interest and costs but does not put the money under court control. Payment into court accomplishes both the offer and the deposit simultaneously, binding the court as custodian. Researchers working in pre-twentieth-century materials should be careful: the terms were sometimes used interchangeably in practice even when courts distinguished them doctrinally. ---
Why It Matters in Research
The term carries different procedural freight across historical periods and jurisdictions, and corpus researchers should approach it with three cautions. First, the authorization mechanism shifted over time. Bouvier notes that in some American states payment into court rested on statutory authority, citing early nineteenth-century state cases across Alabama, Illinois, New York, Georgia, Texas, and Indiana. In others, it operated by rule of court. Modern federal practice in the United States is governed primarily by Rule 67 of the Federal Rules of Civil Procedure (deposit of money in court), which reorganized the doctrine significantly. Sources predating the 1938 FRCP will reflect the older common law and equity framework and may not map cleanly onto modern procedural concepts. Second, English practice and American practice diverge enough to create confusion when reading English treatises or digests in an American research context. The Rapalje & Lawrence entry reflects the English institutional structure—the Paymaster-General, the Lands Clauses Consolidation Act—which had no direct American equivalent. Researchers using English secondary sources to interpret American cases involving payment into court should verify whether the procedural vehicle described actually existed in the relevant American jurisdiction. Third, the cost-shifting consequences—the doctrinal teeth of the device—evolved differently across jurisdictions and are often described in passing in older sources rather than analyzed directly. When a historical source says a plaintiff "accepted the payment" or "took the money out of court," the downstream cost consequences require consulting the procedural rules of the specific jurisdiction and period, not just the dictionary definition. For interpleader research, payment into court as a condition of equitable relief is a separate but closely related subject with its own doctrinal history. ---
Historical Dictionary Support
All three source dictionaries agree on the core definition: a defendant's deposit of money with a court officer for the benefit of the plaintiff in answer to the plaintiff's claim. The formulations are nearly identical, suggesting the term had a settled meaning in the common law procedural tradition by the time these dictionaries were compiled. Bouvier adds the most jurisdictional texture, distinguishing between states where payment into court was statutory and states where it rested on court rule—a practically important distinction for researchers tracing the device through nineteenth-century American cases. Rapalje & Lawrence is the most expansive, capturing the second function of the device (deposit for purposes of administration or distribution) and pointing toward the English statutory infrastructure. This reflects the dictionary's attention to English as well as American law. Black's entry is the most compressed, focusing narrowly on the adversarial tender context. None of the three sources address the cost-shifting mechanics in detail, which is the aspect of the doctrine most likely to be dispositive in historical litigation research. For that, researchers should look to contemporary procedural treatises rather than dictionary definitions alone. ---
Jurisdictional Note
In modern U.S. federal practice, deposit of money in court is governed by Fed. R. Civ. P. 67, which permits a party to deposit money with the court when that party holds funds that are the subject of the action. State equivalents vary considerably. Some states retain a more robust version of the traditional common law payment-in practice with explicit cost-shifting rules; others have merged it into interpleader or general deposit statutes. ---
Related Terms
Tender Consignation Interpleader Deposit in Court Stakeholder Rule 67 (Federal Rules of Civil Procedure) Trustee Relief Offer of Judgment Costs (procedural consequences) Escrow
PAYMENT INTO COURTmain
Black's Law Dictionary • 1891
tice. The act of a defendant in depositing the amount which he admits to be due, with the proper officer of the court, for the benefit of the plaintiff and in answer to his claim.
PAYMENT INTO COURTmain
Rapalje & Lawrence • 1883
- 1. The deposit of money with an official or banker of a court of justice for the purposes of proceedings pending in the court. responsibility of distribating or administering a fund in his hands. See LANDS CLAUSES CONSOLIDATION ACT; TRUSTEE RELIEF ACT; also, DEPOSIT, 23; PAYMASTER-GENERAL; TRANS-
PAYMENT INTO COURTmain
Bouvier's Law Dictionary • 1928
In Practice. Depositing a sum of money with the proper officer of the court by the defendant in a suit, for the benefit of the plaintiff and in answer to his claim. It may be made in some states under statutory provisions; 18 Ala. 293; 7 III. 671; 1 Barb. 21; 5 Harring. 17; 24 Ga. 211; 16 Тех. 461; 11 Ind. 532; and see 3 E. L. & E. 185; and in most by a rule of court made for the purpose; 2 Bail. 28; 7 Ired. 100; 1 Swan 92; in which case notice of an intention to apply must, in general, have been previously given. The effect is to divest the defendant of all right to withdraw the money; 1 Wend. 191; 8 Watts 248; except by leave of court; 1 Coxe 298; and to admit conclu- sively every fact which the plaintiff would be obliged to prove in order to recover it; 1 B. & C. 8; 6 M. & W. 9; 1 Dougl. Mich. 330; 24 Vt. 140; 66 Pa. 27; as, that the amount tendered is due; 1 Campb. 558;5 Mass. 365; 2 Wend. 431; for the cause laid in the declaration; 5 Bingh. 28, 32; 2 B. & P. 550; 5 Pick. 285; to the plaintiff in the character in which he sues; 2 Campb. 441; the jurisdiction of the court; 5 Esp. 19; that the contract was made; 3 Campb: 52; and broken as alleged; 1 B. & C. 3; but only in reference to the amount paid in; 7 Johns. 315; 8 E. L. & E. 548; and nothing beyond such facts; 1 Greenl. Ev. § 206. Generally, it relieves the defendant from the payment of further costs unless judg- ment is recovered for a sum larger than that paid in; 1 Wash. 10; 3 Wend. 326; 2 Miles 65; 2 Rich. 64; 24 Vt. 140; 32 Fed. Rep. 316. As to the capacity in which the officer receiving the money acts, see 1 Coxe 298; 2 Bail. 28; 17 Ala. 293. Payment of money into court, when the declaration is on a special contract, is an acknowledgment of the right of action to the amount of the sum brought in, and no more; 1 Tidd's Pr. 624. It does not waive the benefit of a defence, though that be to the whole claim; 66 Pa. 27; 100 U. S. 673. But no defence can deprive the plaintiff of the right to the money in court. See TEN-

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