Withdrawing Funds from the Court Registry

 

Many times a party will have to make a deposit of funds to the court as a case proceeds.  The three most common reasons for this happening are:

    -  To ensure a tenant pays rent during the pendency of an eviction suit.  The law doesn't provide for a tenant staying in the property without paying rent while an eviction dispute is going on.  So, the Court orders the tenant to deposit the rent with the registry.   See Texas Property Code §24.0053;

    -  When one party is holding money (or anything of value) to which two or more other parties claim ownership.  The holding party doesn't want to be part of the dispute. so it deposits the money with the Court and lets the other parties fight it out.  This is called an interpleader.  See Texas Rule of Civil Procedure 43; and

    -  The situation most commonly seen in collections matters is when a Defendant tenders all or part of an invoiced amount attempting to eliminate a potential claim for attorney's fees.  In the end, if all the Plaintiff recovers in judgment is an amount equal to or less than the amount tendered to the registry, no attorney's fees will be awarded.  (See Sworn Account Defended as Accounting Dispute and/or Escalated to Breach of Contract Lawsuit.)

 

Either way, at the end of the lawsuit, the funds must be withdrawn from the registry and turned over to the Plaintiff or returned to the Defendant.  It requires motions and orders with the Court that are then processed through the governmental treasury/finance department.  It's a somewhat bureaucratic process and a little time-consuming.  This is not automatic and it is common for parties to forget that the funds are in the registry.  Sometimes the funds are forgotten so long they are turned over, or escheated to the State.

 

JH&A attorneys have recovered funds from the Court registry in all of the above situations and will gladly prepare the required motions to get your funds returned.  Just give us a call.

281-408-3683

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