Payment to Court Isn't Proof of Default

November 30, 2008
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Facts: An owner sued a tenant, claiming that it owed past-due rent. The amount was in dispute. The owner submitted two separate amounts, with one being substantially larger than the other. In accordance with state law, the tenant deposited the disputed amount in an account managed by the court and then filed a response contesting the owner's claim.

Even though the owner was unable to prove which amount was correct, the lower court ruled in its favor and granted possession. However, the court delayed execution of the order, pending the tenant's appeal.

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