Judgments

Act quickly?

• Most states, the order of judgment remains in effect for 10 years

• If not renewed, it expires and becomes a “nullity.”

Type of Judgment

• Money damages?• Equitable remedy?

– Judgment Debtor– Judgment Creditor

• Entered into court’s “Judgment Book”

– Interest allowed! But must be incorporated into judgment itself

Offer of Judgment

• Made at least ten days before trial

• Party believes opposing party is entitled to damages, so offers to have judgment entered against him/herself!

• Must include all accrued costs

Equity

• Direct party – to convey land– return property– perform a service– Cease an activity– And anything else that is not just money!

Execution and Attachment

• A free floating lien against judgment debtor’s property

• It allows state seizure

• But of what and for whom?

Writ of Execution

• Direction to executive branch– Usually sheriff– Locate, seize and sell– Usually public auction– Subject to short holding period

• Allows right of redemption

Posting of Bond

• Judgment creditor may be required to post a bond protecting the judgment debtor against errors

Sheriff don’t work for free

• Sheriff’s costs for investigation, seizure and auction are added to judgment

Other remedies

• Arrest• Attachment• Garnishment• Replevin• Sequestration• Levy• Trespass and Trover• Detinue • More on this later…

Statement of Assets

• SC-133 example

• Within 30 days of Notice of Entry of Judgment…

• Contempt?

• Willful?

• Get Order of Examination

Order of Examination

• Oder debtor to appear in court and answer questions about income and assets

• When in court…– Frisk him!– Creditor can ask debtor to turn over any cash

in his or her possession! (“Turnover Order”)

Hide and Seek

• Supplementary Proceedings– Interrogatories and interrogation concerning

assets, properties, locations and earnings, employment.

– Debtor may be incarcerated if uncooperative!

Wages

• Creditor can collect up to 25% of net wages…– If low income, this may not be possible…

– What if another creditor got there first?

California’s Debtors Exemption

• Up to $150,000 in equity of home for age 65 or older, disabled, or 55 with low income! Families may have $75,000 exemption, all others $50,000

• Most furniture and appliances• Most clothing• Motor vehicles up to $2,550• Personal jewelry, heirlooms and art up to $6,750• Public Benefits (welfare, Soc Sec, Work Comp)• School financial aid• 403(b) and similar retirement accounts… unless

“excessive”???• Most pensions!

Business Assets

• Bonded Business? Bingo!

• Commercial vehicle, up to $4,850 safe

• Sheriff can “tap the till”– Watch till for 8 hours and take money– Till watcher can cost $1,000 a day!

Own, Rent, Borrowed

• Finding out who owns what can be tricky!

• Shared titles

• Life Estates

• LLC

• Partnerships

• Married or joint habitation?

Stocks, Bonds, Mutual Funds

• Securities– If not part of a retirement plan…– Depends on who holds the certificates…– Third party claim against the brokerage!

Lien, Lien, Lien and Wait

• Put liens on any real estate and wait for a sale, then collect beyond equity limits… if any.

Transfer of Judgment

• A judgment can be transferred to another jurisdiction, but action can be opposed and require a hearing.– Claim they paid it– Contest validity– Contest jurisdiction

Settlements, Releases

• General Release• Partial Release• Partial Settlement with Comparative Fault• High-Low Releases• Covenants not to Sue• Consent Judgment against insurer• Structured settlements• Minor’s settlements

Dismissals

• Voluntary

• Court-Ordered

• Stipulated

Appeals

• Record of Appeal• Appellant’s Brief• Notice of Appeal• Amicus Curiae• Oral Argument• Motion for Rehearing• Appeal to higher court• Order of reversal or new trial