What Is a Judgment?
A judgment is a decisive court order that resolves a dispute between parties by clearly determining the rights and obligations of each. This determination might involve monetary compensation or property transfer from one party to another. Additionally, judgments can enforce non-monetary actions, such as compelling one party to perform a service for the other.
Key Takeaways
- Definition: A judgment is a court’s decision that adjudicates a dispute between two parties, determining the rights and obligations involved.
- Types: Judgments are categorized into in personam, in rem, and quasi in rem.
- Enforcement: Typically monetary but can also mandate non-monetary actions, remaining legally enforceable.
- Civil vs Criminal: Civil judgments address private disputes, while criminal judgments involve government legal action for criminal law violations.
- Collections: For monetary judgments, creditors can seize money or property from the debtor.
Exploring Different Types of Judgments
Classifications of Judgments
Judgments fall into three main categories:
- In Personam: This common judgment holds individuals or entities personally liable to others.
- In Rem: Imposes liability over a property without personal liability.
- Quasi In Rem: Determines the rights of an individual concerning a particular property but not all parties involved.
Monetary vs Non-monetary Judgments
- Monetary Judgment: Requires the losing party in a lawsuit to pay a specified sum to the winner.
- Non-monetary Judgment: Might compel a party to perform a specific action, like completing a contracted job.
Different Types of Judgments for Every Situation
Numerous judgments specialize in various financial or non-financial outcomes.
- Default Judgment: Due to one party’s failure to appear in court. The judge grants victory to the other party by default.
- Summary Judgment: Issued without a full trial when there’s no factual dispute.
- Final Judgment: Conclusively addresses all issues and ends the litigation.
- Interlocutory Judgment: Deals with intermediate points without resolving the case entirely.
- Injunction Judgment: Orders a party to follow or uphold certain actions.
- Declaratory Judgment: Establishes the legal standing, rights, or duties of parties in a lawsuit.
- Judgment of Acquittal: Dismisses a defendant once they are found not guilty.
- Consent Judgment: Results from a mutual settlement agreement between disputing parties.
Special Considerations and Practical Examples
Collection Challenges
Winning a lawsuit is often only the preliminary step in receiving owed funds. Collecting money from a debtor is frequently a long, laborious, not always successful process, although judgments are legally enforceable.
Judgment creditors may:
- Conduct a debtor’s examination
- Seize bank accounts
- Place a lien on property
- Employ debt collection agencies
Example of a Judgment
Consider a borrower failing to repay a loan. The lender can obtain a judgment compelling the borrower to pay. Similar scenarios involve landlords suing for unpaid rent, leading to a judgment against the tenant.
In regulatory contexts, corporations may opt for settlements to bypass costly litigation. For example, Wells Fargo agreed to pay billion-dollar fines and improve compliance after fraudulent activities came to light.
Civil vs. Criminal Judgments: A Key Distinction
Civil Judgments
Civil judgments resolve disputes between individuals or organizations, typically resulting in monetary compensation. An example might involve a customer suing a business over a breached contract.
Criminal Judgments
In contrast, criminal judgments punish violations of the law, such as fraud or theft, and are prosecuted by government attorneys. Other than fines, criminal judgments may also involve imprisonment.
What Is a Summary Judgment?
A summary judgment speeds up the legal process by allowing a judge to decide without a full trial, provided no material facts are in dispute. However, judges carefully scrutinize facts in the challenger’s favor when issuing summary judgments.
How Can You Avoid Paying a Judgment?
While judgments shouldn’t be ignored, state exemptions protect certain properties like a primary home or vehicle. Additionally, Chapter 7 bankruptcy can protect basic personal property.
What Property Can Be Seized?
Creditors can seize non-exempt properties such as real estate, vehicles, bank accounts, securities, wages, and future property claims when enforcing a judgment. Personal property of notable value can also be targeted but not typically pursued unless quite valuable.
What Is a Judgment Lien?
A judgment lien allows a creditor to claim possession of a debtor’s property in satisfaction of a debt. This includes both real and personal property like houses or vehicles.
Final Thoughts
Court judgments traverse numerous complexities covering financial and non-financial resolutions, distinctions between civil and criminal procedures, and methods of enforcement through property seizures and liens. For debtors and defendants, notwithstanding the enduring challenges posed, legal protections and strategic negotiations remain pivotal.
Related Terms: default judgment, summary judgment, final judgment, injunction, declaratory judgment, acquittal, consent judgment.
References
- Cornell Law School, Legal information Institute. “In Personam”.
- Cornell Law School, Legal information Institute. “In Rem”.
- Cornell Law School, Legal information Institute. “Quasi In Rem”.
- Lexington Law. “What is a Judgment and How Does It Affect Your Credit Score?”
- TransUnion. “TransUnion Public Record Announcement”.
- Consumer Financial Protection Bureau. “What is a Judgment?”
- U.S. Department of Justice. “Wells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts without Customer Authorization”.
- Barron’s. “Wells Fargo Is Still in the Penalty Box. The Stock Is Dropping”.
- CNBC. “Wells Fargo Must Face Shareholder Lawsuit Alleging Compliance Failures”.
- Office of the Law Revision Counsel, U.S. Code. “11 USC 522: Exemptions”.
- University of Minnesota via Pressbooks. “Criminal Law: Chapter 1.3 The Difference between Civil and Criminal Law”.
- Cornell Law School, Legal Information Institute. “Summary Judgement”.
- U.S. Courts. “Chapter 7 - Bankruptcy Basics”.
- Cornell Law School, Legal Information Institute. “Judgment Lien”.
