What is a money judgment?

A money judgment is a court order that awards the plaintiff a sum of money. The award can be owed to the plaintiff for a variety of reasons. Some examples are unpaid rent, damages to a rental unit, money borrowed, hospital bills, credit cards, and money owed for repossessed vehicles. A money judgment can also include money owed for court costs and attorney’s fees.

Types of Money Judgments

As mentioned, most money judgments are awards of money granted to the plaintiff after a civil trial, if the defendant (judgment debtor) was found liable for some harm. There are other types of money judgments. One example is an award following a breach of contract action. For breach of contract, the non-breaching party will often be granted a money judgment instead of forcing the breaching party to fulfill the terms of the judgment, even if the contract was for services.

Personal injury cases are also a frequent source of money damages. In these cases, money damages are awarded due to negligence or an intentional harm such as assault and battery. In awarding money damages to the plaintiff in a personal injury case, the court will determine the amount of harm based on factors like medical bills, pain and suffering or loss of quality of life.

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Enforcement of a Money Judgment

Once a money judgment is awarded, it needs to be enforced. In most states, this is known as execution and begins with a writ of execution. If the defendant does not pay the judgment in court or soon after the proceeding, the judge can order service of this type of writ. An officer of the court, typically a sheriff, is given the authority to demand payment or seize and sell property to produce enough proceeds to satisfy the judgment.

Because the majority of the process of collecting your money judgment depends on your knowledge of the defendant’s financial situation, another option is asking for an examination order. This order requires the person to return to court with documentation of their finances. This information will help you move forward with collecting your money judgment with a writ or you may pursue other options such as garnishing their wages or seizing funds in bank accounts.

Case Studies: Understanding Money Judgments

Case Study 1: Seeking Compensation for Unpaid Rent

John, a landlord, faces a situation where a tenant has not paid rent for several months. After attempting to resolve the issue amicably, John decides to pursue legal action. He files a lawsuit against the tenant, seeking a money judgment for the unpaid rent and damages to the rental unit.

The court finds the tenant liable for breaching the lease agreement and awards John a money judgment to cover the owed rent and repairs. With the money judgment in hand, John can take further steps to enforce the court’s order and recover the unpaid rent.

Case Study 2: Recovering Medical Expenses Through a Money Judgment

Emily is involved in a car accident caused by a negligent driver. She sustains significant injuries and accumulates substantial medical bills. Emily decides to file a personal injury lawsuit against the at-fault driver, seeking compensation for her medical expenses, pain, and suffering.

The court finds the driver responsible for the accident and issues a money judgment in favor of Emily. With the money judgment, Emily can now pursue enforcement actions to receive the awarded compensation and cover her medical costs.

Case Study 3: Enforcing a Money Judgment Through Garnishment

Robert, a plaintiff, successfully wins a breach of contract case against a company that failed to fulfill its obligations. Despite the court’s money judgment in his favor, the defendant company refuses to pay the owed amount. Frustrated with the non-payment, Robert seeks legal advice and decides to enforce the money judgment through wage garnishment.

With a court order, a portion of the company’s profits is withheld and directed towards satisfying the money judgment. This enforcement measure compels the company to honor the court’s decision and settle the debt.