Default Judgments in Civil Lawsuits
Default Judgments in Civil Lawsuits
Default Judgments in Civil Lawsuits
and receive a certain percentage of the defendant's wages. If the plaintiff is able to
obtain information about the defendant's bank accounts, garnishment and attachment
proceedings can be initiated to reach the assets in these accounts. If the defendant owns
vehicles, non-exempt real estate or other items of real or personal property, this property
will be subject to seizure by the local law enforcement authorities. Once it is sold, usually
at a public auction, the sale proceeds will be available to help satisfy the judgment
amount owed.
It is often said that a judgment is only worth the paper it is written on. In many cases,
litigants obtain judgments that are difficult (if not impossible)to collect because the
defendant either has no assets or has effectively shielded those assets from the reach of
creditors. But an understanding of collection options -- and a willingness to spend the
time and resources to utilize those options -- will greatly enhance your chance of
recovering some, if not all, of the default judgment amount.
Like other kinds of judgments, default judgments will be enforceable for a period of years
set by law. Many jurisdictions permit the renewal of judgments that are about to expire,
providing additional time for the plaintiff to pursue collection remedies. Unless the
defendant tries to discharge the judgment debt by filing for bankruptcy, the cloud of
court-authorized actions to enforce the default judgment may well hang over the
defendant's head for decades.
http://research.lawyers.com/default-judgments-in-civil-lawsuits.html
In law, default refers to the failure of a party to do something that the law required him
to do. A default occurs when a person who is required to be present before the court of
law for some proceedings before it, fails to appear in court.
Entry of default refers to the process where the person making a claim in a case makes a
request before a court of law stating that the party against whom they have made a
claim have failed to furnish any meaningful response to the claimants pleadings within
the time allowed for that. The court may immediately enter a judgment on the claim or
may direct the claimant to file a notice of intent to take the default judgment and serve it
on the unresponsive party. If the other party does not oppose the notice of intent or does
not provide adequate justification for his delay or lack of response in the matter before
the court, the court grants a default judgment favoring the claimant/ plaintiff. Entry of
Default in the US District Courts is governed by Rule 55 of the Federal Rules of Civil
Procedure.
USCS Fed Rules Civ Proc R 55 reads as follows:
Rule 55. Default; Default Judgment [Caution: For amendments effective December 1,
2009, see prospective amendment note to this rule.]
(a) Entering a Default. When a party against whom a judgment for affirmative relief is
sought has failed to plead or otherwise defend, and that failure is shown by affidavit or
otherwise, the clerk must enter the party's default.
(b) Entering a Default Judgment.
(1) By the Clerk. If the plaintiff's claim is for a sum certain or a sum that can be made
certain by computation, the clerk--on the plaintiff's request, with an affidavit showing the
amount due--must enter judgment for that amount and costs against a defendant who
has been defaulted for not appearing and who is neither a minor nor an incompetent
person.
(2) By the Court. In all other cases, the party must apply for a default judgment. A
default judgment may be entered against a minor or incompetent person only if
represented by a general guardian, conservator, or other like fiduciary who has
appeared. If the party against whom a default judgment is sought has appeared
personally or by a representative, that party or its representative must be served with
written notice of the application at least 3 days before the hearing. The court may
conduct hearings or make referrals--preserving any federal statutory right to a jury trial-when, to enter or effectuate judgment, it needs to: (A) conduct an accounting; (B)
determine the amount of damages; (C) establish the truth of any allegation by evidence;
or (D) investigate any other matter.
(c) Setting Aside a Default or a Default Judgment. The court may set aside an entry of
default for good cause, and it may set aside a default judgment under Rule 60(b).
(d) Judgment Against the United States. A default judgment may be entered against the
United States, its officers, or its agencies only if the claimant establishes a claim or right
to relief by evidence that satisfies the court.
Civil Procedure Default Law & Legal Definition In legal terminology, default refers
to a failure to fulfill a legal obligation or duty. For example, a default by a borrower under
a loan agreement permits a lender to take certain actions in response to the default.
Default is often used to refer to the non-appearance of the defendant within the time
prescribed by law to defend himself. It also signifies the non-appearance of the plaintiff
to prosecute his claim. In such cases, a judgment will be rendered in favor of the nondefaulting party automatically, which is called a "default judgment".
Additional Civil Procedure Default Resources
View Civil Procedure Forms - Download Civil Procedure Default Forms in Minutes.
Learn more at civilprocedure.USLegal.com - More Civil Procedure Information.
Affidavit Stating Facts on Information and Belief
This form is an affidavit in which the affiant is swearing to facts based on information and
belief.
Application for Entry of Default - Affidavit - Motion - Entry of Default - Default judgment
Description
This form is a sample Application for Entry of Default and a Supporting Affidavit. The
plaintiff places before the court an application for entry of default against the defendant.
The form also contains an affidavit which supports the allegations made by the plaintiff.
Georgia Motion for Default Judgment
Description
A motion is a written request to the court to take a certain action. The court will either
grant or deny the motion in accordance with law and court rules. This document, a
Motion for Default Judgment, is a model motion requesting the named action from the
court (or a general motion form). Adapt to fit your facts and circumstances. Available for
download now in standard format(s). USLF control no. GA-EB706
VACATING A DEFAULT JUDGMENT
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This guide provides general information for Californians who are facing debt collection
lawsuits in the Superior Courts of California. It does not apply to courts outside the state
of California. It is not a substitute for obtaining legal advice in your individual case.
What is a judgment? A judgment is the court's written, final decision in the case. If the
judgment is against you, it will state how much money you owe to the plaintiff.
What is a judgment creditor? A judgment creditor is a creditor or debt buyer that
has obtained a judgment against a defendant.
What is a default judgment? When a defendant fails to file a written Answer with the
court (defaults) the court will issue a judgment against the defendant. A judgment
issued under those circumstances is commonly known as a default judgment. The
court usually awards the plaintiff the amount demanded in the complaint, plus interest
and court costs. The court usually awards attorneys' fees on a default judgment based of
a schedule published by the court.
Can I re-open a default judgment? Yes. Under certain circumstances, it is possible to
vacate (re-open) a default judgment. The court has a special procedure for determining
whether to vacate a default judgment. The procedure is relatively straightforward, but
often requires a noticed motion and a hearing before the judge.
What are the criteria for vacating a default judgment? There are two main
reasons that a court will vacate a default judgment: (1) excusable default and (2) lack of
personal jurisdiction. These reasons are explained below.
Excusable Default Excusable default is the most common reason for vacating a default
judgment. It has two parts: (1) a reasonable excuse for not filing an Answer within the 30
day time; and (2) a meritorious defense (a good defense). There is a time limit for
moving to vacate a judgment because of excusable default 180 days from the entry of
the Judgment. (If you were never served with a Notice of Entry of the Judgment, the time
limit is extended to 2 years.)
Common examples of a reasonable excuse: The most common example of a reasonable
excuse is that you did not receive the Summons. Other reasonable excuses are that at
the time you received the Summons you were out of town, ill, incarcerated, or that you
could not answer the Summons for some other good reason. You would also have a
reasonable excuse if, in response to the Summons, you telephoned the attorneys for the
plaintiff and they told you not to bother filing an Answer.
Sometimes people do not respond to the Summons because they do not understand
what it is. This is not normally considered to be a reasonable excuse; however, some
judges will accept it.
Common examples of a meritorious defense: A defense is a reason why you don't owe
the money, not a reason why you can't pay. For example, you would like to use the
defense of identity theft or statute of limitations. For a list of possible defenses,
see Common Defenses to Debt Collection Lawsuits. You can also simply dispute the
amount of the debt. Disputing the amount of the debt, combined with improper service,
is a sufficient (and very common) reason for the court to grant an order vacating the
default judgment.
Lack of Personal Jurisdiction (Improper Service) The court can also vacate a
default judgment if you were not properly served with a Summons. There are advantages
and disadvantages to trying to vacate a judgment on the grounds of improper service.
The main advantage is that there is no time limit for seeking to vacate a judgment on
the grounds of lack of jurisdiction. Also, if you seek to vacate a judgment because of
improper service, you do not need to cite a meritorious defense (or any defense). The
default judgment? Also, does the Plaintiff filing a motion for default judgment have a
duty to notify opposing counsel that the Defendant is in default prior to filing the motion?
One Minnesota litigation attorney answered:
Here is my experience, which I believe represents the general practice in Minnesota.
I have never seen default granted if an Answer was served, even if the Answer was really
late. The law strongly favors resolution on the merits.
If the answer is late, the only issue for the court is whether to award fees for the default
motion. Judges typically award fees for a default motion when the motion had to be
brought to get the defendant to Answer. If you file a motion for default judgment after
receiving a late Answer, you will lose the motion and you probably will not recover fees.
Further, the judge might be annoyed at you for bringing a motion for default after you
received an untimely Answer.
Another Minnesota litigation attorney answered:
You can file a motion for default after receiving an untimely Answer, but you will probably
lose and the judge may yell at you.
Rule 55.01 of the Minnesota Rules of Civil Procedure is helpful:
When a party against whom a judgment for affirmative relief is sought has failed to plead
or otherwise defend within the time allowed therefor by these rules or by statute, and
that fact is made to appear by affidavit, judgment by default shall be entered against
that party as follows: . . . (b) In all other cases, the party entitled to a judgment by
default shall apply to the court therefor. If a party against whom judgment is sought has
appeared in the action, that party shall be served with written notice of the application
for judgment at least three days prior to the hearing on such application.
Note Howard v. Frondell:
Finally, appellants contend the judgment should be vacated because they did not receive
notice of Howards application for default and were not notified of the hearing. A party
need only be served with written notice of the application for a default judgment if it has
appeared in the action. Appellants claim that Hollenders letter to Howards attorney
requesting an extension constitutes an appearance. Under the rules, however, a party is
deemed to have made an appearance when it serves or files any paper in the
proceeding.
Minn.R.Civ.P. 5.01. Because appellants had not filed or served any paper at the time of
the application for default, they *209 were not entitled to notice. We conclude that the
trial court did not abuse its discretion in refusing to vacate the default judgment.
Note section III(F)(2) of the Professionalism Aspirations adopted by Minnesota State Bar
Association and approved by the Minnesota Supreme Court: We will not cause a default
1Specific jurisdictions
1.1England and Wales
1.1.2Effect of judgment
1.1.5Practice
1.2United States
1.2.1Entry of default
1.2.3Default judgment
3See also
4External links
Specific jurisdictions[edit]
England and Wales[edit]
How judgment arises[edit]
In England and Wales, a Claimant starts a case by issuing a Claim Form. This either
states a monetary figure on it, together with fixed costs and court fees; alternatively if
the amount cannot be determined, it will be for an amount 'to be assessed'. A Claimant
may not wish to recover money at all, in which case the Claim Form states this.
The Claim Form (together with other documents, known as Particulars of Claim and
a Response Pack) are served on the Defendant.
If the Defendant fails to reply within 14 days of service, the Claimant can apply for
Judgment in Default, either by simply requesting the court's administrative staff enter
judgment filing a request for judgment (which is sufficient for routine cases), or by
making a formal application to the Procedural Judge. The judgment is known
as Judgment in Default of Acknowledgment of Service.
If the Defendant did acknowledge to the court that the papers were served within the 14day period, then the Defendant is given 28 days to take a further step. If the Defendant
fails to do so, again judgment can be entered as above; this time formally known
as Judgment in Default of Defense.
If money is claimed, the Claimant can choose how their judgment will be phrased. Almost
always there will be a request that the money claimed, the court fee, and interest at 8%
on the money from when the Claim Form was issued up until date of judgment, and if
legally represented a fixed contribution to legal costs, be ordered to be paid immediately.
However, the Claimant could simply request the Defendant be ordered to pay at a later
date or in installments.
If money is claimed but the amount is not fixed, a Disposal Hearing is listed to determine
the amount of money.
If any other remedy is claimed, the Claimant would have had to apply to the procedural
judge for the Judgment in Default, and therefore the Judge will determine what happens
next.
Judgments in Default are covered by Part 12 of the Civil Procedure Rules 1998
Efect of judgment[edit]
The judgment is binding and failure to comply with it means that enforcement action
could be taken.
The Defendant's name is also entered onto a register (although if they pay within a
month it will be removed) which is open to everyone, and is particularly used to vet the
credit-worthiness of people.
In the case of Masters -v- Leaver[1999]EWCA Civ 2016 [1] it was held that a judgment in
default means just that - it is a judgment obtained due to default. It does not mean that
the court has agreed with what was claimed, or favors one or other case. Therefore if the
issue arises again, the Defendant is not prevented from arguing the facts again.
That case also refers to Texas and US law being similar, although of course the English
Court has no jurisdiction to determine that point.
Varying default judgment[edit]
If a Defendant accepts the judgment, and the amount, but is unable to pay, the
Defendant may apply to Vary the judgment. A process is gone through whereby the
Defendant states how soon they can afford to pay the debt (usually monthly
installments) and the Claimant can either accept this, or request another amount. The
court's staff will suggest a figure and ultimately a District Judge (N.B. In England and
Wales a District Judge is one of the lowest levels of judge) will make a decision. The
decision is binding, even if it means the Claimant is out of their money for a considerable
amount of time, and even if interest cannot be charged on the outstanding sum (which it
usually can't).
Setting aside default judgment[edit]
There are three grounds for canceling ('setting aside') the Default judgment.
The documents were not served correctly. The Defendant has to show that the
documents were not served, which obviously would explain why the Claimant
had ability to enter judgment. This has to be done by way of an 'Application on
Notice' (motion). Evidence has to be shown to the procedural judge. This used
to be called setting aside an 'irregular judgment'
There is some good reason why judgment in default should be set aside. This
covers any situation but is commonly used when service was effected properly,
but still did not come to the attention of the Defendant (perhaps they were on a
long vacation, or in hospital). Many jurisdictions also require the defendant to
proffer a meritorious defense before vacating the default judgment.
The Claimant entered judgment when they were not entitled so to do. For
example, perhaps a Defense was filed in time, but the Claimant still attempts to
enter judgment. The court staff usually check for things like this, but
occasionally things slip through the net. It used to be the obligation of
the Claimant to apply to set aside their own judgment in these circumstances,
but this obligation has recently (in 2005) been dropped.
In the last circumstance of the above, the Defendant can get the judgment
canceled as of right. Otherwise, the Defendant needs to show what their
Defense will be, and if the court thinks that the defendant is effectively 'stalling
for time' they will not get the judgment set aside.
Practice[edit]
In practice an application to set aside Default Judgment is almost always
granted. This fact is seized upon by so-called 'credit repair' companies. A
person whose credit record is adversely affected by a registered judgment pays
a credit repair company who advises them how to apply to have it set aside.
This is usually of little effect: the judgment will be re-entered very quickly if
there is no actual defense, and there are usually other records which affect a
person's credit rating, not just the judgment.
Pragmatic reasons why judgments are set aside are mainly because on
balance, it is seen as better to give a person who may have a good defense
extra time, and avoid a potentially devastating judgment, and thereby keep a
claimant out of their money for a further two to four weeks, than give the
claimant the benefit.
However the court can, and often does, order conditions to be satisfied, such as
a draft defense being filed first, money paid into court, or similar conditions.
Setting aside Judgment in Default is covered by Part 13 of the Civil Procedure
Rules.
United States[edit]
In the United States the law relating to a default judgment depends upon the
jurisdiction within which the civil action was filed. State courts, United States
Federal Courts, Tribal Courts and many Administrative Agencies have their own
laws and local procedural rules relating to the granting and setting aside of a
default judgment. The Federal Rules of Civil Procedure (Rules 55 and 60) are
the basis for many procedures in default. Federal Rule 37(b)(iii) states that a
balky plaintiff can be found in default and have his case dismissed if the
plaintiff repeatedly fails to comply with things like court orders and discovery
requests.
Entry of default[edit]
Typically, the plaintiff (or cross-complainant, cross-plaintiff, counter-claimant,
counter-plaintiff, third-party plaintiff, etc.)[2] must show that service of
process was effected on the defendant (cross-defendant, counter-defendant,
cross-defendant, third-party defendant, etc.). This is typically achieved by the
[24]
Notes[edit]
1. Jump up^ "Legal Definition of default judgment". Legal-glossary.org.
Retrieved 3 Apr 2014.
2. Jump up^ E.g., Md. R. 2-613(a).
3. Jump up^ E.g., F.R.Civ.P. 4(l).
4. Jump up^ E.g., Calif. Code Civ. Proc. 417.30.
5. Jump up^ S. Baicker-McKee, W.M. Jansen, & J.B. Corr, Federal Civil Rules
Handbook, Thomson/West, 2007, p. 220.
6. Jump up^ E.g., D.C. Super. Ct. Civ. P. R. 4(l).
7. Jump up^ E.g., F.R.Civ.P. 12(a); Va. Sup. Ct. R. 3:19(a).
8. Jump up^ E.g., Md. R. 2-613(b); Judicial Council of California, Form CIV100.
9. Jump up^ E.g., D.C. Super Ct. R. 55(a) (14 days, if the clerk dockets the
default sua sponte).
10. Jump up^ E.g., Md. R. 2-613(c).
11. Jump up^ E.g., Va. Sup Ct. R. 3:19(a).
12. Jump up^ E.g., Md. R. 2-613(d); Va. Sup. Ct. R. 3:19(b).
13. Jump up^ E.g., Cal. Code Civ. Proc. 473(b), 473.5; Md. R. 2-613(d).
14. Jump up^ F.R.Civ.P. 55(c).
15. Jump up^ E.g., Calif. Code Civ. Proc. 473(b).
16. Jump up^ E.g., D.C. Super Ct. Civ. Proc. R. 55(c).
17. Jump up^ E.g., Va. Sup. Ct. R. 3:19(b).
18. Jump up^ E.g., Virginia.
19. Jump up^ E.g., Calif. Code Civ. Proc. 579.
20. Jump up^ Servicemembers Civil Relief Act (formerly the Soldiers and
Sailors Civil Relief Act), 50 USC App. 521.
21. Jump up^ 50 USC App. 521(b)(1)
22. Jump up^ 50 USC App. 521(b).
23. Jump up^ E.g., F.R.Civ.P.55(b)(1); Calif. Code Civ. Proc. 585(a),
1169.
24. Jump up^ See, e.g., R.I. Weil & I.A. Brown, Jr., California Practice
Guide: Civil Procedure Before Trial, The Rutter Group, 5:121 f.
25. Jump up^ E.g., Va. Sup. Ct. R. 3:19(c).
26. Jump up^ E.g., F.R.Civ.P. 55(c), 60(b); Va. Sup. Ct. R. 3:19(d).
27. ^ Jump up to:a
31. Jump up^ E.g., Dunn v. Profitt, 408 A.2d 991 (D.C. 1979).
See also[edit]
Judgment (law)
External links[edit]
2.
3.
4.
I should have specified that the default had to do with our answer to the complaint.
What's their objection to your answer?
5.
6.
7.
8.
1.
1.
a process server hands the notice of the complaint and copy of the complaint to any
competent person over 18 at your residence. (roomate, sibling, mom, friend, etc)
sending the complaint etc to you by return receipt registered mail; if you accept the
registered mail and sign for it, service is completed.
If none of the above work, the petitioner may serve you by public notice in a local news
publication. you've seen legal notices in the paper, right? if the EDD didn't know where
you were and couldn't serve you, but obviously knew the address you signed up for
unemployment with, they could serve by publication. service would be complete upon
publication of notice of complaint for an amount of time required by the laws in
California.
To get a default judgement, the petitioner must also show that you are a competent
person over 18, and not a member of the armed forces who cannot respond because of
duty assignment.
You should make sure you fully understand how service was completed (or not) before
attempting to get a default judgement reversed after so much time has passed.
It may just end up being a lot of work for nothing if the service could be reasonably
determined to have been properly done. You need to look at the case file and see what is
there.
2.
3.
wilful, and malicious attempt to defraud the State of California, the assessment is
canceled due to the statute of limitation of one year to collect the overpayment."
This is the IMPORTANT information, if anybody is getting sued or the EDD is attempting
to collect on them, go through the trouble of filing your appeal! I filed mine five years
late due to lack of service, and they allowed me to present the appeal on that grounds
(the fact that it was late). Turns out it was all worth it - they were collecting and
garnishing $5000 on a $2400 overpayment. I was fighting it on principal, but it turns out
I will be getting every cent of my money back!
Thanks for the assistance!