Default Judgment

Default judgment refers to a court decision rendered in favor of the plaintiff because the defendant has not responded to the summons or has failed to appear in court. This type of judgment is common when the defendant fails to contest the claims made by the plaintiff, thus allowing the court to decide the case without the defendant’s side being heard.

Examples

Civil Lawsuit: In a breach of contract lawsuit, if the defendant does not file an answer within the stipulated time, the court may issue a default judgment for the plaintiff.
Debt Collection: A creditor sues a debtor for unpaid loans. If the debtor fails to respond to the lawsuit, the court can grant a default judgment allowing the creditor to take actions to recover the debt, such as wage garnishment.

Frequently Asked Questions

Q1: What happens after a default judgment is issued?

After a default judgment is issued, the plaintiff may take steps to enforce the judgment, which can include garnishing wages, seizing assets, or other legal means to collect the awarded amount.

Q2: Can a default judgment be appealed or contested?

Yes, a defendant can file a motion to set aside or vacate the default judgment, usually by providing a valid reason for the failure to respond, such as not receiving the summons.

Q3: Is there a time limit for contesting a default judgment?

The time limit varies by jurisdiction. Typically, a defendant has a limited period (often 30 days) to file a motion to vacate the default judgment.

Q4: Does a default judgment affect credit scores?

Yes, a default judgment can be reported to credit bureaus and may negatively impact the defendant’s credit score.

Q5: Can a plaintiff obtain a default judgment in any type of case?

Default judgments are generally available in civil cases but may not be applicable or enforceable in certain types of legal proceedings such as criminal cases.

Judgment: A formal decision made by a court in a legal proceeding.
Plaintiff: The party who initiates a lawsuit by filing a complaint.
Defendant: The party against whom a lawsuit is filed.
Summons: A legal document notifying a defendant of the legal action and requiring their response.
Motion to Vacate: A request to the court to set aside or annul a judgment or order.

Online References

Suggested Books for Further Studies

“Civil Procedure: Cases and Materials” by Jack H. Friedenthal, Arthur R. Miller, and John E. Sexton.
“Understanding Civil Procedure” by Gene R. Shreve and Peter Raven-Hansen.
“Civil Litigation” by Peggy Kerley, Joanne Banker Hames, and Paul Sukys.

Fundamentals of Default Judgment: Business Law Basics Quiz

### What is a default judgment? - [x] A decision in favor of the plaintiff when the defendant fails to respond to the lawsuit. - [ ] A decision in favor of the defendant when they appear in court. - [ ] A mutual agreement between the plaintiff and defendant. - [ ] A non-binding mediation outcome. > **Explanation:** A default judgment occurs when the court rules in favor of the plaintiff because the defendant did not respond to the legal action or appear in court. ### Can a default judgment be issued if the defendant responds to the lawsuit? - [ ] Yes, it can be issued regardless of the defendant's response. - [ ] Sometimes, depending on the complexity of the case. - [x] No, it is issued when the defendant fails to respond. - [ ] Only if both parties agree. > **Explanation:** A default judgment is specifically issued when the defendant does not respond to the lawsuit or fails to appear in court. ### What must a defendant do to avoid a default judgment? - [ ] Respond to the summons. - [ ] File an answer within the specified time. - [ ] Appear in court as required. - [x] All of the above. > **Explanation:** To avoid a default judgment, the defendant must timely respond to the summons, file an answer, and appear in court as required. ### What is a common consequence of a default judgment for a debtor? - [ ] Increase in loan offers. - [ ] Decrease in insurance premiums. - [x] Garnishment of wages. - [ ] Free legal assistance. > **Explanation:** A common consequence is the garnishment of wages, where the court allows the creditor to collect debts directly from the debtor's paycheck. ### Who files a motion to set aside a default judgment? - [ ] The plaintiff. - [ ] The court on its initiative. - [x] The defendant. - [ ] Court-appointed attorneys. > **Explanation:** The defendant files a motion to set aside or vacate a default judgment, providing justifiable reasons for the lack of response or appearance. ### What is typically included in a summons? - [ ] Date and venue of the hearing. - [ ] Legal claims against the defendant. - [ ] Instructions on responding to the lawsuit. - [x] All of the above. > **Explanation:** A summons usually includes the date and venue of the hearing, legal claims against the defendant, and instructions on how to respond to the lawsuit. ### When does a default judgment affect a credit score? - [ ] As soon as the lawsuit is filed. - [ ] Only if the defendant has no prior credit history. - [x] When the judgment is reported to credit bureaus. - [ ] Never. > **Explanation:** A default judgment affects a defendant’s credit score when it is reported to credit bureaus. ### Which type of case typically does not allow a default judgment? - [ ] Civil cases. - [x] Criminal cases. - [ ] Debt collection cases. - [ ] Contractual disputes. > **Explanation:** Default judgments are generally not applicable in criminal cases, which require the state's prosecution and the defendant’s right to a fair trial. ### Can a default judgment be enforced through asset seizure? - [x] Yes. - [ ] No. - [ ] Only if the assets are overseas. - [ ] Only after an appeal. > **Explanation:** A default judgment can authorize asset seizure as a means to enforce the court’s decision and recover the owed amounts. ### How does a motion to vacate a default judgment get approved? - [ ] Automatically by filing it. - [ ] By consensus of the parties. - [x] Hearing and justification to the court. - [ ] Via out-of-court settlement. > **Explanation:** To approve a motion to vacate a default judgment, a hearing is usually required, and the defendant must provide valid reasons for failing to respond or appear initially.

Thank you for taking the time to study the intricacies of default judgments with us! We hope this knowledge helps you better navigate legal proceedings and court protocols.

Default Judgment