What Is a Judgment?

What Is a Judgment?

Let me explain what a judgment really is. It's a court decision, laid out in a court order, that resolves a dispute between two parties by figuring out each one's rights and obligations. You might see a judgment requiring one party to pay money or hand over property to the other. But it doesn't stop there—judgments can also demand non-monetary actions, like making one party perform a service for the other.

Understanding a Judgment

When I talk about judgments, know that they settle disputes by clarifying rights and obligations. They're grouped into categories: in personam, in rem, or quasi in rem. Most are monetary, but non-monetary ones exist too, and they're all enforceable by law. Civil judgments deal with private disputes, while criminal ones come from government actions against lawbreakers. If you're a creditor, you can collect by seizing a debtor's money or property.

Diving deeper, in personam judgments are the common ones—they hold one person or entity personally liable to another. In rem judgments put liability on a thing, like property, without personal blame. Quasi in rem focuses on an individual's rights in something specific, not involving everyone else.

On the monetary side, if you've been harmed, you file a lawsuit to get damages, and the court orders the loser to pay up. For non-monetary, think of a contractor being forced to finish a job instead of just paying to settle.

Specific Types of Judgments

There are many specific types that split between financial and non-financial. For instance, a default judgment happens when one party skips court or doesn't respond, so the judge sides with the other. A summary judgment comes without a full trial if there's no real fact dispute. Final judgments wrap up the whole case, addressing everything. Interlocutory ones handle just part of it temporarily. Injunction judgments order specific actions or procedures. Declaratory judgments clarify statuses, rights, or duties. A judgment of acquittal frees a defendant found not guilty. Consent judgments come from both parties agreeing to settle.

Special Considerations

Most judgments involve money because it's the straightforward way to compensate harm. As of 2018, these aren't reported on credit reports anymore, thanks to a settlement with credit bureaus and state attorneys general—but that's not law, so it could shift. Winning a judgment is just step one; collecting the money can be tough, lengthy, and sometimes futile. Still, they're enforceable, so you can examine the debtor, seize accounts, lien property, or hire collectors if they don't pay voluntarily.

Example of a Judgment

Take a borrower who doesn't repay a loan or credit card—the lender can get a judgment to force payment. Or a landlord evicting a tenant for unpaid rent might sue and win a judgment for the owed amount. In bigger cases, like Wells Fargo's fraud scandal where employees tricked customers, the bank settled for $3 billion in fines, improved compliance, and ousted managers. That hit their reputation and stock, with ongoing penalties and investor lawsuits.

Civil Judgments vs. Criminal Judgments

U.S. courts separate civil and criminal actions. Civil ones are between individuals or organizations, like a contract breach or property fight, often leading to money damages plus fines. Criminal judgments punish law breaks like theft, brought by government attorneys, and can mean fines, jail, or lost rights.

What Is a Summary Judgment?

A summary judgment is a court's decision without a full trial, if there's no material fact dispute. Either side can request it to skip trial costs, but the judge views facts favorably to the opponent, so it's risky unless the law clearly supports you.

How Can You Avoid Paying a Judgment?

Don't ignore a judgment, but state laws exempt some property, like your main home or car up to a value limit. Chapter 7 bankruptcy can protect basics while discharging debts.

What Personal Property Can Be Seized in a Judgment?

Creditors can go after non-exempt property like real estate, vehicles, accounts, securities, wages, or future claims. States allow keeping some up to limits, and hardship can protect more. Usually, they skip low-value items like clothes unless they're valuable.

What Is a Judgment Lien?

It's a court ruling letting one party take another's property to satisfy a debt, covering houses, vehicles, or other assets.

The Bottom Line

Courts at all levels—trial, appellate, Supreme—make judgments based on evidence, leading to financial or non-financial outcomes to make the creditor whole. You can appeal them if needed.