← Back to context

Comment by arjie

16 hours ago

One surprising thing I learned over time from news articles is that "won a judgment for $x from person y" actually doesn't mean very much in the US. The first thing that came to mind is a parachutist site in Lodi, but this one is another one.

I suppose it is indeed as Andrew Jackson said: John Marshall has made his decision; now let him enforce it!

If someone is poor and doesn't have the money, sure you can't enforce it.

If it's a corporation, it's pretty straightforward. If they refuse to pay, you get a writ from the court that authorizes seizure of assets.

Usually that means you go their bank and the value of the judgment will be garnished by their bank and given to you.

Occasionally and theatrically, a sheriff will take you to their headquarters to seize property like computers and printers that you can sell at auction until the value is satisfied.

It only becomes difficult if the corporation is bankrupt, which is similar to a poor person who doesn't have the money. Then it becomes a question of prioritization, e.g. do you get paid before or after lenders, and will there be any money left.

  • Have you actually gone through this process? Like sure, obtaining a writ is technically part of the same case, but it's pretty much starting all over again. And you'll still be paying filing fees, dealing with court clerks, and waiting weeks or months.

    Finding a corporation's bank is a whole separate issue, where you have to go back to court for a post-judgement discovery to force them to tell you. And even if they do - or you already knew - you have to get the writ served to the bank, and just hope they didn't move funds beforehand - or else you're back to start.

    As GP said, it IS a huge PITA to get judgments paid, and it's particularly menacing in Small Claims. Unless the other side act on some virtue (which, they were already bad-faithed enough to have a lawsuit against them AND lose), your judgment is just an IOU, and actually forcing collection is often way more money — or time in money — than most state's Small Claims limits.

    It's a broken system.

    • No, but my point is that it does work. It's a lot better to be delayed by months and have to pay more but still get your money, rather than by delayed by years and not get it at all.

      This is a franchised retailer with over 300 locations, and this is a value of $200,000+ plus so this is way bigger than small claims.

      Like I'd definitely agree with you if we were talking about a $5K claim against a single location in small claims. But this seems to be a $200,000+ claim against a corporation in regular court, as far as I can tell.

      1 reply →