What’s a money judgment?

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Monetary judgments are monetary awards awarded after a civil trial to the plaintiff if the defendant was found liable for damages. Monetary judgments are awarded to parties who suffer breach of contract, personal injury, and can even be used to punish a party whose actions have been particularly egregious in what’s called “punitive damages.” Winning a monetary judgment is only the first step in the damage rectification process. Collection from the party that is determined to be at fault is often much more difficult to do, although legal mechanisms exist to effect collection.

In a breach of contract action, the non-defaulting party will often be awarded a monetary award instead of forcing the defaulting party to perform the terms of the award, even if the contract was for services. Generally the policy of the courts is to “make the non-defaulting party whole again”, which means that the defaulting party pays the non-defaulting party money which puts it in the financial position the non-defaulting party would be in. As long as the goods or services are not unique in nature, pecuniary damages are the courts’ preferred remedy for breach of contract action.

Cash damages are also often awarded in actions for personal injury due to negligence or willful damage such as assault and battery. In awarding damages to the plaintiff in a personal injury case, the court will determine the amount of damages based on a number of factors including medical costs, pain and suffering, as well as abstract concepts such as loss of quality of life. In negligence actions in some jurisdictions, monetary damages awarded may be reduced by the proportion of guilt for the damages that can be attributed to the plaintiff.

Plaintiffs are awarded punitive monetary damages if there were particularly egregious acts by the defendant that resulted in the plaintiff’s injury. Punitive damages are most commonly assessed on corporate defendants who act with disregard for public health in the interest of increasing profits. The purpose of punitive damages is not just to punish the offender, but to dissuade others from doing similarly.

Collecting a monetary judgment can be difficult, but there are several ways a successful plaintiff can use the legal system to force the defendant against whom he won a monetary judgment to pay. Some jurisdictions allow the defendant’s personal property to be attached to the judgment, meaning that the plaintiff can acquire title to the property to settle the debt. Another common method of satisfying a monetary judgment is through a bank levy, which freezes the defendant’s account. The plaintiff must then file a motion to return the funds to the court, and if granted, the bank will be ordered to pay the plaintiff funds to satisfy the judgment.

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