Sued and Missed the Deadline? What a Default Judgment Means for You

A default judgment can be entered against you when you fail to respond to a lawsuit or otherwise defend your case. That can leave you facing a legally enforceable judgment without ever having your side of the story heard. The good news is that a default judgment may not always be the end of the road. Depending on the circumstances, you may be able to ask the court to set it aside or appeal the judgment.

Find a civil litigation lawyer who can review your situation and explain what options may be available.

What Is a Default Judgment?

A court may enter a default judgment in favor of the plaintiff and against a defendant if the defendant fails to timely respond to the lawsuit or otherwise defend the case.

There are two steps in the process:

1. Entry of default. The procedural step in which the clerk, or in some courts the judge, notes that the defendant has failed to plead or otherwise defend.
2. Final default judgment. Entered against the defendant after the defendant’s default.

An entry of default can be set aside for good cause, while a final default judgment is subject to a more demanding standard for relief.

When Can a Court Enter a Default Judgment?

A lawsuit starts when the plaintiff files their complaint with the clerk of court. Then, they must have the defendant properly served notice of the lawsuit. Without proper notice, a defendant won’t know they are named in a lawsuit and cannot defend themselves.

When properly served, the defendant has a limited amount of time to file their response. If the defendant fails to do so, the case moves forward without them. The deadline to respond varies by case type and jurisdiction.

There are several additional ways a court could determine that a default judgment is appropriate. The defendant could fail to appear at a required hearing. They could fail to respond to a pleading or motion. They could refuse to participate in a required court proceeding, such as discovery or depositions.

What Happens Before a Default Judgment Is Entered?

The default judgment process is not automatic. If the defendant fails to respond or misses a hearing, the plaintiff must then seek default judgment.

The process varies by jurisdiction, but generally, the clerk or court will file the default judgment. Some jurisdictions require a default judgment hearing. The court may also need to hold a hearing to determine damages or other relief.

What Does a Default Judgment Mean for You?

A default judgment can have serious consequences for the defendant. Refusing to participate in the legal process doesn’t make it go away.

A default judgment generally means the defendant did not contest liability in time, and the court can enter judgment based on the complaint, but the defendant may still have options to ask the court to set the judgment aside and, in some cases, contest the amount of damages.

There could be financial liability to pay damages to the plaintiff. The total amount could include the original claim’s damages, court costs, interest, and attorney’s fees. The total amount awarded to the plaintiff will depend on the lawsuit, judgment, jurisdiction, and applicable law.

Can You Fight a Default Judgment?

It is sometimes possible to fight a default judgment. The available options and deadlines depend on the circumstances and the jurisdiction. It also depends on whether the defendant is fighting the entry of default or the default judgment.

The defendant could respond to the entry of default with a good cause defense. The rules governing this stage are generally more forgiving than those governing relief from a final default judgment. The defendant can show there was excusable neglect because of an honest mistake, a sudden illness, or notice error.

To vacate a default judgment, the defendant typically has to meet a higher standard. Potential grounds include newly discovered evidence, fraud, misrepresentation, misconduct, or a void judgment. The motion must also be made within the statute of limitations. Depending on the jurisdiction, this could be one year or a reasonable-time requirement.

How Is a Default Judgment Enforced?

Winning a judgment and collecting the money are two different steps. An entry of default establishes that the defendant failed to respond or otherwise defend the case, but the plaintiff generally still has to use the collection procedures available under the law to get paid. The process can vary depending on the circumstances.

One possible collection method is garnishment. Depending on state and federal law, a judgment creditor may be able to garnish money owed to the defendant by someone else. That can include taking a portion of the defendant’s wages or obtaining funds held in a bank account. Exemptions and other legal limits may protect some income or property from garnishment.

A creditor may have several options to enforce a judgment, but those options vary significantly by state and by the type of property involved. In some cases, the parties may also agree to payment arrangements rather than having the creditor pursue more aggressive collection methods.

What Types of Cases Commonly Result in Default Judgments?

While not limited to these, certain types of civil lawsuits are more likely to result in default judgments:

• Contract disputes
• Personal injury
• Real estate disputes
• Family law
• Commercial litigation

How Can You Avoid a Default Judgment?

To avoid a default judgment, be proactive when responding to a summons or complaint. Once you are served, the clock starts ticking towards the deadline for responding. Don’t wait until the deadline to respond.

Talking with an attorney early on protects your interests. An attorney can determine what response is required and whether there are jurisdictional, procedural, or substantive defenses. Waiting can make the situation substantially harder to resolve because the defendant may move from simply being late to facing an actual default judgment.

Talk to a Lawyer

A missed deadline can turn a lawsuit you could have defended into a judgment against you. Once a default judgment is entered, the other side may have options for enforcing it, but you may still have ways to fight back. An attorney can examine the court record, identify your options, and make sure you do not miss another critical deadline.

Use the Super Lawyers directory to find a civil litigation lawyer who can help you determine your next move.