We’ve Got Answers: Your Questions About Judgement Mediation Part One

Q: We obtained a judgment in New York. What happens next?

A: Obtaining a monetary judgment in a lawsuit after a successful trial, motion, arbitration, or settlement is no doubt a significant victory. However, many clients are surprised to learn that this is not necessarily the end of the process. Winning a judgment and collecting a judgment are often two very different things. A judgment establishes a legal obligation to pay, but it does not automatically put money in the client’s pocket. If the defendant, now referred to as the “judgment debtor,” is unwilling or unable to satisfy the judgment voluntarily, the plaintiff, now the “judgment creditor,” may need to take additional steps to collect the judgment.

If the judgment debtor refuses to pay, Article 52 of New York’s Civil Practice Law and Rules (“CPLR”) provides judgment creditors with a comprehensive toolbox to enforce a judgment, including written questionnaires, document requests, and sworn depositions to obtain information about the debtor’s finances and assets; restraining notices to freeze assets and prevent their transfer; and executions, levies, and turnover proceedings to compel collection of identified assets.

Similar enforcement mechanisms are available to enforce judgments obtained in federal court.

Jennifer Karnes is a Shareholder in Becker’s New York office, a member of the firm’s Litigation practice groups, and a former Brooklyn felony prosecutor. She can be reached for scheduling at jkarnes@beckerlawyers.com or by phone at (212) 599-3322, and you can read more about her background here.