Legal Definitions - agreed judgment

An agreed judgment is a formal court order that reflects a settlement or agreement reached by the parties involved in a lawsuit. Instead of proceeding to a trial where a judge or jury would decide the outcome, the parties negotiate and agree upon the terms to resolve their dispute. Once they reach an agreement, they present it to the court, and the judge then signs an order that incorporates these agreed-upon terms, making it a legally binding judgment.

This type of judgment has the same legal force and effect as a judgment issued after a full trial, meaning it can be enforced by the court if one party fails to uphold their end of the agreement. It is a common way to conclude litigation efficiently when all parties are willing to compromise.

• Example 1: Business Contract Dispute

  Imagine two companies, "Tech Innovations Inc." and "Global Supply Co.," are in a lawsuit because Tech Innovations claims Global Supply failed to deliver critical components on time, causing significant financial losses. After months of legal arguments and discovery, both companies realize that a lengthy trial would be costly and disruptive. Their lawyers negotiate, and they agree that Global Supply will pay Tech Innovations a specific sum of money and provide a discount on future orders. They present this settlement to the court, and the judge signs an agreed judgment outlining these terms. This judgment officially closes the case and legally binds both companies to the agreed payment and discount.

  This illustrates an agreed judgment because the court's final order (the judgment) is not a decision made by the judge after a trial, but rather a formal adoption of the settlement terms that the two companies themselves negotiated and agreed upon.

• Example 2: Divorce and Asset Division

  Sarah and Mark are going through a divorce. Initially, they disagreed on how to divide their marital assets, including their house, retirement accounts, and a shared business. Rather than having a judge decide these matters in court, they attend mediation and, with the help of their attorneys, reach a comprehensive agreement on who gets what, how debts will be split, and a schedule for child custody and support. They submit this detailed agreement to the family court. The judge reviews the agreement to ensure it's fair and legal, then signs an agreed judgment that incorporates all the terms of their settlement. This judgment legally finalizes their divorce and dictates the division of their property and parental responsibilities.

  This demonstrates an agreed judgment because the court's official decree for the divorce and asset division is based entirely on the mutual agreement reached by Sarah and Mark, rather than a contested hearing where the judge would impose a decision.

• Example 3: Personal Injury Claim

  Maria was injured in a car accident caused by David. She sued David for medical expenses, lost wages, and pain and suffering. During the litigation process, David's insurance company and Maria's attorney engage in settlement discussions. They eventually agree on a specific monetary amount that David's insurance will pay Maria to compensate for her injuries and losses. To formally conclude the lawsuit and ensure the payment is legally enforceable, they draft an agreement that the court then signs as an agreed judgment. This judgment ensures Maria receives the agreed compensation and releases David from further liability related to the accident.

  This is an agreed judgment because the court's final resolution of Maria's personal injury claim is a direct result of the settlement negotiated and accepted by both Maria and David (through his insurance), rather than a verdict delivered after a trial.