Legal Definitions - default judgment

A default judgment is a formal decision made by a court in favor of one party (typically the plaintiff, the person who initiated the lawsuit) when the other party (the defendant) fails to take a required legal action.

This usually occurs because the defendant has:

• Failed to respond to a lawsuit or court summons within the specified timeframe.
• Failed to appear in court for a scheduled hearing or trial.
• Failed to comply with a court order, such as an order to provide documents or information during the discovery phase of a lawsuit.

Essentially, a default judgment is a penalty for a party's inaction or non-compliance, allowing the case to proceed and conclude without the defaulting party's participation in the defense. While a default judgment can be challenged and potentially set aside if the defaulting party can show a valid reason for their failure to act, it typically grants the plaintiff the relief they requested in their initial complaint.

Examples of Default Judgment:

• Unanswered Lawsuit for Debt:

  Imagine a credit card company sues an individual for an unpaid balance of $10,000. The individual receives the official court papers (a summons and complaint) but decides to ignore them, never filing a response with the court. After the legally required period for a response passes, the credit card company can ask the court for a default judgment. The judge, seeing that the defendant failed to respond, will likely grant the judgment, ordering the individual to pay the $10,000 plus any associated fees and interest, even without a trial.

  This illustrates a default judgment because the defendant failed to take the required legal action of responding to the lawsuit, leading the court to rule in favor of the plaintiff (the credit card company) by default.

• No-Show in a Small Claims Case:

  A homeowner sues a contractor in small claims court for incomplete work and damages. Both parties are properly notified of the court date. On the day of the hearing, the homeowner appears, ready to present their case, but the contractor does not show up. The judge, after confirming the contractor was properly served with notice, can issue a default judgment in favor of the homeowner, ordering the contractor to pay for the damages and complete the work, even though the contractor never presented their side of the story.

  This example demonstrates a default judgment occurring due to a party's failure to appear in court for a scheduled hearing, allowing the case to be decided in favor of the present party.

• Failure to Provide Discovery Documents:

  In a business dispute, Company A sues Company B for breach of contract. During the "discovery" phase, Company A requests specific financial documents from Company B to prove its claims. Company B repeatedly ignores these requests and a court order compelling them to produce the documents. Frustrated, Company A asks the court for sanctions, including a default judgment. The judge, recognizing Company B's deliberate non-compliance with a court order, could issue a default judgment against Company B, effectively ruling in favor of Company A as a penalty for Company B's refusal to participate in the legal process.

  This scenario highlights a default judgment as a sanction for a party's failure to comply with a court order, specifically regarding the provision of information during the discovery phase of litigation.