Legal Definitions - dormant judgment

A dormant judgment refers to a court's final decision, typically an order for one party to pay money to another, that has become inactive and is no longer immediately enforceable. This occurs because a specific period of time has passed without any action being taken by the winning party (known as the judgment creditor) to collect on or revive the judgment. While the judgment itself still legally exists, the creditor cannot use standard collection methods, such as wage garnishment or property liens, until they take further legal steps to "revive" or reactivate it through the court.

• Example 1: Uncollected Business Debt

  A small business obtained a court judgment in 2008 against a former client for an unpaid invoice. The business made a few initial attempts to collect but then ceased efforts due to the client's apparent lack of assets and the business's focus on other priorities. Now, in 2024, the business discovers the former client has started a successful new venture and has significant assets. The judgment from 2008 is now a dormant judgment because more than a decade has passed without any action to collect or renew it. The business cannot simply begin garnishing wages or seizing property; it must first file a motion with the court to revive the judgment, making it actively enforceable again.

• Example 2: Personal Injury Settlement

  In 2011, Maria was awarded a substantial monetary judgment in a personal injury lawsuit against a driver who caused her accident. At the time, the driver had very limited insurance coverage and few personal assets, making immediate collection difficult. Maria decided to wait, hoping the driver's financial situation would improve. In 2023, Maria learns the driver has inherited a significant sum of money. Her judgment from 2011 is now a dormant judgment because no collection efforts or legal filings to maintain its active status were made for twelve years. Before Maria can attempt to collect from the inheritance, she must petition the court to revive the judgment, restoring its legal enforceability.

• Example 3: Breach of Contract Damages

  A construction company won a judgment in 2010 against a subcontractor for damages resulting from a breach of contract. The subcontractor declared bankruptcy shortly after, and the construction company, believing the debt to be uncollectible, did not pursue further action. Years later, in 2022, the construction company learns that the subcontractor's financial situation has significantly improved, and they are now solvent. The 2010 judgment is a dormant judgment because over a decade passed without any attempts to enforce or renew it. The construction company would need to file a legal motion to revive the judgment before it could take any steps to collect the awarded damages from the subcontractor.