Legal Definitions - executory judgment

An executory judgment is a court's final decision that requires one or more parties to perform a specific action or fulfill an obligation in the future. Unlike a declaratory judgment, which simply states the rights or legal status of parties, an executory judgment mandates active compliance. It is a judgment that can be "executed" or enforced, often through further legal processes if the obligated party fails to comply.

• Example 1: Monetary Damages

  A small business owner sues a supplier for breach of contract after receiving defective goods. The court rules in favor of the business owner and issues a judgment ordering the supplier to pay $50,000 in damages. This is an executory judgment because it requires the supplier to take the specific action of transferring money to the business owner. If the supplier fails to pay, the business owner can use the judgment to pursue enforcement actions, such as garnishing bank accounts or seizing assets.

• Example 2: Specific Performance of a Contract

  A buyer enters into a contract to purchase a unique piece of antique furniture from a seller. Before the sale is finalized, the seller attempts to back out of the deal. The buyer sues, and the court issues a judgment compelling the seller to complete the sale and transfer ownership of the furniture to the buyer as originally agreed. This is an executory judgment because it orders the seller to perform a specific action—transferring the furniture—rather than just declaring that a contract existed.

• Example 3: Injunctive Relief

  A homeowner discovers that their neighbor is building a fence that encroaches onto their property. The homeowner sues, and the court issues a judgment ordering the neighbor to remove the portion of the fence that is on the homeowner's land. This is an executory judgment because it requires the neighbor to perform a specific action—dismantling and removing part of the fence—to rectify the encroachment. Failure to comply could result in further penalties or court-ordered removal.