Legal Definitions - judgment by default

A judgment by default is a binding court decision issued against a party in a lawsuit who has failed to participate in the legal process. This typically occurs when a defendant does not respond to a formal complaint or summons within the specified time limit, or fails to appear in court when required.

When a party defaults, the court assumes the facts presented by the other side (usually the plaintiff) are true and grants a ruling in their favor without the need for a full trial. While a judgment by default is legally enforceable, the defaulting party may, under specific circumstances and within certain timeframes, petition the court to have the judgment set aside, often by demonstrating a valid reason for their failure to respond.

Examples:

• Unpaid Credit Card Debt: A credit card company sues an individual for an outstanding balance of $5,000. The individual receives the official court summons and complaint but decides to ignore it, neither filing a formal response with the court nor appearing on the scheduled court date.
  In this situation, the credit card company can ask the court for a judgment by default. The court would then issue a ruling ordering the individual to pay the $5,000 plus any applicable interest and fees, without the credit card company needing to present its full case in a trial.
• Business Contract Dispute: A small marketing agency sues a client company for $15,000 for services rendered under a contract, alleging the client failed to make the final payment. The client company's legal department receives the lawsuit but, due to an internal oversight, fails to file an "answer" (a formal response to the complaint) within the 30-day deadline set by the court.
  Because the client company did not respond to the lawsuit, the marketing agency can request a judgment by default. The court would likely grant this, legally obligating the client company to pay the $15,000 without a trial, as the client forfeited its opportunity to present a defense.
• Residential Eviction: A landlord files an eviction lawsuit against a tenant for consistently failing to pay rent. The tenant is properly served with the eviction notice and court papers, which include a date for a court hearing. However, the tenant does not appear at the hearing and does not submit any written defense to the court.
  The court would likely issue a judgment by default in favor of the landlord. This judgment would legally allow the landlord to regain possession of the property and potentially collect the unpaid rent, all because the tenant failed to participate in the legal process to defend against the eviction.