Legal Definitions - money judgment

A money judgment is a formal decision issued by a court that legally obligates one party to pay a specific sum of money to another party. This type of judgment establishes a debt owed by the losing party (the debtor) to the winning party (the creditor) and can be enforced through various legal means if payment is not made voluntarily.

• Example 1: Breach of Contract
  A small business owner hired a contractor to renovate their office space. The contractor, however, abandoned the project halfway through, leaving the office unfinished and causing the business owner significant financial losses due to delays and the need to hire another contractor. The business owner sued the original contractor for breach of contract. The court ruled in favor of the business owner, ordering the contractor to pay a specific amount to cover the costs of completing the renovation and the lost business revenue. This court order is a money judgment because it legally compels the contractor to pay a defined sum of money to compensate the business owner for their financial damages.

• Example 2: Personal Injury Claim
  After being injured in a car accident caused by another driver's negligence, an individual filed a lawsuit seeking compensation for their medical bills, lost wages, and pain and suffering. Following a trial, the jury awarded the injured party a specific dollar amount to cover these damages. The court then issued an official order for the at-fault driver to pay this sum to the injured person. This constitutes a money judgment because the court has determined that the at-fault driver must pay a specific monetary amount to the injured party as compensation for their injuries and losses.

• Example 3: Unpaid Debt Recovery
  A bank provided a loan to an individual, but the individual subsequently defaulted on the payments and refused to repay the outstanding balance. The bank initiated a lawsuit to recover the money owed. The court reviewed the evidence and ruled in favor of the bank, issuing an order that the individual must pay back the principal amount of the loan, along with accrued interest and any applicable legal fees. This court order is a money judgment as it legally mandates the individual to pay a defined sum of money to the bank to satisfy the outstanding debt.