Legal Definitions - personal judgment

A personal judgment (also known as an in personam judgment) is a court's official decision that holds a specific individual or entity directly responsible for a debt, obligation, or damages. This type of judgment establishes that the losing party (the judgment debtor) is personally liable, meaning their assets can be pursued to satisfy the judgment awarded to the winning party (the judgment creditor). It creates a direct, enforceable obligation against the person or entity, rather than just against a piece of property.

• Example 1: Breach of Contract

  Imagine a freelance graphic designer enters into a contract with a client to create a new company logo and branding materials. The designer completes the work, but the client refuses to pay the agreed-upon fee, claiming dissatisfaction without valid contractual grounds. The designer sues the client for non-payment. If the court rules in favor of the designer, it will issue a personal judgment against the client. This means the client, as an individual or business entity, is personally obligated to pay the outstanding fee, and the designer can use legal methods to collect the money from the client's assets.

• Example 2: Negligence in a Slip-and-Fall Case

  A shopper slips and falls on a wet floor in a grocery store that had no warning signs, sustaining a serious injury. The shopper sues the grocery store for negligence. If the court determines that the grocery store was negligent and responsible for the shopper's injuries, it will issue a personal judgment against the grocery store corporation. This judgment makes the corporation directly liable for the shopper's medical bills, lost wages, and pain and suffering, allowing the shopper to pursue collection from the store's corporate assets.

• Example 3: Unpaid Credit Card Debt

  An individual accumulates a significant balance on a credit card and, due to financial hardship, stops making payments. After several months, the credit card company sues the individual to recover the outstanding debt. If the court finds the individual owes the money, it will issue a personal judgment against them. This judgment legally obligates the individual to repay the debt, and the credit card company can then take steps like garnishing wages or placing liens on property to collect the money from the individual's personal finances.