Legal Definitions - poinding

Poinding is a term used in Scots law that describes a specific legal process. It occurs when a person or entity who has won a court judgment for money owed (known as the judgment creditor) takes legal action to seize the physical, movable possessions of the person who owes the money (the debtor). The primary purpose of this seizure is to sell these items to generate funds that will then be used to pay off the outstanding debt.

Here are some examples to illustrate how poinding might apply:

• Example 1: Individual Debt
  Imagine Sarah obtained a court judgment against her former business partner, Mark, for an unpaid loan. Mark, despite the court order, refused to settle the debt. Sarah's legal team discovered that Mark owned a valuable collection of antique clocks stored in his home.

  In this scenario, Sarah, as the judgment creditor, could initiate the process of poinding. This would allow for the legal seizure of Mark's antique clocks (his corporeal movable property). These clocks would then be sold, and the proceeds from their sale would be used to satisfy the debt Mark owed to Sarah.

• Example 2: Business-to-Business Debt
  A small manufacturing company, "Widgets Inc.," failed to pay a substantial invoice to its raw material supplier, "Metals Ltd." Metals Ltd. sued Widgets Inc. and successfully obtained a court judgment for the unpaid amount. Widgets Inc. possessed several specialized machines and a fleet of delivery vans.

  Metals Ltd., as the judgment creditor, could employ poinding to seize Widgets Inc.'s manufacturing machines and delivery vans (their corporeal movable property). These assets would then be sold, and the funds generated would go towards settling the debt owed to Metals Ltd.

• Example 3: Agricultural Context
  A bank secured a court judgment against a farmer, Mr. Campbell, for defaulting on a loan used to purchase farm equipment. Mr. Campbell still owned a combine harvester and several other pieces of valuable farm machinery.

  The bank, acting as the judgment creditor, could use poinding to seize Mr. Campbell's combine harvester and other farm machinery (his corporeal movable property). These items would be sold, and the money recovered would be used to pay back the outstanding loan Mr. Campbell owed to the bank.