Legal Definitions - Set aside

In a legal context, to set aside means that a court officially cancels, invalidates, or annuls a previous judgment, order, or verdict. When a court sets aside a decision, it effectively nullifies the prior ruling, treating it as if it never happened or removing its legal effect. This action often occurs when a higher court finds an error in a lower court's decision, or when a trial court reconsiders certain types of its own judgments under specific circumstances.

The term can also refer to the act of reserving funds or resources for a specific future purpose, often in a financial or administrative context.

• Example 1 (Appellate Court Action):

  Imagine a small business owner is sued for breach of contract and a jury in a trial court awards a large sum of money to the opposing party. The business owner believes that the trial judge made a critical legal error during the proceedings, which unfairly influenced the jury's decision. The owner decides to appeal the verdict to a higher court.

  If the appellate court reviews the case and agrees that a significant legal error occurred, it might set aside the original judgment from the trial court. This means the trial court's order for the business owner to pay is cancelled, and the case might be sent back for a new trial or a different resolution based on the correct legal standards.

• Example 2 (Trial Court Reconsideration):

  Consider a situation where a person is sued but, due to an unexpected medical emergency, fails to respond to the lawsuit within the legally required timeframe. As a result, the court enters a "default judgment" against them, meaning the other party automatically wins without the case going to trial.

  Once the person recovers and learns of the default judgment, they can petition the trial court, explaining the extraordinary circumstances that prevented their timely response. If the court finds there was "good cause" for the delay, it may set aside the default judgment. This allows the person to now formally respond to the lawsuit and present their defense, ensuring they have their day in court.

• Example 3 (Reserving Funds):

  A large corporation is planning a major expansion project that will require significant capital investment over the next five years. To ensure the necessary funds are available and not diverted to other operational expenses, the company's board of directors decides to allocate a specific portion of its annual profits solely for this project.

  In this scenario, the corporation would set aside these funds in a dedicated account, specifically reserving them for the future expansion. This action ensures that the money is earmarked and protected for its intended purpose, rather than being used for day-to-day operations or other unforeseen costs.