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How can I remove a default judgment against my business?

On Behalf of | May 20, 2024 | Business Lawsuits & Disputes |

Due process is a fundamental aspect of any civil law case. All parties (the plaintiff and defendant) have a right to be heard. This helps the court establish liability and rule in terms of a resolution that makes the plaintiff whole again. 

Nonetheless, there are time limits on most civil proceedings, and the defendant is expected to respond promptly. If this does not happen, then the court may opt to settle the case via a default judgment. 

If your business has a default judgment against it, can this be removed? 

Did you receive the relevant information?  

Firstly, you need to gather as much information about the claim against you as possible. What types of letters did you receive? Did you receive any letters at all? 

Sometimes, a plaintiff can get key details wrong. For instance, they may have filed a lawsuit against the wrong company or had the information sent to the wrong address. If you were never served with a valid lawsuit then this could be grounds to contest the default judgment

Challenge the judgment 

If you did receive valid correspondence from the plaintiff, you may still be able to challenge the judgment. For example, if you had a legitimate reason for not responding, such as being seriously ill or being out of the country for an extended period. 

If you do not wish to challenge the judgment entirely, you may also be able to settle for a lesser amount. Settling is one of the most common ways to settle a default judgment because it is seen as a win-win for all parties. 

You also have the option to accept the terms of the judgment in full. This will show the court that the judgment has been satisfied, meaning that it will be removed from your business. 

The best way to remove a default judgment against your business will depend on your unique circumstances. Before making any moves, it is in your best interests to seek legal guidance. We help businesses to remove default judgments against them, contact us today for a consultation.