Frequently Asked Questions

Amount Recoverable Under a Judgment

Enforcement Period - Renewal of Judgments

Enforcement of Sister State Judgments

Default Judgments

Amount Recoverable Under A Judgment

The amount required to satisfy a money judgment is the total amount of the judgment as entered or renewed, plus costs added after judgment and accrued interest on the judgment, minus any payments or partial satisfactions or amounts no longer enforceable. [Ca Civ Pro - 695.210] The principal amount of the judgment is the amount of the judgment as entered or as last renewed, together with any costs added to the judgment, reduced by any payments or partial satisfactions or amount no longer enforceable. [Ca Civ Pro - 680.300]

The judgment creditor is entitled to recover interest on the principal amount of the judgment that remains unsatisfied. [Ca Civ Pro - 685.010(a)]

Effective January 1, 1983, the rate of interest on a money judgment is 10% per annum. [Ca Civ Pro - 685.010(a)] Interest accrues from the day the judgment is entered. [Ca Civ Pro - 685.020(a)] Where the judgment is payable in installments (e.g., support judgments), interest accrues from the date each installment becomes due unless the judgment provides otherwise. [Ca Civ Pro - 685.020(b)]

Postjudgment interest is not compounded (i.e., interest is not paid on the accrued interest) unless the judgment is renewed. When a judgment is renewed, whatever interest has accrued on the original judgment is added to and becomes part of the principal amount of the judgment. [See Comment to Ca Civ Pro - 683.110] Thereafter, interest accrues on the total amount of the renewed judgment (i.e., including the amount added as interest). In effect, the judgment creditor recovers "interest on interest".

If a judgment is partially satisfied by levying a writ or otherwise, interest ceases to accrue as to the part satisfied on the date the part is satisfied. Tender of partial payment to the judgment creditor, or deposit in court, has the same effect as actual payment. [Ca Civ Pro - 685.030(c),(d)]

Partial payments must be applied first to the accrued interest on the judgment. Partial payments reduce the principal judgment only after all accrued interest is paid.

With regard to support orders, interest accrues only on overdue installments under the initial support order, whether it is a temporary or final order and whether or not it is contained in a judgment. An order fixing arrearages under the initial support order or establishing a periodic payment plan to liquidate arrearages under the initial order is not a new installment judgment for support that itself accrues interest. [Ca Fam - 155]

The date interest ceases to accrue on a money judgment satisfied by levying writ of execution depends upon the manner in which the proceeds are collected:

• If the full amount due under the judgment is collected in a lump sum, interest ceases on the date of levy. [Ca Civ Pro - 685.030(a)(1)]
• If the judgment is satisfied pursuant to an earnings withholding order, interest ceases (i) on the date the full amount required to satisfy the order is withheld from the judgment debtor's earnings; or (ii) on the date a Ca Civ Pro - 706.028 final order for costs and interest is issued. [Ca Civ Pro - 685.030(a)(2)]
• In all other cases, interest ceases on the date the proceeds of sale or collection are actually received by the levying officer. [Ca Civ Pro - 685.030(a)(3)]
• Even though a minimal amount of interest--i.e., no more than $10 --remains uncollected (due to automation of the continual daily interest accrual calculation), a money judgment is deemed wholly satisfied when the judgment amount specified in the writ is fully collected. [Ca Civ Pro - 685.030(e)--in such event, court may enter writ in Register of Actions as "returned wholly satisfied"]

In levying a writ of execution, the levying officer must add interest at the daily interest rate shown on the writ from the date it was issued until interest ceases to accrue (above). In cases of partial satisfaction, the levying officer may, in conformity with his or her office policy, recompute the amount of daily interest accruing on the money judgment. [See Ca Civ Pro - 685.050(b)(2)]

The 10% annual interest rate applies to sister-state judgments from and after the date they are entered as California judgments (Ca Civ Pro - 1710.25(b)). Interest accrued thereon prior to the date of such entry is computed at whatever interest rate is provided under the law of the state where the judgment was rendered. [Ca Civ Pro -- 1710.15, 1710.25]

Extension of lien upon renewal of judgment: A judgment can be renewed by filing an application for renewal with the court clerk (see CCP - 683.120).If a certified copy of the renewal application is recorded in the county where the property is located before expiration of the judgment lien, the lien is thereby extended for 10 years from the date of filing of the application for renewal with the court clerk. [CCP - 683.180 ; Beneficial Financial, Inc. v. Durkee (1988) 206 CA3d 912, 916-917, 254 CR 351, 353 -even though underlying judgment timely renewed, judgment lien expired because certified copy of renewal application not recorded while lien in effect ]

Effect of property transfer before lien extended: Where property subject to a real property judgment lien has been transferred, and the transfer recorded before the judgment was renewed, then, in addition to recording a certified copy of the application for renewal, the following requirements must be met:004 A copy of the renewal application must be personally served on the transferee; and

Proof of such service must be filed with the court clerk within 90 days after filing the application for renewal. [CCP - 683.180(b) }

Recorded transfers only: The above requirements apply only where a transfer of the property was recorded prior to filing the application for renewal of the judgment (see CCP - 683.180(b) ).Thus, unless a deed or conveyance was previously recorded, the transferee need not be served; nor need proof of service be filed.

Effect of failure to serve transferee: However, the judgment lien is not extended unless the above requirements are met for a prior recorded transfer-i.e., after expiration of the original lien period, the lien cannot be asserted at all against the property! It apparently makes no difference whether the transferee is a purchaser or donee, whether in "good faith" or not! [CCP - 683.180(b)]

This creates a real trap for the unwary! The judgment creditor may not even know that the judgment debtor owned any real property, let alone that it has been transferred. This lack of knowledge will result in loss of the lien and a possible malpractice claim against creditor's counsel because, absent an agreement to the contrary, a judgment creditor generally relies on its attorney to do whatever is required to create and extend liens on whatever property is subject thereto. Confirm in writing whether the creditor wants you to request title company data on ownership and transfers and make any necessary service. If so, be sure to check title records immediately upon renewing the judgment! First, run a grantor-grantee index search in each county where your abstract of judgment (or, in appropriate circumstances, certified copy of the judgment or 42 USC - 652(a)(11) interstate lien form) is recorded to ascertain any property acquisitions or transfers by the judgment debtor. If transfers are disclosed, order copies of the conveyances to identify the named transferees (and perhaps obtain information to aid in personal service). Do all of this immediately upon renewing the judgment, because you only have 90 days after filing your application for renewal to file proofs of service on transferees.

Even if you discover a transfer, it may still be difficult to locate, serve and file proof of service on the transferees within 90 days. Often the transferees' whereabouts are unknown, or a transferee may be evasive or uncooperative. If the transferee is a corporation or other entity, you may have to locate its principal office and the proper officers or agents for service of process; and, if an authorized agent cannot be located, you may have to effect service on the Secretary of State (for which a court order is required; see CCP - 416.10(d) ). All of this may be difficult to accomplish within 90 days after renewing the judgment!(However, remember that "personal service" on the transferee can be effected in any of the ways permissible for personal service of a summons: e.g., "substitute" service, certified mail with return-receipt-requested to out-of-state parties, etc. CCP - 684.110.)

Domestication of Judgments

SK Judgment regularly domesticates judgements to enforce out-of-state (sister state) and foreign country judgements in California, as well as California judgements in other jurisdictions and/or against property in other jurisdictions. In general, this involves one of four types of litigation:

1. The domestication of sister state judgements.
2. The registration of federal judgements.
3. The domestication of foreign judgements.
4. The confirmation of foreign arbitration awards.

DOMESTICATION OF SISTER STATE MONETARY JUDGMENTS:

The federal Constitution provides that a judgment from a sister state (of the United States) is entitled to the same "full faith and credit" in every court within the United States as it has by law or usage in the court of the sister state. Thus, a sister state judgment rendered by a court with jurisdiction over the subject matter and the parties is given collateral estoppel (issue preclusion) and res judicata (claim preclusion) effect nationwide. However, procedurally, a sister state judgment is enforced in California pursuant to California law.A sister state judgment cannot be enforced in California until it is "domesticated" (or registered) in California as a California judgment in accordance with the Sister State Money-Judgements Act (the "SSMJA") or by bringing an action to establish the judgment per Code of Civil Procedure 1913.

Under the SSMJA (beginning at Code of Civil Procedure 1710.10), a money judgment obtained in another state may be filed with a California court and a California judgment is entered immediately. Once served on the judgment debtor, it becomes enforceable, and a writ of execution is generally issued.

After service of the judgment, the judgment debtor has 30 days to file and serve a motion to vacate the judgment. But the judgment may only be vacated upon certain specified and proven grounds: (1) the most common: the sister state court (that entered the judgment) lacked either subject matter or personal jurisdiction over the defendant; (2) there is an appeal of the judgment pending in the sister state; (3) the sister state court has granted a stay of enforcement, or (4) there is a motion to vacate the judgment pending in the sister state.

DOMESTICATION OF SISTER STATE NON-MONETARY JUDGMENTS:

The SSMJA is clearly more efficient to enforce sister state money judgements. But an independent civil action (i.e. a new civil filing) is the only way that a sister state non-monetary judgment may be enforced (with the exception of child custody and visitation orders, which are enforced generally under the Uniform Child Custody Jurisdiction and Enforcement Act).

Thus, separate and new lawsuits in California are required to enforce sister state non-monetary judgements. As with sister state monetary judgements, the action may only be legitimately defended upon certain specified and proven grounds: (1) the most common: the sister state court (that entered the judgment) lacked either subject matter or personal jurisdiction over the defendant; (2) there is an appeal of the judgment pending in the sister state; (3) the sister state court has granted a stay of enforcement, (4) the judgment was obtained by fraud; (5) the judgment has been satisfied; or (6) there is a motion to vacate the judgment pending in the sister state.

DOMESTICATION OF FOREIGN COUNTRY MONEY JUDGEMENTS:

Unfortunately, the United States has no reciprocal treaty with any country requiring that it recognize judgements rendered abroad. Foreign country money judgements may be enforceable in California if they meet the requirements of the requirements of the UFMJRA -- the "Uniform Foreign Money Judgements Recognition Act", codified in California, beginning at Civil Code section 1713. To do this, the creditor brings an action in California to establish a domestic judgment. But keep in mind that California courts have broad discretion to deny enforcement of foreign money judgements.

A foreign country money judgment may be recognized in California only if the judgment is final, conclusive and enforceable where rendered (even if an appeal if pending). Such a judgment is not ÒconclusiveÓ if it was rendered under a system which does not provide impartial tribunals or afford due process of law. In such a case, the California court would not permit enforcement of the judgment locally.

In addition, a foreign money judgment may not be recognized in California if the foreign court did not have personal jurisdiction over the defendants or subject matter jurisdiction over the matter. The facts in the underlying case will dictate whether the California court will exercise its discretion and grant, or deny, enforcement of the judgment.

Even if the judgment meets these requirements, the California court can exercise its discretion to deny enforcement and refuse to recognize the judgment if (1) the defendants did not have adequate notice of the proceeding, (2) the judgment was obtained by fraud, (3) the judgment violates public policy, (4) the judgment conflicts with another conclusive judgment, (5) the judgment was obtained in violation of an agreement between the parties, or (6) the foreign court was such an inconvenient forum that due process is offended.

A foreign money judgment is not enforced the same way that a sister state judgment is enforced. Rather, the creditor must literally file a new lawsuit in California, seeking to obtain a domestic judgment based upon the foreign judgment. There is generally no re-litigation of any of the underlying issues; the creditor merely asks the court to enter a judgment in California based upon the judgment that was entered in the foreign country. The debtor may not respond at all, or he may challenge the judgment on due process grounds. But either way, the court has broad discretion to grant, or deny, enforcement. In our experience, if the debtor participated in the litigation giving rise to the judgment, due process concerns are generally satisfied.

Note that absent a contrary agreement between the parties, the California court enforcing the foreign country money judgment will generally convert the foreign currency to U.S. dollars using the exchange rate in effect at the time of entry of the foreign judgment.

Also note that the action to obtain the judgment must be commenced within four years from the date that the foreign country judgment is entered.

The judgment, once registered in California, accrues interest at 10% per annum.

REGISTRATION OF FEDERAL JUDGEMENTS:

As long as enforcement has not been stayed by a judge, a final judgment for the recovery of money or property entered outside of California in any federal district court, bankruptcy court, circuit court of appeals, or in the Court of International Trade, may be enforced in California by registering it in a federal district in California. (Nonfinal federal judgements cannot be registered unless good cause is shown or upon order of the court that entered the judgment.)

To register a final federal judgment, we file locally, a certified copy of the judgment with the clerk of the court that rendered the judgment. This local clerk then enters the judgment in the local district.

Unlike a state court-issued judgment, it does not have to be served upon the debtor; and once registered in the local district, the judgment has "the same effect as a judgment of the district court of the district where registered and may be enforced in like manner." (28 USC 1963).

ENFORCEMENT OF FOREIGN ARBITRAL AWARDS:

The United States is a signatory to the Convention on Recognition and Enforcement of Foreign Arbitral Award, which mandates enforcement of arbitration agreements between citizens or entities of different countries, as well as awards in foreign arbitration proceedings, except where the arbitration agreement is Ònull, void, inoperative or incapable of being performed.Ó

Under the Convention, subject matter jurisdiction is in the federal courts, and the appropriate district in which to file is the one where the debtor resides (or where an agreement between the parties stipulates).

To enforce a foreign arbitration award, a petition to confirm the award is filed in the appropriate federal district within three years from the date of issuance of the arbitration award. If the award is not in English, a certified translation must accompany the petition. Once confirmed, the award is entered as a federal district court judgment and is enforceable just like a federal judgment.

ENFORCEMENT OF CALIFORNIA JUDGEMENTS AGAINST A DEBTOR'S PROPERTY OUTSIDE OF CALIFORNIA:

Often, a debtor may attempt to shield his/her assets by hiding them outside of California. Other than a judgment for child or spousal support, a final money judgment rendered by a California court cannot be enforced against a debtorÕs income or assets located in another state without first obtaining a judgment in that jurisdiction. This is done by ÒdomesticatingÓ the California judgment in the sister state jurisdiction (generally in a manner similar to the way in which sister state judgements are domesticated in California). Over the years, we have built up a solid and reliable network of attorneys nationwide that regularly assist us with litigation and domestication in other states.

Even without domesticating the California judgment, the California court can still validly order the debtor to apply his/her out-of-state property or income to satisfy an unpaid judgment. This is done via writ of execution (for example, to reach securities in the possession of a secured party), turnover order (for example, after examination), assignment order (for example, to obtain all or part of a stream of payments due the debtor from a third party), charging order (for example, against the debtorÕs interest in a partnership or limited liability company), or a creditorÕs suit (for example, against a third party who possesses or controls property in which the debtor has an interest).

DEFAULT JUDGMENTS:

A default judgment is obtained by the plaintiff when the defendant does not file a response to the Summons and Complaint, or does not appear at the hearing. Defaults may be set aside or vacated by the court at the request of the defendant. California law provides specific grounds on which a defendant may base a motion for relief from a default or default judgment. The defendant bears the burden of proving to the court that he or she is entitled to relief from default. The moving party also must show that they have a meritorious defense to the original case.

Grounds for relief
Time for filing
Procedure for relief from default
Forms

How to Take a Default Judgment in California State Court

1

Count 30 Days from The Date of Service of Process

Begin counting days the day after service is made. Count Saturdays and Sundays. If the 30th day falls on a weekend or holiday, the defendant has until the next court day.

2

Take The DefendantÕs Default

Do this step by filling out and filing multiple forms with the court clerk, including: CIV-100 (Request for Entry of Default) JUD-100 (Judgment) MC-030 (Declaration) MC-031 (Declaration cont) Any and all written evidence or exhibits

3

Prove-Up The Default at The Hearing

The clerk may set a hearing date to "prove-up" the default. Some courts take live testimony, others take testimony in the form of written declarations. The default clerk should know the answer for the particular judge. Be prepared to show and testify to why you are owed money.

4

Collect Your Judgment

This process requires a whole other guide. Congratulations if you won by default, now your next challenge will be collecting that judgment.

GROUNDS FOR RELIEF:

California Code of Civil Procedure sections 473(b), 476(d) and 473.5 specify the grounds on which you can base a motion for relief of default or default judgment. Permitted grounds include:

Mistake (CCP 473(b)):
A mistake of fact occurs when a person understands the facts to be other than they are. A mistake of law occurs when a person knows the facts as they are, but has a mistaken belief as to the legal consequences of those facts. Ignorance of the law or negligence in researching the law does not constitute excusable mistake, and therefore is not grounds for relief from default.

Inadvertence (CCP 473(b)):
Inadvertence stems from a lack of attentiveness, inattention, or fault from negligence. However, mere inadvertence does not warrant relief unless, on consideration of all the evidence, the inadvertence is excusable. Forgetting about the case or mislaying the summons and complaint are not sufficient grounds for relief. Inadvertence is often combined with excusable neglect.

Surprise (CCP 473(b)):
Surprise occurs when a party is placed in an injurious legal situation, through no fault or negligence of his or her own, that ordinary prudence would not have guarded against.

Excusable Neglect (CCP 473(b)):
To be excusable, the neglect must have been the act or omission of a reasonably prudent person under the circumstances.Forgetting about the lawsuit, being too busy to properly respond, or being unable to afford an attorney are not grounds for excusable neglect. Examples of excusable neglect include:

• Illness that disables the party from responding or appearing in court
• Failure to respond because you relied on your attorney to do so
• Failure to appear at trial because you relied on misinformation provided by a court officer

Party not given "actual notice" in time to defend (CCP 473.5):
If service of the summons did not result in "actual notice" to a party in time to defend their case, the default may be set aside. "Actual notice" means the party genuinely knows of the litigation. Lack of actual notice cannot be caused by the defendant's inexcusable neglect or avoidance of service.

Void judgments (CCP 473(d)):
The court may, on its own motion or the motion of either party, set aside any void judgment or order. A judgment or order may be void if the issuing court lacked subject matter jurisdiction over the action, personal jurisdiction over the defendant, if the judgment or order granted relief that the court had no power to grant, or if the judgment was procured by fraud on the court. A common way default judgments are considered void is if the judgment was obtained after improper or fraudulent service, resulting in a lack of personal jurisdiction over the defendant. There are many other ways in which a default judgment may be void. For more information, see:

• California Forms of Pleading and Practice Vol. 43, ¤ 489.132 et seq. KFC 1010 .A65
  Electronic Access: On the law library computers, using the LexisNexisCD.

TIME FOR FILING
Different time limitations apply depending on the ground(s) you will be claiming. Motions must be filed:

• Within 6 months after entry of default on grounds of mistake, inadvertence, surprise or excusable neglect
• Within 2 years of the default judgment if service did not result in actual notice in time to defend
• Within 180 days if you are served notice of the entry of default judgment, but had no actual notice in time to defend the original case
• At any time after a void judgment is granted, if the motion is made within a reasonable time. For a default judgment, this may be a reasonable time after the discovery of the existence of the judgment or order.

PROCEDURE FOR RELIEF FROM DEFAULT (other than relief based on Void Judgments under (CCP 473(d))

• Prepare a Notice of Motion to Set Aside Default and Default Judgment
• Prepare a Supporting Declaration or Affidavit that states facts showing that the default and default judgment were the result of the moving party's mistake, inadvertence, surprise, or excusable neglect
• Prepare a Memorandum of Points and Authorities
• Prepare a proposed responsive pleading (e.g., Answer or Demurrer) to the original Summons and Complaint, to show the court that you have a meritorious defense to the original case
• File and serve your Notice of Motion and other support papers, as well as your proposed responsive pleading.

PROCEDURE FOR RELIEF FROM VOID JUDGMENT UNDER CCP 473(d)

• Prepare a Notice of Motion and Motion to Set Aside Void Default and Default Judgment
• Prepare Supporting Declarations or Affidavits that provide evidence that the judgment or order is invalid.
• Prepare a Memorandum of Points and Authorities
• File and serve your Notice of Motion and other support papers on all other parties.

FORMS
The forms must be typed on pleading paper, which has numbers down the left side. Pleading paper is available at the Reference Desk, or can be automatically generated using Microsoft Word (instructions are available here). See California Rules of Court, Rule 2.100-2.119, for the required format for your papers.

The resources listed below provide examples of the documents you'll need to prepare. There are different examples for each of the grounds discussed above. You will need to select the sample(s) that fit your situation.

Samples of a "Notice of Motion to Set Aside Default and Default Judgment" and "Supporting Affidavits or Declarations" are available from these resources:

California Civil Procedure Before Trial Vol. 2, Chap. 38. KFC 995 .C34
Electronic Access: On the law library computers, using OnLaw.

California Civil Practice: Procedure Vol. 4, Chap. 29. KFC995 .A65
Electronic Access: On the law library computers, using Westlaw.

California Forms of Pleading and Practice Vol. 43, Chap. 489. KFC 1010 .A65 C3
Electronic Access: On the law library computers, using the LexisNexisCD.

California Pretrial Civil Procedure Vol. 3, Chap. 36. KFC995 .M38
Electronic Access: On the law library computers, using the LexisNexisCD.

For samples of a "Memorandum of Points and Authorities," see:

California Points and Authorities Vol. 7, Chap. 70. KFC 1010 .B4
Electronic Access: On the law library computers, using the LexisNexisCD.

The type of responsive pleading you file will depend on how you wish to handle the original case against you. Basic overviews of the different types of responsive pleadings are available:

Online at http://www.scselfservice.org/civ/general/defendant.htm

Win Your Lawsuit Chap. 8. KFC 968 .Z9 D86
Electronic Access: On the law library computers, using NetLibrary.

In-depth discussions of the options and samples of the forms are available from these resources:

California Civil Procedure Before Trial KFC 995 .C34
Electronic Access: On the law library computers, using OnLaw.

California Civil Practice: Procedure KFC 995 .A65
Electronic Access: On the law library computers, using Westlaw.

California Pretrial Civil Procedure KFC 995 .M38
Electronic Access: On the law library computers, using the LexisNexisCD.

California Practice Guide: Civil Procedure Before TrialKFC 995 .W95
Electronic Access: On the law library computers, using Westlaw.

Litigation by the Numbers KFC 995 .G67

California Forms of Pleading and Practice KFC 1010 .A65
Electronic Access: On the law library computers, using the LexisNexisCD.

Win Your Lawsuit KFC968 .Z9 D86
Electronic Access: On the law library computers, using NetLibrary.

For more details of the law and procedure, see:

California Civil Procedure Before Trial Vol. 2, Chap. 38. KFC 995 .C34
Electronic Access: On the law library computers, using OnLaw.

California Practice Guide: Civil Procedure Before Trial Vol. 1 Chap. 5. KFC 995 .W4
Electronic Access: On the law library computers, using Westlaw.

California Forms of Pleading and Practice Vol. 43, Chap. 489. KFC 1010 .A65 C3
Electronic Access: On the law library computers, using the LexisNexisCD.

California Civil Practice: Procedure Vol. 4, Chap. 29. KFC 995 .A65

California Pretrial Civil Procedure Vol. 3, Chap. 36. KFC 995 .M38
Electronic Access: On the law library computers, using the LexisNexisCD.