Default Judgment

News & Analysis as of

CW03: 3 Ways to Deal with Your Default Judgment

Did you know that over 95% of debt collection lawsuits end in a default judgment? Default judgments can wreck all kinds of havoc. Once a creditor is armed with a default judgment the creditor can do things like garnish...more

Second Circuit Affirms Certification of Consumer Debt Collection Class, Distinguishing Comcast v. Behrend

These cases, on a consolidated appeal, involved three defendants: a company that purchased consumer debts, a debt collection law firm, and a process server. Plaintiffs had each been sued in various debt collection actions by...more

Illinois Supreme Court Debates Intersection of Party Diligence and Motions to Vacate

Section 2-1401 of the Illinois Code of Civil Procedure (735 ILCS 5/2-1401) provides that a judgment may be set aside more than thirty days after its entry on petition for various reasons. So when is the apparent lack of...more

New York Court Holds Insurance Law § 3420 Inapplicable to Professional Liability Policy

In its recent decision in XL Specialty Ins. Co. v. Lakian, 2015 U.S. Dist. LEXIS 8147 (S.D.N.Y. Jan 15, 2015), the United States District Court for the Southern District of New York had occasion to consider the application of...more

How a Default Judgment is Entered in Arizona – And Strategies to Avoid It

If you have been sued by one of the big debt buyers like Midland Funding, Portfolio Recovery Associates, or Cavalry SPV the one thing you want to avoid is a default judgment. A default judgment will be entered against you if...more

Top 5 Consumer Articles in 2014!

Each year on New Year’s Eve I like to take a look back at the articles I published and which ones helped the most people. During 2014 over 85,000 people from 146 countries read the articles on my blog! It always amazes the...more

Procedural Missteps Cause Fifth Circuit to Affirm Judgment, Fee Award

M2 Tech., Inc. v. M2 Software, Inc. - In an unpublished decision, the U.S. Court of Appeals for the Fifth Circuit held that a federal district court did not abuse its discretion in issuing a default judgment and fee...more

Client Alert: Catch Me If You Can – Giorgio Is No Gingerbread Man

In Giorgio v. Synergy Management Group, LLC (2014) Case No. B248752, a California Court of Appeal held in an opinion published on November 6, 2014, that the Los Angeles County trial court did not abuse its discretion in...more

Debt Buyers Win 94.3% of Their Cases by Default Judgment – How You Can Avoid Being a Statistic

A few years back four consumer advocacy groups did a study on debt buyers’ abusive collection lawsuits in New York City. The findings were pretty shocking. Here is a handful of what they found...more

Shoddy Mobile Device Use Policy and Failure to Institute Litigation Hold Leads to Default Judgment and Hefty Sanctions (Nevada)

Small v. Univ. Med. Ctr. of S. Nev., No. 2:13-cv-00298-APG-PAL, 2014 U.S. Dist. LEXIS 114406 (D. Nev. Aug. 18, 2014). In this employment law dispute, the court appointed a special master to resolve discovery issues....more

Non-Party Costs Order Granted Against Sole Director And Shareholder

In Deutsche Bank AG v Sebastian Holdings Inc [2014] EWHC 2073 (Comm), 24 June 2014, a non-party costs order was imposed on a sole director and shareholder of a defaulting judgment debtor. The individual concerned had been...more

Insurance Recovery Law - September 2014

Pollution Exclusion Doesn’t Bar Coverage for Worker Exposed to Hazardous Chemicals That Were Not “Dispersed”: Why it matters - A federal district court in Texas strictly construed a pollution exclusion in...more

N.Y. Announces New Rules To Govern Default Judgments in Consumer Collection Lawsuits

The New York Court System has adopted new rules effective October 1, 2014, to obtain a default judgment in a consumer collection action, Chief Judge Jonathan Lippman announced recently. Debt collectors and debt buyers should...more

UGG: Default Judgment and Treble Damages Entered Against Defendant Where Defendant Failed to Participate in Discovery

Plaintiff Deckers Outdoor Corporation ("Plaintiff") alleged that Defendants Superstar International, Inc. and Sai Liu ("Defendants") produce, advertise, and sell products that infringe Plaintiff's design patents for UGG...more

What Happens If You Default in Your Divorce Proceedings?

In an interesting case, Clementi v. Clementi, Wife petitioned the court for sole ownership of the mortgage free marital home, estimated at $200,000, when her Husband failed to respond to her divorce complaint which resulted...more

Two Steps to Avoiding a Default Judgment in Your Arizona Debt Collection Lawsuit

Too often I meet with people that have either ignored the fact that have been sued by one of their creditors or even more troubling- aren’t even aware that there is lawsuit is pending against them....more

Open the Door! Why You Shouldn’t Avoid Being Served in Your Debt Collection Lawsuit

Over the years I have noticed that I revisit the topic of whether or not you should avoid the process server in your debt collection lawsuit. It is usually spurred on by a person I meet with in a consultation who had a...more

New York State Court Proposes Debt Collection Rules

Courts in New York proposed amendments to court rules aimed at “reform[ing]” consumer credit collection cases in order to “prevent unwarranted default judgments and ensure a fair legal process.” The amendments would require...more

Unsettled Questions Remain Under The SCRA

The Servicemembers Civil Relief Act (SCRA) protects active duty members of the military in civil actions, including foreclosures and collections. Section 533 of the Act applies to persons entering the military after incurring...more

Meet Illinois’ Newest Power Couple: NLRB Region 13 And Illinois DOL Enter Into Formal Cooperation Agreement; NLRB Softens Strict...

The past few weeks have brought potentially important developments for employers at both the local and national level. First, in Chicago, the Regional Director for Region 13 of the National Labor Relations Board, Peter Sung...more

Real Property, Financial Services & Title Insurance Case Law Update: Weeks Ending February 21 And 28, 2014

I. FLORIDA STATE CASES – JOURDAN HAYNES & ILAN NIEUCHOWICZ - Relation-Back: amended complaint naming third-party defendant as defendant relates back to filing of third-party complaint where (a) third-party complaint...more

Autopsy of a Debt Collection Lawsuit – How to Overturn a Default Judgment in Arizona

Autopsy of a Debt Collection LawsuitRecently I read an article that said nearly 98% of debt collection lawsuits ended up in a default judgment. A default judgment is entered with the person getting sued doesn’t respond to...more

The Perils of Not Showing Up: Default Judgment Entered Against Two Former Siemens Executives for Record US$1.46 Million in...

On February 3, 2014, Judge Shira A. Scheindlin of the U.S. District Court for the Southern District of New York issued a default judgment in U.S. Securities and Exchange Commission v. Sharef, et al. against two former Siemens...more

US China Trade War – Default Dangers, Trans Pacific Partnership In Jeopardy, Trade, Customs Antitrust And Securities

There have been some major developments in litigation, including dangers of default judgments, trade, Solar Cells, Chinese Antidumping, patents, US/Chinese antitrust, and securities areas. January was a very important...more

Illinois Supreme Court Limits Foreclosure Challenges Once Motion to Confirm Filed

This morning, the Illinois Supreme Court filed its opinion in Wells Fargo Bank, N.A. v. McCluskey, holding that once a motion to confirm a judicial sale in a foreclosure action has been filed, the generous grounds set forth...more

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