If you were harmed due to another person’s negligence, you have costs associated with that harm, like past medical bills, lost wages, and future medical treatment costs. In addition to hard costs, you are likely also owed compensation for intangible damages such as pain and suffering, loss of enjoyment of life, and loss of consortium.
When you are owed compensation due to someone else’s negligence, there are a few ways in which you can attempt to secure it. The most common method to do so would be to file a lawsuit against the person or entity that caused you harm in an effort to reach a settlement or receive a verdict through a jury trial. However, most people do not know that there are other methods available to you outside of trial and settlement that allow you to secure compensation for your injuries.
For the purposes of this blog, we will focus on confessions of judgment and stipulated judgments so that you can decide if either of those methods may be the right choice for your legal matter.
A stipulated judgment is a court order that requires the defendant to pay the plaintiff a set amount of money either as a lump sum or in the form of scheduled payments. In addition to payment, the defendant also waives the right to assert any defense against the entry of the judgment.
In exchange for the defendant agreeing to pay the plaintiff, the pending lawsuit is dropped. A stipulated judgment may be a defendant’s best choice if they are aware that their chances of success in litigation are low. By agreeing to a stipulated judgment, the defendant may be able to negotiate a lesser payment and avoid racking up more costly court and attorney’s fees. If the defendant fails to make the payments or lump sum agreed upon, the plaintiff can enter the judgment with the court, execute on the judgment, and proceed with all remedies available under the law to collect what they are owed.
It is important to note that stipulated judgments do not guard against bankruptcy unless explicitly stated. If a plaintiff would like to ensure that payment is received regardless of bankruptcy, their attorney must include language in the stipulation stating that the amount owed is not dischargeable in bankruptcy.
Confessions of Judgment
Confessions of judgment are similar to stipulated judgments in that they are both arrangements in which the parties involved agree that money is owed and agree to a payment plan or lump sum payment to satisfy the debt. The key difference between the two is that a confession of judgment can be entered when no actions have been commenced in court, meaning there is no pending lawsuit regarding the matter. A confession of judgment is a defendant’s private admission to liability where no case has been filed but the defendant agrees to let the plaintiff enter a judgment against them. This can be advantageous for both parties as they avoid court and attorney’s fees and the defendant can keep the debt off-record if they follow the provisions of the agreement.
Once a defendant makes all agreed-upon payments, the plaintiff must return the unfiled confession of judgment to the defendant and the matter is considered resolved. If the defendant fails to make the agreed-upon payments or lump sum payment, the plaintiff can then enter the confession of judgment in court and use all tools available to immediately collect any money they are owed.
The Law Office of Eglet Adams
The law office of Eglet Adams, one of the most successful and well-respected personal injury law firms in the State of Nevada, has obtained more multimillion-dollar verdicts than any other law firm in the state. This includes the largest personal injury verdict in America in 2010 ($505 million), as well as the largest personal injury verdict in America in 2013 ($524 million) and the fourth-largest personal injury verdict in America in 2011 ($186.2 million).
Our firm has been recognized nationally, locally, and by peers with numerous awards and accomplishments throughout our years of law practice. Eglet Adams has routinely been named one of the Most Influential Plaintiff Law Firms in the United States by the National Law Journal and was selected for the 2014 Plaintiffs’ Hot List, an annual recognition of the top plaintiffs’ law firms in the country. In 2018, Senior Partner Robert Eglet was inducted into the Inner Circle of Advocates, an invitation-only organization whose membership is limited to the 100 best Plaintiff trial lawyers in the United States.
Eglet Adams represents all personal injury matters, including car accidents, defective products, wrongful death, catastrophic injury, and mass torts. At Eglet Adams, we want our clients to feel protected and confident as we fight for their interests. We care for each person we represent, providing the highest level of service possible. We are committed to honesty and never exaggerate or discount the possibility of success. By helping clients anticipate the results of legal action, we help them understand what to expect throughout the legal process and after their cases are resolved.
If you want to ensure that your case has every opportunity to achieve maximum compensation for your injuries, you need Eglet Adams to represent you. Complete a contact form or call our office at (702) 450-5400 or (800) 450-5406 toll-free to arrange a free initial consultation to discuss your case with an attorney.