Define: Excess Judgement

Excess Judgement
Excess Judgement
Quick Summary of Excess Judgement

Excess judgement refers to a scenario in insurance where the court’s ruling against a defendant surpasses the available insurance coverage. Consequently, the defendant may have to personally bear the burden of paying the surplus amount. For instance, if a defendant has $100,000 in insurance coverage and the court grants $150,000 to the plaintiff, the defendant may be held accountable for the additional $50,000 from their own funds.

Full Definition Of Excess Judgement

The court has made a final decision regarding the rights and responsibilities of the parties involved in a case that surpasses the defendant’s insurance coverage. For instance, in a car accident lawsuit, the plaintiff has been granted $500.

Excess Judgement FAQ'S

An excess judgment occurs when a court awards damages to a plaintiff that exceed the limits of the defendant’s insurance coverage or financial resources.

Yes, if you are personally named in a lawsuit and the judgment exceeds your insurance coverage or assets, you may be responsible for paying the excess amount.

You can protect yourself by obtaining adequate insurance coverage, creating a legal entity such as a corporation or LLC to shield your personal assets, and implementing risk management strategies.

If you cannot pay an excess judgment, the plaintiff may seek to enforce the judgment through wage garnishment, bank account levies, or liens on your property.

Yes, you can negotiate a settlement with the plaintiff to avoid an excess judgment. This may involve paying a lump sum or agreeing to a structured payment plan.

Yes, you can appeal an excess judgment if you believe there were errors in the legal process or the amount of damages awarded.

An excess judgment can negatively impact your credit if it leads to wage garnishment, bank account levies, or liens on your property.

In some cases, an excess judgment may be dischargeable in bankruptcy, but there are specific criteria that must be met.

Yes, you can purchase umbrella insurance or excess liability insurance to provide additional coverage beyond the limits of your primary insurance policies.

Yes, it is advisable to consult with a lawyer who specializes in asset protection and liability management to explore your options and develop a strategy for addressing an excess judgment.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 6th June 2024.

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